Dependence on PHC/WEMEX-related transactions
First written in FY2023. 3 of 8 entries say "Materialised", first in FY2024-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2026: 39 of 122 companies on the "Worse" side.
- FY2026SoftenedAnnual report
「Clinics, dispensing pharmacies and other customers using products manufactured by both companies accounted for 57.3% of revenue in the maintenance services business for the current fiscal year. Purchases from both companies accounted for 32.3% of procurement in that business. The Company also provides services to both companies through its solutions and personnel services businesses, and sales to PHC Corporation and WEMEX Corporation accounted for 16.0% of total revenue for the current fiscal year.」
The proportion of maintenance services revenue related to products from both companies declined to 57.3%, while the procurement ratio declined to 32.3%. The Company newly disclosed that sales to both companies accounted for 16.0% of total revenue, indicating its dependence across multiple businesses. - FY2026-H1RestatedAnnual report
「In maintenance services, when existing customers replace their equipment, the transition from a model in which the Company and the customer directly enter into a Medicom hardware maintenance contract to a system support contract model, in which the customer and vendor enter into a hardware maintenance contract and the Company receives maintenance fees from the vendor, has continued during the interim accounting period.」
The Company explains that the transition to the WEMEX-related contract model continued during the interim accounting period. - FY2025SoftenedAnnual report
「Clinics, dispensing pharmacies and other customers using products manufactured by both companies accounted for 59.3% of revenue in the maintenance services business for the current fiscal year. Purchases from both companies accounted for 37.6% of procurement in that business.」
The proportion of maintenance services revenue related to products from both companies declined from 61.7% to 59.3%, while the procurement ratio declined from 41.5% to 37.6%. PHC Corporation sold all of its shares and ceased to be a major shareholder, but the business relationship continues. - FY2024RestatedAnnual report
「Clinics, dispensing pharmacies and other customers using products manufactured by both companies accounted for 61.7% of revenue in the maintenance services business for the current fiscal year. Purchases from both companies accounted for 41.5% of procurement in that business.」
The Company continues to disclose its dependence on transactions related to PHC and WEMEX as a major risk and has updated the percentages of revenue and procurement dependent on them. - FY2024-Q3MaterialisedAnnual report
「In maintenance services, when existing customers replace their equipment, the transition from a model in which the Company and the customer directly enter into a Medicom hardware maintenance contract to a system support contract model, in which the customer and WEMEX Corporation enter into a maintenance contract and the Company performs hardware maintenance services on behalf of WEMEX Corporation and receives maintenance fees, continued during the third quarter. As a result, reported revenue has been declining. On the other hand, this contract model is encouraging customers that previously had no contract to enter into one, resulting in an increase in the number of contracts and profit.」
The transition to the contract model with WEMEX Corporation continued in the third quarter. While the decline in reported revenue continued, the number of contracts and profit increased. - FY2024-Q2MaterialisedAnnual report
「In maintenance services, when existing customers replace their equipment, the transition from a model in which the Company and the customer directly enter into a Medicom hardware maintenance contract to a system support contract model, in which the customer and vendor enter into a hardware maintenance contract and the Company receives maintenance fees from the vendor, continued during the second quarter. As a result, reported revenue has been declining.」
The transition to the WEMEX-related contract model continued in the second quarter, and the decline in reported revenue has continued. At the same time, the Company explains that the number of contracts and profit have been increasing. - FY2024-Q1MaterialisedAnnual report
「In maintenance services, when existing customers replace their equipment, the transition from a model in which the Company and the customer directly enter into a Medicom hardware maintenance contract to a system support contract model, in which the customer and vendor enter into a hardware maintenance contract and the Company receives maintenance fees from the vendor, continued during the cumulative first quarter. As a result, reported revenue has been declining. On the other hand, this contract model is encouraging customers that previously had no contract to enter into one, and the number of contracts is therefore increasing.」
The transition to the WEMEX-related contract model has progressed, resulting in an actual decline in reported revenue, while the number of contracts has been increasing. - FY2023First statedAnnual report
「Clinics, dispensing pharmacies and other customers using products manufactured by PHC Corporation and its affiliates accounted for 65.5% of revenue in the maintenance services business for the current fiscal year. Purchases from PHC Corporation and its affiliates accounted for 46.5% of procurement in that business.」
The Company has disclosed the possibility that deterioration in business relationships or changes to contracts could reduce revenue and profit as a risk.