Voluntary Recall of Defective Products and Product Compensation Costs
First written in FY2022-Q3. 5 of 11 entries say "Mitigated", first in FY2024-Q3. Latest entry: 2026-10-13.
Hks moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2024: 3 of 6 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- 2026-10-13MitigatedRevision of earnings forecasts
「Provision for product warranties 8,683 —」
The provision for product warranties on the consolidated balance sheet decreased from ¥8.683 million in the previous fiscal year to nil in the current fiscal year. - FY2025MitigatedAnnual report
「Net income attributable to owners of the parent was ¥361 million, up 3.9% year on year, mainly due to the recognition of a ¥57 million reversal gain on the product warranty provision and other items under extraordinary income.」
A ¥57 million reversal gain on the product warranty provision was recognized, and the balance of the provision decreased from ¥66.920 million at the end of the previous fiscal year to ¥8.683 million. - FY2025-H1MitigatedAnnual report
「Product warranty provision 66,920 66,559」
The balance of the product warranty provision was ¥66.559 million, down from ¥66.920 million at the end of the previous fiscal year. - FY2024MitigatedAnnual report
「The reversal gain on the product warranty provision and the absence of product warranty costs recognized as an extraordinary loss in the previous fiscal year,」
No product warranty costs incurred in the previous fiscal year were recognized in the current fiscal year, while a reversal gain of ¥34.764 million on the product warranty provision was recorded. The balance of the product warranty provision also decreased from ¥103.210 million to ¥66.920 million. - FY2024-Q3MitigatedAnnual report
「The factors behind the smaller declines in ordinary profit and quarterly net income attributable to owners of the parent than in operating profit included an increase in foreign exchange gains under non-operating income and expenses, and the recognition of reversal gains on the product warranty provision under extraordinary income and expenses.」
A reversal gain of ¥34.764 million on the product warranty provision was recognized, and the balance of the provision decreased from ¥103.210 million to ¥67.269 million. A reduction in the provision related to the quality issue was documented. - FY2024-Q1RestatedAnnual report
「During the current first-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
No material changes were identified in the previously disclosed risk relating to the voluntary recall of defective products and product warranty costs. - FY2023MaterialisedAnnual report
「In the consolidated fiscal year, product warranty costs included ¥43.736 million in provision for product warranty.」
Product warranty costs of ¥43.736 million related to the voluntary recall of defective products were recognized for the full year, and the balance of the product warranty provision was ¥103.210 million. - FY2023-Q3RestatedAnnual report
「During the current third-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
No material changes were identified in the previously disclosed risk relating to the voluntary recall of defective products and product warranty costs. - FY2023-Q2RestatedAnnual report
「During the current second-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
No material changes were identified in the previously disclosed risk relating to the voluntary recall of defective products and product warranty costs. - FY2022MaterialisedAnnual report
「Product warranty costs include ¥70.369 million in provision for product warranty.」
In connection with the voluntary recall of defective products, product warranty costs of ¥81.740 million and a product warranty provision of ¥70.369 million were recognized. The quality issue became more concrete on a full-year basis. - FY2022-Q3First statedAnnual report
「Although factors reducing profit included product compensation expenses recognized in connection with the voluntary recall of products affected by quality defects,」
A voluntary recall of defective products occurred, and product warranty costs of ¥81.740 million were recognized as an extraordinary loss. The occurrence of a specific quality issue was documented for the first time against the existing quality assurance targets.