Decline in Chinese Construction Machinery Demand and Impairment of the HC Business
First written in FY2016. 11 of 17 entries say "Mitigated", first in FY2017-Q3. Latest entry: 2026-08-06.
0 other companies' latest entry also says "Mitigated".
- 2026-08-06MitigatedEarnings
「Industrial hydraulic equipment, primarily for construction machinery, benefited from increased demand in Europe, the United States, and China, with revenue increasing 4.9% year on year to ¥28.7 billion.」
Regarding the downturn in Chinese construction machinery demand and its impact on the HC business, the disclosure records higher revenue for industrial hydraulic equipment due to increased demand in Europe, the United States, and China. - FY2026MitigatedAnnual report
「Industrial hydraulic equipment, primarily for construction machinery, benefited from relatively solid exports of construction machinery, mainly to Europe and the United States. Revenue therefore increased 5.8% year on year to ¥112.6 billion.」
Regarding HC demand, which had deteriorated due to the decline in Chinese demand and sluggish demand in Europe and the United States, exports mainly to Europe and the United States remained relatively firm, resulting in a 5.8% year-on-year increase in sales of industrial hydraulic equipment. - FY2026-H1MitigatedAnnual report
「Sales of industrial hydraulic equipment, primarily for construction equipment, benefited from relatively firm exports of construction equipment, mainly to Europe and the United States. Revenue was ¥55.5 billion, an increase of 2.1% from the previous interim consolidated accounting period.」
Regarding construction equipment demand, exports mainly to Europe and the United States remained relatively firm, resulting in a 2.1% year-on-year increase in sales of industrial hydraulic equipment. - FY2025-H1WorsenedAnnual report
「Sales of industrial hydraulic equipment, primarily for construction equipment, were affected by the continued sharp decline in construction equipment demand in China and sluggish demand in Europe and the United States. Revenue was ¥54.4 billion, a decrease of 15.3% from the previous interim consolidated accounting period.」
The sharp decline in Chinese construction equipment demand continued, and sluggish demand in Europe and the United States also affected sales, resulting in a 15.3% decrease in revenue from industrial hydraulic equipment. - FY2024WorsenedAnnual report
「Sales of industrial hydraulic equipment, primarily for construction equipment, were significantly affected by declining demand in China, a key market. Revenue was ¥124.5 billion, a decrease of 4.4% from the previous consolidated fiscal year.」
Compared with the previous period, when the disclosure cited a recovery in Chinese construction equipment demand, conditions deteriorated as declining Chinese demand resulted in a 4.4% decrease in sales of industrial hydraulic equipment, while the HC business recorded a 2.5% decline in revenue and a ¥2.1 billion decrease in operating profit. - FY2022MitigatedAnnual report
「Sales of industrial hydraulic equipment, primarily for construction equipment, recovered from the stagnation in economic activity caused by the spread of COVID-19. Revenue was ¥128.7 billion, an increase of 23.8% from the previous consolidated fiscal year.」
Regarding HC demand, which had deteriorated again after the decline in Chinese construction equipment demand, the disclosure cites a 23.8% increase in sales of industrial hydraulic equipment, indicating a recovery in the demand environment. - FY2020-Q3WorsenedAnnual report
「Demand in the construction equipment market recovered sharply from 2017, particularly in China, and was expected to continue growing in 2019. However, medium-sized excavators entered a phase of extreme production adjustments due to excess inventories held by manufacturers.」
The disclosure states that, contrary to expectations for a recovery in construction equipment demand, particularly in China, medium-sized excavators entered a phase of extreme production adjustments due to excess inventories held by manufacturers. - FY2020-Q2WorsenedAnnual report
「The group's revenue was ¥197.6 billion, a decrease of ¥5.2 billion from the cumulative second quarter of the previous fiscal year, due to the foreign exchange impact of the stronger yen and the downturn in the Chinese market associated with US-China trade friction.」
Compared with the previous year, when the disclosure cited favourable conditions in the Chinese market and a recovery in profitability, the downturn in the Chinese market associated with US-China trade friction has emerged as a factor behind lower revenue, indicating that conditions surrounding Chinese construction equipment demand have deteriorated. - FY2019MitigatedAnnual report
「In the past, the carrying amount was reduced to the recoverable amount based on value in use because the business environment had deteriorated due to the downturn in China's construction equipment market. However, as profitability recovered due to the favourable demand environment in the Chinese market in recent years, the recoverable amount was measured using value in use and a reversal of the impairment loss was recognised.」
Regarding the past impairment associated with the decline in Chinese demand, a reversal of an impairment loss of ¥1.736 billion was recognised following the recovery in profitability. - FY2019-Q3MitigatedAnnual report
「The group's revenue for the cumulative third quarter under review was ¥306.9 billion, an increase of ¥17.8 billion from the cumulative third quarter of the previous fiscal year, due to increased demand in the Japanese and Chinese construction equipment markets and other factors.」
The disclosure cites increased demand and higher revenue in the Japanese and Chinese construction equipment markets, indicating that the recovery trend following the decline in Chinese demand is continuing. - FY2019-Q1MitigatedAnnual report
「Demand for hydraulic equipment for construction equipment increased, resulting in revenue of ¥102.1 billion, an increase of ¥8.4 billion from the cumulative first quarter of the previous fiscal year.」
The disclosure cites increased demand and higher revenue for hydraulic equipment for construction equipment, indicating that the recovery trend following the decline in Chinese demand is continuing. - FY2018-Q3MitigatedAnnual report
「The group's revenue for the cumulative third quarter under review was ¥288.3 billion, an increase of ¥27.3 billion from the cumulative third quarter of the previous fiscal year, reflecting the recovery in demand for construction equipment hydraulic equipment for the Chinese market.」
The disclosure cites a recovery in demand for hydraulic equipment for construction equipment in the Chinese market and higher revenue, continuing to indicate improvement from the decline in Chinese demand recorded in the previous fiscal year. However, it does not state that past impairment losses have been eliminated. - FY2017MitigatedAnnual report
「In the construction equipment market, demand increased in Japan due to compliance with emissions regulations, while demand in China recovered overseas.」
The disclosure cites a recovery in Chinese construction equipment demand, indicating an improvement from the risk conditions following the decline in Chinese demand and the HC impairment recognised in the previous fiscal year. However, it does not state that past impairment losses have been eliminated. - FY2017-Q3MitigatedAnnual report
「Sales of automotive products remained firm, and sales of hydraulic equipment for construction equipment also increased, led by sales to the Chinese market.」
The disclosure cites an increase in sales of hydraulic equipment for construction equipment, including in the Chinese market, indicating some improvement from the previously reported decline in Chinese demand. However, it does not state that past impairment losses or risks have been eliminated. - FY2016MaterialisedAnnual report
「As construction equipment demand in China declined sharply and demand in emerging markets also remained sluggish, sales of industrial hydraulic equipment by the group fell substantially. An impairment loss of RMB184 million (approximately ¥3.4 billion) related to profitability was recognised at the Chinese subsidiary manufacturing these products.」
The decline in Chinese demand has materialised as lower sales of industrial hydraulic equipment and an impairment loss at the Chinese manufacturing subsidiary.