Risks Related to Product Defects and Quality Assurance Costs
First written in FY2016. 9 of 18 entries say "Worsened", first in FY2022-Q3. Latest entry: 2026-08-06.
The whole theme swung hardest in 2026: 11 of 56 companies on the "Worse" side.
- 2026-08-06WorsenedEarnings
「Provision for product warranties 43 75」
The provision for product warranties increased from ¥43 million at the end of the previous fiscal year to ¥75 million. - FY2026WorsenedAnnual report
「Product warranty provision 30 43」
The product warranty provision increased from ¥30 million at the end of the previous fiscal year to ¥43 million, expanding the exposure related to quality assurance costs. - 2026-05-14WorsenedRevision to the earnings forecast
「Provision for product warranties 30 43」
The provision for product warranties increased from ¥30 million at the end of the previous fiscal year to ¥43 million at the end of the current fiscal year, increasing the provision balance for quality assurance costs. - FY2026-H1WorsenedAnnual report
「Product warranty provision 30 41」
The product warranty provision increased from ¥30 million at the end of the previous fiscal year to ¥41 million at the end of the interim period under review, increasing the provision balance for quality assurance costs. - FY2025MitigatedAnnual report
「Product warranty provision 80 30」
The product warranty provision decreased from ¥80 million at the end of the previous fiscal year to ¥30 million at the end of the current fiscal year, reducing the provision balance for quality assurance costs. - FY2025-H1WorsenedAnnual report
「Product warranty provision 80 103」
The product warranty provision increased from ¥80 million at the end of the previous fiscal year to ¥103 million at the end of the interim period under review, increasing the provision balance for quality assurance costs. - FY2024-Q3WorsenedAnnual report
「Product warranty provision 79 80」
The product warranty provision edged up from ¥79 million at the end of the previous fiscal year to ¥80 million at the end of the third quarter under review, resulting in a slight increase in the provision balance for quality assurance costs. - FY2023-Q3WorsenedAnnual report
「Product warranty provision 36 63」
The product warranty provision increased from ¥36 million at the end of the previous fiscal year to ¥63 million at the end of the third quarter under review, increasing the provision balance for quality assurance costs. - FY2023-Q2WorsenedAnnual report
「Product warranty provision 36 85」
The product warranty provision increased from ¥36 million at the end of the previous fiscal year to ¥85 million at the end of the second quarter under review, increasing the provision balance for quality assurance costs. - FY2023-Q1MitigatedAnnual report
「Product warranty provision 36 34」
The product warranty provision decreased from ¥36 million at the end of the previous fiscal year to ¥34 million at the end of the first quarter under review, resulting in a slight reduction in the provision balance for quality assurance costs. - FY2022MitigatedAnnual report
「Product warranty provision 38 36」
The product warranty provision decreased from ¥38 million at the end of the previous fiscal year to ¥36 million. The provision balance for quality assurance costs, which increased in the previous fiscal year, narrowed slightly for the full year. - FY2022-Q3WorsenedAnnual report
「Product warranty provision 38 137」
The product warranty provision increased from ¥38 million at the end of the previous consolidated fiscal year to ¥137 million at the end of the third quarter under review, indicating an increase in the provision balance for quality assurance costs. - FY2021MitigatedAnnual report
「To mitigate these risks, the Group has established systems and procedures compliant with IATF16949 (the international quality management system standard for the automotive industry), as well as a monitoring framework under which internal audits of its quality management system are conducted regularly. Pre-shipment product inspections are performed by internally certified inspectors, and processes involving safety-critical components are handled by internally certified operators.」
The company identifies compliance with IATF16949, regular internal audits, and inspections and process controls by certified inspectors and operators as specific measures to reduce quality risks. - FY2021-Q3MitigatedAnnual report
「Compensation payments 301 －」
No compensation expenses were recorded in the consolidated nine-month period under review, down from ¥301 million in the same period of the previous year. The impact of quality assurance costs on earnings during the period has diminished. - FY2020MaterialisedAnnual report
「Non-operating income and expenses amounted to a loss of ¥317 million, compared with income of ¥46 million in the same period of the previous year. The main factor was an increase in compensation payments related to product quality assurance.」
Increased compensation payments related to product quality assurance affected actual earnings through higher quality-assurance costs. - FY2019RestatedAnnual report
「The Group performs adequate quality control in accordance with IATF16949, but product defects may occur. Such defects could have a significant impact on costs and the Group's reputation, potentially reducing sales and adversely affecting the Group's operating performance and financial position.」
The quality-control standard was updated to ISO/IATF16949. While quality control continues, the potential effects of product defects continue to be reported. - FY2018RestatedAnnual report
「The Group performs adequate quality control in accordance with ISO/IATF16949, but product defects may occur.」
While quality control based on the applicable quality standards continues, the potential effects of product defects on costs, reputation, and sales continue to be reported. - FY2016First statedAnnual report
「The Group performs adequate quality control in accordance with ISO/TS16949, but product defects may occur. Such defects could have a significant impact on costs and the Group's reputation, potentially reducing sales and adversely affecting the Group's operating performance and financial position.」
While quality control is in place, the potential effects of product defects on costs, reputation, and sales are identified.