Risk of reliance on imported bicycles and deteriorating profitability in domestic rim production
First written in FY2016. 16 of 35 entries say "Worsened", first in FY2018. Latest entry: FY2026.
Araya Industrial moved to the "Worse" side of this theme in 2018.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In the bicycle-related business, we withdrew from the completed bicycle sales business in December 2025. In the previous fiscal year, substantial losses were recorded because an impairment loss was recognized on completed bicycle inventories. In the current fiscal year, costs were limited to expenses associated with after-sales service following the withdrawal, and the loss narrowed from the previous fiscal year.」
After withdrawing from imported completed bicycle sales, the operating loss in the segment narrowed from ¥301 million in the previous fiscal year to ¥17 million. The note states that business exposure to imported completed bicycles was reduced. - 2026-05-13MitigatedManagement Planning
「Taking comprehensive account of changes in market conditions and business profitability, we withdrew from the import and sales business for finished bicycles.」
The Company reconfirmed its withdrawal from the import and sales business for finished bicycles and the resulting reduction in its exposure to that business. - FY2026-H1MitigatedAnnual report
「We had been adjusting inventories of imported completed bicycles since the end of the previous fiscal year and had nearly eliminated the inventories as of the end of September. However, as the environment surrounding the bicycle-related business became increasingly difficult and we determined that securing profitability would be challenging, we decided to withdraw from the imported completed bicycle sales business at the end of December 2025.」
By nearly eliminating inventories of imported completed bicycles and deciding to withdraw from the imported completed bicycle sales business, the company is reducing its business exposure to imported completed bicycles. - FY2025WorsenedAnnual report
「In the bicycle-related business, market inventories remained elevated, while price-cutting competition among sellers intensified further and market conditions deteriorated. In addition, despite higher product prices caused by the prolonged depreciation of the yen and surging material and fuel costs, consumers remained strongly inclined to economize, and their reduced willingness to purchase contributed to sluggish sales.」
High market inventories, price competition, yen depreciation, surging material and fuel costs, and consumers' inclination to economize coincided, and the bicycle-related business recorded revenue of ¥308 million and an operating loss of ¥317 million. - FY2025-H1WorsenedAnnual report
「In the bicycle-related business, difficult conditions continued, including persistently high market inventories, weaker demand due to the summer heat, and lower selling prices resulting from oversupply. Selling prices fell amid price competition among dealers, while yen depreciation raised procurement costs, reducing gross profit and resulting in a substantial year-on-year decline in profit. As a result, segment revenue was ¥167 million, down 5.1% from the same period of the previous year, and the segment posted an operating loss of ¥45 million, compared with an operating loss of ¥25 million in the same period of the previous year.」
High market inventories, weaker demand due to the summer heat, oversupply and price competition, and higher procurement costs due to yen depreciation continued, and the operating loss expanded from ¥25 million to ¥45 million. - FY2024WorsenedAnnual report
「In the bicycle-related business, demand for replacement purchases of new bicycles failed to recover as the depreciation of the yen raised import prices for completed bicycles, and the industry as a whole showed signs of slowing. Market inventory levels remained high, and order competition among dealers intensified.」
Yen depreciation, high market inventories, and intensifying order competition continued, and the bicycle-related business recorded revenue of ¥315 million and an operating loss of ¥61 million. - FY2024-Q3WorsenedAnnual report
「In the bicycle-related business, the industry as a whole showed signs of slowing as the yen's depreciation raised import prices for completed bicycles and consumers' willingness to purchase had run its course. Market inventory levels remained high, and order competition among dealers intensified. Although we focused on launching new products and developing new customers, we were unable to secure profitability. As a result, segment revenue was ¥256 million, up 9.2% from the same period of the previous year, and the segment posted an operating loss of ¥42 million, compared with an operating loss of ¥38 million in the same period of the previous year.」
Yen depreciation, the normalization of purchase appetite, high market inventories, and intensifying order competition continued. Although new products were launched and new customers developed, the operating loss expanded from ¥38 million to ¥42 million. - FY2024-Q2WorsenedAnnual report
「In the bicycle-related business, difficult conditions continued, including higher procurement costs due to yen depreciation, weaker demand resulting from the summer heat, and lower selling prices as market inventories increased.」
Higher procurement costs due to yen depreciation, weaker demand caused by the summer heat, and lower selling prices resulting from increased market inventories coexisted, and the bicycle-related segment recorded revenue of ¥176 million and an operating loss of ¥25 million. - FY2024-Q1WorsenedAnnual report
「In the bicycle-related business, the rapid depreciation of the yen raised selling prices for imported bicycles, reducing general consumers' willingness to purchase. Although we focused on sales expansion initiatives, including launching new products and developing new customers, unit sales of completed bicycles declined. As a result, segment revenue was ¥92 million, down 15.2% from the same period of the previous year, and the segment posted an operating loss of ¥9 million, compared with an operating loss of ¥7 million in the same period of the previous year.」
Higher imported bicycle prices caused by the rapid depreciation of the yen and weaker willingness to purchase led to a decline in completed bicycle sales, with revenue down 15.2% from the same period of the previous year and an operating loss of ¥9 million. - FY2023-Q3WorsenedAnnual report
「Against a backdrop of declining bicycle demand, which had risen during the pandemic, and higher product prices due to yen depreciation, market inventories of completed bicycles in Japan tended to increase.」
Against a backdrop of declining demand and higher product prices due to yen depreciation, domestic market inventories of completed bicycles tended to increase, worsening the sales environment for the bicycle business. - FY2023-Q2Improving product availability alongside supply delays and the burden of yen depreciationAnnual report
「As global interest in bicycles during the pandemic began to moderate, product shortages in the domestic market gradually improved with the recovery of production centers in China and Southeast Asia. However, supply delays for completed bicycles due to component shortages continued. Although we pursued active sales initiatives, including the launch of the new POLYGON brand, the environment surrounding imported bicycle sales remained difficult, including higher procurement costs resulting from the rapid depreciation of the yen.」
While product shortages were improving as production centers recovered, supply delays for completed bicycles due to component shortages and higher procurement costs resulting from the rapid depreciation of the yen continued. The bicycle-related business posted an operating loss of ¥20 million. - FY2023-Q1MitigatedAnnual report
「As production centers in China and Southeast Asia recovered from the pandemic, product shortages in the domestic market gradually began to improve.」
The note states that product shortages in the domestic market are gradually improving as production centers in China and Southeast Asia recover. - FY2022RestatedAnnual report
「Meanwhile, component supply shortages emerged as demand increased rapidly, and products remained in short supply in the domestic market as well.」
The note reconfirms the coexistence of a rapid increase in bicycle demand driven by health consciousness and other factors, and component supply shortages and product shortages. - FY2022-Q3RestatedAnnual report
「The rapid increase in bicycle demand triggered by the spread of the coronavirus led to global shortages of component supplies, and products have remained in short supply.」
The note reconfirms continued global shortages of component supplies and product shortages resulting from the rapid increase in bicycle demand. - FY2022-Q2RestatedAnnual report
「In Japan's bicycle market, bicycles came to be recognized as necessary for health, the environment, and infection prevention as the coronavirus spread, and demand expanded rapidly worldwide. Demand has remained high, supported by an economic recovery driven by personal consumption as vaccination became more widespread, while supply shortages resulting from the rapid increase in demand have made it difficult to secure sales volumes.」
The note reconfirms that bicycle demand remains high and that supply shortages and difficulty securing sales volumes due to the rapid increase in demand continue. - FY2022-Q1RestatedAnnual report
「Demand for bicycles has increased substantially alongside the recent rise in health consciousness. We have also continued to be unable to secure adequate inventory due to delayed arrivals and similar issues.」
The note reconfirms the substantial increase in bicycle demand against a backdrop of health consciousness, as well as continued delays in arrivals and insufficient adequate inventory. - FY2021-Q3Global demand growth and component shortagesAnnual report
「In Japan's bicycle market, demand increased substantially as health consciousness grew during the pandemic and people used bicycles for commuting and attending school to avoid crowded environments. Demand expanded worldwide as well as in Japan, causing shortages of bicycle components and severe shortages of market inventory, including substantial delays in deliveries of completed bicycles.」
While bicycle demand increased substantially in Japan and overseas due to health consciousness and commuting and school travel, component shortages, substantial delays in completed bicycle deliveries, and tight market inventories emerged. - FY2021-Q2Higher bicycle demand and recovery in racing component salesAnnual report
「In Japan's bicycle market, demand increased substantially as health consciousness grew during the pandemic and people used bicycles for commuting and attending school to avoid crowded environments, despite the disruption to the supply-demand balance caused by suspended operations at overseas production plants.」
While supply constraints from suspended operations at overseas production plants remained, demand increased substantially against a backdrop of health consciousness and bicycle commuting and school travel. Sales of racing rims and disc wheels also showed signs of recovery. - FY2021-Q1Higher demand during the pandemic and lower sales of racing componentsAnnual report
「In Japan's bicycle market, the suspension of operations at overseas production plants disrupted the supply-demand balance, while demand increased as bicycles gained recognition as a measure against COVID-19 infection for commuting and attending school.」
Supply constraints arose from the suspension of operations at overseas production plants, while demand for bicycles for commuting and attending school increased as a measure against infection. Sales of racing rims and disc wheels declined because races and events were cancelled, resulting in divergent conditions by application. - FY2020WorsenedAnnual report
「Although sales of imported and domestically produced bicycles in Japan's bicycle market were beginning to bottom out after a prolonged decline, the consumption tax increase reduced consumers' willingness to purchase, making recovery in the shrinking market difficult. Demand declined further in the second half of the fiscal year due to the impact of the COVID-19 pandemic.」
While recovery in the bicycle market appeared difficult, demand declined further in the second half of the fiscal year due to the impact of the pandemic, and the bicycle-related segment recorded revenue of ¥431 million and an operating loss of ¥203 million. - FY2020-Q3WorsenedAnnual report
「Although the decline in imports and domestically produced bicycles in Japan's bicycle market was beginning to bottom out, the consumption tax increase reduced consumers' willingness to purchase, making recovery in the shrinking market difficult. Sales of electric-assist bicycles remained strong, but sports bicycles continued to struggle. As a result, segment revenue was ¥349 million, down 28.1% from the same period of the previous year, and the segment posted an operating loss of ¥69 million, compared with an operating loss of ¥24 million in the same period of the previous year.」
The note indicates that the consumption tax increase reduced consumers' willingness to purchase and that market recovery appeared difficult, while revenue declined 28.1% and the operating loss expanded from ¥24 million to ¥69 million. - FY2020-Q2WorsenedAnnual report
「Although the decline in imports and domestic production in Japan's bicycle market came to a halt, the market remained susceptible to currency movements and the effects of the tax increase, while sports bicycles continued to struggle. As a result, segment revenue was ¥260 million, down 26.8% from the same period of the previous year, and the segment posted an operating loss of ¥46 million, compared with an operating loss of ¥14 million in the same period of the previous year.」
Sports bicycles continued to struggle in the bicycle market, with revenue down 26.8% from the same period of the previous year and the operating loss expanding from ¥14 million to ¥46 million. - FY2020-Q1WorsenedAnnual report
「As a result, segment revenue was ¥149 million, down 16.6% from the same period of the previous year, and the segment posted an operating loss of ¥23 million, compared with an operating loss of ¥4 million in the same period of the previous year.」
Revenue in the bicycle-related segment declined 16.6%, and the operating loss expanded from ¥4 million in the same period of the previous year to ¥23 million. - FY2019WorsenedAnnual report
「As a result, segment revenue was ¥603 million, down 26.6% from the previous fiscal year, and the segment posted an operating loss of ¥48 million, compared with an operating loss of ¥18 million in the previous fiscal year.」
Revenue in the bicycle-related business declined 26.6%, and the operating loss expanded from ¥18 million to ¥48 million. - FY2019-Q3WorsenedAnnual report
「In Japan's bicycle industry, conventional bicycles remained sluggish, and demand for school bicycles, in particular, declined sharply. Demand is expected to fall below the already weak level of the previous year, making recovery from the depressed market conditions extremely difficult.」
Bicycle demand is expected to deteriorate further from the previous year, and segment revenue declined 23.0% year on year, with an operating loss of ¥24 million. - FY2019-Q2WorsenedAnnual report
「As a result, segment revenue was ¥356 million, down 20.6% from the same period of the previous year, and the segment posted an operating loss of ¥14 million, compared with operating profit of ¥1 million in the same period of the previous year.」
Revenue in the bicycle-related segment declined 20.6%, and the segment moved from operating profit in the same period of the previous year to an operating loss of ¥14 million. The impact of weak demand on performance is shown numerically. - FY2019-Q1WorsenedAnnual report
「In Japan's bicycle industry, conventional bicycles remained sluggish, and demand for commuter bicycles, particularly school bicycles, declined sharply.」
The note states that conventional bicycles remained sluggish and that demand for school bicycles, in particular, declined sharply. The bicycle-related segment also recorded a 33.0% year-on-year decline in revenue and an operating loss of ¥4 million. - FY2018WorsenedAnnual report
「As a result, segment revenue was ¥821 million, down 16.8% year on year, and the segment posted an operating loss of ¥18 million, compared with operating profit of ¥9 million in the previous fiscal year.」
Revenue in the bicycle-related business declined 16.8%, and the business moved from operating profit to an operating loss. quantified and materialized are true because the reported figures quantify the deterioration in performance. - FY2018-Q3RestatedAnnual report
「In Japan's bicycle industry, sales remained sluggish, mainly for conventional bicycles. Conditions for sports bicycles also remained more difficult than for conventional bicycles, but the number of cycle sports enthusiasts and others increased, and efforts were made to develop the market and expand sales.」
The note reconfirms continued sluggish sales of conventional and sports bicycles, while pursuing market development against a backdrop of an increasing number of cycle sports enthusiasts. - FY2018-Q2RestatedAnnual report
「In Japan's bicycle industry, sales remained sluggish, mainly for conventional bicycles, continuing from the previous year. Conditions for sports bicycles also remained more difficult than for conventional bicycles, but the number of cycle sports enthusiasts and others increased, and efforts were made to develop the market and expand sales.」
The note reconfirms continued sluggish sales of conventional and sports bicycles, while pursuing market development against a backdrop of an increasing number of enthusiasts. - FY2018-Q1MaterialisedAnnual report
「The recovery in bicycle demand remains weak, and combined imports and domestic production declined from the same period of the previous year, with difficult conditions continuing.」
The note describes the occurrence of a risk event in which the recovery in bicycle demand remained weak and combined imports and domestic production declined from the same period of the previous year. - FY2017-Q3RestatedAnnual report
「In Japan's bicycle industry, sales remained sluggish and the difficult environment continued, with sales weaker than in the previous year. Demand for sports bicycles, which had been enjoying a quiet boom, also stagnated, resulting in a decline in unit sales.」
The note describes continued sluggish sales of bicycles, particularly sports bicycles, and a decline in unit sales. It also states that there have been no material changes to business or other risks. - FY2017-Q2RestatedAnnual report
「There were no newly arising business or other risks during the cumulative second quarter of the current consolidated fiscal year. In addition, there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
It explicitly states that there have been no material changes to existing risks, including dependence on imported bicycles and currency fluctuations. - FY2017-Q1RestatedAnnual report
「Although demand for sports bicycles is relatively stable, the market remains uncertain because most products are imported and therefore susceptible to currency fluctuations.」
The market environment remains susceptible to the effects of dependence on imported products and currency fluctuations. - FY2016First statedAnnual report
「Most bicycles distributed in Japan are imported, while domestic bicycle production has continued to decline. If this situation persists, domestic rim production may become unprofitable.」
The note cites declining domestic production, the proportion of imports, lower profit margins on sports bicycles due to currency fluctuations, and the impact on the performance of overseas subsidiaries.