Timing Gap Between Order Intake and Completion and Revenue Recognition in the Large-Project Business
First written in FY2017-Q2. 3 of 13 entries say "Advanced", first in FY2023-Q3. Latest entry: FY2025-H1.
2 other companies' latest entry also says "Advanced".
- FY2025-H1AdvancedAnnual report
「Net sales from tile and stonework remained above the prior-year level. The main reason was the scheduled completion of large tile and stonework projects in the Tokyo metropolitan area.」
The scheduled completion of large tile and stonework projects in the Tokyo metropolitan area contributed to higher sales in the current interim period. - FY2024-Q2AdvancedAnnual report
「The main reasons were the inclusion in consolidated results of the stonework company made a subsidiary in the previous period and the completion of a large tile project in the Tokyo metropolitan area.」
The completion of a large tile project in the Tokyo metropolitan area contributed to revenue recognition in the current period for the large-project business. - FY2023-Q3AdvancedAnnual report
「Net sales from tile work remained above the prior-year level. The main reason was an increase in the number of large projects commencing construction from the second half onward that were eligible for revenue recognition under the percentage-of-completion method.」
An increase in large projects commencing construction from the second half onward that were eligible for percentage-of-completion revenue recognition led to higher net sales from tile work. - FY2023-Q2Fewer projects ordered and a decrease in tile-covered areaAnnual report
「Net sales from tile work remained below the prior-year level. The main reasons were a decrease in projects ordered in the second half of the previous period and a reduction in the tile-covered area of medium-sized condominiums and other projects.」
For tile work in the large-project business, the decline in projects ordered in the second half of the previous period and the reduction in tile-covered areas at medium-sized condominiums and other properties were identified as factors behind the year-on-year decline in net sales for the current quarter. - FY2021-Q3Fewer orders for large projects scheduled to commence during the current periodAnnual report
「The main reasons were a decrease in orders for condominium construction projects scheduled to commence during the current period and the completion of construction work for Olympic-related facilities in the previous period.」
Although market indicators recovered, fewer orders for condominium construction projects scheduled to commence during the current period and for large condominium and hotel projects reduced the number of projects eligible for completion revenue recognition. - FY2021-Q2Changes in large-project completion timing and order compositionAnnual report
「Under these business conditions, net sales from tile work were significantly below the prior-year level. The main reasons were a decrease in condominium construction projects and the completion of construction work for Olympic-related facilities in the previous period.」
The completion of construction work for Olympic-related facilities in the previous period and a decrease in condominium construction projects changed the projects eligible for revenue recognition in the large-project business. - FY2021-Q1Fewer completions recognized due to extensions to commercial-facility construction periodsAnnual report
「The main reasons for the decline in net sales were the decrease in demand for Olympic-related facilities, which had continued through the previous period, and a decrease in completion revenue from the large-project business due to extensions to construction periods for commercial facilities and other factors resulting from the impact of COVID-19.」
Extensions to construction periods for commercial facilities reduced completion revenue in the large-project business, newly clarifying the difference between order intake, construction progress and the timing of revenue recognition. - FY2020-Q3Concentration of large-project completion timing and postponements due to COVID-19Annual report
「For the nine-month consolidated period ended 31 December, net sales were ¥50,314 million, down ¥698 million, or 1.4%, from the same period of the prior year. Detached-house construction related to building materials and large projects involving tiles and air-conditioning equipment in the Tokyo metropolitan area were completed steadily by the second quarter, while from April onward sales of products for detached houses fell below the prior-year level as large projects related to the Tokyo Olympic and Paralympic Games tapered off and renovation projects were postponed due to measures to prevent the spread of COVID-19.」
Although completion of large construction projects progressed through the second quarter, the tapering off of large projects and postponement of renovation projects from April onward caused a shift in the timing of revenue recognition. - FY2020-Q2Concentration of delivery timingAnnual report
「In residential-equipment sales and construction, revenue exceeded the previous year. The main factors were increased deliveries of materials for renewal projects and remodeling products, as well as the concentration during the interim period of deliveries for unit-bathroom construction for large condominium developments ordered by specific existing customers in the Tokyo metropolitan area.」
Delivery of unit bathrooms for large condominium projects was concentrated in the current interim period, clearly indicating a concentration in the timing of order intake and delivery. - FY2018-Q3RestatedAnnual report
「Meanwhile, in air-conditioning and sanitary equipment contracting, progress on public works and other projects ordered before the previous fiscal year was slower than expected, resulting in a decrease in revenue from completed projects accounted for under the percentage-of-completion method.」
Delays in the progress of public and other projects already secured continue to result in lower completion revenue. - FY2018-Q2Fewer completions recognized due to delays in the progress of public and other construction projectsAnnual report
「Meanwhile, in air-conditioning and sanitary equipment contracting, progress on public works and other projects ordered before the previous fiscal year was slower than expected, resulting in a decrease in revenue from completed construction for projects accounted for under the percentage-of-completion method.」
Delays in construction progress on public and other projects already secured led to a decrease in completion revenue. - FY2017-Q3Timing of completions became more concentratedAnnual report
「Although the number of projects commencing tile work after April this year increased, completion revenue was below the prior-year level because most projects scheduled for completion were concentrated from autumn onward.」
The timing difference was clarified: despite an increase in projects commencing construction, completion revenue for the current quarter was below the prior-year level because scheduled completions were concentrated from autumn onward. - FY2017-Q2First statedAnnual report
「Although projects commencing tile work after April this year exceeded the prior-year level, completion revenue was significantly below the prior-year level because the number of projects ordered in prior years and scheduled for completion and revenue recognition by the second quarter had declined.」
Although the number of projects commencing in the future exceeded the prior-year level, fewer projects ordered in prior years were scheduled for completion and revenue recognition by the current quarter, resulting in a timing difference between order intake and revenue recognition and completion revenue significantly below the prior-year level.