Surge in cost ratio due to stalled gravestone imports from China
First written in FY2020. 1 of 4 entries say "Restated". Latest entry: FY2023.
Nichiryoku moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 20 of 31 companies on the "Worse" side.
6 other companies' latest entry also says "Materialised".
- FY2023MaterialisedAnnual report
「Although revenue increased, profit declined because it took time to respond to higher cost of sales resulting from record yen depreciation, higher resource costs, and rising prices, among other factors.」
The risk of higher costs related to imports from China and foreign exchange fluctuations has materialized in the form of higher cost of sales and lower profit due to yen depreciation, higher resource costs, and rising prices. - FY2022WorsenedAnnual report
「The tombstones (stone products) sold by the Company are almost 100% imported from China. As China is currently implementing a zero-COVID policy, if measures such as lockdowns restrict manufacturing or exports, the Company will have to source the products domestically, raising concerns about a sharp increase in the cost-of-sales ratio.」
To the existing risk arising from importing almost 100% of tombstones from China, the Company adds the possibility that China’s zero-COVID policy, lockdowns, and manufacturing and export restrictions could require domestic sourcing and lead to a higher cost-of-sales ratio. - FY2021RestatedAnnual report
「The tombstones sold by the Company are almost 100% imported from China. Although reports indicate that the COVID-19 pandemic in China is moving toward containment, the possibility of a second or third wave cannot be ruled out. If the Company has to source tombstones domestically, a sharp increase in the cost-of-sales ratio is a concern.」
The Company reconfirms the risk that tombstones, almost 100% of which are imported from China, may need to be sourced domestically if infections spread again, resulting in a higher cost-of-sales ratio. - FY2020First statedAnnual report
「The tombstones sold by the Company are almost 100% imported from China. Although reports indicate that the COVID-19 pandemic in China is moving toward containment, the possibility of a second or third wave cannot be ruled out. If the Company has to source tombstones domestically, a sharp increase in the cost-of-sales ratio is a concern.」
Separate from the existing risk of foreign exchange fluctuations, the Company identifies as a new risk the possibility that renewed infections in China could lead to a change in suppliers and a higher cost-of-sales ratio.