Dependence on specific suppliers
First written in FY2020. 1 of 5 entries say "Softened", first in FY2021. Latest entry: FY2024.
The whole theme swung hardest in 2020: 20 of 63 companies on the "Worse" side.
1 other company's latest entry also says "Dropped".
- FY2024DroppedAnnual report
「When purchasing products, the Company confirms the supplier's supply capacity before placing orders. However, if a supplier experiences difficulty in fulfilling its obligations or becomes insolvent, product supply may be disrupted, which may have a material impact on the Company's business and financial results.」
The specific reference to 協和工業株式会社's purchase ratio and the memorandum on exclusive sales, which had been included through the previous fiscal year, has been removed, and supplier risk is now described as the general risk of supply interruption. - FY2023WorsenedAnnual report
「The Company's products have a high purchase concentration with its major supplier, 協和工業株式会社, which accounted for 31.8% of purchases for the fiscal year ended February 2023. The Company had entered into a contract titled "Memorandum of Understanding Concerning Exclusive Sales" with 協和工業株式会社 on 1 July 2019, but the contract ended when its term expired.」
The concentration of purchases from the major supplier increased from 28.9% to 31.8%. The Company also states that the memorandum of understanding with 協和工業株式会社 concerning exclusive sales ended when its contract term expired. - FY2022MitigatedAnnual report
「The Company's products have a high purchase concentration with its major supplier, 協和工業株式会社, which accounted for 28.9% of purchases for the fiscal year ended February 2022.」
The concentration of purchases from the major supplier declined from 52.3% to 28.9%. However, the Company continues to disclose the risk that transactions may not continue because there is no capital relationship. - FY2021SoftenedAnnual report
「For the fiscal year ended March 2021, 52.3% of purchases were from 協和工業株式会社. The Company will consider entering into exclusive sales agreements with suppliers whose sales ratio for particular non-private-label products exceeds a certain level. The Company has entered into a memorandum of understanding with 協和工業株式会社 concerning exclusive sales and will work to secure stable transactions with that business partner in the future. However, the Company has no capital relationship with that business partner, and the continuity and stability of transactions are not guaranteed. Accordingly, changes in the business partner's management measures or transaction policy may have a material impact on the Company's business and financial results.」
The concentration of purchases from the major supplier declined from 62.7% to 52.3%, but the Company continues to disclose the still-high concentration and uncertainty regarding the continuation of transactions. - FY2020First statedAnnual report
「For the fiscal year ended March 2020, 62.7% of purchases were from 協和工業株式会社. The Company has entered into a memorandum of understanding with 協和工業株式会社 concerning exclusive sales and will work to secure stable transactions with that business partner in the future.」
The Company reports a high concentration of purchases from its major supplier and seeks to secure stable business through a memorandum on exclusive sales, but states that continuity is not guaranteed.