Review or Termination of OEM Contracts and Sales Dependence
First written in FY2016. 9 of 16 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2017: 4 of 15 companies on the "Worse" side.
11 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Our company has entered into a commitment agreement with ELITechGroup S.p.A (Italy) covering total commitments of approximately ¥7 billion or more from 1 July 2024 through 30 June 2029.」
Although the risk of contract revision or termination remains, the company has disclosed a medium- to long-term supply agreement with ELITechGroup through June 2029, an agreement with QIAGEN through the end of 2028, and an agreement with PHC through the end of March 2033. - FY2025MitigatedAnnual report
「A commitment agreement dated 1 July 2024, covering total commitments of approximately ¥7 billion or more through 30 June 2029.」
In response to the risk of termination or revision of the ODM agreement, the company disclosed a five-year commitment agreement with ELITechGroup through June 2029, involving total commitments of approximately ¥7 billion or more, as well as an agreement with PHC Corporation through the end of March 2033. - FY2024MitigatedAnnual report
「Our company and ELITechGroup agreed to a medium- to long-term supply agreement for OEM products, with a five-year term from July 2024 through June 2029, to achieve more stable production and supply of OEM products. Orders totaling at least ¥7 billion are expected to be placed during the contract term.」
In response to the risk of revision or termination of the OEM agreement, the company disclosed its agreement with major business partner ELITechGroup on a five-year medium- to long-term supply contract, with orders totaling at least ¥7 billion expected to be placed. - FY2023RestatedAnnual report
「The contracts that ended upon expiration during the period from the start of the current consolidated fiscal year through its year-end are as follows: Our company — Roche Diagnostics, Ltd. (Switzerland)」
The expiration of the consumables and spare-parts supply agreement with Roche Diagnostics was also confirmed in the full-year contract information. The QIAGEN agreement has been extended through 31 December 2028, and the LSI Medience agreement through 30 June 2026. - FY2023-Q2MaterialisedAnnual report
「The Company Roche Diagnostics, Ltd. (Switzerland) 26 October 2007 Supply of consumables and spare parts 26 October 2007 to 26 October 2022」
The supply agreement with Roche Diagnostics, Ltd. for consumables and spare parts ended on 26 October 2022 upon expiration of its term. The risk previously described as the possible termination of an OEM or supply agreement materialized as an actual contract termination. - FY2022MitigatedAnnual report
「QIAGEN GmbH (Germany) 5 July 2014 Extended through 31 December 2028.」
While the possibility of revisions to or termination of OEM agreements continues to exist, the disclosure stated that the comprehensive development agreement with QIAGEN GmbH had been extended through 31 December 2028. - FY2021RestatedAnnual report
「The Company has entered into OEM agreements with multiple companies for DNA automated extraction systems and other products. Each OEM agreement provides for the exclusive supply to the OEM customer of products manufactured to the requirements of the reagent manufacturer to which the products are supplied.」
Multiple OEM agreements and exclusive-supply arrangements continue to be disclosed, along with the risks associated with revisions to or termination of the agreements and dependence on sales to OEM customers. - FY2020RestatedAnnual report
「The terms of each agreement may be revised or terminated in the future. If these agreements are revised or terminated in the future, the Group's high current dependence on sales to specific OEM suppliers could have a material impact on its business strategy and operating performance.」
The possibility of revisions to or termination of OEM agreements and the impact of dependence on sales to specific OEM customers continue to be disclosed. No agreements ended or were terminated during the consolidated fiscal year. - FY2019RestatedAnnual report
「The terms of each agreement may be revised or terminated in the future. If these agreements are revised or terminated in the future, the Group's high current dependence on sales to specific OEM suppliers could have a material impact on its business strategy and operating performance.」
The possibility of revisions to or termination of OEM agreements and the impact of dependence on sales to specific OEM customers continue to be disclosed. - FY2019-Q3RestatedAnnual report
「In addition, the Company recorded ¥6 million in compensation for contract termination under an agreement with a business partner as an extraordinary gain and ¥7 million in contract termination losses as an extraordinary loss. As a result, the quarterly net loss attributable to owners of the parent was ¥38 million, compared with a quarterly net loss attributable to owners of the parent of ¥340 million in the same period of the previous year.」
The recognition of compensation and contract termination losses associated with the termination of a contract with a business partner was also confirmed for the cumulative first three quarters. - FY2019-Q2RestatedAnnual report
「Due in part to the recognition of ¥7 million in share acquisition rights issuance costs and other items, the ordinary loss was ¥19 million, compared with an ordinary loss of ¥227 million in the same period of the previous year. In addition, the Company recorded ¥6 million in compensation for contract termination under an agreement with a business partner as an extraordinary gain and ¥7 million in contract termination losses as an extraordinary loss. As a result, the quarterly net loss attributable to owners of the parent was ¥21 million, compared with a quarterly net loss attributable to owners of the parent of ¥235 million in the same period of the previous year.」
The recognition of ¥6 million in compensation and ¥7 million in contract termination losses associated with the termination of a contract with a business partner was confirmed again. - FY2019-Q1MaterialisedAnnual report
「Due in part to the recognition of ¥7 million in share acquisition rights issuance costs and other items, the ordinary loss was ¥6 million, compared with an ordinary loss of ¥129 million in the same period of the previous year. In addition, the Company recorded ¥6 million in compensation for contract termination under an agreement with a business partner as an extraordinary gain and ¥6 million in contract termination losses as an extraordinary loss. As a result, the quarterly net loss attributable to owners of the parent was ¥9 million, compared with a quarterly net loss attributable to owners of the parent of ¥131 million in the same period of the previous year.」
Compensation and contract termination losses associated with the termination of a contract with a business partner were actually recorded. The text does not specify whether the contract was an OEM agreement. - FY2018RestatedAnnual report
「The terms of each agreement may be revised or terminated in the future. If these agreements are revised or terminated in the future, the Group's high current dependence on sales to specific OEM suppliers could have a material impact on its business strategy and operating performance. The Group's policy is to continue efforts to secure more OEM customers in order to expand its business and reduce risk.」
The risk of revisions to or termination of OEM agreements and the policy of reducing risk by diversifying OEM customers continued. The termination of the agreement with Abbott Molecular was reconfirmed as an agreement that ended or was terminated during the consolidated fiscal year. - FY2018-Q2MaterialisedAnnual report
「Abbott Molecular, Inc. (U.S.)」「The agreement for the manufacture and supply of sample-preparation systems and other products ended in November 2017.」
The manufacturing and supply agreement with Abbott Molecular, Inc. for sample-preparation systems and other products ended in November 2017. The risk previously described as the possible termination of an OEM agreement materialized as an actual contract termination. - FY2017RestatedAnnual report
「The terms of each agreement may be revised or terminated in the future. If these agreements are revised or terminated in the future, the Group's high current dependence on sales to specific OEM suppliers could have a material impact on its business strategy and operating performance. The Group's policy is to continue efforts to secure more OEM customers in order to expand its business and reduce risk.」
The risk of revisions to or termination of OEM agreements continues, as does the policy of reducing risk by diversifying OEM customers. - FY2016First statedAnnual report
「The terms of each agreement may be revised or terminated in the future. If these agreements are revised or terminated in the future, the Group's high current dependence on sales to specific OEM suppliers could have a material impact on its business strategy and operating performance.」
The possibility of revisions to or termination of OEM agreements, and the resulting impact on business strategy and operating performance, were identified as risks.