Risk of Rising Costs from Custom, Highly Complex Projects and External Procurement
First written in FY2019. 9 of 15 entries say "Restated". Latest entry: FY2026-H1.
Sigma Koki moved to the "Worse" side of this theme in 2023, 5 years after the typical company in this theme (2018).
1 other company's latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「There were no newly arising business or other risks during the interim consolidated accounting period. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
It was stated that there had been no new occurrence or material change regarding the risk of higher costs for custom and highly complex projects and external procurement. - FY2025-H1MaterialisedAnnual report
「Against this backdrop, the gross profit margin declined slightly year on year due to higher depreciation and amortization expenses associated with increased investment in human resources aimed at sustainable business expansion and the start of operations at the new factory building.」
Higher investment in human resources and depreciation and amortization expenses associated with the start of operations at the new factory building were reflected in performance as a year-on-year decline in the gross profit margin. - FY2024-Q3MaterialisedAnnual report
「Against this backdrop, the company focused on selling high-value-added products and achieving ongoing productivity improvements. However, the gross profit margin declined year on year due to persistently high external procurement prices for raw materials and other inputs, energy prices, and changes in the sales mix by product segment resulting from slower demand in certain overseas regions.」
Persistently high external procurement and energy prices and changes in the product mix due to slowing overseas demand were reflected in performance as a year-on-year decline in the gross profit margin. - FY2024-Q2MaterialisedAnnual report
「Amid these conditions, the Group focused on selling high-value-added products and continuously improving productivity. However, the gross margin declined year on year due to changes in the sales mix by product segment, including those resulting from slowing demand in some overseas regions, against a backdrop of persistently high raw material and energy prices.」
Changes in the product mix due to slowing demand in some overseas regions and persistently high raw material and energy prices were reflected in performance as a year-on-year decline in the gross profit margin. - FY2024-Q1MaterialisedAnnual report
「The gross profit margin declined year on year due to changes in the sales mix by product segment against a backdrop of slowing demand in some overseas regions and an increase in new custom projects with a strong development component to address new markets and technologies.」
The increase in new custom projects with a strong development component to address new markets and technologies and changes in the product mix were reflected in performance as a year-on-year decline in the gross profit margin. - FY2023MaterialisedAnnual report
「Amid higher procurement costs for components due to supply chain disruptions, the cost of sales ratio increased by 0.3 percentage points from the previous consolidated fiscal year to 60.9%, due to higher material and subcontracted processing costs associated with increased sales, as well as higher labor costs resulting from longer working hours to meet increased demand and higher bonuses accompanying increased earnings.」
Higher component procurement costs and external costs due to supply constraints and supply chain disruptions actually occurred and were reflected in performance as a higher cost ratio. - FY2023-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
It was stated that there had been no new occurrence or material change regarding the risk of higher costs for custom and highly complex projects and external procurement. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
It was stated that there had been no new occurrence or material change regarding the risk of higher costs for custom and highly complex projects and external procurement. - FY2023-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
It was stated that there had been no new occurrence or material change regarding the risk of higher costs for custom and highly complex projects and external procurement. - FY2022-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding the risk of higher costs for custom and highly complex projects and external procurement. - FY2021RestatedAnnual report
「The company reduced production costs through production efficiency improvements, controls on overtime hours and inventory optimization. However, the cost of sales ratio fell 0.3 percentage points from the previous consolidated fiscal year to 61.7%, reflecting lower sales of repeat products and OEM products, increased material and subcontract processing costs associated with higher orders for made-to-order products with high external procurement ratios and highly complex projects with demanding specifications, and higher depreciation related to the new factory building.」
Material costs and subcontracted processing costs continued to increase due to custom and highly complex projects with high external procurement ratios, but the cost of sales ratio declined to 61.7%. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding the risk of higher costs for custom and highly complex projects and external procurement. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding the risk of higher costs for custom and highly complex projects and external procurement. - FY2021-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, no new business or other risks arose. There were also no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
No new occurrence or material change was reported regarding the risk of higher costs for custom and highly complex projects and external procurement. - FY2019First statedAnnual report
「As a result of increases in material costs and outsourced processing costs associated with increased orders for made-to-order products with a high proportion of externally sourced materials and highly complex projects with demanding specifications, as well as the recognition of inventory valuation losses on slow-moving inventory, the cost of sales ratio increased 2.2 percentage points from the previous consolidated fiscal year to 59.4%.」
Higher material costs and subcontracted processing costs actually arose as the number of custom products and highly complex projects with high external procurement ratios increased, and the cost of sales ratio has been quantified.