Chinese Subsidiaries: New Customer Development and Production Efficiency Improvements

「Based on a resolution of the Board of Directors dated 21 February of the same year, the company transferred its equity interest in 無錫三和塑料製品有限公司 to another company and excluded it from the scope of consolidation.」

「In addition, the company strengthened price negotiations with customers and suppliers and restructured the business, including a review of its workforce structure. Through substantial reviews of expenses, including costs and labour expenses, it made the business as a whole more resilient and has continued to achieve a shift to a consistently profitable structure in the current fiscal year.」

「In addition, the company strengthened price negotiations with customers and suppliers and restructured the business, including a review of its workforce structure. Through substantial reviews of expenses, including costs and labour expenses, it made the business as a whole more resilient and achieved a shift to a consistently profitable structure. As a result, the overseas business reported net sales of ¥378,121 thousand, up 54.4% year on year, and operating profit of ¥15,299 thousand, compared with an operating loss of ¥53,346 thousand in the previous-year period.」

「The company strengthened price negotiations with customers and suppliers and restructured the business, including a review of its workforce structure. Through substantial reviews of expenses, including costs and labour expenses, it made the business as a whole more resilient and achieved a shift to a consistently profitable structure.」

「To address the decline in net sales, the company worked to expand orders and sales of moulded plastic products such as home appliance parts and household goods for companies in China and Japan. At the same time, it continued reducing costs through appropriate workforce adjustments and stronger purchasing controls. As a result, although net sales declined from the previous consolidated fiscal year, earnings improved.」

「In the overseas business, 無錫三和塑料製品有限公司, the Chinese subsidiary, manufactures and sells moulded plastic products for office furniture components, home appliance parts and household goods components, among others. The company continued reducing costs to achieve profitability at an early stage and conducted sales activities mainly targeting Japanese companies to secure new business partners.」

「In the overseas business, 無錫三和塑料製品有限公司, the Chinese subsidiary, manufactures and sells moulded plastic products for office furniture components, home appliance parts and household goods components, among others. The company continued reducing costs to achieve profitability at an early stage and conducted sales activities mainly targeting Japanese companies to secure new business partners.」

「In the overseas business, 無錫三和塑料製品有限公司, the Chinese subsidiary, manufactures and sells moulded plastic products for office furniture components, home appliance parts and household goods components, among others. The company continued reducing costs to achieve profitability at an early stage and conducted sales activities mainly targeting Japanese companies to secure new business partners.」

「In the overseas business, sales, particularly of office furniture components for North America, fell sharply due to higher procurement costs resulting from tariff increases associated with US-China trade friction and damage to supply chains originating in China. The company therefore pursued sales activities to win new orders and implemented measures to address the decline in sales, including thorough cost management, improvements and reinforcement of purchasing controls, workforce reductions and appropriate staff allocation.」

「In the overseas business, the company worked to strengthen the management structure and improve and reinforce purchasing controls at its Chinese subsidiary, 無錫三和塑料製品有限公司. To offset declining sales of products for Europe and the United States due to higher procurement costs resulting from tariff increases associated with US-China trade friction and damage to supply chains originating in China, it coordinated with its Japan operations and focused on sales activities mainly targeting Japanese companies.」

「In the overseas business, the company worked to strengthen the management structure and improve purchasing controls at its Chinese subsidiary, 無錫三和塑料製品有限公司. It also focused on sales activities to offset declining sales of products for Europe and the United States, amid higher procurement costs due to tariff increases resulting from US-China trade friction and damage to supply chains originating in China.」

「In the overseas business, the company worked to rebuild its Chinese subsidiary, 無錫三和塑料製品有限公司, by strengthening its management structure, reimplementing 5S activities from the fundamentals and improving purchasing controls, among other measures, and will continue pursuing improvements.」

「In the overseas business, the company refreshed the management team at its Chinese subsidiary, 無錫三和塑料製品有限公司, to improve its performance and governance. The factory was relocated last June following the expropriation of its business premises by the Wuxi municipal government, which provided an opportunity to re-establish 5S activities at the factory, a basic element of production. To strengthen governance, the company introduced external consultants in addition to support from Japan, worked to improve the awareness of local management executives, and reviewed the internal control system to reflect actual business operations. As a result, improvements are progressing in both business performance and corporate culture.」

「In the overseas business, the company sought to expand the manufacture and sale of moulded plastic products for office furniture components, home appliance parts and automotive-related parts, among others. At the Chinese subsidiary, it worked to improve both manufacturing and sales to fully overcome the effects of the misconduct incident discovered during the previous consolidated accounting period, while relocating its head office and factory following their expropriation by the Wuxi municipal government. Although establishing and improving the production system took time and net sales remained at about the same level as in the previous-year period, operating income improved as a result of cost reductions focused mainly on purchasing and procurement. Going forward, the company will continue strengthening its management structure, including internal controls, to reinforce its production and sales systems.」

「In the overseas business, the company sought to expand the manufacture and sale of moulded plastic products for office furniture components, home appliance parts and automotive-related parts, among others. At the Chinese subsidiary, it worked to improve both manufacturing and sales to fully overcome the effects of last year's misconduct incident, while relocating its head office and factory following their expropriation by the Wuxi municipal government. Although it took time to establish and improve the production system, both net sales and operating income improved from the previous year.」

「Against this backdrop, the existing factory was expropriated by the municipal government, and the factory was relocated in early June. Going forward, the company will renew the management structure at the new factory and work to develop the business by improving quality and delivery times, the basics of manufacturing, and revitalising 5S activities to strengthen customer confidence.」

「For more than 10 years, the overseas business has manufactured and sold moulded plastic products at its Chinese subsidiary for office furniture components, home appliance parts and automotive parts, among others, for customers in China as well as Japan, Europe and the United States. In response to the recent misconduct involving a former officer or employee, the company has returned to basics by thoroughly communicating compliance requirements to employees and improving governance and internal controls. Going forward, it will reform its corporate culture alongside various productivity-enhancement measures, including rebuilding the production control system, strengthening quality control, strictly meeting customer delivery deadlines and fully implementing 5S activities.」

「Since the discovery of misconduct involving a former officer or employee at 無錫三和塑料製品有限公司, the company has focused on rebuilding the business and is undertaking a fundamental review of its management structure. Signs of improvement have emerged in some areas, including the establishment of 5S activities and reductions in product costs.」

「In the overseas business, the company undertook fundamental reforms to improve productivity at the Chinese subsidiary, including rebuilding its production control system, strengthening quality control, improving coordination with 東京衡機's head office, and fully implementing 5S activities. However, it struggled due mainly to weak performance in the office furniture and automotive parts divisions.」

「In the overseas business, the Chinese subsidiary manufactures and sells moulded plastic products used in office furniture components, automotive parts and home appliance parts, among others, while developing new business partners and strengthening its production system.」

「In the overseas business, the Chinese subsidiary manufactures and sells moulded plastic products used in office furniture components, automotive parts and home appliance parts, among others, while developing new business partners and strengthening its production system.」

「At 無錫三和塑料製品有限公司, which oversees the overseas business, the company revamped its operating structure, developed new business partners and reviewed and streamlined its production system. As a result, operating profit was ¥91,038 thousand, compared with an operating loss of ¥22,167 thousand in the previous-year period, while ordinary profit was ¥80,424 thousand, compared with an ordinary loss of ¥17,572 thousand.」