Political, Economic, Labor and Regulatory Risks in the China Business
First written in FY2017. 5 of 12 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2026.
Nakamoto Packs moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 9 of 14 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The Group has 3 consolidated subsidiaries in China, 1 in the United States and 1 in Vietnam,」
After NPG Japan and the Langfang and Cangzhou subsidiaries were excluded from the scope of consolidation, the number of Chinese locations among the overseas consolidated subsidiaries fell from 5 to 3, reducing exposure to the China business. - FY2024MaterialisedAnnual report
「At a meeting of the Board of Directors held on 29 February 2024, the Company resolved to transfer all shares it held in NPG Japan Co., Ltd. As a result, NPG Japan Co., Ltd. and its subsidiary and sub-subsidiary, 廊坊中本包装有限公司 and 滄州中本華翔新型材料有限公司, respectively, are scheduled to be excluded from the Company's important subsidiaries. The carrying amount of the business-use assets of 滄州中本華翔新型材料有限公司 was reduced to the recoverable amount, and the reduction of ¥523.788 million was recognized as an impairment loss under extraordinary losses.」
Risks relating to the China business materialized as a ¥523.788 million impairment loss on business-use assets of the Cangzhou subsidiary and the planned exclusion of NPG Japan and 2 Chinese subsidiaries from the important subsidiaries. - FY2023-Q2MaterialisedAnnual report
「Some related products declined due to the effects of the semiconductor shortage and lockdowns in China,」
The operational and supply-side risks associated with lockdowns in China continue to affect the actual business through a decline in some related products. - FY2023-Q1MaterialisedAnnual report
「Production efficiency deteriorated as a result of operating restrictions and logistics disruptions caused by the Beijing Olympics and lockdowns related to COVID-19, among other factors.」
Risks relating to infectious diseases and operations in the China business have materialized as lockdowns, operating restrictions, logistics disruptions and lower production efficiency. - FY2022-Q2MaterialisedAnnual report
「At a meeting of the Board of Directors held on 8 October 2021, the Company resolved to dissolve its consolidated subsidiary 廊坊中本包装有限公司. Accordingly, it reduced the carrying amount of the assets to their recoverable amount and recognized the reduction of ¥28.121 million as an impairment loss under extraordinary losses.」
The business risks relating to the Chinese subsidiary are described through specific events: the resolution to dissolve 廊坊中本包装有限公司, recognition of asset impairment and the resulting extraordinary loss. - FY2022-Q1MitigatedAnnual report
「Profit-wise, gross profit was ¥336 million, up 77.0% year on year, owing to higher operating rates at the Group's Chinese local subsidiaries as they recovered from the effects of COVID-19, and improved profits at affiliated companies in Japan and overseas.」
The disclosure states that operating rates at the Chinese local subsidiaries affected by COVID-19 recovered and improved. - FY2021WorsenedAnnual report
「The Group has 5 consolidated subsidiaries in China, 1 in the United States and 1 in Vietnam, and is working to avoid or mitigate various problems arising from political issues between Japan and the other countries, changes in the international economic environment, and differences in employment conditions, tax systems and legal regulations.」
The overseas consolidated subsidiaries have expanded from 5 companies in China and 1 in the United States to 7 companies including those in Vietnam, increasing exposure to political, economic, labor, tax and regulatory risks associated with overseas operations. - FY2021-Q1MaterialisedAnnual report
「As the Group was also affected by events including the temporary suspension of operations at a plant in China,」
The political, economic and infectious disease risks relating to the China business have materialized as the temporary suspension of operations at a plant in China. - FY2020WorsenedAnnual report
「The business operated by the overseas consolidated subsidiaries, comprising 5 companies in China and 1 in the United States, faces an uncertain environment due to the trade policies of individual countries, rising labor costs, changes in environmental standards, the spread of infectious diseases, intensifying competition on selling prices and foreign exchange fluctuations.」
With overseas operations comprising 5 companies in China and 1 in the United States, risk factors including trade policy, labor costs, environmental standards, infectious diseases, price competition and foreign exchange have expanded and become more specific. - FY2019WorsenedAnnual report
「The Group has 5 consolidated subsidiaries in China and 1 in the United States and is working to avoid or mitigate various problems arising from political issues between Japan and the other countries, changes in the international economic environment, and differences in employment conditions, tax systems and legal regulations.」
The overseas consolidated subsidiaries have expanded from a structure centered on 4 companies in China to 5 in China and 1 in the United States, broadening exposure to risks relating to trade friction, employment, environmental and legal regulations, and other factors. - FY2018RestatedAnnual report
「The Group has 4 consolidated subsidiaries in China and is proceeding cautiously with overseas expansion, obtaining advice as needed from domestic business partners familiar with China, such as ink manufacturers and trading companies, audit corporations, tax advisers and attorneys, to avoid or mitigate various problems arising from political issues between Japan and China, changes in economic conditions and differences in employment conditions, taxation systems and laws and regulations.」
The political, economic, employment, tax and regulatory risks relating to the overseas business based on 4 Chinese subsidiaries, and the response through advice from specialists, continue. - FY2017First statedAnnual report
「The Group has 4 consolidated subsidiaries in China and is proceeding cautiously with overseas expansion, obtaining advice as needed from domestic business partners familiar with China, such as ink manufacturers and trading companies, audit corporations, tax advisers and attorneys, to avoid or mitigate various problems arising from political issues between Japan and China, changes in economic conditions and differences in employment conditions, taxation systems and laws and regulations.」
The disclosure identifies political, economic, employment, tax, regulatory and business-practice risks relating to the overseas business based on 4 consolidated subsidiaries in China.