Country Risks Associated with Asian Contract Manufacturers and Production Locations

「各国でカントリーリスクが発生した場合でも迅速に生産拠点を切替え可能な体制。」

「We also strengthened production-management systems at overseas sites and inspections of overseas suppliers’ factories, worked to reduce procurement and management costs and improve product quality, and promoted CSR procurement.」

「On the production side, we secured multiple production bases, sought to switch production locations flexibly in response to exchange-rate fluctuations and rising raw-material prices, and optimized logistics routes, working to achieve a continuous, stable supply and strengthen price competitiveness.」

「The Group secured multiple production bases, flexibly switched production locations in response to foreign-exchange movements and higher raw material prices, and optimized logistics routes, seeking to achieve a continued stable supply and strengthen price competitiveness.」

「In China, the end of the zero-COVID policy brought initial signs of recovery in the environment surrounding manufacturing, but the impact of higher energy prices and other factors resulting from the situation in Ukraine continued, and conditions remained uncertain.」

「However, as energy prices continued to rise due to geopolitical risks, including the situation in Ukraine, and as the impact of China’s zero-COVID policy continued, the environment surrounding overseas manufacturing showed no signs of improvement and remained uncertain.」

「Although lockdowns were imposed in major Chinese cities from late March, the supply structure and logistics arrangements established to date contributed to a stable supply of products.」

「Although lockdowns were imposed in major Chinese cities from late March, the supply structure and logistics arrangements established to date contributed to a stable supply of products.」

「The Group secured multiple production bases in preparation for production stoppages and lockdowns caused by outbreaks in countries and regions where its production bases are located, flexibly switched production locations in response to foreign-exchange movements and higher raw material prices, and reviewed and optimized logistics routes and methods in response to delays in ocean transport and higher transport costs, seeking to achieve a continued stable supply and strengthen price competitiveness.」

「In production, amid the COVID-19 pandemic, the Group promoted the optimization of production bases in China and other Asian countries and worked to secure multiple production bases in preparation for lockdowns resulting from renewed outbreaks in countries and regions where its production bases are located.」

「The Group uses a “mobile fabless” model for product production and outsources manufacturing to suppliers in China and other Asian countries. Accordingly, supplier bankruptcies and other events may result in delivery delays or the need for remanufacturing, which could affect the Group’s business performance. In addition, if problems arise in the procurement of materials, production or distribution due to political or social unrest, natural disasters, terrorism, armed conflict, disease, currency appreciation, infrastructure disruptions or other factors in the countries where its contract manufacturing suppliers are located, this could affect the Group’s business performance.」

「The Group outsources production to suppliers in China and other Asian countries. Taking advantage of its “mobile fabless” model, it has continued supplying products under various circumstances, including during the COVID-19 pandemic by outsourcing production of the same products to multiple suppliers in different regions. However, if problems arise in product procurement due to a sharp increase in raw material prices resulting from trade restrictions caused by the recent US-China trade tensions, or to unexpected events arising from political or regulatory developments in China, this could affect the Group’s business performance.」

「In addition to promoting the optimization of production sites in China and other Asian countries, we secured multiple production sites in preparation for lockdowns in each country, working to achieve a continuous stable supply and strengthen price competitiveness.」

「In addition to promoting the optimization of production bases in China and other Asian countries, the Group will secure multiple production bases in preparation for lockdowns in individual countries, seeking to achieve a continued stable supply and strengthen price competitiveness.」

「Amid the spread of COVID-19, the Group responded to the impact of lockdowns in China and Southeast Asian countries on factory operations and logistics, rigorously implemented production in appropriate locations, and continued to secure a stable supply of products.」

「However, for custom-made general merchandise products, the spread of COVID-19 in China caused many local suppliers to suspend production after the Chinese New Year holiday, resulting in delivery delays and the deferral of some sales to the following quarter.」

「Some of the countries and regions where the Group’s contract manufacturing suppliers are located face high country risks, including political and social unrest, natural disasters, terrorism, armed conflict, disease and currency appreciation.」

「Some of the countries and regions where the Group’s contract manufacturing suppliers are located face high country risks, including political and social unrest, natural disasters, terrorism, armed conflict, disease and currency appreciation.」