Dependence on contract manufacturers
First written in FY2016. 3 of 8 entries say "Mitigated", first in FY2021. Latest entry: FY2026.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The company conducts these procurement transactions with 3 companies and maintains continuous and good business relationships.」
The number of suppliers for LED displays made in China is described as having increased from the previous 1 and 2 suppliers to 3, indicating further diversification of procurement sources. - FY2022MitigatedAnnual report
「The company conducts these procurement transactions with 2 companies and maintains continuous and good business relationships.」
The company is described as procuring LED displays made in China from 2 suppliers rather than relying on the previous single supplier, indicating diversification of procurement sources. - FY2021MitigatedAnnual report
「Regarding the spread of COVID-19, operations at the Chinese partner's factory have also returned to normal, and the impact on the company's operating results is expected to be limited.」
The explanation states that operations at the Chinese partner's factory have returned to normal and that the impact on operating results is expected to be limited, indicating that the supply impact disclosed in the previous fiscal year is easing. - FY2020MaterialisedAnnual report
「During the consolidated fiscal year, reduced operating capacity at the factory of the Chinese partner affected operating results. Going forward, the partner's operations have returned to normal, and the impact is expected to be limited.」
The filing states that reduced operating capacity at the Chinese partner's factory actually occurred and affected operating results. It also explains that operations have since returned to normal. - FY2019RestatedAnnual report
「The group relies on a single supplier for these procurement transactions but maintains a continuous and good business relationship. However, if the business relationship between the group and its supplier deteriorates for any reason and procuring LED displays becomes difficult, the group's operating results may be affected.」
The company continues to disclose its reliance on a single supplier for LED displays made in China and the possibility of difficulty procuring products if the business relationship deteriorates. - FY2018RestatedAnnual report
「The group relies on a single supplier for these procurement transactions but maintains a continuous and good business relationship. However, if the business relationship between the group and its supplier deteriorates for any reason and procuring LED displays becomes difficult, the group's operating results may be affected.」
The risk of relying on a single supplier for LED displays made in China, and the possibility of difficulty procuring products due to deterioration in the business relationship, continue to be disclosed. - FY2017WorsenedAnnual report
「The company relies on a single supplier for these procurement transactions but maintains a continuous and good business relationship. However, if the business relationship between the company and its supplier deteriorates for any reason and procuring LED displays becomes difficult, the company's operating results may be affected.」
In addition to its reliance on conventional contracted manufacturers, the company is explicitly dependent on a single supplier for LED displays made in China. Currency movements, China's political system and labor costs, and difficulty procuring products due to deterioration in the business relationship have also been added as risks. - FY2016First statedAnnual report
「If a contracted manufacturer experiences deteriorating business conditions, reduced supply capacity or quality problems, or if the company is unable to secure a contracted manufacturer capable of meeting orders, product shipments may be delayed and product costs may increase.」
The risks related to the business condition, supply capacity, quality and availability of contractors supporting the fabless model are listed.