Impact of Exchange-Rate Movements on China Sales and the Foreign Currency Translation Adjustment Account
First written in FY2016-Q3. 11 of 36 entries say "Worsened", first in FY2016. Latest entry: 2026-10-14.
Asahi Kagaku Kogyo moved to the "Worse" side of this theme in 2016, 2 years before the typical company in this theme (2018).
The whole theme swung hardest in 2019: 6 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「In China, sales of power tool components were broadly in line with the previous fiscal year. Sales increased 4.1% year on year to ¥2.328 billion due to the impact of yen depreciation, while operating profit rose 18.1% to ¥124 million.」
Sales in China increased 4.1% due to the impact of yen depreciation, and operating profit also rose 18.1%. The foreign currency translation adjustment account increased by ¥315 million. - FY2025-H1WorsenedAnnual report
「Total net assets decreased by ¥78 million from the end of the previous consolidated fiscal year to ¥5.455 billion, down 1.4%. This was mainly due to a ¥62 million decrease in the foreign currency translation adjustment account.」
The foreign currency translation adjustment account had increased previously, but decreased by ¥62 million in the current interim period, contributing to the decline in net assets. Although a foreign exchange gain was recorded in profit or loss, the impact on the foreign currency translation adjustment account changed in a negative direction. - FY2024-Q3MitigatedAnnual report
「Foreign exchange gain 13,152 45,809」
The foreign exchange gain increased from ¥13.152 million in the same period of the previous year to ¥45.809 million. The foreign currency translation adjustment account also increased by ¥167 million in net assets, an improvement from the declines in the account and the foreign exchange losses reported through the previous fiscal year. - FY2024-Q2MitigatedAnnual report
「Foreign exchange gain 14,457 20,383」
Non-operating income and expenses included a foreign exchange gain that increased from ¥14.457 million in the same period of the previous year to ¥20.383 million, while the foreign currency translation adjustment account increased by ¥17 million in net assets. The decline in sales in China is attributed to lower orders for power tool components rather than foreign exchange. - FY2024-Q1MitigatedAnnual report
「Total net assets increased by ¥102 million from the end of the previous consolidated fiscal year to ¥5.248 billion, up 2.0%. This was mainly due to a ¥100 million increase in the foreign currency translation adjustment account.」
Although a decline in the foreign currency translation adjustment account had contributed to lower net assets through the previous fiscal year, the account increased by ¥100 million in the current quarter, contributing to higher net assets. - FY2023WorsenedAnnual report
「Due to decreases of ¥64 million in retained earnings and ¥55 million in the foreign currency translation adjustment account, the amount decreased by ¥113 million, or 2.2%, from the end of the previous consolidated fiscal year to ¥5.145 billion.」
The foreign currency translation adjustment account decreased by ¥55 million, contributing to the decline in net assets. - FY2023-Q3WorsenedAnnual report
「Total net assets decreased by ¥126 million from the end of the previous consolidated fiscal year to ¥5.132 billion, down 2.4%. This was mainly due to a ¥144 million decrease in the foreign currency translation adjustment account.」
The foreign currency translation adjustment account decreased by ¥144 million, contributing to the decline in net assets. - FY2023-Q2WorsenedAnnual report
「Total net assets decreased by ¥163 million from the end of the previous consolidated fiscal year to ¥5.095 billion, down 3.1%. This was mainly due to a ¥191 million decrease in the foreign currency translation adjustment account.」
The foreign currency translation adjustment account decreased by ¥191 million from the end of the previous fiscal year, contributing to the decline in net assets. - FY2023-Q1MitigatedAnnual report
「In China, although orders for power tool components declined, sales rose to ¥1.617 billion, up 0.1%, due to the impact of foreign exchange, and operating profit rose to ¥213 million, up 25.1%.」
In China, orders for power tool components declined, while sales increased due to the impact of foreign exchange and operating profit rose 25.1%. - FY2022-Q3MitigatedAnnual report
「In China, sales rose to ¥5.219 billion, up 30.1% from the same quarter of the previous year, and operating profit rose to ¥541 million, up 12.6%, partly due to increased orders for power tool components and the impact of foreign exchange.」
The China operation recorded higher sales and profit due to increased orders and the impact of foreign exchange. In non-operating income and expenses, a foreign exchange gain of ¥13.731 million was recorded in the current period, compared with a foreign exchange loss in the same period of the previous year. - FY2022-Q2MitigatedAnnual report
「In China, sales rose to ¥3.478 billion, up 39.1% year on year, and operating profit rose to ¥376 million, up 16.8%, partly due to increased orders for power tool components and the impact of foreign exchange.」
Increased orders and the impact of foreign exchange led to higher sales and profit in China. The foreign exchange loss also decreased from ¥58.818 million in the same period of the previous year to ¥9.963 million. - FY2022-Q1MitigatedAnnual report
「In China, sales rose to ¥1.616 billion, up 34.8% year on year, and operating profit rose to ¥170 million, up 8.0%, partly due to increased orders for power tool components and the impact of foreign exchange.」
The China operation recorded higher sales and profit due to increased orders and the impact of foreign exchange, improving from the deterioration in foreign-exchange effects, including the foreign exchange loss, through the previous fiscal year. - FY2021WorsenedAnnual report
「Foreign exchange loss 72,522」
A foreign exchange loss of ¥72.522 million was recorded as a non-operating expense, increasing from ¥5.091 million in the previous fiscal year. Meanwhile, the foreign currency translation adjustment account increased by ¥243.371 million. - FY2021-Q3WorsenedAnnual report
「Foreign exchange loss － 63,824」
The foreign exchange loss for the cumulative third quarter amounted to ¥63.824 million, increasing from ¥58.818 million in the cumulative period through the previous quarter. Meanwhile, the foreign currency translation adjustment account increased by ¥208.2 million. - FY2021-Q2WorsenedAnnual report
「Foreign exchange loss － 58,818」
A foreign exchange loss of ¥58.818 million was recorded as a non-operating expense, increasing from ¥25.212 million in the cumulative period through the previous quarter. Meanwhile, the foreign currency translation adjustment account increased by ¥76 million in net assets. - FY2021-Q1Foreign exchange loss recorded and foreign currency translation adjustment account increasedAnnual report
「Foreign exchange loss － 25,212」
A foreign exchange loss of ¥25.212 million was recorded as a non-operating expense, while the foreign currency translation adjustment account increased by ¥33 million in net assets. The foreign-exchange impact changed from a simple decline in the translation adjustment account to a combination of a foreign exchange loss in profit or loss and an increase in net assets. - FY2020WorsenedAnnual report
「Net assets decreased by ¥18 million, or 0.5%, from the end of the previous consolidated fiscal year to ¥3.847 billion, due to a ¥58 million decrease in the foreign currency translation adjustment account.」
The decline in the foreign currency translation adjustment account is cited as a factor behind the decrease in net assets for the full fiscal year. - FY2020-Q3WorsenedAnnual report
「This was mainly due to decreases of ¥47 million in retained earnings and ¥58 million in the foreign currency translation adjustment account.」
The foreign currency translation adjustment account decreased by ¥58 million, contributing to the decline in net assets. This changed from the foreign exchange gain and increase in the foreign currency translation adjustment account reported in the previous quarter to decreases in both. - FY2020-Q2Foreign exchange-related items recorded a positive amountAnnual report
「Foreign exchange gain 1,317」
A foreign exchange gain of ¥1.317 million was recorded as non-operating income, while the foreign currency translation adjustment account increased by ¥1.186 million in other comprehensive income. - FY2020-Q1ReframedAnnual report
「Total net assets decreased by ¥49 million from the end of the previous consolidated fiscal year to ¥3.816 billion, down 1.3%. This was mainly due to a ¥52 million decrease in the foreign currency translation adjustment account.」
Whereas previous explanations focused on the impact of foreign exchange on sales in China, the current quarter indicates the foreign-exchange impact through a ¥52 million decrease in net assets resulting from the decline in the foreign currency translation adjustment account. - FY2019ReframedAnnual report
「Despite the impact of yen appreciation against the yuan and increased orders, the amount rose 8.5% from the previous consolidated fiscal year to ¥8.509 billion.」
While the impact of yen appreciation against the yuan continues to be cited, consolidated sales rose 8.5% on the back of increased orders. The foreign currency translation adjustment account also decreased by ¥88 million. - FY2019-Q3ReframedAnnual report
「In China, sales declined to ¥2.881 billion, down 8.9% year on year, due to lower orders, but operating profit rose to ¥246 million, up 17.8%.」
For the decline in sales in China, the current quarter cites lower orders as the primary factor rather than the impact of foreign exchange, which had been cited through the previous quarter. - FY2019-Q2WorsenedAnnual report
「In China, sales declined to ¥1.897 billion, down 16.3% year on year, due to the impact of foreign exchange and lower orders, while operating profit fell to ¥150 million, down 1.1%.」
The impact of foreign exchange and lower orders are both cited as factors behind the decline in sales in China, which fell 16.3% year on year. The foreign currency translation adjustment account also decreased by ¥52 million in net assets. - FY2019-Q1ReframedAnnual report
「In China, sales declined to ¥1.021 billion, down 14.3% year on year, due to lower orders for power tool components and resin molds, while operating profit fell to ¥80 million, down 8.2%." "Foreign exchange gain" "19,609"」
The factor behind the decline in sales in China has changed from the impact of foreign exchange to lower orders for power tool components and resin molds. The income statement also shows a change from a foreign exchange loss in the previous year to a foreign exchange gain in the current quarter. - FY2018-Q3ReframedAnnual report
「This was mainly due to increases of ¥16 million in retained earnings and ¥66 million in the foreign currency translation adjustment account.」
The increase in sales in China is attributed to higher orders, with no mention of the previous foreign-exchange-related decline in sales. Meanwhile, the foreign currency translation adjustment account increased by ¥66 million in net assets. - FY2018-Q2RestatedAnnual report
「In China, sales increased to ¥2.266 billion, up 36.1% year on year, due to the impact of foreign exchange and increased orders, while operating profit rose to ¥151 million, up 195.4%.」
The impact of foreign exchange on sales in China continues to be cited. Increased orders also contributed this quarter, with sales rising 36.1%. - FY2018-Q1ReframedAnnual report
「Sales increased as the exchange rate moved toward a weaker yen.」
Whereas previous explanations cited the negative impact of yen appreciation on sales in China and consolidated results, the current quarter identifies the weaker-yen trend as a factor behind higher sales in the power tools industry. In net assets, the foreign currency translation adjustment account increased by ¥62 million. - FY2017ReframedAnnual report
「Due to an increase in orders and the yen's depreciation, the amount rose 12.1% from the previous consolidated fiscal year to ¥7.048 billion.」
Whereas previous explanations cited the negative impact of yen appreciation on sales in China and consolidated results, the current period identifies increased orders and yen depreciation as factors behind higher sales. - FY2017-Q3RestatedAnnual report
「In China, net sales declined to ¥2,589 million, down 8.1% year on year, because of foreign-exchange movements and lower orders, while operating profit rose to ¥114 million, up 99.4%.」
The Company continues to state that China sales declined because of foreign-exchange movements and lower orders. - FY2017-Q2RestatedAnnual report
「In China, net sales declined to ¥1,665 million, down 21.5% year on year, because of foreign-exchange movements and lower orders, while operating profit rose to ¥51 million, up 8.8%.」
The Company continues to state that China sales declined because of foreign-exchange movements and lower orders. - FY2017-Q1ReframedAnnual report
「In the power tools industry, sales remained solid, but revenue declined because the yen exchange rate was on an appreciating trend. In the automotive industry, conditions remained solid, particularly in Japan and Europe, but revenue declined because the yen exchange rate was on an appreciating trend.」
The explanation of revenue declines caused by yen appreciation has been presented as part of the consolidated business environment affecting not only China sales but also the power tools and automotive industries. Meanwhile, the decline in China sales in the current quarter is attributed to lower orders, indicating a change in the explanation of the factors involved. - FY2016WorsenedAnnual report
「In China, net sales declined to ¥3,279 million, down 29.4% year on year, partly because of the impact of yen appreciation on foreign-currency translation, while operating profit rose to ¥47 million, up 62.9%, because royalty payments declined.」
The impact of yen appreciation on foreign-currency translation appeared as a 29.4% full-year decline in China sales, while the foreign currency translation adjustment account also declined by ¥655.754 million. - FY2016-Q3First statedAnnual report
「In China, net sales were ¥2,818 million, down 17.0% year on year, partly because of the impact of foreign-exchange movements.」
The Company cites the impact of foreign-exchange movements as a factor behind the decline in China sales. In consolidated net assets, the foreign currency translation adjustment account also declined by ¥401 million.