Risks from overseas expansion, including regulations, political and economic factors, and start-up investment
First written in FY2016. 5 of 12 entries say "Restated". Latest entry: 2026-05-28.
Nichiha moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2024: 4 of 6 companies on the "Worse" side.
5 other companies' latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「The general-purpose exterior materials business for residential applications in the US fell into the red due to sluggish plant operations and a deterioration in the defect rate, among other factors, although」
The general-purpose exterior materials business for US residential applications actually experienced sluggish plant operations and a deterioration in the defect rate, resulting in a loss. - FY2025-H1MaterialisedAnnual report
「Regarding earnings, although increased revenue contributed to higher profits, the negative impact of higher logistics and material costs in the domestic exterior materials business and sluggish plant operations and logistics problems in the US exterior materials business could not be offset. Operating income was ¥3,435 million, down ¥368 million, or 9.7%, year on year.」
The US exterior materials business experienced sluggish plant operations and logistics problems, which actually affected results as factors behind lower profits. - FY2024WorsenedAnnual report
「The second plant will increase the local supply capacity for high-value-added products, so the company intends to place greater emphasis on expanding sales. However, if the second plant does not operate as planned due to major production problems or a shortage of local employees, the pace of sales expansion may slow.」
The company explicitly identified production and sales expansion risks if the second US plant fails to operate as planned. In the discussion of business results, sluggish operations were actually cited as a factor behind lower profits. - FY2023RestatedAnnual report
「When entering overseas markets, the company must make substantial investments before the period when revenue is expected to be recognized. The increase in investment during this start-up period may result in costs exceeding profits. In addition, overseas business operations are considered to entail various inherent risks, including issues related to market opening, unexpected changes in laws or regulations, unfavorable tax systems, political and economic factors, and war or terrorism.」
The company continues to disclose risks related to up-front investment, laws and regulations, and political and economic factors associated with its overseas business. - FY2021RestatedAnnual report
「When entering overseas markets, the company must make substantial investments considerably before the period when revenue is expected to be recognized in order not to miss growth opportunities in those markets. The increase in investment during this start-up period may result in costs exceeding profits. In addition, overseas business operations are considered to entail various inherent risks, including issues related to market opening, unexpected changes in laws or regulations, unfavorable tax systems, and political and economic factors.」
The company continues to face risks related to the burden of up-front investment, laws and regulations, tax systems, and political and economic factors associated with overseas expansion. - FY2020MaterialisedAnnual report
「Preparations had been steadily progressing toward the start of operations in the second half of fiscal 2020, but installation work for the machinery has been delayed due to the impact of COVID-19, and the start of operations is expected to be delayed slightly.」
At the new US plant, machinery installation work was delayed due to the impact of COVID-19, making an expected delay in the start of operations more concrete. - FY2019RestatedAnnual report
「When entering overseas markets, the company must make substantial investments considerably before the period when revenue is expected to be recognized in order not to miss growth opportunities in those markets. The increase in investment during this start-up period may result in costs exceeding profits.」
The company continues to face risks related to the burden of up-front investment, laws and regulations, tax systems, and political and economic factors associated with overseas expansion. A plan to invest approximately ¥15 billion in a new US plant was also noted. - FY2018RestatedAnnual report
「When entering overseas markets, the company must make substantial investments considerably before the period when revenue is expected to be recognized in order not to miss growth opportunities in those markets. The increase in investment during this start-up period may result in costs exceeding profits.」
The company continues to face risks related to the burden of up-front investment, laws and regulations, tax systems, and political and economic factors associated with overseas expansion. - FY2017RestatedAnnual report
「When entering overseas markets, the company must make substantial investments considerably before the period when revenue is expected to be recognized in order not to miss growth opportunities in those markets. The increase in investment during this start-up period may result in costs exceeding profits.」
The company continues to face risks related to up-front investment, laws and regulations, and political and economic factors associated with overseas expansion. - FY2016First statedAnnual report
「When entering overseas markets, the company must make substantial investments considerably before the period when revenue is expected to be recognized in order not to miss growth opportunities in those markets. The increase in investment during this start-up period may result in costs exceeding profits.」
It explains that market opening, changes in laws and regulations, unfavorable tax systems, and political and economic factors may also constitute barriers.