China and Emerging-Market Slowdown and Demand Contraction Risk
First written in FY2016. 16 of 33 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2022: 131 of 176 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「In China, a sense of stagnation continued, weighed down by the prolonged adjustment in the real-estate market and weak domestic demand.」
Regarding the Chinese economy, the company described the continued sense of stagnation caused by the prolonged property-market adjustment and weak domestic demand. - FY2025-H1RestatedAnnual report
「In the industries in which the Group operates, electronic components and semiconductors followed a mixed course, affected by certification issues in Japan's automotive-related sector, the slowdown in the Chinese market for industrial equipment, and inventory adjustments resulting from customers holding excess inventory.」
The company explained that the slowdown in the Chinese market affected demand for industrial equipment and was compounded by adjustments related to customers' excess inventories. At the same time, demand conditions were not uniform, with strength in Japan's automotive-related sector and other growing fields. - FY2024WorsenedAnnual report
「Moreover, a significant recovery in the Chinese economy was not expected due to the prolonged adjustment in the property market and slow recovery in employment and income. Geopolitical risks, including the situations in Ukraine and the Middle East, were also expected to persist, leaving the outlook uncertain.」
Regarding the Chinese economy, the company stated that a significant recovery was not expected because of the property-market adjustment and slow recovery in employment and income, and that concerns over the demand environment continued. - FY2024-Q3WorsenedAnnual report
「Although the decline in orders had become pronounced in the industrial equipment market, particularly in China,」
The company stated that the decline in orders had become pronounced in the industrial equipment market, particularly in China, making the deterioration in the demand environment more concrete. - FY2024-Q2WorsenedAnnual report
「Overall conditions remained weak, affected by factors including delayed recovery after the lifting of China's zero-COVID policy due to export restrictions on China and the emergence of bad-debt problems.」
In contrast to the signs of recovery in China described in the previous quarter, the company indicated export restrictions on China, bad-debt problems and a delayed recovery after the lifting of the zero-COVID policy, showing that the external environment for demand in China and emerging markets had deteriorated. - FY2024-Q1MitigatedAnnual report
「During the cumulative consolidated period of the first quarter, the global economy generally remained weak and faced downside growth risks, due in part to elevated resource prices associated with the prolonged situation in Ukraine and expanding financial uncertainty in the US resulting from prolonged monetary tightening aimed at curbing inflation. At the same time, signs of recovery began to emerge in Asia, supported by expanded trade following China's lifting of its zero-COVID policy and the continued resilience of the Indian economy.」
The global economy remained weak and faced downside risks, while the company also described developments that partially eased the previous demand risks in China and emerging markets, including expanded trade following China's lifting of its zero-COVID policy and the resilience of the Indian economy. - FY2023RestatedAnnual report
「Automotive production continued to be affected by semiconductor shortages and lockdowns in China, leading automakers to revise down their full-year unit sales forecasts.」
The company continued to describe the impact of lockdowns in China and semiconductor shortages on automotive production and demand. It also explained that supply chain disruptions were beginning to ease for the time being. - FY2023-Q3WorsenedAnnual report
「In China, prolonged lockdowns inflicted significant damage on economic activity, while economic sentiment deteriorated simultaneously in the US, Europe and China, further increasing uncertainty over the outlook.」
The company explicitly indicated the impact of prolonged lockdowns in China on economic activity, along with deteriorating economic sentiment in the US, Europe and China and a further increase in uncertainty over the outlook. - FY2023-Q1WorsenedAnnual report
「In the industries in which the Group operates, orders for new automobiles remained strong, but parts were in short supply due to supply chain disruptions, and production continued to lag demand. Electronic components and semiconductors also remained in tight supply, affected by lockdowns in China.」
The effects of lockdowns in China emerged as tight supply of electronic components and semiconductors and supply chain disruptions, while production continued to lag demand. - FY2022-Q2Diverging economic recoveries by regionAnnual report
「During the cumulative consolidated period of the second quarter, the global economy generally continued to recover from the downturn caused by the COVID-19 crisis, supported by progress in vaccinations, mainly in Europe and the US, and the effects of large-scale economic measures. Conditions diverged, however, as waves of infections in emerging and developing countries acted as a drag on economic activity.」
While economic recovery continued in Europe and the US, the spread of infections in emerging and developing countries continued to constrain economic activity, resulting in divergent recovery conditions by region. - FY2022-Q1MitigatedAnnual report
「During the cumulative consolidated period of the first quarter, the global economy was expected to achieve high growth rates, as domestic demand increased in Europe, the US and China due in part to the spread of COVID-19 vaccines and the effects of large-scale economic measures.」
The company explained that domestic demand was increasing in Europe, the US and China due to vaccine rollouts and economic measures, and that high growth rates were expected, partially easing the previous concern centered on shrinking demand in China and emerging markets. - FY2021MitigatedAnnual report
「In the industries in which the Group operates, orders for industrial equipment and machine tools for new smartphones and electric vehicles in China are expected to remain high. However, if automobile production cuts and production adjustments caused by a shortage of automotive semiconductors continue, they could affect the Group's performance.」
Orders for industrial equipment and machine tools for new smartphones and electric vehicles in China were expected to remain high, partially easing the previous concern over weak demand in China and emerging markets. At the same time, the company also identified new supply and production-adjustment risks arising from the shortage of automotive semiconductors. - FY2021-Q3WorsenedAnnual report
「During the cumulative consolidated period of the third quarter, the pace of recovery slowed due to the renewed spread of COVID-19. In Europe, where the spread was particularly severe, successive lockdowns became unavoidable, and real GDP growth was expected to turn negative in the October-December quarter. In the US, restrictions on business activity due to the third wave of infections spread nationwide, having a particularly serious impact on consumer-facing services. China, meanwhile, had contained the spread of infections at an early stage and maintained its growth pace, creating a clear divergence in conditions.」
While China maintained its growth pace, the company indicated that lockdowns in Europe, restrictions on business activity in the US and a slowdown in the global economic recovery were intensifying concerns over the demand environment. - FY2021-Q2WorsenedAnnual report
「During the cumulative consolidated period of the second quarter, the global economy suffered unprecedented damage, described as potentially the worst recession since World War II, as the number of new COVID-19 cases in emerging markets such as India and Brazil continued to rise without restraint and cases began to surge again in Europe and the US, prompting moves to reintroduce restrictions on movement and business activity.」
The spread of infections and activity restrictions continued in emerging markets, Europe and the US, and concerns over the global demand environment became more serious than in the previous quarter. - FY2021-Q1MaterialisedAnnual report
「The impact of COVID-19 caused capital investment in industrial equipment and machine tools to contract sharply, particularly in Japan, Europe and the US, while automotive sales stagnated worldwide.」
The contraction in capital investment and sluggish automotive sales caused by COVID-19 actually emerged as deterioration in the demand environment. - FY2020WorsenedAnnual report
「The impact of the spread of COVID-19 has shifted from an initial supply problem to a demand problem. Until the outbreak is brought under control, final demand is expected to be lost for a period of time, economic activity worldwide to decline, and the pace of recovery to slow.」
In addition to the demand risks previously centered on a slowdown in China and emerging markets, COVID-19 shifted the supply problem toward a decline in final demand, and the company explained that the impact on the global economy had expanded. - FY2020-Q3WorsenedAnnual report
「During the cumulative consolidated period of the third quarter, the US continued to show resilient growth, but the slowdown in the Chinese economy caused by US-China trade friction was pronounced, and its effects appeared to be spreading across the global economy.」
The slowdown in the Chinese economy was pronounced, and the company indicated that its effects were spreading across the global economy. In Japan, sluggish exports and slower capital investment became apparent, while weakness was reported in factory automation-related businesses, including semiconductor manufacturing equipment and machine tools, as well as in automotive-related businesses. - FY2020-Q2WorsenedAnnual report
「The slowdown in the Chinese economy caused by US-China trade friction has become pronounced, with the potential for its effects to spread to the global economy as a whole.」
The slowdown in the Chinese economy has become pronounced, and the company indicated the possibility of its effects spreading across the global economy, with concerns over the demand environment continuing. - FY2020-Q1WorsenedAnnual report
「During the cumulative consolidated period of the first quarter, the US economy showed resilient growth, but the slowdown in China caused by US-China trade friction was pronounced. The US economy itself was also expected to be affected, potentially dealing a blow to the global economy.」
The slowdown in the Chinese economy became pronounced, and the company indicated the possibility of spillover effects on the global economy, including the US, with concerns over the external demand environment increasing from the previous year. - FY2019WorsenedAnnual report
「Growth in China has slowed due in part to the effects of trade friction, and the European economy is also trending toward a slowdown.」
The company explicitly indicated slower growth in China and an economic slowdown in Europe, showing that the external economic environment had deteriorated from the previous year's recovery trend and solid conditions. - FY2019-Q3WorsenedAnnual report
「During the cumulative consolidated period of the third quarter, the US continued to maintain solid conditions, while growth in China slowed due in part to the effects of trade friction, and the European economy also entered a slowdown trend.」
Compared with the solid conditions and recovery trend in China and emerging markets through the previous quarter, the company indicated slower growth in China and an economic slowdown in Europe, with risks in the demand and economic environment worsening. - FY2019-Q2WorsenedAnnual report
「Although China continued to grow solidly, trade friction had begun to affect sentiment in some areas, while growth slowed in Europe, and the global economy began to show increasingly mixed conditions.」
Compared with the previous quarter's view of solid economic conditions in China and emerging markets, the company indicated that trade friction was affecting sentiment in China and that growth was slowing in Europe, increasing uncertainty over the global economy. - FY2019-Q1MitigatedAnnual report
「During the cumulative consolidated period of the first quarter, the US continued to show resilient growth, while Europe, China and other emerging markets also remained solid,」
The company explained that conditions in China and emerging markets had improved from the previous stagnation and slowdown to a solid economic environment. Separately, it indicated uncertainty arising from US-China trade friction. - FY2018-Q3MitigatedAnnual report
「During the cumulative consolidated period of the third quarter, the global economy remained firm overall, with the US showing resilient growth and Europe and China also on a recovery track, while emerging markets likewise remained solid.」
The company explained that conditions in China, Europe and emerging markets had improved from the economic recovery trend in the previous quarter to a recovery track and solid performance. At the same time, uncertainty over the outlook due to geopolitical risks and other factors remained. - FY2018-Q2MitigatedAnnual report
「Economic recovery was also under way in Europe and China, while emerging markets showed a moderate recovery.」
Conditions in China and other emerging-market economies improved from the previous stagnation and slowdown toward economic recovery and a rebound. The company separately noted that factors such as geopolitical risks continued to make the outlook uncertain. - FY2018-Q1MitigatedAnnual report
「During the cumulative consolidated period of the first quarter, the global economy was stable, with continued solid growth in the US and signs that emerging-market economies such as China had bottomed out. However, risks remained, including political developments such as US policy and the UK's negotiations to leave the EU, as well as downside risks to the Chinese economy.」
For emerging-market economies such as China, the company indicated signs of a bottoming out and stability, following the previous stagnation and slowdown. At the same time, risks such as downside risks to the Chinese economy continued to be recognized. - FY2017MaterialisedAnnual report
「Although sales of automotive-related products in North America remained strong at overseas subsidiaries, sales in China, ASEAN and Europe were sluggish, while sales of electronic components for office automation equipment in Asia also remained weak, resulting in lower revenue. Consolidated electronics revenue was ¥146,771 million, down 2.9% year on year.」
Weak sales in China, ASEAN and Europe, among other regions, actually resulted in lower revenue at overseas subsidiaries and in the electronics business. - FY2017-Q3RestatedAnnual report
「During the cumulative consolidated period of the third quarter, the US economy continued to grow as the dollar and stock prices rose on expectations of further economic expansion, while the outlook became increasingly uncertain due to sluggish growth in emerging-market economies such as China, US policy developments and political developments in Europe.」
The company continued to point to sluggish growth in emerging-market economies such as China and uncertainty over the outlook for the global economy. It states that there were no new risks or material changes concerning business and other risks. - FY2017-Q2WorsenedAnnual report
「The sluggishness of emerging-market economies, including China, appeared likely to persist longer than expected, while uncertainty arising from factors such as the UK's withdrawal from the EU further clouded the outlook.」
The sluggishness of emerging-market economies, including China, was expected to persist longer than anticipated, indicating continued and more severe risks. Revenue fell 7.3% year on year, while ordinary profit fell 68.9%. - FY2017-Q1MaterialisedAnnual report
「The company was significantly affected by a deterioration in market conditions attributable in part to a slowdown in the Chinese economy from the second half of the previous fiscal year, as well as by a sharp appreciation of the yen. As a result, for the cumulative consolidated period of the first quarter, the Group reported revenue of ¥5,043.5 million, down 5.8% year on year, and an operating loss of ¥121 million.」
The deterioration in market conditions caused by the slowdown in the Chinese economy actually affected performance during the quarter, resulting in lower revenue and an operating loss. The company states that there were no new risks or material changes in the Business and Other Risks section. - FY2016First statedAnnual report
「The company was affected by a sharp deterioration in market conditions during the second half of the fiscal year, attributable in part to a slowdown in the Chinese economy.」
The company identifies a slowdown in China and other emerging markets and shrinking demand as risks to performance, and market conditions actually deteriorated during the fiscal year. Revenue fell 6.7% year on year.