Inventory Risk from Rising EOL and BCM Inventory
First written in FY2018. 11 of 26 entries say "Worsened", first in FY2021-Q1. Latest entry: 2026-07-31.
Shinko Shoji moved to the "Worse" side of this theme in 2021.
0 other companies' latest entry also says "Worsened".
- 2026-07-31WorsenedEarnings
「This was mainly due to increases of ¥4,029 million in merchandise and finished products and ¥833 million in accrued income, among other factors.」
The balance of merchandise and finished products increased by ¥4,029 million from the end of the previous fiscal year, and the inventory burden, which had contracted in the previous fiscal year, increased again in the first quarter. - FY2026MitigatedAnnual report
「Although merchandise and products decreased by ¥2,635 million」
Merchandise and product inventories decreased by ¥2,635 million from ¥15,079 million at the end of the previous fiscal year to ¥12,444 million. While the inventory burden decreased, the potential impact of EOL and BCM inventory on operating performance and financial condition continues to be disclosed as a key risk. - 2026-06-02RestatedGeneral Meetings of Shareholders
「With respect to EOL (End of Life) inventory, we assume that the longer it is held, the greater the likelihood that it will ultimately have to be disposed of.」
The Company reiterated inventory risks, including potential write-downs and disposal of ordinary and EOL inventory, relating to ¥12,444 million of merchandise and finished products. - FY2026-H1Merchandise inventory decreasedAnnual report
「This was mainly attributable to a decrease of ¥2,804 million in merchandise and products, despite increases of ¥1,462 million in intangible assets, ¥896 million in other current assets, ¥888 million in notes, accounts receivable and contract assets, ¥527 million in property, plant and equipment, and ¥497 million in cash and deposits, among other factors.」
Merchandise and product inventories decreased by ¥2,804 million from the end of the previous consolidated fiscal year, resulting in a quantitative change in the burden of holding inventories, including EOL and BCM inventory. Meanwhile, inventory risk itself continues to be treated as an important risk. - FY2025RestatedAnnual report
「In addition, in recent years, production discontinuations (EOL) resulting from the concentration and selection of production items amid intensifying international competition among semiconductor manufacturers, as well as demand for distribution inventory (BCM) to maintain the supply chain in preparation for earthquakes and other disasters and tight supply and demand, have increased. The resulting increase in inventory may affect the group's operating performance and financial condition.」
EOL and BCM inventory risk continues to be disclosed as a key risk. Merchandise and product inventories decreased from ¥31,683 million to ¥15,079 million, but the potential impact of changes in demand and supply-demand conditions continues. - FY2024-Q3RestatedAnnual report
「This was mainly attributable to decreases of ¥6,185 million in notes, accounts receivable and contract assets, despite increases of ¥6,680 million in merchandise and products, ¥1,760 million in cash and deposits, ¥707 million in other receivables and ¥460 million in investment securities, among other factors.」
Merchandise and product inventories increased by ¥6,680 million from the end of the previous consolidated fiscal year, and the funding burden associated with the inventory increase continued. As in the previous quarter, securing working capital and liquidity remains an issue. - FY2024-Q2WorsenedAnnual report
「Total assets as of the end of the second quarter of the current consolidated fiscal year were ¥109,243 million, an increase of ¥10,416 million from the end of the previous consolidated fiscal year. This was mainly attributable to increases of ¥6,689 million in merchandise and products, ¥1,795 million in other receivables, and ¥1,790 million in notes, accounts receivable and contract assets, among other factors.」
Merchandise and product inventories increased by ¥6,689 million from the end of the previous consolidated fiscal year, and the funding burden associated with increases in inventory, trade receivables and other items continued. Inventory risk and the working capital burden expanded further. - FY2024-Q1WorsenedAnnual report
「Total assets as of the end of the first quarter of the current consolidated fiscal year were ¥109,057 million, an increase of ¥10,230 million from the end of the previous consolidated fiscal year. This was mainly attributable to increases of ¥7,912 million in merchandise and products, ¥2,931 million in other receivables and ¥480 million in investment securities, despite a decrease of ¥1,366 million in cash and deposits, among other factors.」
Merchandise and product inventories increased by ¥7,912 million from the end of the previous consolidated fiscal year to ¥39,297 million, while cash and deposits decreased by ¥1,366 million. The funding burden associated with the increase in inventory expanded further. - FY2023-Q3WorsenedAnnual report
「Total assets as of the end of the third quarter of the current consolidated fiscal year were ¥99,380 million, an increase of ¥10,429 million from the end of the previous consolidated fiscal year. This was mainly attributable to increases of ¥4,721 million in notes, accounts receivable and contract assets, ¥3,102 million in merchandise and products, and ¥3,398 million in other receivables, among other factors.」
Merchandise and product inventories increased by ¥3,102 million from the end of the previous consolidated fiscal year, and the working capital burden associated with increases in inventory and trade receivables continued. Short-term borrowings also increased by ¥9,305 million to secure liquidity. - FY2023-Q2WorsenedAnnual report
「Total assets as of the end of the second quarter of the current consolidated fiscal year were ¥99,095 million, an increase of ¥10,144 million from the end of the previous consolidated fiscal year. This was mainly attributable to increases of ¥6,610 million in notes, accounts receivable and contract assets and ¥3,872 million in merchandise and products, among other factors.」
Merchandise and product inventories increased by ¥3,872 million from the end of the previous consolidated fiscal year, and trade receivables also increased by ¥6,610 million. The working capital burden and liquidity requirements associated with increases in inventory and trade receivables continued. - FY2023-Q1WorsenedAnnual report
「Total assets as of the end of the first quarter of the current consolidated fiscal year were ¥98,116 million, an increase of ¥9,165 million from the end of the previous consolidated fiscal year. This was mainly attributable to increases of ¥2,290 million in cash and deposits, ¥3,420 million in notes, accounts receivable and contract assets, and ¥4,026 million in merchandise and products, among other factors.」
Merchandise and product inventories increased by ¥4,026 million from the end of the previous consolidated fiscal year to ¥33,216 million, further increasing the inventory and working capital burden associated with higher orders and other factors. - FY2022-Q3WorsenedAnnual report
「This was mainly attributable to a decrease of ¥4,182 million in cash and deposits, despite increases of ¥1,743 million in notes, accounts receivable and contract assets, ¥10,079 million in merchandise and products, and ¥4,032 million in other receivables, among other factors.」
Merchandise and product inventories increased by ¥10,079 million from the end of the previous consolidated fiscal year, bringing the inventory balance to ¥26,919 million. The funding burden associated with holding EOL and BCM inventory and inventory increases accompanying higher orders expanded further. - FY2022-Q2WorsenedAnnual report
「This was mainly attributable to a decrease of ¥2,187 million in cash and deposits, ¥961 million in notes, accounts receivable and contract assets, and ¥340 million in investment securities, despite an increase of ¥5,488 million in merchandise and products, among other factors.」
Merchandise and product inventories increased by ¥5,488 million from the end of the previous consolidated fiscal year, and the funding burden associated with higher inventories continued. The disclosure also explicitly indicated that securing liquidity was necessary as working capital increased. - FY2022-Q1WorsenedAnnual report
「This was mainly attributable to an increase of ¥2,038 million in merchandise and products, among other factors. As working capital is also expected to increase as a result of higher orders, the company will prepare to secure liquidity.」
Merchandise and product inventories increased by ¥2,038 million from the end of the previous fiscal year, and increases in inventory and working capital associated with higher orders are expected. In addition to EOL and BCM inventory, the inventory and funding burden associated with a recovery in orders has become apparent. - FY2021-Q3WorsenedAnnual report
「This was mainly attributable to increases of ¥1,261 million in notes and accounts receivable, ¥3,632 million in merchandise and products, ¥1,559 million in other receivables and ¥691 million in investment securities, despite a decrease of ¥8,777 million in cash and deposits, among other factors. The company expects to require funding in the future to hold EOL and BCM inventory and to cover temporary increases in inventory, but the group secures sufficient liquidity primarily through cash and deposits.」
Merchandise and product inventories increased by ¥3,632 million from the end of the previous fiscal year, while cash and deposits decreased by ¥8,777 million. Funding needs associated with holding EOL and BCM inventory continued, increasing inventory risk and the funding burden. - FY2021-Q2RestatedAnnual report
「As described in the cash flow section, cash and cash equivalents at the end of the six-month period of the current consolidated fiscal year decreased by ¥5,021 million from the end of the previous consolidated fiscal year to ¥18,902 million, due to factors including an increase in inventories, a decrease in trade payables and payment of dividends. Although funding will continue to be required to hold EOL and BCM inventories and to accommodate temporary inventory increases, the group maintains sufficient liquidity primarily through cash and cash equivalents.」
Merchandise and product inventories increased by ¥4,514 million from the end of the previous fiscal year, and funding needs associated with holding inventory continued. Cash and cash equivalents also decreased by ¥5,021 million, while the company disclosed both funding needs, including those related to EOL and BCM inventory, and the securing of sufficient liquidity. - FY2021-Q1WorsenedAnnual report
「In addition, the increase in inventory held to address EOL and BCM requirements remains an important management issue. We will continue to make prudent management decisions that balance securing cash to preserve the value of the trading company, an appropriate capital cost, risk avoidance to the extent possible, and appropriate accounting treatment.」
The company continues to recognize EOL and BCM inventory as an important issue. Merchandise and product inventories increased from ¥14,892 million at the end of the previous fiscal year to ¥20,217 million, increasing funding needs associated with holding inventory. - FY2020Inventory balance down, issue continuesAnnual report
「However, in recent years, intensifying international competition among semiconductor manufacturers has led to the concentration and selection of production items, resulting in product discontinuations (EOL), while distribution inventory (BCM) has increased to maintain the supply chain in the event of earthquakes and other disasters. Our company has also been affected by these developments.」
Merchandise and products, raw materials and other inventories decreased, but the increase in EOL and BCM inventory continues to be disclosed as an important issue, and measures under the inventory write-down system remain in place. - FY2020-Q3RestatedAnnual report
「The company continues to recognize the inventory risk associated with EOL and BCM as an important management issue and will pursue appropriate risk mitigation and accounting treatment.」
The company has reiterated its policy of recognizing the risk associated with EOL and BCM inventory as an important management issue and responding appropriately. - FY2020-Q2RestatedAnnual report
「The company continues to recognize the inventory risk associated with EOL and BCM as an important management issue and will pursue appropriate risk mitigation and accounting treatment.」
The company continues to recognize the risk associated with EOL and BCM inventory as an important management issue. - FY2020-Q1RestatedAnnual report
「In addition, the increase in inventory held to address EOL and BCM continues to be an important management issue.」
The company continues to recognize the increase in inventory held for EOL and BCM measures as an important management issue. - FY2019Inventory balance down, important issue continuesAnnual report
「In recent years, intensifying international competition among semiconductor manufacturers has led to the concentration and selection of production items, resulting in product discontinuations (EOL), while distribution inventory (BCM) has increased to maintain the supply chain in the event of earthquakes and other disasters. Our company has also been affected by these developments.」
While merchandise and products decreased by ¥2,980 million from the end of the previous fiscal year, the company continues to recognize the increase in EOL and BCM inventory as an important issue. - FY2019-Q3Inventory balance down, issue continuesAnnual report
「Meanwhile, the increase in inventory held to address the discontinuation of supplier products (EOL: End of Life) and customer business continuity (BCM: Business Continuity Management) continues to be an important management issue.」
While continuing to treat the increase in EOL and BCM inventory as an important issue, merchandise and product inventories decreased from ¥19,427 million at the end of the previous fiscal year to ¥18,140 million. - FY2019-Q2Inventory issue continues despite lower balanceAnnual report
「The increase in inventory held to address the discontinuation of supplier products (EOL: End of Life) and customer business continuity (BCM: Business Continuity Management) continues to be an important management issue.」
The company continues to recognize the increase in inventory held for EOL and BCM measures as an important issue. Meanwhile, merchandise and product inventories decreased from ¥19,427 million at the end of the previous fiscal year to ¥18,279 million. - FY2019-Q1Balance declined but remained highAnnual report
「Inventory was ¥18,856 million, a decrease of ¥570 million from the end of the previous fiscal year, but remained at a high level, including EOL and BCM inventory. We therefore regard this as an important management issue and are taking appropriate measures, including treating reductions in carrying value as cost of sales and introducing an inventory write-down system.」
The inventory balance decreased by ¥570 million from the end of the previous fiscal year, but remained high, including EOL and BCM inventory, and continues to be an important management issue. - FY2018First statedAnnual report
「Distribution inventories for products reaching end of life (EOL) and business continuity management (BCM) inventories held to maintain the supply chain in the event of earthquakes and other disasters have increased, and we have also been affected. Increase in inventories: ¥6,472 million」
For the first time, the increase in distribution inventory associated with EOL and BCM measures is disclosed separately as a risk, with reference also made to the ¥6,472 million increase in inventories during the fiscal year.