Country Risk in Overseas Operations
First written in FY2016. 9 of 17 entries say "Worsened", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2025: 47 of 94 companies on the "Worse" side.
- FY2026RestatedAnnual report
「The operating environment surrounding the group has become increasingly uncertain, due to factors including declining demand for graphic paper as digitalization advances worldwide, heightened geopolitical risks, and growing concerns over constraints on resource and energy supplies.」
Assuming continued expansion of overseas operations, the group continues to recognize uncertainty relating to geopolitical risks, resource and energy supply constraints, and demand conditions by region. - 2026-05-14WorsenedEarnings
「In its first year, 2025, the global economy generally remained on a gradual recovery path, but uncertainty increased owing to the impact of the Trump tariffs and heightened geopolitical risks,」
The impact of tariffs and heightened geopolitical risks were identified as external factors increasing uncertainty. - FY2026-H1WorsenedAnnual report
「The downturn in the European economy, including Germany and the UK, slower growth in China, and weaker consumer sentiment resulting from the impact of US tariffs also reduced demand for paper, causing net sales to decline to ¥319,186 million, down 4.4% year on year.」
The downturn in the European economy, slower growth in China and weaker consumer sentiment resulting from US tariff policy emerged as lower demand for paper and consolidated net sales falling below the previous year. - FY2025WorsenedAnnual report
「Overseas operations accounted for 61.7% of consolidated net sales in the current consolidated fiscal year, and the group is affected by changes in the political, economic and social conditions of the countries and regions in which it invests.」
The overseas sales ratio increased from 59.6% in the previous fiscal year to 61.7%, further expanding exposure to political, economic and social conditions in countries and regions worldwide. - FY2025-H1RestatedAnnual report
「In China, as demand for paper and paperboard struggled to grow amid an economic downturn, successive additions of new large-scale machines softened market conditions, and both sales volume and net sales fell below the previous year.」
In China, the economic downturn, capacity expansion, softer market conditions, and sales volume and net sales falling below the previous year continued. - FY2024WorsenedAnnual report
「Overseas operations accounted for 59.6% of consolidated net sales in the current consolidated fiscal year, and the group is affected by changes in the political, economic and social conditions of the countries and regions in which it invests.」
The overseas sales ratio increased to 59.6%, further expanding exposure to political, economic and social conditions in countries and regions worldwide. - FY2024-Q3RestatedAnnual report
「In China, declining demand for paper and paperboard continued, and both sales volume and net sales were below the previous year's results.」
In China, declining demand for paper and paperboard and sales volume and net sales falling below the previous year continued. Exposure to the economic conditions of the countries and regions associated with the expansion of overseas operations also remains. - FY2024-Q2RestatedAnnual report
「In China, while actual domestic and overseas demand for paper and paperboard was weak, production capacity continued to expand, and a recovery in market conditions for either paper or paperboard remained unlikely. Sales volume and net sales were below the previous year.」
In China, insufficient actual demand, oversupply resulting from expanded production capacity and the limited prospect of a market recovery continued, with country and market-environment risks remaining evident in sales volume and net sales falling below the previous year. - FY2024-Q1WorsenedAnnual report
「In China, while actual domestic and overseas demand for paper and paperboard was weak, production capacity continued to expand, resulting in pronounced oversupply in some grades. Market conditions also remained depressed for an extended period, and both sales volume and net sales were below the previous year.」
In China, weak actual demand, oversupply resulting from expanded production capacity and prolonged depressed market conditions coincided, with country and market-environment risks emerging in the form of sales volume and net sales falling below the previous year. - FY2023-Q3China's policy easing and expectations for economic reopeningAnnual report
「Meanwhile, China's zero-COVID policy, which had lasted for 3 years, was abruptly eased, raising expectations for a full reopening of the economy.」
China's zero-COVID policy was eased, indicating expectations for an economic reopening. However, paper and paperboard sales volume and net sales in the China business during the current quarter remained below the previous year, and this does not indicate that country risk has been eliminated. - FY2023-Q2WorsenedAnnual report
「In China, downside risks to the economy have increased further, including economic stagnation resulting from the zero-COVID policy and restrictions on private companies.""With actual demand weak from the beginning of the year, intermittent lockdowns resulting from lockdown measures caused demand for paper and paperboard to stagnate, and both sales volume and net sales were below the previous year.」
China's zero-COVID policy and lockdowns prolonged economic stagnation and restrictions on private companies, causing paper and paperboard sales volume and net sales to fall below the previous year. As the overseas sales ratio increased to 58.1%, country risk in China emerged in the group's results. - FY2023-Q1WorsenedAnnual report
「In China, the economic slowdown resulting from the zero-COVID policy became increasingly pronounced.""Intermittent lockdowns, mainly in regional cities, extended to Shanghai in March. As the government prioritized the zero-COVID policy over the economy, demand for paper and paperboard fell sharply, and both sales volume and net sales were below the previous year.」
While the overseas sales ratio increased to 56.9%, sales volume and net sales of paper and paperboard in China fell below the previous year due to the zero-COVID policy and lockdowns. - FY2022WorsenedAnnual report
「The group's overseas paper, pulp and other wholesale operations accounted for 54.3% of consolidated net sales in the current consolidated fiscal year and are affected by changes in the political, economic and social conditions of the countries and regions in which it invests.」
The overseas sales ratio increased, expanding exposure to political, economic and social conditions worldwide to 54.3%. - FY2021WorsenedAnnual report
「The group operates businesses around the world, and its overseas paper, pulp and other wholesale operations accounted for 41.1% of consolidated net sales in the current consolidated fiscal year.」
Overseas operations accounted for 41.1% of consolidated net sales, expanding the group's exposure to political, economic and social conditions worldwide. - FY2019RestatedAnnual report
「In China, the group is proceeding with the liquidation of 国紗褘紙漿紙張商貿(上海)有限公司, whose financial condition deteriorated mainly due to the provision for doubtful accounts described above and other factors. If unforeseen losses arise during the liquidation process, they may affect the group's financial condition and operating results.」
The group continues to disclose country risk associated with the deterioration in the financial condition of its China business and the liquidation proceedings. - FY2018MaterialisedAnnual report
「In China, the group is proceeding with the liquidation of 国紗褘紙漿紙張商貿(上海)有限公司, whose financial condition deteriorated mainly due to the provision for doubtful accounts described above and other factors. If unforeseen losses arise during the liquidation process, they may affect the group's financial condition and operating results.」
The deterioration in the financial condition of the China business and liquidation proceedings have occurred in practice, with country risk emerging as a specific business situation. - FY2016First statedAnnual report
「Overseas sales accounted for 17.3% of consolidated net sales in the current consolidated fiscal year.""Business activities may be constrained by factors including legal amendments, rising labor costs and diplomatic issues.」
The group has taken out insurance covering its overseas operations and is gathering local information as countermeasures.