Device Procurement Terms, Inventory Obsolescence and Quality Issues
First written in FY2016. 2 of 7 entries say "Materialised", first in FY2019-Q1. Latest entry: FY2026.
Japan Communications moved to the "Worse" side of this theme in 2018.
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Similar circumstances may also arise from February 2026 onward as a result of developments in the Middle East.」
For device procurement risks, the company has added concerns over supply shortages and product scarcity resulting from developments in the Middle East since February 2026, in addition to the COVID-19 pandemic and the situation in Ukraine. - FY2023WorsenedAnnual report
「In addition, as a result of the globalisation of the economy, the spread of infectious diseases worldwide and changes in the international situation also affect the procurement of communications devices. Since January 2020, the spread of the novel coronavirus has resulted in prolonged shortages of communications devices, while since February 2022 there have been concerns that the situation in Ukraine could lead to semiconductor supply shortages.」
In addition to the traditional risks relating to device procurement and supply, the company discloses prolonged shortages caused by the COVID-19 pandemic and concerns over semiconductor shortages resulting from the situation in Ukraine. - FY2021-Q3MitigatedAnnual report
「On 20 January 2021, Quanta withdrew part of its claim, namely approximately US$130,000 in late-payment damages on the purchase price already paid. The amount claimed in its counterclaim therefore became approximately US$5.46 million plus late-payment damages.」
In the dispute with Quanta arising from defective devices, part of the counterclaim was withdrawn, reducing the amount claimed to approximately US$5.46 million plus late-payment damages. The litigation itself, however, is continuing. - FY2020MaterialisedAnnual report
「In addition, the spread of the novel coronavirus since January 2020 has disrupted the supply chain for communications devices. If this situation continues for an extended period, the performance of our group may be adversely affected by higher business costs and lost business opportunities resulting from our inability to supply communications devices to customers in a timely manner.」
The longstanding risks relating to device procurement and supply have materialised in the form of supply-chain disruption caused by the spread of the novel coronavirus. - FY2019-Q1MaterialisedAnnual report
「Because some of the delivered products in question were defective and the defects remained unresolved, we refused to accept approximately 14,000 units. On 8 August 2016, Quanta filed a lawsuit in California, United States, against us seeking payment of approximately US$2 million for the purchase price of the products we had refused to accept, among other relief (the “US Litigation”).」
Device defects and refusal to accept the products have materialised as litigation with Quanta over the purchase price and damages. - FY2017RestatedAnnual report
「If procured communications devices become obsolete, or if delays in placing orders prevent timely supply to customers and result in lost business opportunities, the performance of our group may be adversely affected.」
The company is reiterating the risks relating to device procurement terms, supply delays, inventory obsolescence, quality and product liability. - FY2016First statedAnnual report
「If procured communications devices become obsolete, or if delays in placing orders prevent timely supply to customers and result in lost business opportunities, the performance of our group may be adversely affected.」
The company discloses minimum order quantities, deterioration in procurement terms, supply delays, quality issues and product liability as device-related risks.