Return to profitability through lower operating expenses in China
First written in FY2017-Q2. 14 of 30 entries say "Worsened", first in FY2018-Q3. Latest entry: FY2027-H1.
Wilson Learning Worldwide moved to the "Worse" side of this theme in 2018, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 5 of 16 companies on the "Worse" side.
2 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「In China, we continued to scale back operations toward liquidation.」
The measures to restore profitability in China continued to be described as being at the stage of scaling back operations and controlling costs toward liquidation, rather than strengthening the operating structure. - FY2026WorsenedAnnual report
「In China, the Company has begun liquidation procedures and has significantly reduced selling, general and administrative expenses, but the liquidation is taking time and some business activities continue.」
Although reductions in selling, general and administrative expenses in preparation for liquidation progressed, the prolonged liquidation process and continued business activities caused operating results to deteriorate from a profit of ¥2.964 million in the previous fiscal year to a loss of ¥19.403 million. - FY2026-H1WorsenedAnnual report
「In China, the Company has begun winding down the business and has significantly reduced selling, general and administrative expenses, but the liquidation is taking time.」
Although reductions in selling, general and administrative expenses in preparation for liquidation progressed, China shifted from an operating profit in the same period of the previous year to an operating loss of ¥8.739 million during the current interim consolidated accounting period, and profitability could not be maintained. - FY2025AdvancedAnnual report
「In China, revenue declined as selling, general and administrative expenses were significantly reduced in preparation for the liquidation of the business, but the operating loss continued to improve substantially.」
China’s operating loss narrowed substantially from ¥81.409 million in the previous fiscal year to ¥2.964 million. Although this was not a return to profitability, the effects of reducing selling, general and administrative expenses in preparation for liquidation were reflected in the figures. - FY2024-Q3WorsenedAnnual report
「Despite the slowing economy in China, direct sales revenue from locally owned companies continued to increase slightly during the cumulative third-quarter consolidated period. However, the decline in projects delivered in China within the group resulted in lower revenue year on year. As a result, revenue was ¥60 million, down 13.0% year on year, and the operating loss was ¥35 million, compared with an operating loss of ¥22 million in the same period of the previous year.」
Although direct sales to locally owned companies increased slightly, total revenue fell 13.0% due to the decline in projects delivered within the group, and the operating loss widened from ¥22.77 million in the same period of the previous year to ¥35.875 million. - FY2024-Q2Slight increase in direct sales, but intra-group orders declined and losses continuedAnnual report
「In China, direct sales revenue increased slightly as the economy gradually recovered, but total sales were flat year on year because intra-group orders declined. As a result, revenue was ¥49 million, down 1.7% year on year, and the operating loss was ¥19 million, compared with an operating loss of ¥19 million in the same period of the previous year.」
Although direct sales revenue in China increased slightly, total revenue fell 1.7% year on year due to the decline in intra-group orders, and the operating loss continued at the same level as in the same period of the previous year. - FY2024-Q1MitigatedAnnual report
「In China, revenue increased and the operating loss narrowed as the economy gradually recovered.」
China has not yet returned to profitability through operating expense reductions and sales organization strengthening, but the operating loss narrowed year on year as higher revenue accompanied the economic recovery. - FY2023-Q2WorsenedAnnual report
「In China, large-scale lockdowns under the zero-COVID policy continued for an extended period during the first-quarter consolidated accounting period in Shanghai and elsewhere. Although business performance recovered steadily during the cumulative second-quarter consolidated period, the lockdowns resulted in declines in revenue and profit. As a result, revenue was ¥50 million, down 24.3% year on year, and the operating loss was ¥19 million, compared with an operating loss of ¥0 million in the same period of the previous year.」
Although China continued to recover, the impact of the lockdown resulted in an operating loss of ¥19.635 million, a deterioration from approximately breakeven in the same period of the previous year. - FY2023-Q1WorsenedAnnual report
「In China, large-scale lockdowns under the zero-COVID policy continued for an extended period during the cumulative first-quarter consolidated period in Shanghai and elsewhere. These lockdowns had a significant impact on the group’s business activities, resulting in substantial declines in revenue and profit.」
China was unable to maintain profitability achieved through operating expense reductions and marketing initiatives, recording an operating loss of ¥14.978 million due to the impact of the prolonged lockdown. - FY2022WorsenedAnnual report
「In China, sales continued to perform solidly and exceeded the level in the same period of the previous year, as economic activity recovered and the sales pipeline targeting locally owned companies shifted to a growth trend due in part to the effects of marketing using social media and other channels. However, the large-scale, prolonged lockdown in Shanghai resulted in several training projects being postponed or cancelled at the end of the period. Selling, general and administrative expenses, including outsourcing costs, also increased.」
The sales pipeline and revenue targeting locally owned companies increased, but higher selling, general and administrative expenses, including outsourcing costs, and the impact of the Shanghai lockdown resulted in a full-year operating loss of ¥15.843 million, and profitability could not be maintained. - FY2022-Q3AdvancedAnnual report
「The company recorded an operating profit during the cumulative third-quarter consolidated period, although selling, general and administrative expenses, including outsourcing costs, increased.」
Despite higher selling, general and administrative expenses, including outsourcing costs, China recorded an operating profit of ¥2.646 million, confirming a return to profitability on a cumulative quarterly basis. - FY2022-Q2MitigatedAnnual report
「However, because selling, general and administrative expenses, including outsourcing costs, increased, the company recorded an operating loss during the cumulative second-quarter consolidated period. As a result, revenue was ¥66 million, up 57.1% year on year, and the operating loss was ¥0 million, compared with an operating loss of ¥17 million in the same period of the previous year.」
China’s revenue increased 57.1% year on year and the operating loss narrowed to ¥341,000, but the segment did not return to profitability due to higher selling, general and administrative expenses, including outsourcing costs. - FY2022-Q1AdvancedAnnual report
「In China, marketing and sales initiatives that had continued since before the pandemic, shifting the target market from global companies to locally owned companies, began to produce results. Together with the recovery in market conditions, this led to a rapid recovery in revenue and a return to profitability.」
The explanation progressed from China’s return to profitability through operating expense reductions to a recovery in profitability driven by a shift toward locally owned companies as sales targets and the results of marketing and sales initiatives. - FY2021AdvancedAnnual report
「In China, the sales pipeline shifted to a growth trend as economic activity recovered following the containment of COVID-19 infections, and as marketing activities produced results, including the sales training division’s training content winning an award in China.」
Concrete progress was shown in China’s sales organization and marketing initiatives, including the award-winning training content and the sales pipeline’s shift to a growth trend. However, China has not yet achieved operating profitability. - FY2021-Q2AdvancedAnnual report
「The company also reduced its workforce in Hong Kong and cut personnel expenses, but selling, general and administrative expenses temporarily increased due to retirement-related costs.」
The company made concrete progress by reducing its workforce and personnel expenses in China and Hong Kong. However, selling, general and administrative expenses temporarily increased due to retirement-related costs, and China continued to record an operating loss. - FY2021-Q1WorsenedAnnual report
「As a result, revenue was ¥11 million, down 39.9% year on year, and the operating loss was ¥10 million, compared with an operating loss of ¥10 million in the same period of the previous year.」
Although China was described as relatively solid compared with the other segments, it did not return to profitability through operating expense reductions, and the operating loss continued at approximately the same level as in the same period of the previous year. - FY2020WorsenedAnnual report
「The company continued to strengthen its sales organization, including by enhancing web marketing measures to generate sales leads among local Chinese companies, but China did not reach a recovery trend.」
Although the company continued its web marketing efforts and strengthened its sales organization, it was unable to offset the decline in existing customers’ training budgets and the impact of COVID-19, and the operating loss widened from ¥52.529 million in the previous fiscal year to ¥56.172 million. - FY2020-Q3ReframedAnnual report
「In China, despite the effects of the slowdown in the Chinese economy and the ongoing strengthening of the sales organization, revenue was slightly higher than in the same period of the previous year.」
The explanation for improvement in China shifted from a return to profitability through conventional operating expense reductions to a recovery in sales and narrower losses while the sales organization was being strengthened. China has not yet achieved operating profitability. - FY2020-Q2MitigatedAnnual report
「In China, existing customers continued to be significantly affected by the slowdown in the Chinese economy, as in the previous fiscal year. Although the sales pipeline was recovering, sales were slightly below the level in the same period of the previous year.」
The impact on existing customers continued in China and revenue declined slightly, but the sales pipeline was recovering, and the operating loss narrowed from ¥27 million in the same period of the previous year to ¥19 million. - FY2020-Q1ReframedAnnual report
「In China, existing customers continued to be significantly affected by U.S. tariff policies, as in the previous fiscal year, but the sales pipeline was recovering. As a result, revenue was ¥19 million, up 15.7% year on year, and the operating loss was ¥10 million, compared with an operating loss of ¥13 million in the same period of the previous year.」
Regarding China’s return to profitability, the explanation focused not on the effects of operating expense reductions but on a recovery in the sales pipeline and a reduction in losses resulting from higher sales. Although the operating loss narrowed, China has not yet returned to profitability. - FY2019WorsenedAnnual report
「The company was unable to offset this decline through order-winning activities targeting local Chinese companies, resulting in a substantial decline in sales compared with the previous consolidated fiscal year and an operating loss.」
The company advanced the hiring of sales managers and strengthened web marketing, but was unable to offset the decline in customer budgets through orders from local Chinese companies, and results deteriorated from a policy of returning to profitability to widening operating losses. - FY2019-Q3WorsenedAnnual report
「During the cumulative third-quarter consolidated period, the company hired new sales managers and continued to strengthen its sales organization, including by enhancing web marketing measures to increase sales leads. However, the training budgets of customers that are local subsidiaries of global companies headquartered in Europe and the United States remained substantially reduced or frozen due to the impact of U.S. protectionist policies.」
The company advanced the hiring of sales managers and strengthened web marketing, but was unable to offset the reduction and freezing of customer training budgets, and China’s results deteriorated from an operating profit in the same period of the previous year to an operating loss. - FY2019-Q2WorsenedAnnual report
「New order-winning activities were unable to offset this decline, and the company recorded an operating loss, following the cumulative first-quarter consolidated period. As a result, revenue was ¥37 million, down 43.3% year on year, and the operating loss was ¥27 million, compared with an operating profit of ¥2 million in the same period of the previous year.」
Although the company continued to revamp and strengthen its sales organization and pursue new orders, it was unable to offset the decline in customer budgets, and operating losses resumed following the earlier return to profitability through operating expense reductions. - FY2019-Q1WorsenedAnnual report
「As a result, revenue was ¥16 million, down 22.1% year on year, and the operating loss was ¥13 million, compared with an operating loss of ¥4 million in the same period of the previous year.」
A return to profitability through operating expense reductions was not evident in the quarter, and China’s loss widened further from the operating loss recorded in the same period of the previous year. - FY2018WorsenedAnnual report
「The company worked to rebuild its organization under the new managing director, but sales fell substantially short of the target due to the slowdown in the Chinese economy. Although it continued to pursue efficiency improvements, including reductions in selling, general and administrative expenses, as in the previous fiscal year, it recorded an operating loss.」
Despite continuing to reduce selling, general and administrative expenses, sales fell substantially short of the target while the organization was being rebuilt under the new managing director, and operating results deteriorated from an operating profit to an operating loss. - FY2018-Q3WorsenedAnnual report
「Although we overhauled the sales organization, revenue fell well below the same period of the previous year, partly because of the effects of the slowdown in the Chinese economy. Recruitment costs and other expenses were recorded, resulting in an operating loss.」
Regarding China’s return to profitability, the explanation shifted from the effects of conventional cost reductions to a revamp of the sales organization and hiring costs, and operating results deteriorated from a profit in the same period of the previous year to a loss. - FY2018-Q2ReframedAnnual report
「The company worked to renew and strengthen its sales organization, but revenue declined as it did not acquire any new major customers. Profit declined as recruitment costs and other expenses were recorded. As a result, revenue was ¥65 million, down 14.4% year on year, and operating profit was ¥2 million, down 51.3%.」
The explanation of China’s return to profitability shifted from expense reductions to renewing and strengthening the sales organization and recruitment. Operating profit remained positive, but declined year on year. - FY2018-Q1ReframedAnnual report
「Revenue declined and the company reported an operating loss for the first quarter of the consolidated fiscal year. The company is working to improve the quality of its sales activities and aims to improve its gross margin. It is also shifting from global orders to local orders. The company plans to actively hold marketing events, which had been scaled back last year.」
The focus of the explanation of how China would return to profitability shifted from continued expense reductions to improving the quality of sales activities and gross margins, localizing orders and expanding marketing events. Meanwhile, the company reported an operating loss for the quarter. - FY2017-Q3RestatedAnnual report
「The benefits of efforts to reduce expenses were also reflected in profit. As a result, revenue was ¥126 million, up 4.5% year on year, and operating profit was ¥3 million, compared with an operating loss of ¥17 million in the previous year.」
The benefits of expense reductions continued to be cited, and China shifted from an operating loss in the previous year to operating profit. - FY2017-Q2First statedAnnual report
「Although net sales declined because of the downturn in the Chinese economy, operating income was recorded as a result of lower operating expenses.」
As revenue declined amid the slowdown in the Chinese economy, the company sought to shift from an operating loss to operating profit by reducing operating expenses.