According to the companys financial report, the growth rate of its performance in China market was lower than that in other overseas markets in the last fiscal year. Even so, in terms of sales, China is still Japans TOTOs largest overseas market.
On September 9, TOTO announced that the factory of Beijing Dongtao Co., Ltd., one of the group companies, was closed at the end of September. According to the enterprise survey, the largest shareholder of Beijing Dongtao is Dongtao (China) Co., Ltd., which is wholly owned by TOTO of Japan.
Japans TOTO determined that the companys production capacity could still meet the Chinese market demand, and the impact of factory closure on the companys performance was expected to be minimal. Japans NNA News Network revealed that TOTO now has seven bathroom equipment factories in Asia (except Japan), including three in mainland China and one in Taiwan. Vietnam, Thailand and India each have one seat.
TOTO Kitakyushu Factory, Japan, Pictured from Visual China in 2008
As for the arrangement of follow-up employees, TOTO did not make a statement in Japan.
Some Hong Kong media quoted Beijing Dongtao employees on the 10th as saying that only in the two days did they know the news that nearly 800 employees were affected. At present, employees are discussing the issue of severance compensation with the authorities, hoping to solve it in accordance with normal laws and regulations. At present, there are security personnel stationed outside the factory, the source said.
Regarding the reasons for closing the factory, Kyodo News Agency reported that poor sales of sanitary ceramics products in the Chinese market may have an impact.
According to the companys financial report, the companys operating profit in fiscal year 2018 was 40.1 billion yen (about 2.64 billion yuan), down 24% from the previous year. Sales of its home decoration business in China fell 12% to 63.5 billion yen (about 4.2 billion yuan) compared with the previous year, while operating profit fell 32% to 12.3 billion yen (about 870 million yuan).
Overall, TOTOs net sales and operating profits in China fell year-on-year in the last fiscal year, higher than the companys data in other overseas markets in the same period.
In terms of subsidiary performance, the net sales of Japanese TOTO subsidiary in China fell 12% year on year in the last fiscal year, and its operating profit plunged 30%.
The situation did not improve after entering fiscal year 2019. In the first quarter of this fiscal year, sales of TOTOs home decoration business in China fell 13% year on year. Net sales of its subsidiaries in China fell 9% year-on-year, while operating profits fell 46%.
It should be pointed out that, in terms of sales, China is still Japans TOTOs largest overseas market. In the last fiscal year, the sales of TOTO in Japan were 130.4 billion yen (about 8.58 billion yuan) in overseas home decoration business, and 48.7% in China market. Japans biggest toto market is still in Japans domestic market: the sales volume of home decoration in the same period was 425.1 billion yen (about 27.97 billion yuan). Source: responsible editor of observer network: Yang bin_nf4368
It should be noted that in terms of sales, China is still the largest overseas market of toto in Japan.
In the last fiscal year, the sales of TOTO in Japan were 130.4 billion yen (about 8.58 billion yuan) in overseas home decoration business, and 48.7% in China market. TOTOs biggest market in Japan is still in Japan: sales of home furnishings in the same period were 425.1 billion yen (about 27.97 billion yuan).