Semiannual settlement of accounts of listed companies covering the April-September period shows that the slowdown of the world economy, the strong yen and the deterioration of relations between Japan and China due to the dispute over the Senkaku Islands have negatively affected their business performances.
It is believed that the total net profit of these companies declined about 30 percent from the same period in 2011.
An increasing number of enterprises that heavily rely on exports to China expect that they will suffer losses or a big declines in profit in the business year ending March 31, 2013. This underlines the need for companies that are expanding their business overseas to prepare for risks from a change in the political situation, language barriers, local people's sentiments and local security situations.