On the 11th, Nex Group <6634> announced initiatives related to the "economic security" and "Japanese quality" of products from its consolidated subsidiary, Nex.

As the company often uses overseas ODM due to cost reasons, many of the products it offers are for enterprises, making it common for end users to be global companies. Therefore, it is important to inspect for any security risks.

Therefore, for all products currently on sale, efforts will be made to continue to strengthen management to ensure compliance with the measures targeting equipment, systems, or services related to communication and surveillance of five Chinese companies under Section 889 of the US National Defense Authorization Act for Fiscal Year 2019. Stemming from 40 years of experience and achievements as a communication equipment manufacturer, the company will supply reliable products for enterprises by maintaining its commitment to consistent Japanese quality even in overseas ODM. The company will continue to monitor US developments, proceed with continuous management and supervision of manufacturing contract partners, develop new reliable manufacturing contract partners, expand the product lineup to meet market needs as a domestic manufacturer, and aim to expand its business domain in 5G, edge AI devices, mobile computing, and M2M/IoT fields.

The company plans to continue to monitor US developments while progressing with the continuous management and supervision of manufacturing contract partners. It will also strive to develop reliable new manufacturing contract partners, expand its product range to meet market needs as a domestic manufacturer, and work towards expanding its business domain in the 5G, edge AI devices, mobile computing, and M2M/IoT fields.