Filing for Commencement of Bankruptcy Proceedings by a Consolidated Subsidiary
重慶参天科瑞製薬有限公司 (consolidated subsidiary)
Manufacture and sale of ophthalmic drugs in Chongqing, China
Because changes in the business environment, including healthcare system reforms in China, made it difficult to continue the strategy, and there was no prospect of selling the assets or repaying all debts
No new loss is expected. Full allowances for doubtful accounts have already been recorded against the loans.
FY2026 consolidated results
The impact of this matter on the Company's FY2026 consolidated results is expected to be immaterial.
CNY 100 million (approximately ¥2.3 billion) owed to the Company and Santen Pharmaceutical (China) Co., Ltd.
Related procedures
Filing for commencement of bankruptcy proceedings
Local court
Change in voting rights ownership ratio
The voting rights ownership percentage is the proportion of the voting rights exercisable at a shareholders' meeting held by the shareholder.
Santen Pharmaceutical (China) Co., Ltd. 49% (as of the end of March 2026)
If the filing is accepted by the court, bankruptcy proceedings will be conducted in accordance with applicable laws and regulations. Following a declaration of bankruptcy by the court, the assets are expected to be disposed of and the proceeds distributed to creditors.
| Item | Details |
|---|---|
| Event name | Filing for Commencement of Bankruptcy Proceedings by a Consolidated Subsidiary |
| Date of occurrence | 16 October 2026 (resolution at a shareholders' meeting held in local time to file for commencement of bankruptcy proceedings) |
| Subject Entity | 重慶参天科瑞製薬有限公司 (consolidated subsidiary) |
| Target Locations / Products | Manufacture and sale of ophthalmic drugs in Chongqing, China |
| Cause | Because changes in the business environment, including healthcare system reforms in China, made it difficult to continue the strategy, and there was no prospect of selling the assets or repaying all debts |
| Amount of Impact on Business Performance | No new loss is expected. Full allowances for doubtful accounts have already been recorded against the loans. |
| Accounting period in which recognized | FY2026 consolidated results |
| Impact on Earnings Forecast | The impact of this matter on the Company's FY2026 consolidated results is expected to be immaterial. |
| Type of litigation or proceeding | Filing for commencement of bankruptcy proceedings |
| Court or authority | Local court |
| Date of filing / date of action | 16 October 2026 (resolution to file for commencement of bankruptcy proceedings) |
| Amount of receivables at risk of non-collection or delayed collection | CNY 100 million (approximately ¥2.3 billion) owed to the Company and Santen Pharmaceutical (China) Co., Ltd. |
| Voting rights ownership percentage before the change | Santen Pharmaceutical (China) Co., Ltd. 49% (as of the end of March 2026) |
| Outlook | If the filing is accepted by the court, bankruptcy proceedings will be conducted in accordance with applicable laws and regulations. Following a declaration of bankruptcy by the court, the assets are expected to be disposed of and the proceeds distributed to creditors. |
Items this document does not state (11)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Because changes in the business environment, including healthcare system reforms in China, made it difficult to continue the strategy, and although liquidation proceedings had been under way, there was no prospect of selling the assets or repaying all debts.