Business Exit and Profitability Improvement Through Transfer of Equity Interests in Chinese Subsidiary
First written in FY2018-Q2. 1 of 2 entries say "Achieved", first in FY2018-Q3. Latest entry: FY2018-Q3.
55 other companies' latest entry also says "Achieved".
- FY2018-Q3AchievedAnnual report
「During the third quarter consolidated accounting period under review, all of the Company's equity interest in its former consolidated subsidiary 大石橋市品川栄源連鋳耐火材料有限公司 was transferred, and the company was excluded from the scope of consolidation.」
The transfer of all equity interest in the Chinese subsidiary was executed, and the subsidiary was excluded from the scope of consolidation. This indicates that the planned transfer described previously was completed. - FY2018-Q2First statedAnnual report
「At a meeting of the Board of Directors held on 19 October 2017, the Company resolved to transfer all of its equity interest in its consolidated subsidiary 大石橋市品川栄源連鋳耐火材料有限公司 to 営口富宏耐材製造有限公司, as described below. Although the Company had implemented every available earnings-improvement measure, including thorough cost reductions, it determined that achieving stable profitability over the long term would be difficult, partly because of the recent surge in raw-material prices, and therefore decided to transfer its interest. Contract signing date: 20 October 2017 Scheduled transfer execution date: 1 January 2018 Equity interest before transfer: 67% Equity interest transferred: 67% Transfer price: CNY9,000 thousand Equity interest after transfer: –%」
The Company determined that achieving stable profitability at its Chinese subsidiary would be difficult even after implementing earnings-improvement measures, and decided to transfer all of its 67% equity interest. The contract was signed on 20 October 2017, the scheduled transfer execution date was 1 January 2018, and the transfer price was CNY9,000 thousand.