Improving Business Management and Governance Efficiency by Establishing an Overseeing Company for Chinese Subsidiaries
First written in FY2021. 1 of 2 entries say "Achieved", first in FY2022. Latest entry: FY2022.
2 other companies' latest entry also says "Achieved".
- FY2022AchievedAnnual report
「During the current consolidated fiscal year, we made an in-kind contribution of our equity interests in Dongguan Paioniax Automotive Precision Parts Co., Ltd. and Wuhan Paioniax Automotive Precision Parts Co., Ltd. to Baiaolaishi (China) Investment Co., Ltd. As a result, Dongguan Paioniax Automotive Precision Parts Co., Ltd. and Wuhan Paioniax Automotive Precision Parts Co., Ltd. became subsidiaries of Baiaolaishi (China) Investment Co., Ltd.」
The equity interests in the two Chinese production subsidiaries were contributed in kind to the holding company, making them subsidiaries of the holding company as part of an organizational restructuring. - FY2021First statedAnnual report
「We decided to pursue an in-kind contribution of our equity interests in the two other Chinese subsidiaries, Dongguan Paioniax Automotive Precision Parts Co., Ltd. and Wuhan Paioniax Automotive Precision Parts Co., Ltd., to our subsidiary, Baiaolaishi (China) Investment Co., Ltd., which will serve as the holding company, as part of an organizational restructuring aimed at integrated and efficient business operations in China. The holding company will manage the business and sales, while the two subsidiaries, which will become second-tier subsidiaries, will handle production. This will clarify their respective roles, unify management policies, strengthen governance and improve efficiency by eliminating duplicated operations.」
An organizational restructuring was decided under which sales and business management functions in China would be consolidated in the holding company and production functions in the second-tier subsidiaries. The in-kind contribution was scheduled for completion in July 2021.