Strengthening the Group’s Foundation Through the Acquisition of 共和電機工業 as a Wholly Owned Subsidiary

「Meanwhile, we reorganised our subsidiaries to improve the efficiency of the group’s sales and production structures. In Japan, we first made 共和電機工業株式会社, a subsidiary that manufactures electrical and electronic equipment, a wholly owned subsidiary. Overseas, while our Board of Directors resolved to dissolve and liquidate 経緯津田駒紡織機械（咸陽）有限公司, an equity-method affiliate in China that manufactures and sells air-jet looms, we decided to raise the capital of 津田駒機械製造（常熟）有限公司, a subsidiary that manufactures and sells water-jet looms. We will concentrate management resources, strengthen the group and reinforce the business foundation.」

「At a meeting of the Board of Directors held on 23 March 2020, we resolved to acquire additional shares in our consolidated subsidiary 共和電機工業株式会社 and make it a wholly owned subsidiary. The additional acquisition was completed on 26 March 2020, and 共和電機工業株式会社 became our wholly owned subsidiary. The purpose of making the company a wholly owned subsidiary is to strengthen the group, make effective use of management resources and improve efficiency, as well as further strengthen the business foundation by speeding up product development, rebuilding the production structure and expanding the business fields.」