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How definitive the wording is.This transaction
Dissolution and liquidation of a consolidated subsidiaryDisclosing companyKOITO MANUFACTURING CO.,LTD.
Date of board resolution28 September 2026
Execution Date / Effective DateThe liquidation is expected to be completed once the procedures have been completed in accordance with local laws and regulations. The specific timing has not been determined at this time.
Target company
Manufacture and sale of automotive lighting equipment
Location Xiaogan, Hubei Province, ChinaShare capital ¥5,000 millionDate of incorporation September 2014
Impact on Business Performance
The impact on consolidated results for the fiscal year ending March 2027 will be immaterial
Procedures and assumptions
Conditions Precedent to ExecutionCompletion of procedures in accordance with local laws and regulations
Management structure after acquisition湖北小糸車灯有限公司 will be dissolved and liquidated. The procedures will be carried out in accordance with applicable laws and regulations and labor agreements so as to minimize the impact on affected employees and the local community.
| Item | Details |
|---|---|
| Transaction name | Dissolution and liquidation of a consolidated subsidiary |
| Name of the Subject Company | 湖北小糸車灯有限公司 |
| Business Description of the Subject Company | Manufacture and sale of automotive lighting equipment |
| Location of the Subject Company | Xiaogan, Hubei Province, China |
| Capital Stock of the Subject Company | ¥5,000 million |
| Date of Establishment of the Subject Company | September 2014 |
| Voting rights ownership percentage | Before 100％ (after not disclosed) |
| Impact on Business Performance | The impact on consolidated results for the fiscal year ending March 2027 will be immaterial |
| Date of board resolution | 28 September 2026 |
| Execution Date / Effective Date | The liquidation is expected to be completed once the procedures have been completed in accordance with local laws and regulations. The specific timing has not been determined at this time. |
| Conditions Precedent to Execution | Completion of procedures in accordance with local laws and regulations |
| Management structure after acquisition | 湖北小糸車灯有限公司 will be dissolved and liquidated. The procedures will be carried out in accordance with applicable laws and regulations and labor agreements so as to minimize the impact on affected employees and the local community. |
Items this document does not state (20)
Counterparty nameNet Sales of the Subject CompanyOperating Profit of the Subject CompanyNet Income of the Subject CompanyNet Assets of the Subject CompanyAcquisition priceExpenses other than the acquisition priceType of ConsiderationMerger ratio/share exchange ratioTender offer priceMinimum number of shares to be purchasedTender offer periodNumber of shares acquiredFunding arrangementsGoodwill amountAmount of extraordinary income (loss)Contract DateValuation methodologyIndependent valuation institutionSpecial Committee
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.The company’s China business has remained challenging due to the rapid shift to EVs in China, the rise of local Chinese automakers, and slower sales and declining market share among its major customers, Japanese automakers. Even after proceeding with the dissolution of 福州小糸 and the consolidation of production facilities, among other measures, the business environment became increasingly difficult. Accordingly, the company will dissolve 湖北小糸車灯有限公司 and improve productivity, profitability and competitiveness by optimizing its business structure and concentrating and streamlining management resources.
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