Worth reading
49Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
10
¥1 billion to ¥2 billion (approximately, in extraordinary losses)Wording
Avoiding a definitive answer
How definitive the wording is.This transaction
Liquidation of HIADisclosing companyHI-LEX CORPORATION
Date of board resolution10 July 2026
Execution Date / Effective DateDissolution and liquidation proceedings are scheduled to begin after the restructuring of the production system is completed. The proceedings are expected to begin in fiscal 2028.
Target company
Manufacture and sale of control cables for automobiles
Location Battle Creek, Michigan, United StatesShare capital US$7 millionDate of incorporation April 1975
Net SalesUS$78,654 thousand (fiscal year ended October 2025)
Operating profitOperating loss of US$3,171 thousand (fiscal year ended October 2025)
Net income for the current fiscal yearNet loss of US$2,505 thousand (fiscal year ended October 2025)
Net assetsNet assets of US$18,315 thousand (fiscal year ended October 2025)
Consideration and expenses
Amount of extraordinary income (loss)An extraordinary loss of approximately ¥1 billion to ¥2 billion is expected during the fiscal year ending October 2026 (currently under review)
Impact on Business Performance
An extraordinary loss of approximately ¥1 billion to ¥2 billion is expected during the fiscal year ending October 2026. The amount is currently under review and will be disclosed once finalized.
Procedures and assumptions
Conditions Precedent to ExecutionCompletion of the restructuring of the production system
| Item | Details |
|---|---|
| Transaction name | Liquidation of HIA |
| Name of the Subject Company | HI-LEX AMERICA INC. |
| Business Description of the Subject Company | Manufacture and sale of control cables for automobiles |
| Location of the Subject Company | Battle Creek, Michigan, United States |
| Capital Stock of the Subject Company | US$7 million |
| Date of Establishment of the Subject Company | April 1975 |
| Net Sales of the Subject Company | US$78,654 thousand (fiscal year ended October 2025) |
| Operating Profit of the Subject Company | Operating loss of US$3,171 thousand (fiscal year ended October 2025) |
| Net Income of the Subject Company | Net loss of US$2,505 thousand (fiscal year ended October 2025) |
| Net Assets of the Subject Company | Net assets of US$18,315 thousand (fiscal year ended October 2025) |
| Voting rights ownership percentage | Before 100.0％（TSK of AMERICA INC.） (after not disclosed) |
| Amount of extraordinary income (loss) | An extraordinary loss of approximately ¥1 billion to ¥2 billion is expected during the fiscal year ending October 2026 (currently under review) |
| Impact on Business Performance | An extraordinary loss of approximately ¥1 billion to ¥2 billion is expected during the fiscal year ending October 2026. The amount is currently under review and will be disclosed once finalized. |
| Date of board resolution | 10 July 2026 |
| Execution Date / Effective Date | Dissolution and liquidation proceedings are scheduled to begin after the restructuring of the production system is completed. The proceedings are expected to begin in fiscal 2028. |
| Conditions Precedent to Execution | Completion of the restructuring of the production system |
Items this document does not state (16)
Counterparty nameAcquisition 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 amountContract DateValuation methodologyIndependent valuation institutionSpecial CommitteeManagement structure after acquisition
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.Demand for control cables has declined as automotive control systems become electrified, and HIA's sales have continued to contract while its profitability has deteriorated. We have determined that a recovery in performance would be difficult under current market conditions and will therefore restructure our U.S. production system.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.