Notice Regarding a Change in an Equity-Method Affiliate (Share Transfer) and Recognition of an Extraordinary Loss
Hong Kong Yamato Trading Co., Ltd. (equity-method affiliate). Its subsidiaries, 大和高精密工業(深圳)有限公司 and 亜禡特貿易(上海)有限公司, are also listed.
Operating base for business serving Japanese companies in the Chinese market; sales of injection-molded products; production of molds for synthetic resins and injection-molded products in China; and sales of products related to the logistics equipment business
In addition to the review of the overseas strategy through the transfer of shares in the China operations announced on 19 June 2025, the rapid deterioration in the situation in the Middle East has caused a historic surge in naphtha prices, the primary raw material for resin products, and this impact is expected to persist
An extraordinary loss of approximately ¥180,000 thousand is expected to be recognized in the non-consolidated financial results for the fiscal year ending March 2026. The impact on consolidated results is currently under review.
Fiscal year ending March 2026 standalone financial statements
The impact on consolidated results is currently under review and will be disclosed promptly once finalized.
Change in voting rights ownership ratio
The voting rights ownership percentage is the proportion of the voting rights exercisable at a shareholders' meeting held by the shareholder.
40% (voting rights ownership ratio: 40%; record date: Not disclosed)
19% (record date: Not disclosed)
The share transfer is scheduled to be executed on 30 March 2026. The impact on consolidated results will be reviewed and disclosed promptly once finalized.
The impact on consolidated results will be disclosed promptly once finalized.
| Item | Details |
|---|---|
| Event name | Notice Regarding a Change in an Equity-Method Affiliate (Share Transfer) and Recognition of an Extraordinary Loss |
| Date of occurrence | 30 March 2026 (scheduled share transfer execution date) |
| Date recognized / date notice received | 26 March 2026 (date of resolution at an extraordinary meeting of the Board of Directors) |
| Subject Entity | Hong Kong Yamato Trading Co., Ltd. (equity-method affiliate). Its subsidiaries, 大和高精密工業(深圳)有限公司 and 亜禡特貿易(上海)有限公司, are also listed. |
| Target Locations / Products | Operating base for business serving Japanese companies in the Chinese market; sales of injection-molded products; production of molds for synthetic resins and injection-molded products in China; and sales of products related to the logistics equipment business |
| Cause | In addition to the review of the overseas strategy through the transfer of shares in the China operations announced on 19 June 2025, the rapid deterioration in the situation in the Middle East has caused a historic surge in naphtha prices, the primary raw material for resin products, and this impact is expected to persist |
| Amount of Impact on Business Performance | An extraordinary loss of approximately ¥180,000 thousand is expected to be recognized in the non-consolidated financial results for the fiscal year ending March 2026. The impact on consolidated results is currently under review. |
| Accounting period in which recognized | Fiscal year ending March 2026 standalone financial statements |
| Impact on Earnings Forecast | The impact on consolidated results is currently under review and will be disclosed promptly once finalized. |
| Voting rights ownership percentage before the change | 40% (voting rights ownership ratio: 40%; record date: Not disclosed) |
| Voting rights ownership percentage after the change | 19% (record date: Not disclosed) |
| Outlook | The share transfer is scheduled to be executed on 30 March 2026. The impact on consolidated results will be reviewed and disclosed promptly once finalized. |
| Planned follow-up disclosure | The impact on consolidated results will be disclosed promptly once finalized. |
Items this document does not state (12)
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.As the company reviews its overseas strategy through the transfer of shares in its China operations, it has determined that a transition to a more efficient and agile operating structure is appropriate because the historic surge in naphtha prices caused by the rapid deterioration in the situation in the Middle East is expected to persist. The company states that it will remain involved as a minority shareholder after the transfer, with the aim of ensuring management agility and optimizing the allocation of management resources.