Dissolution and liquidation of an overseas subsidiary and recognition of an extraordinary loss
蘇州麗格皮革制品有限公司 (the company's equity-method unconsolidated subsidiary)
The production base in Taicang, Jiangsu, China, and footwear manufacturing (currently manufactured by 華健靴業有限公司)
Because recent changes in China's economic environment have created a significant gap between the original production plan and current production volume, and the outlook for the Chinese market remains uncertain.
The company will record ¥174 million as an extraordinary loss, consisting of an impairment loss on investments in affiliates, in the interim consolidated financial statements for the fiscal year ending February 2027. In the consolidated financial statements for the fiscal year ending February 2027, it is expected to additionally record business restructuring costs, including economic compensation payments to local employees, bringing total extraordinary losses to approximately ¥300 million.
The interim consolidated financial statements for the fiscal year ending February 2027 and the consolidated financial statements for the fiscal year ending February 2027
Related procedures
Company dissolution and liquidation procedures (the procedures required under local law)
Company response
Although the amount is described as an estimate based on calculations by a specialist organization and other sources, the investigation structure, including a third-party committee or special investigation committee, is Not disclosed
The company expects to proceed with the procedures required under local law, with dissolution and completion of liquidation expected once the procedures are completed. In the consolidated financial statements for the fiscal year ending February 2027, it is expected to additionally record business restructuring costs as an extraordinary loss.
The company will promptly disclose any matters that arise requiring further disclosure.
| Item | Details |
|---|---|
| Event name | Dissolution and liquidation of an overseas subsidiary and recognition of an extraordinary loss |
| Date of occurrence | 11 November 2026 (the date on which dissolution was resolved by the company's board of directors and the subsidiary's board of directors and shareholders' meeting) |
| Subject Entity | 蘇州麗格皮革制品有限公司 (the company's equity-method unconsolidated subsidiary) |
| Target Locations / Products | The production base in Taicang, Jiangsu, China, and footwear manufacturing (currently manufactured by 華健靴業有限公司) |
| Cause | Because recent changes in China's economic environment have created a significant gap between the original production plan and current production volume, and the outlook for the Chinese market remains uncertain. |
| Amount of Impact on Business Performance | The company will record ¥174 million as an extraordinary loss, consisting of an impairment loss on investments in affiliates, in the interim consolidated financial statements for the fiscal year ending February 2027. In the consolidated financial statements for the fiscal year ending February 2027, it is expected to additionally record business restructuring costs, including economic compensation payments to local employees, bringing total extraordinary losses to approximately ¥300 million. |
| Accounting period in which recognized | The interim consolidated financial statements for the fiscal year ending February 2027 and the consolidated financial statements for the fiscal year ending February 2027 |
| Type of litigation or proceeding | Company dissolution and liquidation procedures (the procedures required under local law) |
| Investigation structure | Although the amount is described as an estimate based on calculations by a specialist organization and other sources, the investigation structure, including a third-party committee or special investigation committee, is Not disclosed |
| Outlook | The company expects to proceed with the procedures required under local law, with dissolution and completion of liquidation expected once the procedures are completed. In the consolidated financial statements for the fiscal year ending February 2027, it is expected to additionally record business restructuring costs as an extraordinary loss. |
| Planned follow-up disclosure | The company will promptly disclose any matters that arise requiring further disclosure. |
Items this document does not state (14)
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.Because changes in China's economic environment have created a significant gap between the original production plan and current production volume, and the outlook for the Chinese market remains uncertain, the company determined that dissolving the joint venture and consolidating its production bases would contribute to profit growth and enhance corporate value.