Notice Regarding the Dissolution of a Consolidated Subsidiary, Establishment of a Subsidiary and Recognition of an Extraordinary Loss (Special Retirement Payments) in Connection with the Reorganization of the China Business
天津木村進和物流有限公司 (consolidated subsidiary to be dissolved), 常熟木進物流有限公司 (subsidiary to be established)
Tianjin warehouse; the 2 locations in Changshu and Chengdu; warehouse and logistics operations relating to service parts, primarily in the North China region
The Company comprehensively considered the rising geopolitical risks in the Chinese economy and changes in the business environment, the Group's overall management efficiency, the deterioration in the Tianjin warehouse's profitability, and the solid performance of the 2 locations in Changshu and Chengdu.
¥392 million (extraordinary loss, special retirement payments)
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The impact on the Company's consolidated results for the fiscal year ending March 2026 is as stated in the Summary of Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated), disclosed today.
Company response
Withdrawal from the Tianjin warehouse, where profitability has deteriorated (warehouse and logistics operations)
1 June 2026 (the scheduled business commencement date of 常熟木進物流有限公司)
Related procedures
Dissolution and liquidation procedures for a consolidated subsidiary (procedures required under local laws and regulations)
天津木村進和物流有限公司 is expected to complete its liquidation once the necessary procedures under local laws and regulations have been completed, but the specific timing has not been determined at this time. 常熟木進物流有限公司 is scheduled to commence operations on 1 June 2026.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Dissolution of a Consolidated Subsidiary, Establishment of a Subsidiary and Recognition of an Extraordinary Loss (Special Retirement Payments) in Connection with the Reorganization of the China Business |
| Date of occurrence | 27 November 2025 (the date on which the Company's Board of Directors resolved to dissolve and establish the companies). The date of establishment of 常熟木進物流有限公司 was 27 February 2026. |
| Subject Entity | 天津木村進和物流有限公司 (consolidated subsidiary to be dissolved), 常熟木進物流有限公司 (subsidiary to be established) |
| Target Locations / Products | Tianjin warehouse; the 2 locations in Changshu and Chengdu; warehouse and logistics operations relating to service parts, primarily in the North China region |
| Cause | The Company comprehensively considered the rising geopolitical risks in the Chinese economy and changes in the business environment, the Group's overall management efficiency, the deterioration in the Tianjin warehouse's profitability, and the solid performance of the 2 locations in Changshu and Chengdu. |
| Amount of Impact on Business Performance | ¥392 million (extraordinary loss, special retirement payments) |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The impact on the Company's consolidated results for the fiscal year ending March 2026 is as stated in the Summary of Financial Results for the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated), disclosed today. |
| Type of litigation or proceeding | Dissolution and liquidation procedures for a consolidated subsidiary (procedures required under local laws and regulations) |
| Suspended operations | Withdrawal from the Tianjin warehouse, where profitability has deteriorated (warehouse and logistics operations) |
| Scheduled resumption date | 1 June 2026 (the scheduled business commencement date of 常熟木進物流有限公司) |
| Outlook | 天津木村進和物流有限公司 is expected to complete its liquidation once the necessary procedures under local laws and regulations have been completed, but the specific timing has not been determined at this time. 常熟木進物流有限公司 is scheduled to commence operations on 1 June 2026. |
Items this document does not state (13)
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.After comprehensively considering the rising geopolitical risks in the Chinese economy, changes in the business environment and the Group's overall management efficiency, the Company determined that withdrawing from the Tianjin warehouse, where profitability has deteriorated, while continuing operations at the 2 locations with solid performance would contribute to enhancing corporate value over the medium to long term.