Moriroku Holdings announced that it will transfer its 100% equity interest in its consolidated subsidiary 広州森六塑件有限公司 to Hong Kong-based Zhongzhida International Group Co., Ltd. Against the backdrop of changes in the business environment as electrification advances in the Chinese market, the company said it aims to optimize its resources and enhance corporate value.
Moriroku Holdings resolved to transfer its entire equity interest in its subsidiary, 広州森六塑件有限公司, and disclosed that the transferee is Zhongzhida International Group Co., Ltd. (Hong Kong). The transfer will be treated as a transaction involving shares of a consolidated subsidiary.
As background, the company explained that electrification is advancing in the Chinese automotive market, consumer needs are diversifying and competition is intensifying as local manufacturers gain ground. The Moriroku Group determined that optimizing its operations in China and promoting the selection and concentration of management resources would lead to higher corporate value.
Under this policy, Moriroku Holdings explained that it decided to transfer the equity interest and said it will reorganize its business structure by reviewing resource allocation.