Duskin Dissolves Shanghai Subsidiary Amid Changing Market Conditions
TOKYO, Jul 23 (Pulse News Wire) – Duskin CO.,LTD. (4665.T) resolved at its board meeting held, to dissolve its subsidiary, Daikin Shanghai Cleaning Equipment Leasing Co., Ltd.
The decision was made due to unfavorable market conditions and reduced customer demand in China. Daikin Shanghai, established in November 2006, operated cleaning equipment rental and sales businesses in Shanghai. However, changes in the local market environment led to increased cost-cutting measures among customers, resulting in higher cancellation rates. From a long-term growth perspective and investment efficiency standpoint, expanding the rental-based dust control business significantly became challenging, prompting the dissolution decision.
Key details of the subsidiary include: - Name: Daikin Shanghai Cleaning Equipment Leasing Co., Ltd. - Location: 6102A, No. 555 Lianming Road, Minhang District, Shanghai - Capital: ¥71.5 million - Establishment Date: November 19, 2006 - Major Shareholder and Holding Ratio: Duskin CO.,LTD. holds 100% The subsidiary's recent three-year operating performance and financial status show: - Net Assets: ¥100 million (FY2023), ¥110 million (FY2024), ¥52 million (FY2025) - Total Assets: ¥254 million (FY2023), ¥249 million (FY2024), ¥183 million (FY2025) - Revenue: ¥473 million (FY2023), ¥478 million (FY2024), ¥382 million (FY2025) - Operating Profit: -¥16 million (FY2023), ¥3 million (FY2024), -¥61 million (FY2025) - Ordinary Profit: -¥26 million (FY2023), ¥800 billion (FY2024), -¥62 million (FY2025) - Net Profit: -¥26 million (FY2023), ¥1 million (FY2024), -¥62 million (FY2025) Scheduled milestones for the dissolution process are: - Resolution passed (Duskin CO.,LTD.
Board Meeting) - Scheduled resolution at shareholder meeting of the subsidiary in July 2026 - Expected completion of liquidation in August 2027 The company anticipates minimal impact on its consolidated earnings but will promptly disclose any significant developments related to this matter.