Pegasus Sets Up Joint Venture in Vietnam

TOKYO, Jul 31 (Pulse News Wire) – Pegasus CO.,LTD. (6262.T) has agreed to establish a joint venture in Vietnam with Tianjin Baolai Precision Machinery Group Co., Ltd.

To manufacture and sell metal parts and products for industrial sewing machines and electronic equipment. The decision was made at a board meeting held today. The joint venture, named BAOLAI (Vietnam) Precision Technology Co., Ltd., is scheduled to commence operations in September 2026 with a capital of $700,000. Pegasus will hold a stake of 14.0%, while Tianjin Baolai will own 86.0%. The venture aims to enhance supply chain resilience and reduce lead times through geographic diversification of procurement networks. It also seeks to improve long-term profitability by utilizing the Tan Truong factory owned by Pegasus Vietnam Sewing Machine Co., Ltd.

The joint venture's headquarters will be located in Haiphong City, Vietnam. Formal contract signing is expected in August, though details could change. The impact on Pegasus' consolidated performance for the fiscal year ending March 2027 is anticipated to be minor since the company’s shareholding ratio is below the threshold for consolidation under the equity method. In addition to boosting operational efficiency and securing stable revenue streams, the joint venture is intended to contribute to the long-term enhancement of the group's enterprise value by ensuring local sourcing within Vietnam and strengthening supply chains. However, the completion of the joint venture remains contingent upon obtaining necessary approvals from regulatory authorities. Any significant changes to the agreement will be promptly disclosed.