TOKYO, May 12 (Pulse News Wire) – ROHM Company Limited (6963.T) announced today that its board of directors approved the sale of its entire stake in ROHM Electronics Dalian Co., Ltd. (REDA), which manufactures print heads in China, to Dalian Chengyue Precision Components Industrial Co., Ltd.
The transaction is expected to reduce fixed costs and strengthen operational efficiency while maintaining supply responsibilities to customers. REDA was established on December 12, 1994, with a capital of ¥94 billion. It operates in electronic component manufacturing and has been a key part of ROHM's operations since its inception. As part of its ongoing restructuring efforts based on the second mid-term management plan “MOVING FORWARD to 2028,” ROHM aims to build a robust business foundation and improve profitability through production site reorganization and portfolio optimization. Under the agreement, REDA’s manufacturing activities will continue but will now be outsourced to Dalian Chengyue.
The deal includes transferring the stake valued at approximately ¥4.200 billion. Post-transfer, ROHM will retain a holding of ０% in REDA. Key financial highlights for REDA show total assets of ¥13.66 billion, ¥13.21 billion, and ¥13.48 billion for fiscal years ending December 2022, 2023, and 2024 respectively. Revenue stood at ¥13.46 billion, ¥11.62 billion, and ¥9.757 billion during the same periods, with operating profits of ¥887 billion, ¥375 billion, and ¥439 billion. The contract signing took place, with the stake transfer scheduled for completion within the year.
The impact of this transaction on ROHM’s consolidated performance is already reflected in its forecast for the fiscal year ending March 2027.
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