TODA Kogyo Corp. TO TRANSFER ZHEJIANG HUAYUAN SHARES TO DEQING HELUXI

TOKYO, Jul 16 (Pulse News Wire) – Toda Kogyo Corp. (4100.T) decided at a board meeting held on July 16 to transfer all shares of its associated company Zhejiang Huayuan Applied New Materials Co., Ltd.

To Deqing Heluxi Enterprise Management Co., Ltd. The move aims to enhance decision-making efficiency and adaptability to external changes, thereby boosting competitiveness and profitability. Zhejiang Huayuan, established in 1999, specializes in manufacturing and selling inorganic pigments.

As part of Toda's strategy to strengthen its portfolio management, the company plans to accelerate product expansion into mobility, AI, and environmental sectors while continuing to support Huayuan’s operations within Japan. Details of the share transfer include: - Number of shares transferred: 20.7% - Transfer price: ¥148 million (equivalent to ¥3.478 billion) - Post-transfer holdings: ０% Key dates: - Board resolution: July 16, 2026 - Contract signing: July 22, 2026 (tentative) - Share transfer execution: September 2026 (tentative, subject to regulatory approval) Financial highlights from Zhejiang Huayuan's recent performance: - Total assets: ¥25.88 billion (2023 fiscal year), ¥28.11 billion (2024 fiscal year), ¥23.58 billion (2025 fiscal year) - Operating profit: ¥78 million (2023 fiscal year), ¥835 million (2024 fiscal year), ¥1.107 billion (2025 fiscal year) - Net income: ¥454 million (2023 fiscal year), ¥433 million (2024 fiscal year), ¥277 million (2025 fiscal year) Further impact assessment for the fiscal year ending March 2027 is ongoing. Additional disclosures will be made promptly if necessary.