Tokai Senko Decides to Dissolve Thai Subsidiary

TOKYO, Jul 24 (Pulse News Wire) – Tokai Senko K.K. (3577.NG) resolved at today's board meeting to dissolve and liquidate its subsidiary, Tokai Dyeing Co., (Thailand) Ltd., due to ongoing operational challenges and inefficiencies in the dyeing and finishing industry.

Tokai Dyeing was established in June 1963 to operate dyeing processing businesses in Thailand. In recent years, the company faced increasing difficulties in its operating environment, resulting in continuous losses. As part of efforts to optimize resources and improve efficiency within the group’s dyeing operations, Tokai Senko decided to proceed with dissolution and liquidation. Key details of Tokai Dyeing Co., (Thailand) Ltd.

Include: - Location: 69 Mu 1 Pgrapradang, Samutprakarn Province, Thailand - Capital: 120,000,000 Thai baht - Founded: June 17, 1963 - Major shareholders: Tokai Senko K.K. holds 98.92%, Charn Lohachitanond holds 1.08% Financial highlights for the last three fiscal years show declining performance: - Total assets: ¥298.9 million (FY2024), ¥319.7 million (FY2025), ¥317.6 million (FY2026) - Revenue: ¥307.6 million (FY2024), ¥184.8 million (FY2025), ¥218.1 million (FY2026) - Operating profit: ¥-¥51.0 million (FY2024), ¥-¥16.9 million (FY2025), ¥-¥15.5 million (FY2026) - Ordinary profit: ¥-¥31.2 million (FY2024), ¥75 billion (FY2025), ¥-¥7.9 million (FY2026) - Net income: ¥-¥31.2 million (FY2024), ¥75 billion (FY2025), ¥-¥7.9 million (FY2026) The resolution was made effective, following the board decision. Liquidation procedures will commence according to local laws, with completion expected once necessary formalities are finalized. Looking ahead, Tokai Senko plans to dispose of the subsidiary's remaining assets.

An impact assessment on the Group's consolidated results for the fiscal year ending March 2027 is currently underway, and any significant findings requiring disclosure will be communicated promptly.