Discontinuation and Asset Disposal of Consolidated Subsidiaries | July 24, 2026

Reasons for Dissolution and Overview of the Subsidiary

Tokai染工 has resolved to dissolve and liquidate its Thai consolidated subsidiary TOKAI DYEING CO.,(THAILAND) LTD. The reason is to optimize and streamline management resources due to challenging business environment and ongoing operating losses. The company was established in 1963, engaged in dyeing and finishing services, with a capital of 120,000,000 Thai Baht. For the fiscal year 2024, financial results show net assets of 116,204 thousand yen, net sales of 307,614 thousand yen, and a net loss of △31,205 thousand yen, indicating a deficit trend.

Future Outlook and Asset Disposal

After dissolution, the company will proceed with asset disposal and is currently reviewing the impact on consolidated performance for the fiscal year ending March 2027. The specific schedule for liquidation is undecided, but once necessary procedures are completed, a final decision will be made. Ongoing monitoring of potential impacts on performance and detailed financial outlooks will continue.