Chori Co., Ltd.
Notice Regarding the Dissolution of a Consolidated Subsidiary and Debt Forgiveness
Chori Co., Ltd. will dissolve its consolidated subsidiary Sumichori Co., Ltd. by March 2026 and write off approximately 6,478 million yen in loan receivables. Corporate taxes for the fiscal year ending March 2026 are expected to decrease by 2,178 million yen.
Key Figures
- Amount of debt forgiven: ＄41,380,000 (approx. 6,478 million yen)
- Expected decrease in corporate taxes: 2,178 million yen (Fiscal Year Ending March 2026)
- Sumichori Co., Ltd. Net Assets (Fiscal Year Ending March 2025): △6,815 million yen
AI要約
Overview of Dissolution and Debt Forgiveness
Chori Co., Ltd. plans to resolve the dissolution of its consolidated subsidiary Sumichori Co., Ltd. at an extraordinary shareholders’ meeting on March 31, 2026, with liquidation completion expected within fiscal year 2026. Sumichori ceased operations due to large non-performing loans arising from its chemical manufacturing group in China and has been pursuing debt collection; however, with the end of business in sight, the Company decided on dissolution and to write off approximately 6,478 million yen of loan receivables.
Financial Impact and Future Outlook
As a result of the debt forgiveness, tax-deductible allowances for doubtful accounts previously not recognized for tax purposes will now be recorded as deductible expenses, leading to an expected reduction of approximately 2,178 million yen in corporate taxes for the fiscal year ending March 2026. This impact has been incorporated in the consolidated earnings guidance announced on January 30, 2026, and any additional disclosures will be made promptly. Over the past three years, Sumichori’s financial condition has shown substantially negative net assets with no recorded sales.
