Pola Orbis to dissolve Orbis Beijing subsidiary

Pola Orbis Holdings (TSE:4927) announced the dissolution and liquidation of its consolidated subsidiary, Orbis Beijing Inc., following a Board of Directors meeting on May 26, 2025. The decision is part of Pola Orbis's strategic realignment efforts under its VISION 2029 plan, which aims to enhance global business growth by focusing resources on brands and regions with more stable growth prospects. Orbis Beijing, established in 2008, faced profitability challenges due to a stagnating Chinese economy and increased e-commerce competition. The liquidation is expected to result in an extraordinary loss of approximately JPY1,300 million, offset by a JPY1,600 million decrease in deferred income taxes. Pola Orbis anticipates completing the liquidation process in accordance with local laws, with the specific date yet to be determined. No revisions have been made to the full-year consolidated performance forecast announced on February 14, 2025.