Yamato Industry to transfer stake in Hong Kong subsidiary

Yamato Industry (TSE:7886) announced today its decision to transfer a portion of its shares in Hong Kong Yamato Kobo Boeki Co., Ltd., a consolidated subsidiary, effective June 30, 2025. The decision, approved by the board on June 19, 2025, is motivated by challenging economic conditions and market changes impacting the subsidiary's profitability, along with concerns over potential U.S. tariff policies. The transfer involves selling a 51% stake to Jiangsu Terry Ryo New Material Technology Co., Ltd. and a 9% stake to JC Technology Co., Ltd., reducing Yamato Industry's ownership to 40%. As a result, Hong Kong Yamato Kobo Boeki Co., Ltd. and its subsidiaries, Yamato High-Precision Industry (Shenzhen) Co., Ltd. and Yamatoku Trading (Shanghai) Co., Ltd., will become equity-method affiliates. The company will disclose any impact on its consolidated financial results after assessment.