Press Kogyo dissolves China subsidiary for efficiency amid business challenges

Press Kogyo Co., Ltd. has resolved to dissolve its wholly-owned consolidated subsidiary, PK Manufacturing (Suzhou) Co., Ltd., citing the need to improve business efficiency within the Press Kogyo Group in China due to the prevailing business environment. The subsidiary, established on October 11, 2010, specialized in construction machinery-related business with capital of $13,100 thousand.

PK Manufacturing (Suzhou) Co., Ltd. has reported losses in recent fiscal years, including an operating loss of 83 million yen and a net loss of 83 million yen for the fiscal year ended December 31, 2024. The dissolution resolution was made by Press Kogyo's Board of Directors on December 26, 2025, with the subsidiary's dissolution also on December 26, 2025, and liquidation scheduled for December 2028.

Press Kogyo anticipates that the impact of this dissolution on its consolidated financial results for the fiscal year ending March 31, 2026, will be negligible, according to its forecast announced on November 11, 2025. The company will adhere to local regulations to complete the necessary procedures.