We would like to inform you that we have decided to dissolve and liquidate Asahikanbi Water Treatment (Suzhou) Co., Ltd, a 100%-owned group subsidiary in Suzhou, Jiangsu Province, People’s Republic of China.
1. Background
Our company and Drico Co., Ltd. established Asahikanbi Water Treatment (Suzhou) Co., Ltd to start the water treatment business in China, where such demand was expected to increase due to reinforced environmental regulations, and started the business in November 2019. However, we could not achieve the anticipated business expansion described in our initial business plan due to the business stagnation affected by COVID-19 and the change in the market environment in China. We concluded that promptly improving the business profitability would be challenging, so we decided to dissolve and liquidate this subsidiary to focus our management resources better.
2. Overview of the dissolved subsidiary
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Company name
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Asahikanbi Water Treatment (Suzhou)
Co., Ltd
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Address
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Suzhou,
Jiangsu Province, People’s Republic of China
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Representative
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Sameshima Osamu, President
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Business Activity
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• Design and installation of water treatment facilities
• Operation and management services (permanently on-site, periodic inspection and remote monitoring, etc.)
• Maintenance services
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Capital
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17 million Chinese Yuan
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Investor
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Drico Co., Ltd. 100%
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3. Schedule for dissolution
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March 20, 2025
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Dissolution of Asahikanbi Water
Treatment (Suzhou) Co., Ltd
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March, 2026
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Completion of liquidation (planned)
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4. Prospect
The impact of the dissolution and liquidation of this subsidiary on our company’s financial results is expected to be insignificant.
On Drico Co., Ltd., and Asahikanbi Water Treatment (Suzhou) Co., Ltd:
Drico Co., Ltd. is our group’s subsidiary,
100% owned by ASAHI YUKIZAI CORPORATION; it specializes in the water treatment & natural resources development business, comprehensively offering the design and construction of the water treatment facilities up to the maintenance services and natural resources development business offering excavation works for geothermal development and hot spring development. In November 2019, Drico Co., Ltd. established Asahikanbi Water Treatment (Suzhou) Co., Ltd as its 100%-owned group subsidiary and started the water treatment business in China.
