Moriroku's board resolved on 23 October 2026 to sell all equity in its Guangzhou auto-parts subsidiary to a Hong Kong holding company, and the two sides signed the transfer agreement the same day. The transfer is planned for mid-December 2026, so the deal is agreed but not completed. The company filed an extraordinary report with the Kanto Local Finance Bureau, since the unit is a designated specific subsidiary.
What management says
Moriroku cites a changed Chinese car market: electrification, more varied consumer demand and tougher competition from local automakers. It says it worked on production efficiency and fixed costs, then judged that optimising its China bases and concentrating resources would raise group value. That describes a restructuring of China operations, not a stated exit from the country.
The unit
The subsidiary has been wholly owned, indirectly, and Moriroku receives royalties from it and trades products with it. After the sale its holding falls to zero. Its sales were 405.89mn yuan (¥8.05bn) in 2023, against 234.05mn yuan (¥4.87bn) in 2025. It lost ¥2.09bn in 2023 and ¥1.50bn in 2024, then made a net profit of 10.94mn yuan (¥227mn) in 2025.
Open terms
Moriroku withholds the price, citing confidentiality in the sale agreement. The effect on consolidated results for the year ending March 2027 is still under review, and the company says it will disclose further matters promptly. The notice describes a transfer of equity in one subsidiary and does not mention closing the plant.