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KATO WORKS Waives Claims Amid Subsidiary Liquidation in China

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KATO WORKS Waives Claims Amid Subsidiary Liquidation in China

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KATO WORKS CO., LTD. ( (JP:6390) ) has issued an update.

KATO WORKS CO., LTD. has decided to waive a portion of the claims held by its subsidiary, KATO WORKS (CHINA) LTD., against Chinese domestic business partners. This decision comes as part of the company’s strategic move to dissolve and liquidate the subsidiary, following an agreement to transfer equity interest to a private Chinese company. Despite the economic downturn in China affecting the collectability of receivables, KATO WORKS has determined that this action will not impact its financial performance for the fiscal year ending March 31, 2026, as provisions for doubtful accounts had already been made.

More about KATO WORKS CO., LTD.

KATO WORKS CO., LTD. operates in the manufacturing industry, primarily focusing on the production and sale of hydraulic excavators and related parts. The company has a significant market presence, particularly through its fully owned subsidiary, KATO WORKS (CHINA) LTD., located in Kunshan City, Jiangsu Province, China.

Average Trading Volume: 73,356

Technical Sentiment Signal: Buy

Current Market Cap: Yen14.82B

For a thorough assessment of 6390 stock, go to TipRanks’ Stock Analysis page.

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