高見澤 has divested its 64.625% stake in its Chinese subsidiary, Liu Bo Takamizawa Concrete, to its joint venture partner Shandong Jinfegao Materials Co., Ltd. for approximately ¥40 million amidst an economic downturn in the Chinese construction market.

Target Information

高見澤株式会社 (Takamizawa Co., Ltd.), a manufacturer and seller of construction materials and ready-mix concrete, has made the decision to transfer its equity stake in a Chinese subsidiary, 溜博高見澤混凝土有限公司 (Liu Bo Takamizawa Concrete Co., Ltd.). This transfer arises as a strategic move following the downturn in the domestic real estate construction market in China, which has affected the company’s operations. The Liu Bo Takamizawa Concrete Co., Ltd. reported a revenue of ¥2.1 billion, an operating loss of ¥1.2 billion, and a net asset deficit of ¥3.53 billion for the fiscal year ending June 2025.

Targeting optimization of its business portfolio, Takamizawa aims to streamline operations by divesting non-profitable ventures. The sale includes the complete transfer of its 64.625% stake in the subsidiary, reflecting the company’s proactive measures to enhance its financial health and focus on core capabilities.

Industry Overview in China

The Chinese construction industry has been experiencing significant challenges, particularly in the real estate sector, which has faced restrictions and slow growth due to regulatory measures and market saturation. As one of the largest construction markets globally, China has witnessed