In a meeting of the Board of Directors held on December 12, 2006, Promise Co., Ltd., decided to dissolve its wholly owned subsidiary PROMISE (TAIWAN) CO., LTD. Details are as follows.
1. Background to dissolution of subsidiary
The Company established PROMISE (TAIWAN) in December 2002 as a joint venture with
Ta Chong Bank to provide credit appraisal and analysis for small consumer loans to the
local bank in Taiwan. However, the subsidiaryfs business performance began to suffer
when the regulatory environment for the consumer loan market was toughened. Having
determined that there was no hope of recovery in the future, the Company decided
to dissolve the subsidiary.
2. Outline of PROMISE (TAIWAN) (As of the end of November 2006)
1) Trade name: PROMISE (TAIWAN) CO., LTD.
2) Principal business: Credit appraisal and analysis for loans to the local bank, and
purchase of claimable assets
3) Establishment: October 29, 2002
4) Location of head office: 146, Sung Jiang Rd., Taipei
5) Representative: Shoji Koyama
6) Paid-in capital: NT$105 million (Approx. 388 million yen)
(Calculated using 1 NT$ = 3.7 yen)
7) Principal shareholder: Promise: 100%
(At time of establishment Promise held 70% and Ta Chong
Bank 30%. As of October 2006, Promise held 100%)
8) Performance in most recent three fiscal years (Millions of yen)
Ended December 30, 2003
Ended December 30, 2004
Ended December 30, 2005
Recurring profit (loss)
3. Dissolution schedule
Planned dissolution date:April 30, 2007
4. Impact on consolidated performance
In dissolving this subsidiary, Promise expects to record a loss of about 4 billion yen.
However, this loss has already been taken into account in the performance estimates
for the fiscal year ending March 31, 2007 announced along with the business performance
for the interim period ended September 30, 2006.
This news release has been translated from the original Japanese document released on December 12, 2006, for reference only.
In the event of any discrepancy between this translated document and the original Japanese document, the original document shall prevail.