February 21, 2019
Company name
Representative

Nitta Gelatin Inc.

Koichi Ogata,
Representative Director and President(Stock code: 4977; First Section of Tokyo Stock Exchange)
Norifumi Nagaoka,
Contact
Director and Executive Officer
General Manager of General Management Division
Phone Number+81-72-949-5381

Notice Regarding Changes at Specified Subsidiary and Equity-Method Affiliate
Nitta Gelatin Inc. (hereinafter “Nitta Gelatin”) hereby announces that its board of directors has passed
a resolution today to transfer shares of Nitta Hong Kong Ltd., its specified subsidiary. The details forthis transfer are listed below.
Furthermore, Beijing Qiushi Collagen Casing Co., Ltd., which invested in Nitta Hong Kong Ltd.,is expected to no longer be associated with Nitta Gelatin as an equity-method affiliate in accordancewith this transfer of shares.

1. Reason for Transfer of Shares
The joint venture Beijing Qiushi Collagen Casing Co., Ltd. was established with Beijing Qiushi
Agricultural Development Co., Ltd. and developed with the purpose of expanding Nitta Gelatin’s
collagen casing business in the China market. However, there are significant disparities between
Beijing Qiushi Agricultural Development Co., Ltd. and Nitta Gelatin in terms of business policies
going forward. Therefore, Nitta Hong Kong Ltd. will be transferred to Casing Hongkong Limited.

2. Overview of specified subsidiary and equity-method affiliate to undergo changes(Overview of Nitta Hong Kong Ltd.)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

Name
Location of head office
Representative, NameBusiness activities
Paid-in capital
Date of establishment
Shareholder,
Shareholding ratio
Affiliation with NittaGelatin

Nitta Hong Kong Ltd.
Hong Kong Special Administrative Region, People's Republic of China
Chairman, Rodney Eugene Moore
Intermediate holding company
HK$30,420 thousand
March 2012
Nitta Casings Inc., 100%
Capital-related

Personnel-related
Trade-related

Nitta Hong Kong Ltd. receives 100% investment as aconsolidated subsidiary of Nitta Casings Inc., which
is Nitta Gelatin’s consolidated subsidiary.
Two directors dispatched from Nitta Gelatin.
No special affiliation.

-1-(9) Financial condition and operating results of the company for the past three years (Unit: Thousands of US$)Fiscal period
FY ended December 2015 FY ended December 2016 FY ended December 2017
Net assets
851
2,651
2,648
Total assets
900
2,700
2,700
Net sales
000
Operating income
(22)
(0)
(2)
Net income
(22)
(0)
(2)

(Overview of Beijing Qiushi Collagen Casing Co., Ltd.)
(1)
(2)
(3)
(4)
(5)
(6)
(7)

Name
Location of head office
Representative, NameBusiness activities
Paid-in capital
Date of establishment
Shareholder,
Shareholding ratio
Affiliation with Nitta
GelatinBeijing Qiushi Collagen Casing Co., Ltd.
Beijing, People’s Republic of China
Chairman, Du Daxue
Production and sales of collagen casingsRMB82,943 thousand
September 2012
Beijing Qiushi Agriculture Development Co., Ltd., 70%
Nitta Hong Kong Ltd.,
30%
Beijing Qiushi Collagen Casing Co., Ltd. is an(8)
Capital-related
equity-method affiliate of Nitta Gelatin, and which
receives 30% investment from Nitta Hong Kong Ltd.,
which is a consolidated subsidiary of Nitta Gelatin.
Personnel-related One director and one auditor dispatched from Nitta
Gelatin.
Trade-related
No special affiliation.
(9) Financial condition and operating results of the company for the past three years (Unit: Thousands of RMB)Fiscal period
FY ended December 2015
FY ended December 2016 FY ended December 2017
Net assets
24,311
61,02058,814
Total assets
44,67875,51880,573
Net sales
2,710
2,924678
Operating income(1,946)(2,281)(2,594)
Net income(2,846)(2,612)(2,206)

3. Overview of company involved in the transfer of shares
(1)
(2)
(3)
(4)
(5)
(6)
(7)

Name
Location of head office
Representative, NameBusiness activities
Paid-in capital
Date of establishment
Affiliation with Nitta
GelatinCasing Hongkong Limited
Hong Kong Special Administrative Region, People's Republic of China
Chairman, Du Daxue
Holding company
HK$10 thousandFebruary 2019
Capital-related
No special affiliation.
Personnel-related No special affiliation.
Trade-related
No special affiliation.
Corresponding
status with theNo special affiliation.
related parties-2-

4. Transfer cost and status of investment before/after transfer of shares
(1)
(2)
(3)

Investment before transferof shares
Transfer amount
Investment after transfer ofshares(Nitta Hong Kong Ltd.)
100%(Beijing Qiushi Collagen Casing Co., Ltd.)
30%
An announcement will be made upon confirmation.
(Nitta Hong Kong Ltd.)-%(Beijing Qiushi Collagen Casing Co., Ltd.)-%

5. Dates for changes (planned)
(1)
(2)
(3)

Date of board of directors’
resolution
Date to conclude contract
for transfer of shares
Date of implementation fortransfer of shares

February 21, 2019
March 6, 2019 (planned)
End of June 2019 (planned)

6. Future Outlook
With this transfer of shares, Nitta Hong Kong Ltd. will be excluded from the scope of consolidation
for Nitta Gelatin.
The transfer of shares is expected to be completed in the next fiscal year and will have a slight
impact on consolidated business for the fiscal year ending March 2019. Furthermore, the Group is
currently assessing the impact of this change on business results and will promptly disclose any
material impact that may arise.
(For reference) Consolidated financial forecasts for the period under review (released February 8, 2019)
Net income
Operating
Ordinary
attributable to(Unit: Millions of yen)
Net sales
owners of theincome
incomeparentConsolidated financial forecasts forthe period under review (March 31,36,5007006001,0002019)
Consolidated financial forecasts forthe same period of the previous
37,777
1,095
1,009
(615)
fiscal year (March 31, 2018)-3-