Yesterday, POLA ORBIS Holdings announced it will dissolve and liquidate its wholly owned subsidiary, Orbis Commerce & Trading (Beijing) Co., Ltd. (hereafter “ORBIS Beijing”). The dissolution date has yet to be determined and will be finalized upon completion of the necessary legal procedures.
As a result of the liquidation, the company expects to record an extraordinary loss of approximately 1.3 billion yen in its consolidated financial statements for the fiscal year ending December 2025. This will be offset by an anticipated reduction of around 1.6 billion yen in corporate taxes, leaving the company’s overall earnings forecast unchanged.
Established in 2008 as a local subsidiary, ORBIS Beijing has been marketing ORBIS products in China for over 15 years. However, due to a slowdown in China’s economy and increasingly fierce competition in the e-commerce space, prospects for a turnaround became increasingly bleak. In the fiscal year ending December 2024, ORBIS Beijing reported a 19% year-on-year drop in revenue to 700 million yen, and suffered a 400 million yen operating loss, a 500 million yen ordinary loss, and a 600 million yen net loss.
Faced with ongoing poor performance, POLA ORBIS decided to wind down the business as part of a broader strategic shift in its China operations. The company now plans to reallocate resources to other brands within its portfolio.
According to reports, on the evening the announcement was made, the ORBIS WeChat official account operated by ORBIS Beijing was still functioning normally, and products on the brand’s official flagship stores on Douyin and Tmall were still being sold as usual.
