October 29, 2024 | |
For immediate release | |
Company name: | Ahresty Corporation |
Representative: | Shinichi Takahashi, President & CEO |
(Code number: | 5852 Tokyo Stock Exchange Prime) |
Contact for inquiries: | Atsushi Shimizu, Executive Officer and General Manager, |
Management Planning Department | |
(TEL: | +81-3-6369-8664) |
Notice Regarding the Transfer of Fixed Assets of a Consolidated Subsidiary and the Recording of Extraordinary Gain
Ahresty Corporation ("the Company") hereby announces that, in its fourth-quarter consolidated results for the year ending March 2025, it expects to record an extraordinary gain in conjunction with the transfer of fixed assets of Guangzhou Ahresty Casting Co., Ltd., a consolidated subsidiary. Details are presented below.
1. Reasons for the transfer
To prepare for future changes in the Chinese automobile market, we have decided to transfer one of the factories of Guangzhou Ahresty Casting Co., Ltd., with the aim of streamlining our production structure and reducing fixed costs.
2. Overview of consolidated subsidiary | ||
Name | Guangzhou Ahresty Casting Co., Ltd. | |
Location | 7 Xinfeng Road, Yonghe Economic Zone, Guangzhou Economic and | |
Technological Development District, Guangdong Province, People's Republic | ||
of China | ||
Representative: | Atsushi Takeda | |
Business activities | Manufacturing, machining, and assembly of aluminum die-cast products | |
Capital | 543,326,000 yuan |
3. Details of assets to be transferred
Name and location of assets | Transfer gain | Current status |
Second plant, Guangzhou Ahresty Casting Co., Ltd. | ||
Land area: 17,691 m2, Building area: approx. 8,900 m2, Office area: approx. 750 m2 | Approx. 700 | Plant |
Location: 16 Yongsheng Road, Yonghe Economic Zone, Guangzhou Economic and | million yen | |
Technological Development District, Guangdong Province, People's Republic of China |
(Note) The transfer price will not be disclosed due to a confidentiality agreement with the transferee, but the transfer gain is an estimate obtained by deducting the book value and expected costs related to the transfer from the transfer price.
4. Transferee
The transferee is an overseas business corporation, but due to our agreement with the transferee, we will refrain from disclosing details. There are no noteworthy matters regarding capital, personnel, business relationships, or related parties between the transferee and the Company.
5. Transfer schedule
Conclusion of the contract: September 5, 2024
Handover of the property: October 31, 2024
6. Future outlook
Because the consolidated subsidiary's fiscal year ends in December, we plan to record the transfer gain arising from the transfer of the fixed assets as an extraordinary gain (gain on sales of fixed assets) in our consolidated results for the fourth quarter of the year ending March 2025, which includes the transfer date.
In addition, the above-mentioned gain on sales of fixed assets is reflected in the full-year business forecasts presented in "Notice on Recording of Non-operating Expense, Extraordinary Losses, and Deferred Income Taxes and Revisions to Consolidated Results Forecasts (First Half and Full Year) for the Fiscal Year Ending March 2025" released today.