Impairment Loss on Shares of an Affiliated Company (Non-Consolidated)
ETERNAL HOSPITALITY GROUP CO., LTD. (the filing company)
Shares in TORIKIZOKU USA INC. (TK-US)
The substantive value of the TK-US shares had declined based on a reassessment conducted in connection with the contribution in kind.
¥448 million (impairment loss on shares of an affiliated company, recorded as an extraordinary loss; expected to be recorded only in the non-consolidated financial statements)
Fiscal year ending July 2026
There will be no impact on consolidated results because the amount will be eliminated in the consolidated financial statements. The impact on the non-consolidated earnings forecast is Not disclosed
As the establishment of ETERNAL HOSPITALITY USA INC. proceeds, the carrying amount of the TK-US shares is expected to be reduced from ¥876 million to ¥428 million, and an impairment loss on shares of an affiliated company of ¥448 million is expected to be recorded in the non-consolidated financial statements for the fiscal year ending July 2026.
| Item | Details |
|---|---|
| Event name | Impairment Loss on Shares of an Affiliated Company (Non-Consolidated) |
| Subject Entity | ETERNAL HOSPITALITY GROUP CO., LTD. (the filing company) |
| Target Locations / Products | Shares in TORIKIZOKU USA INC. (TK-US) |
| Cause | The substantive value of the TK-US shares had declined based on a reassessment conducted in connection with the contribution in kind. |
| Amount of Impact on Business Performance | ¥448 million (impairment loss on shares of an affiliated company, recorded as an extraordinary loss; expected to be recorded only in the non-consolidated financial statements) |
| Accounting period in which recognized | Fiscal year ending July 2026 |
| Impact on Earnings Forecast | There will be no impact on consolidated results because the amount will be eliminated in the consolidated financial statements. The impact on the non-consolidated earnings forecast is Not disclosed |
| Outlook | As the establishment of ETERNAL HOSPITALITY USA INC. proceeds, the carrying amount of the TK-US shares is expected to be reduced from ¥876 million to ¥428 million, and an impairment loss on shares of an affiliated company of ¥448 million is expected to be recorded in the non-consolidated financial statements for the fiscal year ending July 2026. |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The shares’ substantive value had declined based on a reassessment conducted when the TK-US shares were contributed in kind.