Implementation of workforce optimization at Chinese subsidiaries
偉福科技工業（中山）有限公司 and 偉福科技工業（武漢）有限公司 (the Company’s overseas consolidated subsidiaries)
Employees of 偉福科技工業（中山）有限公司 and 偉福科技工業（武漢）有限公司
The shift toward EVs and other new energy vehicles in the Chinese automotive market, changes in the competitive environment, and reduced production volumes at major customers have resulted in a gap between the current production structure and business needs.
Expenses associated with the payment of special retirement allowances (amount: Not disclosed)
Consolidated results for the fiscal year ending March 2027
To the extent that a reasonable estimate is currently possible, the impact has already been reflected to a certain extent in the consolidated earnings forecast for the fiscal year ending March 2027. If revisions become necessary following a detailed review of the number of applications and allowance levels, the Company will disclose them promptly.
Related procedures
Termination of employment contracts by mutual agreement
The two companies plan to implement workforce optimization and record the expenses associated with special retirement allowances paid due to employee retirements in the consolidated results for the fiscal year ending March 2027. If revisions to the earnings forecast become necessary following a detailed review of the number of applications and allowance levels, the Company will disclose them promptly.
| Item | Details |
|---|---|
| Event name | Implementation of workforce optimization at Chinese subsidiaries |
| Date of occurrence | 3 August 2026 (the date of the Board of Directors’ resolution; the workforce optimization itself is scheduled to be implemented) |
| Subject Entity | 偉福科技工業（中山）有限公司 and 偉福科技工業（武漢）有限公司 (the Company’s overseas consolidated subsidiaries) |
| Target Locations / Products | Employees of 偉福科技工業（中山）有限公司 and 偉福科技工業（武漢）有限公司 |
| Cause | The shift toward EVs and other new energy vehicles in the Chinese automotive market, changes in the competitive environment, and reduced production volumes at major customers have resulted in a gap between the current production structure and business needs. |
| Amount of Impact on Business Performance | Expenses associated with the payment of special retirement allowances (amount: Not disclosed) |
| Accounting period in which recognized | Consolidated results for the fiscal year ending March 2027 |
| Impact on Earnings Forecast | To the extent that a reasonable estimate is currently possible, the impact has already been reflected to a certain extent in the consolidated earnings forecast for the fiscal year ending March 2027. If revisions become necessary following a detailed review of the number of applications and allowance levels, the Company will disclose them promptly. |
| Type of litigation or proceeding | Termination of employment contracts by mutual agreement |
| Outlook | The two companies plan to implement workforce optimization and record the expenses associated with special retirement allowances paid due to employee retirements in the consolidated results for the fiscal year ending March 2027. If revisions to the earnings forecast become necessary following a detailed review of the number of applications and allowance levels, the Company will disclose them promptly. |
| Planned follow-up disclosure | If revisions to the earnings forecast become necessary following a detailed review of the number of applications and allowance levels, the Company will disclose them promptly. |
Items this document does not state (14)
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 shift toward EVs and other new energy vehicles in the Chinese automotive market and changes in the competitive environment have progressed, resulting in a gap between the current production structure and reduced production volumes at major customers. This measure will be implemented as part of efforts to improve the profitability of the China business and rebuild its operating foundation.