Expected Recognition of an Extraordinary Loss in Connection with the Restructuring of Chinese Production Bases
広州今仙電機有限公司, 武漢今仙電機有限公司
広州今仙電機有限公司 (Guangzhou, Guangdong Province, China) and 武漢今仙電機有限公司 (Wuhan, Hubei Province, China). Automotive parts (seat adjusters and electronic units)
To achieve greater efficiency in response to the major changes in China's automotive market in recent years
Approximately ¥1.2 billion (an extraordinary loss in the consolidated results for the fiscal year ending March 2027, comprising restructuring costs for the production bases, including the disposal of fixed assets that will no longer be required and economic compensation payments)
Consolidated results for the fiscal year ending March 2027
At present, there is no change from the consolidated earnings forecast for the fiscal year ending March 2027 announced on 15 May 2026. If changes are expected in the future, the Company will make a timely disclosure.
Company response
All production functions at 武漢今仙電機有限公司 (changed from 武漢今仙電機有限公司 to 広州今仙電機有限公司 by the end of March 2027)
All production at 武漢今仙 will be changed from 武漢今仙 to 広州今仙 by the end of March 2027. After the change, 武漢今仙 will continue to operate with its functions limited to deliveries to customers in the Wuhan area, and procedures will be carried out in accordance with applicable laws and regulations, taking into consideration the impact on employees.
If changes are expected in the future, the Company will make a timely disclosure.
| Item | Details |
|---|---|
| Event name | Expected Recognition of an Extraordinary Loss in Connection with the Restructuring of Chinese Production Bases |
| Date of occurrence | 8 October 2026 (the date on which the Board of Directors resolved to implement the restructuring) |
| Subject Entity | 広州今仙電機有限公司, 武漢今仙電機有限公司 |
| Target Locations / Products | 広州今仙電機有限公司 (Guangzhou, Guangdong Province, China) and 武漢今仙電機有限公司 (Wuhan, Hubei Province, China). Automotive parts (seat adjusters and electronic units) |
| Cause | To achieve greater efficiency in response to the major changes in China's automotive market in recent years |
| Amount of Impact on Business Performance | Approximately ¥1.2 billion (an extraordinary loss in the consolidated results for the fiscal year ending March 2027, comprising restructuring costs for the production bases, including the disposal of fixed assets that will no longer be required and economic compensation payments) |
| Accounting period in which recognized | Consolidated results for the fiscal year ending March 2027 |
| Impact on Earnings Forecast | At present, there is no change from the consolidated earnings forecast for the fiscal year ending March 2027 announced on 15 May 2026. If changes are expected in the future, the Company will make a timely disclosure. |
| Suspended operations | All production functions at 武漢今仙電機有限公司 (changed from 武漢今仙電機有限公司 to 広州今仙電機有限公司 by the end of March 2027) |
| Outlook | All production at 武漢今仙 will be changed from 武漢今仙 to 広州今仙 by the end of March 2027. After the change, 武漢今仙 will continue to operate with its functions limited to deliveries to customers in the Wuhan area, and procedures will be carried out in accordance with applicable laws and regulations, taking into consideration the impact on employees. |
| Planned follow-up disclosure | If changes are expected in the future, the Company will make a timely disclosure. |
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.To improve the profitability of the overall China business by consolidating the production functions of both facilities into one facility, improving utilization rates, controlling fixed costs and optimizing production capacity amid major changes in the Chinese automotive market.