Ardepro : Notice Concerning a New Business in China
August 08, 2017 at 11:17 pm EDT
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News Release: ARDEPRO Co., Ltd. (8925 TSE Second Section)
August 2, 2017
Notice Concerning a New Business in China
ARDEPRO Co., Ltd. ("the Company") today announced the launch of a new business in China.
. Purpose of Starting the New Business
The purpose is to engage in full-scale sale of real estate in Japan targeting wealthy Chinese, due to high demand for real estate investment in Japan by foreign individual investors, mainly in East Asia, and institutional investors. The Company will conclude a variable interest entity (VIE) contract and start the new business with a corporation newly established in China, to be established by an individual who is an executive of a company that will conclude a consulting contract with the Company ( scheduled to be established on September 1 , 2017, hereinafter referred to as the "newly established corporation"). VIE schemes, also called contract-controlled structures, are used as an investment vehicle to avoid regulations that prohibit or restrict foreign capital from entering the Chinese industrial field. The Company will not invest in the newly established corporation, but will acquire controlling r ights over the VIE contract.
For its business in China, the Company plans to conduct auction business, sales and brokerage of Japanese real estate.
In addition, the Company aims to list the newly established corporation on a Chinese over-the- counter market (the fourth board) for public relations purposes, as well as to enhance credibility and fund procurement.
Outline of the New Business ( 1 ) Description of the business
Sales of Japanese real estate in China
Brokerage of Japanese real estate in China
Auction of Japanese real estate in China
Financing in the China market
Promotion of alliances with Chinese companies
Financing using cloud funding in China
Departments in charge of the new business
The Company plans to conclude a VIE contract and conduct operations with the newly established corporation.
Amount and content of special expenditures to start the new business
Although expenses will be incurred with the conclusion of the VIE contract with the newly established corporation, the ratio of selling, general and administrative expenses to the Company's results is estimated to be small.
Schedule
Date of the Board of Directors resolution: August 1, 2017
Date of conclusion of the VIE contract: September 1, 2017
Business commencement: November 1, 2017
Forecast
This business commencement will have a slight impact on the Company's financial forecast for the fiscal year ending July 31, 2018.
ARDEPRO Co. Ltd. published this content on 02 August 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 09 August 2017 03:16:01 UTC.
Original documenthttp://www.ardepro.co.jp/files/en/news/2017/0802_02.pdf
Public permalinkhttp://www.publicnow.com/view/3BE6889417210F8EA6D98FF0912E9C2020FC1924
ARDEPRO Co., Ltd. is primarily engaged in the real estate revitalization and leasing businesses. The Company has two business segments. The Real Estate Revitalization segment is engaged in the sale of pre-owned condominiums, company dormitories and others as primary residence properties and investment properties. The Real Estate Leasing Income segment is engaged in the ancillary business of the real estate revitalization-related business, such as rent revenue and fee income, among others. It also involves in investment advisory business.
ARDEPRO CO., LTD. 
