HANWA : Notice Concerning Transfer of Fixed Assets, Extraordinary income and Extraordinary loss(PDF:127KB)
February 23, 2016 at 03:14 am EST
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HK HANWA Co
IR News
HK HANWA Co., Ltd.
13-1-1, Tsukiji Chuo-ku, Tokyo
JAPAN
Date: February 23, 2016
Contact: Takuya Aizawa
General Manager of Corporate Planning Dept.
Tel: +81-3-3544-2000
Notice Concerning Transfer of Fixed Assets, Extraordinary income and Extraordinary loss
Hanwa Co., Ltd. ("Hanwa") announces that the Board of Directors meeting of Hanwa, held on February 23, 2016, resolved to transfer its fixed assets, and as a result, it needs to recognize extraordinary income and extraordinary loss, as follows:
Reason for the transfer
One of the Hanwa's steel business characteristics has been distributional and processing function utilizing our large warehouses. Recently, the direct shipment by steel mills has been increased. Therefore, Hanwa has been planning to reorganize its distributional and processing functions, with "SOKOKA"; SOkuno ( JIT deliveries), KOguchi (small lot orders) and KAko (processing) business strategy in Kanto area. Consequently, Hanwa resolved to transfer the following assets, in exchange for purchasing land for building another distribution center in Isezaki, Gunma Prefecture. Through the transfer, Hanwa expects to optimize its distribution functions and adjust storage capacity of Head Office of Hanwa Logistics Tokyo Co.,
Ltd .accordingly.
Details of the assets to be transferred (Millions of yen)
Name and Location of Assets
Transfer value
Book value
Current status
A part of Land and Buildings of Head Office of Hanwa Logistics Tokyo Co., Ltd.
18,846
6,389
Distribution warehouse
(3-36 Akanehama, Narashino, Chiba Prefecture )
After the transfer, Hanwa will lease back these assets as the distribution warehouse for the immediate future and gradually reduce capacity to an appropriate scale during leasing period.
Overview of the buyer
Identity will not be disclosed. However, there is no capital, personal, or transactional relationship with Hanwa. In addition, the buyer is not a Hanwa-related party.
Scheduled date of the transfer
February 23, 2016 Resolution at the Board of Directors meeting Early March Conclusion of the transfer agreement (provisional)
Transfer of the assets (provisional)
Forecasts
In the FY2015, Hanwa plans to recognize gain on sale of fixed assets from land (12,721 million yen) as extraordinary gain. On the other hand, Hanwa will post loss on sale of fixed assets from buildings (264 million yen) as extraordinary loss.
By the transfer of fixed assets, income taxes are expected to decrease about 5,000 million yen since impairment losses and other losses which posted in previous years are included in deductible expenses.
The forecast of financial results for the FY2015, ending March 31, 2016 is currently being examined and will be announced when the outlook becomes clearer.
(Reference) Outline of the land for building a new distribution center
Outline of assets Land : 26,700.00㎡ : Isezaki-Miyago Industrial Park)
Location Higashi-Kaminomiyamachi and Tanakamachi, Isezaki City, Gunma
Seller Gunma Prefecture
Scheduled date of the purchase The end of March Acquisition of the assets (provisional)
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Hanwa Co. Ltd. issued this content on 23 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 February 2016 08:13:15 UTC
Original Document: http://www.hanwa.co.jp/hanwa_e/ir/pdf/2016/20160223.pdf
HANWA CO., LTD. is a Japan-based company mainly engaged in the sale of steel metal raw materials, non-ferrous metals, foods, petroleum and chemical products, wood and machinery. The Company operates through six business segments. The Steel business is engaged in the provision of steel bars, construction works, steel plates, special steels, wires, steel pipes, and scrap iron. It is also engaged in the metal processing and storage. The Metal Raw Materials business is engaged in the provision of nickel, chromium, silicon, manganese, and ferroalloys. The Overseas Sales Subsidiary business is engaged in the sale of products at major overseas bases. The Petroleum and Chemicals business is engaged in the sale of petroleum products, industrial chemicals, chemicals and waste fuels. The Food business provides seafood and livestock products. The Nonferrous Metals business supplies aluminum, copper and zinc, and conducts recycling business. It also manages and operates amusement facilities.
HANWA CO., LTD. 
