Akebono Brake Industry to Book 300 Million Yen in Extraordinary Income for Fiscal Year 2027
Akebono Brake Industry (TYO:7238) is expected to record an extraordinary income of 300 million yen for the fiscal year ending March 31, 2027, on a consolidated basis, according to a Tokyo bourse filing on Friday.On a non-consolidated basis, Akebono Brake expects to log a 1 billion yen extraordinary income for the same fiscal year.The income follows the company's decision to transfer a portion of its equity interests in its Chinese subsidiary, Akebono Corp. (Guangzhou) (ACG), to joint venture partner Fujiwa Machinery Industry, while also allowing a third-party capital increase by Kunshan Technical Automotive Centre, a member of the LIOHO Group.As a result of the transactions, Akebono's ownership in ACG will drop from 70% to 30%, with Fujiwa holding 55% and Kunshan holding 15%, and ACG will be reclassified from a consolidated subsidiary to an equity-method affiliate.The move is part of Akebono's restructuring of its China operations, shifting principal management responsibility to the LIOHO Group while focusing more on its disc brake pad business through Akebono Corporation (Suzhou).The equity transfer agreement is scheduled for execution on April 27, with the transaction expected to close on June 30.
