Eternal Hospitality Group Reports Impairment Loss on Related Company Shares

TOKYO, Jul 31 (Pulse News Wire) – Eternal Hospitality Group CO.,LTD. (3193.T) disclosed that it expects to record an impairment loss related to shares held in TORIKIZOKU USA INC.

(TK-US). Following a revaluation of TK-US shares ahead of their contribution to a newly established intermediate holding company, ETERNAL HOSPITALITY USA INC., the company decided to reduce the book value of TK-US shares from ¥876 million to ¥428 million. As a result, an impairment loss of ¥448 million is anticipated to be recognized as extraordinary expenses in the individual financial statements for the fiscal period ending June 5, 2026.

The impairment loss will solely impact the individual financial results and will be eliminated in consolidation, having no effect on the consolidated performance figures. The decision was made due to a decline in the intrinsic value of TK-US shares during the evaluation process. Kouichi Kitagawa.