Sale of factory premises in China with positive one-off effect in 2016

Gränichen/Switzerland, 23 September 2016 – The Zehnder Group is expecting a positive one-off effect on its operating result (EBIT) for the 2016 financial year amounting to about EUR 40 million, after completing the sale of its former factory premises in China. The transfer of use and risk to the buyer is intended to take place before the end of 2016. 

The Zehnder Group took its new development and production plant in Dachang (Hebei Province) into operation at the end of 2013. A contract of sale was signed at the end of 2014 for the old factory premises in Beijing and the associated right to use the land; this asset was no longer required for production. Total payments amounting to about EUR 14 million had been paid in instalments up to January 2015, although the remaining payments remained out-standing. New negotiations resulting from the payment delays combined with a positive trend in real estate prices in China led to the sale price being higher than originally agreed. 

It is expected that the transfer of use and risk as well as the authority to dispose can be passed to the buyer by the end of 2016. The positive one-off effect expected for the 2016 fi-nancial year on the operating result (EBIT) is about EUR 40 million, while the effect on the net profit will be around EUR 25-30 million (before minority interests).

René Grieder
Moortalstrasse 1
5722 Gränichen

Chief Financial Officer

All news