Core Viewpoint - Chevalier International (00025) plans to sell its automotive agency business in Canada, along with related assets and properties, due to significant losses in recent fiscal years and challenges in the Canadian automotive market [1][2]. Group 1: Business Overview - The business involves the sale and leasing of new and used OEM vehicles, providing maintenance and repair services for OEM vehicles, selling OEM vehicle parts, and operating suitable automotive auxiliary equipment [1]. - The Canadian automotive industry has faced major challenges, including rising interest rates and increased costs of new vehicles, which have suppressed consumer purchasing intentions [1]. Group 2: Financial Performance - The business has incurred net losses before and after tax in the past two fiscal years, exacerbated by the global trade war [1]. - The board decided to exit the automotive agency market in Canada due to the increasing trend of market consolidation and the absence of any committed purchase offers [1]. Group 3: Sale Details - The buyer, a group already engaged in automotive agency business in Ontario, expressed interest in continuing operations at the relevant properties [2]. - The board views this sale as a strategic opportunity to bundle the business with its related assets and properties to reduce losses and realize the investment value of the properties [2]. - Upon completion of the sale, the company will cease operations of this business in Canada [3].