Sony Group Corporation

Sony Corporation, a wholly owned subsidiary of Sony Group Corporation, has entered into a definitive agreement with TCL Electronics Holdings Limited to establish a strategic partnership in the home entertainment sector. The transaction involves the creation of a joint venture, to be named BRAVIA Inc., which will assume Sony's global home entertainment operations, including product development, manufacturing, sales, and customer service for products such as BRAVIA TVs and home audio equipment. Structurally, Sony will spin its home entertainment business into a preparatory company, into which TCL will subscribe for shares, resulting in a 51% ownership by TCL and 49% by Sony. Consequently, the new entity will become a consolidated subsidiary of TCL and an equity-method affiliate of Sony. Concurrently, Sony will transfer 100% of its manufacturing subsidiary, Sony EMCS (Malaysia) Sdn. Bhd. (SOEM), to TCL. The aggregate enterprise value attributed to the transferred businesses and SOEM is approximately 102.8 billion yen, with the consideration payable by TCL estimated at 75.4 billion yen, subject to adjustments for net debt and working capital at closing. The transaction remains contingent upon regulatory approvals, with operational commencement targeted for April 2027. Sony stated that any gain or loss resulting from the share issuance and equity transfer is expected to be immaterial to Sony Group Corporation’s consolidated financial results. Discussions regarding the potential transfer of equity in Shanghai Suoguang Visual Products Co., Ltd. are ongoing.