CMK Corporation to absorb subsidiary CMK PRODUCTS for enhanced competitiveness

CMK Corporation will merge with its wholly owned subsidiary, CMK PRODUCTS Corporation, effective April 1, 2026. This absorption-type merger, approved by both companies' boards on August 28, 2025, will see CMK Corporation as the surviving entity and CMK PRODUCTS dissolved. As CMK PRODUCTS is a wholly owned subsidiary, no new shares or other assets will be allotted. This strategic move aims to integrate CMK Corporation's mass production expertise with CMK PRODUCTS' rapid prototyping capabilities, fostering overall strength, business competitiveness, and improved management efficiency in key sectors like automotive.

The merger is classified as a simplified merger for CMK Corporation and a short-form merger for CMK PRODUCTS, eliminating the need for shareholder meetings to approve the merger agreement. Post-merger, CMK Corporation's name, location, representative, business description, capital, and fiscal year-end will remain unchanged. The company anticipates a negligible impact on its consolidated financial results due to the merger involving a wholly owned subsidiary.

As of March 31, 2025, CMK Corporation reported consolidated total assets of JPY 148,540 million and net sales of JPY 95,486 million, while CMK PRODUCTS had non-consolidated total assets of JPY 3,009 million and net sales of JPY 2,755 million.