Kyokuto Kaihatsu Kogyo to absorb wholly-owned subsidiary Kyokuto Kaihatsu Parking

Kyokuto Kaihatsu Kogyo Co., Ltd. resolved at its board of directors meeting on September 26, 2025, to proceed with an absorption-type merger with its wholly-owned subsidiary, Kyokuto Kaihatsu Parking Co., Ltd. The merger, scheduled for April 1, 2026, aims to improve business value by concentrating management resources and enhancing efficiency. As Kyokuto Kaihatsu Parking is a wholly-owned subsidiary, no shares or other assets will be allocated as a result of this merger.

The merger is classified as a simplified merger for the company and a short-form merger for Kyokuto Kaihatsu Parking, eliminating the need for shareholder approvals. Post-merger, there will be no changes to the company's name, location, representative, business activities, share capital, or fiscal year-end. The impact on consolidated results is expected to be negligible.

For the fiscal year ended March 31, 2025, Kyokuto Kaihatsu Kogyo (consolidated) reported net sales of JPY 140,449 million and a profit attributable to owners of parent of JPY 5,820 million. Kyokuto Kaihatsu Parking reported net sales of JPY 6,749 million and a profit of JPY 406 million for the same period.