Kyokuto Kaihatsu Kogyo streamlines operations, boosts employee incentives

Kyokuto Kaihatsu Kogyo Co., Ltd. will execute an absorption-type merger with its wholly-owned subsidiary, Kyokuto Kaihatsu Parking Co., Ltd., effective April 1, 2026. This simplified merger aims to strengthen competitiveness and enhance efficiency by consolidating management resources. As the subsidiary is wholly-owned, no shares or other assets will be allocated.

Concurrently, Kyokuto Kaihatsu Kogyo is implementing a transfer-restricted share incentive plan for its employee shareholding association. This involves disposing of 68,200 common shares via a third-party allotment at 2,655 yen per share, totaling 181,071,000 yen, effective February 2, 2026. This initiative aims to foster employee wealth building and align interests with shareholders, with shares subject to transfer restrictions until November 30, 2028.

The company's financial results for the six months ended September 30, 2025, show net sales of 74,180m yen and ordinary profit of 3,688m yen. Despite a profit attributable to owners of parent of (1,485m) yen for the six months, the full-year forecast for March 31, 2026, projects net sales of 168,000m yen and profit attributable to owners of parent of 2,645m yen, with basic earnings per share of 68.84 yen.