Notice Regarding Absorption Merger of Consolidated Subsidiary

Overview of Organizational Restructuring

Cosmo Energy Holdings Co., Ltd. has resolved to absorb its wholly owned subsidiary Cosmo Business Associates Co., Ltd. effective April 1, 2026. The merger method is an absorption-type merger, with Cosmo Energy Holdings Co., Ltd. as the surviving company and Cosmo Business Associates Co., Ltd. dissolving. This merger qualifies as a simplified merger under Article 796, Paragraph 2 of the Companies Act and a short-form merger under Article 784, Paragraph 1 of the Companies Act, and will be executed without shareholder meeting approval. The board meeting approving the merger agreement and the signing of the merger contract occurred on December 23, 2025, with the effective date set for April 1, 2026.

Purpose and Background of the Restructuring

Cosmo Business Associates Co., Ltd. has been responsible for shared service functions within the group. With the progress of transferring operations from group companies, the company aims to enhance productivity further by integrating and reorganizing its administrative departments. This will promote operational efficiency and optimal allocation of management resources, aiming to strengthen the group's overall competitiveness.

Impact on Shareholders and Investors

Since this merger is with a wholly owned subsidiary, no new shares will be issued nor any monetary compensation provided. Therefore, there will be no change in the shareholder structure and no impact on consolidated financial results. After the merger, there will be no changes to the trade name, office location, titles or names of representatives, business activities, capital stock, or fiscal period. For investors, this is expected to lead to medium-to-long-term enhancement of corporate value through improved group productivity.