[Global Kids] Announcing the Absorption Merger of Fully Owned Subsidiaries | July 2026

Overview of the Merger

Global Kids plans to execute an absorption merger of its wholly owned subsidiaries, Essence International and Essence Academy, on October 1, 2026. This merger aims to enhance the quality of childcare and improve management efficiency, optimizing the group's management resources. The merger ratio is set at 1 share of Essence International for every 50 shares of Essence Academy. After the merger, the company's company name and representative will remain unchanged, strengthening the management structure of the group.

Future Outlook and Impact

This merger is a reorganization between consolidated subsidiaries, and is expected to have a minimal impact on the company's consolidated performance. Cost savings and management streamlining are expected to contribute to long-term corporate value enhancement. Dilution of shares and changes in capital structure due to the merger are limited, which provides investors with a stable management foundation.