Howa Sangyo Co., Ltd. hereby announces that, at its general meeting of shareholders held on December 17, 2025, it has resolved to conduct an absorption-type merger with its wholly owned subsidiary Nissio Gravure Co., Ltd. ("Nissio Gravure"). The merger will take effect on April 1, 2026, with the Company as the surviving company and Nissio Gravure as the absorbed company.

This merger is intended to further improve the performance and long-term development of the Company and Nissio Gravure by reorganizing the overlapping business domains and concentrating management resources. From April 2026, Nissio Gravure's gravure printing business will continue as the "Howa Sangyo Co., Ltd. Yachiyo Factory.” By operating the factory as one of the Company’s own facilities in an integrated manner, we will establish a flexible production system and further enhance the stability of supply. In addition, we will strengthen our financial, organizational, and operational frameworks and strive to expand the scale of our business and achieve sustainable growth.
Regarding the machinery sales business of Nissio Gravure, we plan to transfer it to a new company, “GRAVO Engineering Co., Ltd.”, which will be established upon the merger.

We will leverage the synergies created through the integration to enhance our corporate value, and deliver security and reliability to our business partners through a stable supply of products.