HLB Global will absorb and merge with its wholly-owned subsidiary, cosmetics brand operator 'Purplish.'

HLB Global announced on the 7th that it held a board of directors meeting and decided to absorb and merge with Purplish. The surviving company is HLB Global, and Purplish will be dissolved upon merger.

Non-Dilutive Small-Scale Merger... No New Share Issuance or Change in Largest Shareholder

This merger is a wholly-owned subsidiary merger conducted while HLB Global holds 100% of Purplish's shares, with a merger ratio of 1.0000000 to 0.0000000. The merger ratio was calculated this way because it is a non-dilutive small-scale merger method that does not issue new shares. There will be no change in the largest shareholder after the merger.

The company stated, 'Through the merger, we expect to efficiently utilize human and physical resources to improve management efficiency and have a positive impact on our finances and operations.' As this transaction is conducted as a small-scale merger, it will be replaced by board approval without holding a shareholders' meeting, and the shareholders of the merging company will not be granted appraisal rights for their shares.

However, if a shareholder holding 20% or more of the total issued shares notifies the company in writing of their opposition to the merger within two weeks from the announcement date, it cannot proceed as a small-scale merger. The company explained that this merger does not constitute a backdoor listing and that there is no possibility of delisting.

Purplish Records Revenue of KRW 56.7 Billion and Net Income of KRW 5.9 Billion as of End of 2025

The merged entity, Purplish, is a subsidiary whose main business is the operation and sale of cosmetics brands. Its financial status as of the end of 2025 is as follows:

• Total Assets: KRW 1,061,025,102
• Total Equity: KRW 675,904,878
• Revenue: KRW 5,677,737,072
• Net Income for the Period: KRW 593,930,324

Merger Schedule

• Merger Agreement Date: August 10, 2026
• Shareholder Record Date: August 24
• Merger Date: October 12
• Scheduled Merger Registration Date: October 13.