APR to Merge Subsidiary "APR Factory" to Enhance Management Efficiency

Merger Set for December 31 as Non-Capital Increase
No Change to Equity Structure

Strengthening New Beauty Medical Device Business Competitiveness
Through Unified Production Infrastructure

Global beauty company APR will merge its wholly owned subsidiary, APR Factory, into the parent company to enhance management efficiency and strengthen business competitiveness.

On September 9, APR announced through a regulatory filing that it has decided to absorb APR Factory through a merger.

This merger will be carried out as a non-capital increase merger with no new shares being issued, and the merger ratio is set at 1:0. As a result, APR's equity structure will remain unchanged after the merger. The merger contract date is September 16, and the effective merger date is December 31.

The purpose of this merger is to improve management efficiency. By absorbing its subsidiary, APR expects to enhance the efficiency of distributing both human and material resources, reduce costs by streamlining overlapping management infrastructure, and simplify its decision-making structure. This will enable the company to more quickly and flexibly respond to changes in the global beauty market.

APR Factory has played a key role in internalizing APR’s value chain by operating three production bases in total, including locations in Gasan, Seoul, and Pyeongtaek, Gyeonggi Province, covering research and development, product planning, production, and logistics. The company expects that this merger will further strengthen its manufacturing competitiveness as it integrates its production workforce and operational system.

With APR expanding its business portfolio, the optimization and advancement of its production infrastructure are emerging as critical factors for future competitiveness. APR is also accelerating new businesses related to beauty medical devices such as energy-based devices (EBD) and skin boosters, making the stable establishment of a production base and efficient resource management even more important.

An APR representative stated, "This merger is a strategic decision to maximize organizational and operational efficiency and enhance our core business competitiveness," adding, "With this as our foundation, we will achieve external growth and strengthen profitability, thereby increasing shareholder value."

This content was produced with the assistance of AI translation services.