CINC will absorb its wholly owned subsidiary CINC Capital, with 1 November 2026 scheduled as the effective date. The excess of liabilities over assets will be eliminated through a waiver of claims, after which financial results will be disclosed on a standalone rather than consolidated basis.
On 14 September 2026, CINC’s board of directors resolved to absorb its wholly owned subsidiary, CINC Capital. The merger will be carried out under simplified merger and short-form merger procedures, with 1 November 2026 scheduled as the effective date. The company also indicated a policy of eliminating the excess of liabilities over assets by waiving claims.
The transaction will be an absorption-type merger under which CINC will be the surviving company and CINC Capital the absorbed company. As the liabilities to be assumed currently exceed the assets to be assumed, the company will address this by waiving claims before the merger. In CINC Capital’s standalone financial results for the fiscal year ended October 2025, revenue was ¥0, operating loss was ¥222 million and net assets were negative ¥214 million. On a consolidated basis, CINC reported revenue of ¥1,824 million, operating loss of ¥112 million and a net loss attributable to owners of the parent of ¥152 million for the same period.
Following the effective date of the transaction, CINC will have no consolidated subsidiaries. Accordingly, from the announcement of results for the first quarter of the fiscal year ending October 2027, the company will switch from consolidated to standalone financial results disclosure. Investors and business partners will need to take note of this change in the format of financial results disclosure.
Through the merger, CINC plans to consolidate CINC Capital’s functions within the parent company, with the aim of speeding up decision-making across the group and reducing administrative costs. CINC said it will disclose the possibility of extraordinary losses arising from the merger and its impact on results depending on developments.