Avantia : Summary of Consolidated Financial Results for the Three Months Ended November 30, 2021(Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

		Summary of Consolidated Financial Results
		for the Three Months Ended November 30, 2021
		(Based on Japanese GAAP)
				January 13, 2022
Company name:	AVANTIA CO.,LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:	8904	URL https://avantia-g.co.jp/
Representative:	Representative Director	Yasunari Sawada
President
Inquiries:	Director and Department	Shoji Higuchi	TEL [phone]
Manager of Administration
Scheduled date to file Quarterly Securities Report:	January 13, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended November 30, 2021 (from September 1, 2021 to November 30, 2021)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%		Millions of yen	%	Millions of yen			%	Millions of yen		%
Three months ended November 30, 2021	9,160		32.4		(256)	-		(200)			-		(178)		-
Three months ended November 30, 2020	6,919		16.9		(171)	-		(126)			-		(118)		-
	Earnings per share			Diluted earnings per share
				Yen				Yen
Three months ended November 30, 2021			(12.51)				-
Three months ended November 30, 2020			(8.32)				-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of November 30, 2021		57,088					25,092				44.0
As of August 31, 2021		53,466					25,585				47.9
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended August 31, 2021		-		19.00			-				19.00			38.00
Year ending August 31, 2022		-
Year ending August 31, 2022 (Forecast)				19.00			-				19.00			38.00

3. Forecast of consolidated financial results for the year ending August 31, 2022 (from September 1, 2021 to August 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
25,000	41.3	140	(52.1)	220	(39.7)	105	(54.3)	7.38
February 28, 2022
Full year	60,000	32.4	2,000	14.9	2,200	13.5	1,500	10.9	105.37

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(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

Changes in accounting policies due to other reasons:No

Changes in accounting estimates:No

Restatement of prior period financial statements:No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of November 30, 202114,884,300 shares As of August 31, 2021 Number of treasury shares at the end of the period

As of November 30, 2021649,155 shares As of August 31, 2021 Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended November 30, 14,235,145 shares Three months ended November 30,

20212020

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(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

4. Notes

(1) Changes in significant subsidiaries during the three months ended November 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):

14,884,300 shares

649,155 shares

14,205,245 shares

Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of August 31, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits	12,881,771	11,302,394
Notes receivable, accounts receivable from completed	1,313,202	-
construction contracts and other
Notes receivable, accounts receivable from completed	-	1,723,955
construction contracts and other, contract assets
Real estate for sale	6,008,205	5,926,303
Costs on development business and other	22,974,924	27,316,778
Costs on construction contracts in progress	2,464,850	3,572,996
Raw materials and supplies	17,944	20,121
Other	625,381	454,930
Allowance for doubtful accounts	(1,597)	(372)
Total current assets	46,284,682	50,317,109
Non-current assets
Property, plant and equipment	5,092,955	4,756,496
Intangible assets	662,791	639,145
Investments and other assets
Investment securities	561,210	464,732
Other	865,315	910,567
Total investments and other assets	1,426,526	1,375,300
Total non-current assets	7,182,273	6,770,942
Total assets	53,466,956	57,088,051
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	2,194,225	1,924,138
and other
Short-term borrowings	12,530,780	16,115,950
Current portion of long-term borrowings	1,269,855	1,459,014
Income taxes payable	345,932	69,833
Advances received on construction contracts in progress	3,615,221	-
Contract liabilities	-	3,369,477
Provision for bonuses	129,271	250,264
Provision for warranties for completed construction	30,614	20,529
Other	1,150,455	790,597
Total current liabilities	21,266,355	23,999,806
Non-current liabilities
Long-term borrowings	5,897,960	7,293,555
Retirement benefit liability	253,542	259,521
Other	463,910	443,115
Total non-current liabilities	6,615,413	7,996,192
Total liabilities		27,881,769	31,995,998

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			(Thousands of yen)
		As of August 31, 2021	As of November 30, 2021
Net assets
Shareholders' equity
Share capital	3,732,673	3,732,673
Capital surplus	2,980,013	2,980,013
Retained earnings	19,403,285	18,954,742
Treasury shares	(602,061)	(602,061)
Total shareholders' equity	25,513,910	25,065,366
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	71,276	26,686
Total accumulated other comprehensive income	71,276	26,686
Total net assets	25,585,186	25,092,052
Total liabilities and net assets		53,466,956	57,088,051

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		November 30, 2020	November 30, 2021
Net sales	6,919,859	9,160,179
Cost of sales	5,875,938	7,811,128
Gross profit	1,043,920	1,349,051
Selling, general and administrative expenses	1,215,775	1,605,875
Operating loss	(171,854)	(256,824)
Non-operating income
Interest income	380	196
Dividend income	330	330
Administrative service fee income	15,360	17,166
RefundedRealEstateAcquisitionTax	33,332	32,469
Other	23,829	40,718
Total non-operating income	73,233	90,881
Non-operating expenses
Interest expenses	19,374	14,818
Other	8,041	19,897
Total non-operating expenses	27,416	34,716
Ordinary loss	(126,037)	(200,659)
Extraordinary income
Gain on sale of non-current assets	-	14
Gain on reversal of asset retirement obligations	2,083	-
Total extraordinary income	2,083	14
Extraordinary losses
Loss on sale of non-current assets	-	29,966
Loss on retirement of non-current assets	23,784	134
Total extraordinary losses	23,784	30,100
Loss before income taxes	(147,738)	(230,744)
Income taxes	(29,606)	(52,669)
Loss	(118,131)	(178,075)
Loss attributable to owners of parent		(118,131)	(178,075)

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