Chori : Financial Results for the Three Months Ended June 30, 2021 (Consolidated)

Translation－Original text in Japanese

	Consolidated Financial Results
	for the Three Months Ended June 30, 2021
	[Under Japanese GAAP]	July 26, 2021
Company name:	CHORI CO., LTD.	Stock exchange listing:	Tokyo (1st section)
TSE Code:	8014	URL:	https://www.chori.co.jp
Representative:	Kazuo Sakihama, President, CEO & COO
Inquiries:	Yasutaka Kawamura, Manager of Corporate Management Dept.
Tel.:	[phone]

Scheduled date to file Quarterly Securities Report: August 13, 2021

Scheduled date to commence dividend payments: -

Supplementary materials on quarterly financial results: Yes

Quarterly results explanatory meeting: None

(Amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Three Months Ended June 30, 2021

(1) Consolidated Operating Results (cumulative)

					(Percentages indicate	year-on-year changes)
	Net sales		Operating income		Ordinary income		Net income attributable
				to owners of the parent
Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Jun. 30, 2021	60,671	23.8	2,562	―	2,876	―	2,267	―
Jun. 30, 2020	49,004	―	(890)	―	(695)	―	(1,185)	―

Note: Comprehensive income

Jun. 30, 2021 : 3,014 million yen (－%)

Jun. 30, 2020 : (1,569) million yen (－%)

	Net income per share	Diluted net income
	per share
Three months ended	yen	yen
Jun. 30, 2021	92.16	-
Jun. 30, 2020	(48.30)	-

Notes: The Accounting Standard for Revenue Recognition, etc. has been adopted since the beginning of the year ended March 31, 2021. Consequently, the percentage change of net sales in the three months ended June 30, 2021 against net sales in the three months ended June 30, 2020 has not been stated.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
As of	Millions of yen	Millions of yen	%
Jun. 30, 2021	120,002	60,980	50.8
Mar. 31, 2021	110,591	58,831	53.2
Reference: Total equity

As of Jun. 30, 2021 : 60,939 million yen

As of Mar. 31, 2021 : 58,795 million yen

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2. Cash dividends

			Dividends per share
			Quarter-end		Year-end	Annual
	1st		2nd	3rd
		yen	yen	yen	yen	yen
Year ended Mar. 31, 2021		-	14.00	-	23.00	37.00
Year ending Mar. 31, 2022		-
Year ending Mar. 31, 2022(Forecast)			42.00	-	42.00	84.00

Note: Revisions to the most recently announced forecast of the dividend: None

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

							(Percentages indicate year-on-year	changes)
										Net income		Net income
	Net sales		Operating	income	Ordinary	income	attributable to owners
			per share
										of the parent
Full Year	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%		yen
280,000		29.5	9,500		159.3	10,000		114.8	6,800	445.2		276.42

Note: Revisions to the most recently announced forecasts of consolidated financial results: None

* Notes

(1) Changes in significant subsidiaries during the three months ended Jun. 30, 2021: Yes

(Transfer of specified subsidiaries resulting in changes in the scope of consolidation)
Inclusion:1company Company name : Sumitex International Company Limited	Exclusion: None

1. Specific accounting process applied to the preparation of the consolidated financial statements for the quarter: None
2. Changes in accounting policies, changes in accounting estimates, and restatements

1. Changes in accounting policies due to the revision of accounting standards, etc.	: Yes
2.	Changes in accounting policies other than 1.	: None
3.	Changes in accounting estimates	: None
4.	Restatements	: None

(4)	Number of outstanding shares (common shares)
1.	Number of outstanding shares at the end	As of Jun. 30, 2021	25,303,478	As of Mar. 31, 2021	25,303,478
		of the period (including treasury stock)	shares	shares
	2.	Number of treasury stocks at the end of	As of Jun. 30, 2021	703,294	As of Mar. 31, 2021	703,266
		the period	Shares	Shares
	3.	Average number of shares during the	Three months ended	24,600,195	Three months ended	24,555,828
		period (quarterly cumulative)	Jun. 30, 2021	shares	Jun. 30, 2020	shares

• Quarterly financial reports are out of the scope of quarterly review by certified public accountants or audit corporations.
• Explanation on the appropriate use of the forecasts of financial results and other comments
  The forward-looking statements such as the forecasts of financial results stated in this document are based on the information currently available to the Company and certain assumptions that the Company judges as rational. The Company is under no obligation to guarantee their achievement. Actual financial results may vary significantly due to various reasons.

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Quarterly consolidated financial statements

Quarterly consolidated balance sheets

				(Unit: Millions of yen)
		As of Mar. 31, 2021		As of Jun. 30, 2021
Assets
Current assets
Cash and deposits	14,828	17,895
Deposits paid to subsidiaries and associates	3,000		－
Notes and accounts receivable - trade	56,141	59,943
Merchandise and finished goods	10,665	14,938
Work in process	816	626
Raw materials and supplies	4	3
Goods in transit	751	897
Other	4,442	4,829
Allowance for doubtful accounts	(114)	(121)
Total current assets	90,537	99,012
Non-current assets
Property, plant and equipment	2,493	2,233
Intangible assets
Goodwill	491	2,165
Other	335	426
Total intangible assets		827		2,591
Investments and other assets		16,733		16,164
Total non-current assets		20,054		20,990
Total assets		110,591		120,002
Liabilities
Current liabilities
Notes and accounts payable - trade	39,622	41,443
Short-term borrowings	1,809	6,928
Current portion of long-term borrowings	113	113
Income taxes payable	1,703	832
Provision for bonuses	686	325
Provision for loss on liquidation of subsidiaries and associates	42	42
Other	4,119	5,660
Total current liabilities	48,097	55,346
Non-current liabilities
Long-term borrowings	358	330
Deferred tax liabilities	955	883
Retirement benefit liabilities	2,254	2,334
Other	94	128
Total non-current liabilities	3,662	3,676
Total liabilities	51,759	59,022

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		(Unit: Millions of yen)
	As of Mar. 31, 2021	As of Jun. 30, 2021
Net assets
Shareholders' equity
Share capital	6,800	6,800
Capital surplus	1,792	1,792
Retained earnings	49,903	51,302
Treasury shares	(698)	(698)
Total shareholders' equity	57,798	59,196
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,663	1,630
Deferred gains or losses on hedges	138	59
Foreign currency translation adjustment	(705)	148
Remeasurements of defined benefit plans	(99)	(95)
Total accumulated other comprehensive income	997	1,742
Non-controlling interests	36	40
Total net assets	58,831	60,980
Total liabilities and net assets	110,591	120,002

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Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income Quarterly consolidated statements of income

		（Unit: Millions of yen)
	Three months ended	Three months ended
	Jun. 30, 2020	Jun. 30, 2021
Net sales	49,004	60,671
Cost of sales	42,937	53,853
Gross profit	6,066	6,818
Selling, general and administrative expenses	6,957	4,256
Operating income (loss)	(890)	2,562
Non-operating income
Interest income	18	63
Dividend income	64	186
Share of profit of entities accounted for using equity method	30	43
Foreign exchange gains	49	－
Gain on adjustment of account payable	10	13
Miscellaneous income	83	104
Total non-operating income	258	411
Non-operating expenses
Interest expenses	34	22
Loss on sales of notes receivable - trade	9	25
Foreign exchange losses	－	25
Miscellaneous expenses	18	22
Total non-operating expenses	62	96
Ordinary income (loss)	(695)	2,876
Extraordinary income
Gain on sale of non-current assets	0	316
Gain on sale of shares of subsidiaries and associates	－	18
Gain on sale of investment securities	15	0
Gain on sale of golf membership	1	－
Total extraordinary income	17	336
Extraordinary losses
Loss on liquidation of subsidiaries and associates	－	15
Loss on disposal of non-current assets	0	0
Loss on sale of investment securities	21	－
Total extraordinary losses	21	15
Income (loss) before income taxes	(699)	3,197
Income taxes - current	448	930
Income taxes - deferred	93	(1)
Total income taxes	541	928
Net income (loss)	(1,241)	2,268
Net income (loss) attributable to non-controlling interests	(55)	0
Net income (loss) attributable to owners of the parent	(1,185)	2,267

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