Consolidated Financial Results
for the Three Months Ended November 30, 2021
[Japanese GAAP]
January 14, 2022
Company name: JINS HOLDINGS Inc.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3046
URL: https://jinsholdings.com
Representative: Hitoshi Tanaka, CEO and Representative Director
Contact: Mikiya Yamawaki, Executive Officer and General Manager, Investor Relations Division
Phone: +81-3-5275-7001
Scheduled date of filing quarterly securities report: January 14, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended November 30, 2021 (September 1, 2021 to November 30, 2021)
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Three months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
November 30, 2021 | 15,275 | 3.1 | 577 | (26.0) | 691 | (2.1) | 433 | 17.4 | |
November 30, 2020 | 14,813 | (0.8) | 781 | (42.0) | 705 | (48.4) | 369 | (55.7) |
(Note) Comprehensive income: Three months ended November 30, 2021 ¥437 million [(1.9)%] Three months ended November 30, 2020: ¥445 million [(38.0)%]
Earnings | Diluted earnings | |
per share | per share | |
Three months ended | Yen | Yen |
November 30, 2021 | 18.56 | 16.47 |
November 30, 2020 | 15.82 | 14.02 |
(2) Consolidated Financial Position | |||||||||||
Total assets | Net assets | Equity ratio | |||||||||
Million yen | Million yen | % | |||||||||
As of November 30, 2021 | 52,684 | 20,176 | 38.3 | ||||||||
As of August 31, 2021 | 53,007 | 20,219 | 38.1 | ||||||||
(Reference) Equity: As of November 30, 2021: ¥20,176 million | |||||||||||
As of August 31, 2021: ¥20,219 million | |||||||||||
2. Dividends | |||||||||||
Annual dividends | |||||||||||
1st | 2nd | 3rd | Year-end | Total | |||||||
quarter-end | quarter-end | quarter-end | |||||||||
Yen | Yen | Yen | Yen | Yen | |||||||
Fiscal year ended August 31, 2021 | − | 25.00 | − | 20.00 | 45.00 | ||||||
Fiscal year ending August 31, 2022 | − | ||||||||||
Fiscal year ending August 31, 2022 | 17.00 | − | 37.00 | 54.00 | |||||||
(Forecast) | |||||||||||
(Note) Revision to the forecast for | dividends announced most recently: Yes |
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending August 31, 2022 (September 1, 2021 to August 31, 2022)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable | Earnings | |||||
to owners of parent | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Half year | 32,755 | 3.5 | 1,977 | (25.8) | 2,061 | (20.2) | 1,333 | (30.3) | 57.12 |
Full year | 71,155 | 11.4 | 7,177 | 42.1 | 7,011 | 39.6 | 4,033 | 22.5 | 172.80 |
(Note) Revision to the financial results forecast announced most recently: Yes
* Notes:
- Changes in significant subsidiaries during the three months ended November 30, 2021 (changes in specified subsidiaries resulting in changes in scope of consolidation): None
- Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: Yes
- Retrospective restatement: None
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury stock):
November 30, 2021: 23,980,000 shares
August 31, 2021: 23,980,000 shares
-
Total number of treasury stock at the end of the period: November 30, 2021: 639,784 shares
August 31, 2021: 639,784 shares - Average number of shares during the period (Accumulated total of the quarter): Three months ended November 30, 2021: 23,340,216 shares
Three months ended November 30, 2020: 23,340,218 shares
*This quarterly financial report is outside the scope of quarterly review by Certified Public Accountants or an Audit firm.
*Explanation of the proper use of financial results forecast and other notes
Forward-looking statements in this document, such as the financial results forecast, are based on information currently available to the Group and certain assumptions that the Group has deemed reasonable. These statements are not intended as the Group's commitment to achieve them, and actual performance may differ significantly due to various factors.
For the assumptions for financial results forecast and precautions for using financial results forecast, please refer to "Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 4 of the attached document.
Table of Contents | ||
1. Qualitative Information on Quarterly Financial Results for the Period under Review | ......................... 2 | |
(1) | Explanation of Business Results ....................................................................................................... | 2 |
(2) | Explanation of Financial Position ..................................................................................................... | 4 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information . 4 | |
2. Quarterly Consolidated Financial Statements and Primary Notes ........................................................ | 5 | |
(1) | Quarterly Consolidated Balance Sheets ............................................................................................ | 5 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income .................................... | 7 |
(3) | Notes to Quarterly Consolidated Financial Statements..................................................................... | 9 |
(Notes on going concern assumption) ............................................................................................. | 9 | |
(Notes in the case of significant changes in shareholders' equity) .................................................. | 9 | |
(Changes in accounting policies)....................................................................................................... | 9 | |
(Changes in accounting estimates) .................................................................................................. | 10 | |
(Segment information) ................................................................................................................... | 10 | |
(Additional information) ................................................................................................................ | 11 |
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1. Qualitative Information on Quarterly Financial Results for the Period under Review
(1) Explanation of Business Results
During the three months ended November 30, 2021 (September 1, 2021 to November 30, 2021), the Japanese economy showed signs of a recovery in personal consumption as social and economic activities began to normalize following the complete lifting from October onward of the state of emergency, etc., which had been repeatedly declared due to the spread of the novel coronavirus disease (COVID-19), mainly in urban areas. Looking at the global economy, the number of cases is rising once again in some regions partly owing to the impact of COVID-19 variants, and infection prevention measures, including travel restrictions, remain in place. In addition, there are concerns about a possible worsening of economic conditions owing to factors such as a rapid increase in crude oil prices around the world, the Chinese government's measures to restrict investment, and the impact of electric power shortages on the manufacturing industry.
In the domestic retail eyewear market (eyeglasses for vision correction), although the state of emergency, etc., which had been declared due to the spread of COVID-19 was lifted, the market size continued to trend at a level lower than the same period of the previous year.
Under this market environment, in the eyewear business, the Company and its consolidated subsidiaries (collectively, the "Group") took such initiatives as promoting digital transformation, and strengthening development of innovative products, which they identified as management issues. In the domestic eyewear business, the Company worked to offer consumers a more convenient purchasing experience, including introducing "JINS BRAIN2," a service that uses AI to assess the extent to which pairs of glasses will suit customers with an enhanced level of accuracy, as an initiative to seamlessly connect online and in-store experiences, making it easier for customers to select glasses and creating a more convenient purchasing experience. With regard to product development, as part of our initiatives to realize "the world free from myopia," we conducted a joint project to develop an eyeglass-shaped,violet-light-emitting medical device designed to suppress progress of myopia, and total research and development expenses were ¥55 million for the three months ended November 30, 2021.
In terms of store development, the number of eyewear stores as of November 30, 2021, was 674, including 448 stores in Japan and 226 stores overseas (172 in China, 42 in Taiwan, 6 in Hong Kong, and 6 in the United States).
As a result, for the three months ended November 30, 2021, the Company posted net sales of ¥15,275 million (up 3.1% year-on-year) partly thanks to the impact of new store openings despite the fact that we have yet to fully recover from the impact of COVID-19. Operating profit was ¥577 million (down 26.0% year-on-year) owing to the effect of changes to revenue recognition standards, etc. Ordinary profit was ¥691 million (down 2.1% year-on-year), and profit attributable to owners of parent was ¥433 million (up 17.4% year-on-year).
Business results by segment are as follows.
Net sales by business segment
For the three months ended | |||
Segment | November 30, 2021 | Percentage to the | Year-on-year |
(September 1, 2021 to | Company's net sales | change | |
November 30, 2021) | |||
Domestic eyewear business | ¥11,890 million | 77.8% | 1.7% |
Overseas eyewear business | ¥3,384 million | 22.2% | 8.6% |
Total | ¥15,275 million | 100.0% | 3.1% |
2
In the domestic eyewear business, we launched a next-generation version of JINS MEME, eyewear that captures mental and physical conditions with sensors using proprietary technology to visualize those conditions on a connected mobile app, with a more compact and lighter sensor and battery. Sales were also driven by the strong performance of high-value-added products, including "Airframe Hingeless," for which we eliminated the hinges connecting the front of the frame with the temples, creating a unique new fit and comfort for users. In addition, membership of the JINS app reached approximately 9.48 million people as of the end of November 2021, and e-commerce sales continued to grow at a steady pace. Regarding the impact of COVID-19, there were signs of a recovery in footfall to levels prior to the outbreak of the pandemic from October onward, when the declaration of a state of emergency, etc., was lifted.
In terms of store development, the number of stores in Japan was 448 (14 openings and no closures) as of the end of the period under review.
As a result, net sales of the domestic eyewear business were ¥11,890 million (up 1.7% year-on-year), and segment operating profit was ¥518 million (down 7.2% year-on-year).
In the overseas eyewear business, in China, personal consumption stalled, owing partly to the strengthening of restrictions on individual movement imposed by the government as a measure to combat COVID-19 from the summer onward. Performance in the country was also impacted by factors such as a fallback from the previous year, when there were exemptions to social security fees.
In Taiwan, performance recovered steadily from the rapid increase in COVID-19 infections in May, but our business was impacted by factors such as an increase in personnel expenses to secure opticians as required by the Optometric Personnel Act.
In Hong Kong, the slump in consumption due to the effects of protests resulting from political unrest and COVID-19 is on a recovery track, and business performance is also recovering steadily.
In the United States, we have reopened all of our brick-and-mortar stores, which had been closed due to the impact of COVID-19, and business performance is on a recovery track.
In terms of store development, the total number of stores overseas was 226 as of the end of the period under review, including 172 stores in China (6 openings and 4 closures), 42 in Taiwan (4 openings and no closures), 6 in Hong Kong (no openings or closures), and 6 in the United States (no openings or closures).
As a result, net sales of the overseas eyewear business were ¥3,384 million (up 8.6% year-on-year), and segment operating profit was ¥59 million (down 73.2% year-on-year).
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Jins Inc. published this content on 19 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2022 03:21:03 UTC.