Nippon Commercial Development : Summary of Consolidated Financial Results for the Six Months Ended June 30,2021

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 Six Months Ended June 30, 2021 (Based on Japanese GAAP)

					August 12, 2021
Company name:	Nippon Commercial Development Co., Ltd.
Stock exchange listing:	Tokyo, Nagoya
Stock code:	3252	URL https://www.ncd-jp.com
Representative:	Chief Executive Officer	Tetsuya Matsuoka
Inquiries:	General Manager Accounting Dept.	Takahiro Tanaka	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 13, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2021 (from January 1, 2021 to June 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		%
Six months ended June 30, 2021	26,624		-		2,499	-		2,442			-		1,736		-
Six months ended September 30, 2020	18,496		15.3		1,637	78.4		1,453		159.9		1,196		141.0
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended June 30, 2021			94.98					-
Six months ended September 30, 2020			65.45					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of June 30, 2021		75,756					26,341				34.8
As of December 31, 2020		71,220					24,841				34.9
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 December 31, 2020		-			0.00			-				25.00			25.00
Year ending December 31, 2021		-			0.00
Year ending December 31, 2021 (Forecast)									-				50.00			50.00

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	51,000	-	5,400		-	4,200		-	2,900		-	158.59

1

4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(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:	No
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 June 30, 2021	18,285,800	shares	As of December 31, 2020	18,285,800	shares
Number of treasury shares at the end of the period
	As of June 30, 2021	141	shares	As of December 31, 2020	141	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2021	18,285,659	shares	Six months ended September 30, 2020	18,285,659	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2020	As of June 30, 2021
Assets
Current assets
Cash and deposits	20,897	18,915
Operating accounts receivable	198	175
Real estate for sale	38,387	44,416
Advance payments - trade	371	181
Prepaid expenses	102	195
Other	116	12
Total current assets	60,074	63,896
Non-current assets
Property, plant and equipment
Buildings and structures, net	390	377
Vehicles, tools, furniture and fixtures, net	60	61
Land	2,883	2,961
Leased assets, net	102	92
Total property, plant and equipment	3,436	3,493
Intangible assets
Other	54	288
Total intangible assets	54	288
Investments and other assets
Investment securities	293	308
Shares of subsidiaries and associates	6,175	6,537
Investments in capital of subsidiaries and associates	4	4
Investments in capital	505	505
Leasehold and guarantee deposits	497	505
Long-term prepaid expenses	91	75
Other	175	229
Allowance for doubtful accounts	(89)	(89)
Total investments and other assets	7,654	8,077
Total non-current assets	11,146	11,859
Total assets		71,220	75,756

3

			(Millions of yen)
		As of December 31, 2020	As of June 30, 2021
Liabilities
Current liabilities
Trade accounts payable	187	398
Short-term borrowings	797	1,196
Current portion of long-term borrowings	2,034	774
Accounts payable - other	383	418
Income taxes payable	5	845
Accrued consumption taxes	4	40
Advances received	20	825
Current portion of guarantee deposits received	1,634	1,807
Other	333	359
Total current liabilities	5,400	6,665
Non-current liabilities
Long-term borrowings	40,357	39,190
Long-term leasehold and guarantee deposits received	163	307
Deferred tax liabilities	234	3,109
Other	222	142
Total non-current liabilities	40,978	42,749
Total liabilities	46,379	49,414
Net assets
Shareholders' equity
Share capital	3,048	3,048
Capital surplus	4,657	4,657
Retained earnings	17,634	18,914
Treasury shares	(0)	(0)
Total shareholders' equity	25,341	26,620
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(32)	(9)
Foreign currency translation adjustment	(467)	(270)
Total accumulated other comprehensive income	(499)	(279)
Total net assets	24,841	26,341
Total liabilities and net assets		71,220	75,756

4

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2020	June 30, 2021
Net sales	18,496	26,624
Cost of sales	15,209	22,287
Gross profit	3,286	4,336
Selling, general and administrative expenses	1,649	1,837
Operating profit	1,637	2,499
Non-operating income
Interest income	0	0
Interest on securities	2	2
Foreign exchange gains	-	40
Share of profit of entities accounted for using equity method	-	153
Recoveries of written off receivables	381	-
Outsourcing service income	49	57
Other	4	12
Total non-operating income	438	267
Non-operating expenses
Interest expenses	265	209
Financing expenses	81	113
Foreign exchange losses	248	-
Share of loss of entities accounted for using equity method	17	-
Other	9	0
Total non-operating expenses	622	324
Ordinary profit	1,453	2,442
Profit before distributions of profit or loss on silent partnerships	1,453	2,442
and income taxes
Distributions of profit or loss on silent partnerships	-	0
Profit before income taxes	1,453	2,442
Income taxes - current	389	770
Income taxes - deferred	(132)	(65)
Total income taxes	257	705
Profit	1,196	1,736
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		1,196	1,736

5