Kinjiro : Consolidated Financial Results for the Six Months Ended June 30,2022

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Six Months Ended June 30, 2022

[Japanese GAAP]

Company name: Kinjiro Co.,Ltd.	August 09, 2022
Stock exchange listing: Tokyo
Code number: 4013
URL: https://www.kinjiro-e.com
Representative: Kozo Kamura	President
Contact: Shinichi Tanaka	Executive Officer
Phone: [phone]

Scheduled date of filing quarterly securities report: August 09, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Six Months Ended June 30, 2022 (January 01, 2022 to June 30, 2022)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Six months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%
June 30, 2022	1,644		(3.9)	183	2.3	181	0.7	123	3.9
June 30, 2021	1,710		(3.1)	179	(48.0)	180	(47.9)	118	(47.8)

(Note) Comprehensive income:	Six months ended June 30, 2022:
	Six months ended June 30, 2021:

¥	127 million	[	6.0%]
¥	120 million	[	(46.9) %]

	Basic earnings	Diluted earnings per
	per share		share
Six months ended	Yen			Yen
June 30, 2022	12.46			-
June 30, 2021	11.41			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Million yen			Million yen	%
June 30, 2022	9,758			8,820	90.4
December 31, 2021	9,778			8,854	90.5
(Reference) Equity: As of	June 30, 2022:	¥	8,820 million
As of	December 31, 2021:	¥	8,854 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 December 31, 2021		-		0.00	-		17.00	17.00
Fiscal year ending December 31, 2022		-		0.00
Fiscal year ending December 31, 2022					-		17.00	17.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending December 31, 2022 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2022(January 01, 2022 to December 31, 2022) (% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share
			Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year			3,620		8.9	402	53.6	400	63.8	270	65.7	27.25
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the six months ended June 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:								)
Exclusion:	-	(Company name:								)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2022:	10,420,000	shares
December 31, 2021:	10,420,000	shares
2) Total number of treasury shares at the end of the period:
June 30, 2022:	509,053	shares
December 31, 2021:	517,500	shares

3) Average number of shares during the period:
Six months ended June 30, 2022:	9,905,766	shares
Six months ended June 30, 2021:	10,416,286	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Thousand yen)
			As of December 31,2021	As of June 30,2022
Assets
	Current assets
		Cash and deposits	7,627,459	7,506,467
		Notes and accounts receivable - trade	588,330	582,799
		Inventories	48,517	60,402
		Other	108,216	93,070
		Allowance for doubtful accounts	(3)	(3)
		Total current assets	8,372,520	8,242,737
	Non-current assets
		Property, plant and equipment	642,880	608,673
		Intangible assets
		Software	403,039	559,643
		Software in progress	71,845	72,020
		Other	10,519	10,294
		Total intangible assets	485,404	641,958
		Investments and other assets
		Other	278,878	266,321
		Allowance for doubtful accounts	(1,220)	(1,220)
		Total investments and other assets	277,658	265,100
		Total non-current assets	1,405,943	1,515,731
	Total assets	9,778,464	9,758,469
Liabilities
	Current liabilities
		Notes and accounts payable - trade	65,442	56,469
		Short-term borrowings	40,000	-
		Current portion of long-term borrowings	44,608	32,110
		Income taxes payable	36,397	89,197
		Unearned revenue	212,855	239,328
		Other	292,950	291,685
		Total current liabilities	692,254	708,791
	Non-current liabilities
		Long-term borrowings	49,843	40,045
		Provision for retirement benefits for directors (and	44,186	-
		other officers)
		Retirement benefit liability	120,679	129,029
		Asset retirement obligations	17,274	14,672
		Other	-	45,347
		Total non-current liabilities	231,983	229,094
	Total liabilities	924,238	937,885
Net assets
	Shareholders' equity
		Share capital	4,099,300	4,099,300
		Capital surplus	4,056,450	4,056,450
		Retained earnings	1,692,758	1,638,402
		Treasury shares	(999,946)	(983,625)
		Total shareholders' equity	8,848,561	8,810,527
	Accumulated other comprehensive income
		Foreign currency translation adjustment	5,664	10,056
		Total accumulated other comprehensive income	5,664	10,056
	Total net assets	8,854,226	8,820,584
Total liabilities and net assets	9,778,464	9,758,469

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

		(Thousand yen)
	For the six months	For the six months
	ended June 30,2021	ended June 30,2022
Net sales	1,710,449	1,644,573
Cost of sales	655,663	515,835
Gross profit	1,054,786	1,128,737
Selling, general and administrative expenses	875,404	945,305
Operating profit	179,382	183,432
Non-operating income
Interest income	48	55
Foreign exchange gains	1,223	-
Interest on refund of income taxes	-	162
Surrender value of insurance policies	603	-
Other	33	29
Total non-operating income	1,909	248
Non-operating expenses
Interest expenses	143	103
Foreign exchange losses	-	1,955
Commission expenses	840	-
Miscellaneous losses	59	47
Total non-operating expenses	1,043	2,106
Ordinary profit	180,248	181,574
Profit before income taxes	180,248	181,574
Income taxes	61,378	58,125
Profit	118,870	123,449
Profit attributable to owners of parent	118,870	123,449

Quarterly Consolidated Statements of Comprehensive Income (For the six months)

			(Thousand yen)
		For the six months	For the six months
		ended June 30,2021	ended June 30,2022
Profit	118,870	123,449
Other comprehensive income
	Valuation difference on available-for-sale securities	18	-
	Foreign currency translation adjustment	1,710	4,391
	Total other comprehensive income	1,729	4,391
Comprehensive income	120,599	127,841
Comprehensive income attributable to
	Comprehensive income attributable to owners of	120,599	127,841
	parent