Nippon Chemiphar : Chemiphar announced summary of consolidated financial results for the second quarter of FY2022.

Summary of Consolidated Financial Results for the

Second Quarter of Fiscal Year 2022 (Japanese GAAP)

		October 31, 2022
Company name:	Nippon Chemiphar Co., Ltd.	Listing: Tokyo Stock Exchange
Securities code:	4539	URL: https://www.chemiphar.co.jp/english/
Representative:	Kazushiro Yamaguchi, President & CEO
Contact:	Shinji Nakajima, Corporate Officer and Senior Manager of Accounts & Finance Department
	Phone: [phone]
Scheduled date of dividend payout:	-
Supplementary documents for quarterly financial results: Yes
Quarterly financial results briefing:	Yes (for institutional investors and securities analysts)

*Amounts less than one million yen are rounded down

1. Consolidated Financial Results for the Second Quarter of FY2022 (from April 1, 2022 to September 30, 2022)

(1) Business Results								(Percentages represent year-on-year changes.)
											Profit attributable to
		Net sales			Operating profit	Ordinary profit	owners of parent
Six months ended		Million yen			%	Million yen	%	Million yen	%	Million yen	%
September 30, 2022		16,237			4.3	167	(18.8)	752	190.7	896	291.6
September 30, 2021		15,575		-		206		-	258	-	228	-
(Note) Comprehensive income:		Six Months ended September 30, 2022: 656 million yen (109.3%)
		Six Months ended September 30, 2021: 313 million yen (-%)
		Earnings per		Diluted earnings
		share			per share
Six months ended		Yen			Yen
September 30, 2022	248.43			-
September 30, 2021	63.56			-

(Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., effective from the beginning of the fiscal year ended March 31, 2022. The figures for the six months ended September 30, 2021 are the figures after the application of the relevant accounting standards and percentages for year-on-year changes are not indicated.

(2) Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
As of		Million yen		Million yen	%	Yen
September 30, 2022		50,658			18,974		37.4	5,252.48
March 31, 2022		49,453			18,501		37.4	5,119.99
(Reference) Equity:	As of September 30,	2022: 18,957 million yen	As of March 31, 2022: 18,484 million yen
2. Dividends
		Dividend per share
					End of fiscal
	End of Q1	End of Q2		End of Q3	year		Annual
Year ended	Yen	Yen		Yen	Yen		Yen
-	0.00		-	50.00		50.00
March 31, 2022
Year ending	-	0.00
March 31, 2023
Year ending				-
March 31, 2023 (forecast)				50.00		50.00
(Note) Revision to the forecast	for dividends	announced most recently: None

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages represent year-on-year changes.)

							Profit attributable to
	Net sales		Operating profit	Ordinary profit	owners of parent	Earnings per share
Full-year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
35,000	7.7	300	(63.7)	500	(51.1)	550	(21.5)	152.50
(Note) Revision to the financial results forecast announced most recently: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanied by a change in the scope of consolidation): No
2. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies and changes or restatement of accounting estimates

(i)	Changes in accounting policies accompanying amendments to accounting standards, etc.: No
(ii)	Changes in accounting policies other than (i):	No
(iii) Changes in accounting estimates:	No
(iv) Restatement:	No

1. Number of shares outstanding (common stock)
2. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of September 30, 2022:	4,261,420 shares	As of March 31, 2022:	4,261,420 shares
(ii) Number of treasury shares at the end of the period
As of September 30, 2022:	652,123 shares	As of March 31, 2022:	651,170 shares
(iii) Average number of outstanding shares during the period (cumulative from the beginning of the period)
Six months ended September 30, 2022:	3,609,636 shares	Six months ended September 30, 2021:	3,602,722 shares

4. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

			(Millions of yen)
		FY2021	Q2 of FY2022
		(As of March 31, 2022)	(As of September 30, 2022)
Assets
Current assets
Cash and deposits	11,645	13,161
Notes and accounts receivable-trade, and contract assets	8,100	7,462
Electronically recorded monetary claims-operating	4,544	4,102
Merchandise and finished goods	4,942	5,486
Work in process	1,484	1,386
Raw materials and supplies	2,385	3,032
Income taxes refund receivable	-	72
Others	391	377
Total current assets	33,495	35,081
Non-current assets
Property, plant, and equipment
Buildings and structures, net	4,971	5,014
Machinery, equipment, and vehicles, net	1,931	1,865
Tools, furniture and fixtures, net	319	374
Land	4,345	4,345
Leased assets, net	168	171
Construction in progress	112	131
Total property, plant and equipment	11,848	11,904
Intangible assets
Patent rights	17	14
Trademark rights	61	57
Sales rights	666	524
Leased assets	23	56
Software	105	83
Telephone subscription rights	9	9
Total intangible assets	884	747
Investments and other assets
Investment securities	1,810	1,243
Long-term prepaid expenses	359	566
Retirement benefit assets	309	393
Leasehold and guarantee deposits	68	57
Deferred tax assets	329	314
Others	410	410
Allowance for doubtful accounts	(61)	(61)
Total investments and other assets	3,225	2,925
Total non-current assets	15,957	15,576
Deferred assets
Bond issuance costs	0	0
Total deferred assets	0	0
Total assets		49,453	50,658

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			(Millions of yen)
		FY2021	Q2 of FY2022
		(As of March 31, 2022)	(As of September 30, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade	2,146	2,610
Electronically recorded obligations-operating	7,420	6,786
Short-term borrowings	400	464
Current portion of bonds payable	200	200
Current portion of long-term borrowings	2,581	2,812
Lease obligations	73	80
Accounts payable-other	107	128
Income taxes payable	292	225
Accrued consumption taxes	200	76
Accrued expenses	1,950	1,749
Deposits received	164	163
Refund liabilities	300	230
Others	913	332
Total current liabilities	16,750	15,860
Non-current liabilities
Long-term borrowings	11,399	12,506
Lease obligations	135	168
Provision for retirement benefits for directors	469	445
Net defined benefit liability	132	141
Deferred tax liabilities for land revaluation	915	915
Others	1,149	1,645
Total non-current liabilities	14,202	15,822
Total liabilities	30,952	31,683
Net assets
Shareholders' equity
Capital stock	4,304	4,304
Capital surplus	1,263	1,263
Retained earnings	13,482	14,196
Treasury shares	(3,110)	(3,110)
Total shareholders' equity	15,939	16,653
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	547	244
Revaluation reserve for land	2,070	2,070
Foreign currency translation adjustment	(170)	(100)
Remeasurements of defined benefit plans	98	89
Total accumulated other comprehensive income	2,545	2,304
Share acquisition rights	17	17
Total net assets	18,501	18,974
Total liabilities and net assets		49,453	50,658

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1. Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income

			(Millions of yen)
		For the six months ended	For the six months ended
		September 30, 2021	September 30, 2022
Net sales	15,575	16,237
Cost of sales	11,265	11,976
Gross profit	4,309	4,261
Selling, general and administrative expenses	4,103	4,093
Operating profit	206	167
Non-operating income
Interest income	0	0
Dividend income	15	17
Rental income from non-current assets	3	3
Share of profit of entities accounted for using equity
method	14	16
Foreign exchange gains	74	612
Dividend income of insurance	2	1
Others	14	6
Total non-operating income	123	658
Non-operating expenses
Interest expenses	60	61
Commission expense	3	3
Others	7	7
Total non-operating expenses	71	73
Ordinary profit	258	752
Extraordinary income
Gain on sales of investment securities	-	411
Total extraordinary income	-	411
Profit before income taxes	258	1,164
Income taxes-current	106	151
Income taxes-deferred	(76)	116
Total income taxes	29	267
Profit	228	896
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		228	896

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