Nippon Chemiphar : Summary of Consolidated Financial Results for the Fiscal Year 2023.

Summary of Consolidated Financial Results for the

Fiscal Year 2023 (Japanese GAAP)

		May 13, 2024
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 ordinary general meeting of shareholders: June 21, 2024
Scheduled date of dividend payout:			June 24, 2024
Supplementary documents for annual financial results:	Yes
Annual financial results briefing:			None
								*Amounts less than one million yen are rounded down
1. Consolidated Financial Results for the FY2023 (from April 1, 2023 to March 31, 2024)
(1) Business Results									(Percentages represent year-on-year changes.)
													Profit attributable to
		Net sales			Operating profit	Ordinary profit		owners of parent
Year ended		Million yen		%		Million yen	%	Million yen		%		Million yen	%
March 31, 2024		30,748		(2.6)		(494)	-	(219)		-		(180)	-
March 31, 2023		31,559		(2.9)		(241)	-	58		(94.3)		339	(51.6)
(Note) Comprehensive income:		Fiscal year ended March 31, 2024: 126 million yen (down 41.4 %)
		Fiscal year ended March 31, 2023: 216 million yen (down 64.7%)
		Earnings per	Diluted earnings				Ordinary profit to		Operating profit
		share		per share	Return on equity	total assets		to net sales
Year ended		Yen			Yen		%				%			%
March 31, 2024	(50.14)			-		(1.0)				(0.4)			(1.6)
March 31, 2023	94.07			-		1.8				0.1			(0.8)

(Reference) Share of profit/loss of entities accounted for using equity method:	As of March 31, 2024: 23 million yen
	As of March 31, 2023: 27 million yen

(2) Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
As of	Million yen	Million yen	%	Yen
March 31, 2024	49,548	18,460	37.3	5,116.02
March 31, 2023	48,571	18,534	38.1	5,130.65
(Reference) Equity:	As of March 31, 2024:	18,460 million yen	As of March 31, 2023: 18,517 million yen
(3) Cash Flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end of
	operating activities	investing activities	financing activities
	period
Year ended	Million yen	Million yen	Million yen	Million yen
March 31, 2024	296	(3,139)	1,447	9,200
March 31, 2023	(916)	(394)	144	10,529

2. Dividends

		Dividend per share		Dividends
				End of		total
	End of Q1	End of Q2	End of Q3	fiscal year	Annual	(Annual)
Year ended	Yen	Yen	Yen	Yen	Yen	Million yen
-	0.00	-	50.00	50.00	182
March 31, 2023
Year ended	-	0.00	-	50.00	50.00	182
March 31, 2024
Year ending	-	0.00	-	50.00	50.00
March 31, 2025 (forecast)

Payout ratio

(Consolidated)

%

53.2

-

300.7

Dividends to

net assets

(Consolidated)

%

1.0

1.0

3. Forecast of Consolidated Financial Results for the FY2024 (from April 1, 2024 to March 31, 2025)

							(Percentages represent year-on-year changes.)
							Profit attributable to
	Net sales		Operating profit		Ordinary profit		owners of parent		Earnings per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full-year	31,500	2.4	200	-	100	-	60	-	16.63

* Notes

1. Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanied by a change in the scope of consolidation): No
2. 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

(3) Number of shares outstanding (common stock)
(i) Number of shares outstanding at the end of the period (including treasury shares)
As of March 31, 2024:	4,261,420 shares	As of March 31, 2023:	4,261,420 shares
(ii) Number of treasury shares at the end of the period
As of March 31, 2024:	652,976 shares	As of March 31, 2023:	652,254 shares
(iii) Average number of outstanding shares during the period (cumulative from the beginning of the period)
Fiscal year ended March 31, 2024:	3,608,835 shares	Fiscal year ended March 31, 2023:	3,609,412 shares

4. Consolidated Financial Statements

(1) Consolidated Balance Sheets

			(Millions of yen)
		FY2022	FY2023
		(As of March 31, 2023)	(As of March 31, 2024)
Assets
Current assets
Cash and deposits	10,529	9,200
Notes and accounts receivable―trade, and contract assets	7,516	7,736
Electronically recorded monetary claims―operating	3,738	3,790
Merchandise and finished goods	6,468	5,785
Work in process	1,277	1,476
Raw materials and supplies	3,010	3,461
Income taxes refund receivable	220	20
Others	675	364
Total current assets	33,436	31,836
Non-current assets
Property, plant, and equipment
Buildings and structures	15,956	16,139
Accumulated depreciation	(11,170)	(11,598)
Buildings and structures, net	4,786	4,541
Machinery, equipment, and vehicles	9,353	9,457
Accumulated depreciation	(7,717)	(8,120)
Machinery, equipment, and vehicles, net	1,636	1,337
Tools, furniture and fixtures	2,755	2,936
Accumulated depreciation	(2,376)	(2,549)
Tools, furniture and fixtures, net	379	387
Land	4,344	4,344
Leased assets	376	398
Accumulated depreciation	(205)	(227)
Leased assets, net	170	171
Construction in progress	200	2,442
Total property, plant and equipment	11,518	13,224
Intangible assets
Patent rights	15	10
Trademark rights	54	47
Sales rights	383	100
Leased assets	47	73
Software	59	40
Telephone subscription rights	9	9
Total intangible assets	569	281
Investments and other assets
Investment securities	1,385	2,066
Long-term prepaid expenses	496	492
Retirement benefit assets	401	967
Leasehold and guarantee deposits	57	52
Deferred tax assets	353	267
Others	414	420
Allowance for doubtful accounts	(61)	(61)
Total investments and other assets	3,046	4,206
Total non-current assets	15,134	17,712
Total assets		48,571	49,548

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					(Millions of yen)
			FY2022		FY2023
			(As of March 31, 2023)	(As of March 31, 2024)
Liabilities
Current liabilities
Notes and accounts payable-trade	2,545	2,020
Electronically recorded obligations-operating	6,399	4,958
Short-term borrowings				392	568
Current portion of long-term borrowings	2,650	2,801
Lease obligations				77	86
Accounts payable-other		84	82
Income taxes payable				81	73
Accrued consumption taxes		91	301
Accrued expenses			1,678	2,032
Deposits received				175	213
Refund liabilities				221	210
Others				369	437
Total current liabilities			14,766	13,786
Non-current liabilities
Long-term borrowings			11,950	13,344
Lease obligations				161	182
Provision for retirement benefits for directors		457	483
Net defined benefit liability		139	128
Deferred tax liabilities for land revaluation		915	915
Others			1,645	2,246
Total non-current liabilities	15,270	17,301
Total liabilities			30,037	31,087
Net assets
Shareholders' equity
Capital stock			4,304	4,304
Capital surplus			1,263	1,263
Retained earnings			13,636	13,273
Treasury shares				3,110)	(3,111)
Total shareholders' equit	y	16,093	15,729
	ሺ
Accumulated other comprehensive income
Valuation difference on available-for-sale securities		335	455
Revaluation reserve for land	2,072	2,072
Foreign currency translation adjustment		(20)	(95)
Remeasurements of defined benefit plans		35	298
Total accumulated other comprehensive income	2,423	2,731
Share acquisition rights				17	-
Total net assets			18,534	18,460
Total liabilities and net assets		48,571	49,548

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

			(Millions of yen)
		FY2022	FY2023
		(Year ended March 31, 2023)	(Year ended March 31, 2024)
Net sales	31,559	30,748
Cost of sales	23,374	23,010
Gross profit	8,184	7,737
Selling, general and administrative expenses	8,425	8,232
Operating profit (loss)	(241)	(494)
Non-operating income
Interest income	2	3
Dividend income	30	36
Rental income from non-current assets	6	6
Share of profit of entities accounted for using equity	27	23
method
Foreign exchange gains	386	349
Dividend income of insurance	8	8
Others	13	19
Total non-operating income	475	449
Non-operating expenses
Interest expenses	122	150
Commission expense	39	8
Others	13	15
Total non-operating expenses	175	174
Ordinary profit (loss)	58	(219)
Extraordinary income
Gain on sales of non-current assets	10	-
Gain on sales of investment securities	411	-
Gain on reversal of share acquisition rights	-	17
Total extraordinary income	422	17
Profit (loss) before income taxes	480	(202)
Income taxes-current	79	57
Income taxes-deferred	61	(78)
Total income taxes	141	(21)
Profit (loss)	339	(180)
Profit attributable to non-controlling interests	-	-
Profit (loss) attributable to owners of parent		339	(180)

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Consolidated Statement of Comprehensive Income

		(Millions of yen)
	FY2022	FY2023
	(Year ended March 31, 2023)	(Year ended March 31, 2024)
Profit (loss)	339	(180)
Other comprehensive income
Valuation difference on available-for-sale securities	(211)	119
Foreign currency translation adjustment	150	(75)
Remeasurements of defined benefit plans	(62)	263
Total other comprehensive income	(123)	307
Comprehensive income	216	126
Comprehensive income attributable to:
Owners of parent	216	126
Non-controlling interests	-	-

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1. Consolidated Statements of Changes in Equity FY2022 (from April 1, 2022 to March 31, 2023)

				(Millions of yen)
		Shareholders' equity
					Total
	Capital	Capital	Retained	Treasury	shareholders'
	stock	surplus	earnings	shares	equity
Balance at beginning of	4,304	1,263	13,482	(3,110)	15,939
period
Changes during period
Dividends of surplus			(182)		(182)
Profit attributable to			339		339
owners of parent
Purchase of treasury shares				(0)	(0)
Reversal of revaluation			(1)		(1)
reserve for land
Net changes in items other
than shareholders' equity
Total changes during period	-	-	154	(0)	154
Balance at end of period	4,304	1,263	13,636	(3,110)	16,093
							(Millions of yen)
		Accumulated other comprehensive income
					Total
	Valuation		Foreign	Remeasure-	accumulated
	difference on	Revaluation	currency	ments of	other	Share
	available-for-	reserve	translation	defined	comprehen-	acquisition		Total net
	sale securities	for land	adjustment	benefit plans	sive income	rights		assets
Balance at beginning of	547	2,070	(170)	98	2,545	17		18,501
period
Changes during period
Dividends of surplus								(182)
Profit attributable to								339
owners of parent
Purchase of treasury shares								(0)
Reversal of revaluation								(1)
reserve for land
Net changes in items other	(211)	1	150	(62)	(121)	-		(121)
than shareholders' equity
Total changes during period	(211)	1	150	(62)	(121)	-		32
Balance at end of period	335	2,072	(20)	35	2,423	17		18,534

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FY2023 (from April 1, 2023 to March 31, 2024)

				(Millions of yen)
		Shareholders' equity
					Total
	Capital	Capital	Retained	Treasury	shareholders'
	stock	surplus	earnings	shares	equity
Balance at beginning of	4,304	1,263	13,636	(3,110)	16,093
period
Changes during period
Dividends of surplus			(182)		(182)
Loss attributable to owners			(180)		(180)
of parent
Purchase of treasury shares				(0)	(0)
Net changes in items other
than shareholders' equity
Total changes during period	-	-	(363)	(0)	(364)
Balance at end of period	4,304	1,263	13,273	(3,111)	15,729
						(Millions of yen)
		Accumulated other comprehensive income
					Total
	Valuation		Foreign	Remeasure-	accumulated
	difference on	Revaluation	currency	ments of	other	Share
	available-for-	reserve	translation	defined	comprehen-	acquisition	Total net
	sale securities	for land	adjustment	benefit plans	sive income	rights	assets
Balance at beginning of	335	2,072	(20)	35	2,423	17	18,534
period
Changes during period
Dividends of surplus							(182)
Loss attributable to owners							(180)
of parent
Purchase of treasury shares							(0)
Net changes in items other	119	-	(75)	263	307	(17)	290
than shareholders' equity
Total changes during period	119	-	(75)	263	307	(17)	(73)
Balance at end of period	455	2,072	(95)	298	2,731	-	18,460

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(4) Consolidated Statements of Cash Flows

			(Millions of yen)
		FY2022	FY2023
		(Year ended March 31,	(Year ended March 31,
		2023)	2024)
Cash flows from operating activities:
Profit (loss) before income taxes	480	(202)
Depreciation	1,500	1,459
Increase (decrease) in refund liabilities	(79)	(10)
Increase (decrease) in provision for retirement benefits for directors	(11)	25
Increase (decrease) in net defined benefit liability	11	(11)
Decrease (increase) in net defined benefit asset	(186)	(186)
Interest and dividend income	(32)	(40)
Interest expenses	122	150
Foreign exchange losses (gains)	(386)	(349)
Loss (gain) on sales of non-current assets	(10)	-
Loss (gain) on sales of investment securities	(411)	-
Decrease (increase) in trade receivables and contract assets	1,392	(262)
Gain on reversal of share acquisition rights	‒	(17)
Decrease (increase) in inventories	(1,859)	74
Decrease (increase) in other current assets	(166)	137
Decrease (increase) in long-term prepaid expenses	(95)	24
Increase (decrease) in notes and accounts payable - trade	(641)	(2,011)
Increase (decrease) in accrued consumption taxes	(98)	220
Increase (decrease) in other current liabilities	(313)	449
Increase (decrease) in other non-current liabilities	495	601
Other	(62)	206
Subtotal	(354)	260
Interest and dividends received	43	51
Interest paid	(120)	(145)
Income taxes paid	(484)	(90)
Income taxes refund	‒	220
Net cash provided by (used in) operating activities	(916)	296
Cash flows from investing activities:
Purchase of property, plant and equipment	(1,005)	(2,627)
Purchase of intangible assets	(9)	(9)
Proceeds from sales of property, plant and equipment	29	‒
Purchase of investment securities	(24)	(500)
Proceeds from sales of investment securities	611	‒
Proceeds from refund of guarantee deposits	11	4
Other	(7)	(7)
Net cash provided by (used in) investing activities	(394)	(3,139)
Cash flows from financing activities:
Net increase (decrease) in short-term borrowings	(8)	176
Proceeds from long-term borrowings	3,400	4,350
Repayments of long-term borrowings	(2,779)	(2,805)
Redemption of bonds	(200)	‒
Cash dividends paid	(183)	(182)
Other	(84)	(90)
Net cash provided by (used in) financing activities	144	1,447
Effect of exchange rate change on cash and cash equivalents	51	66
Net increase (decrease) in cash and cash equivalents	(1,115)	(1,329)
Cash and cash equivalents at beginning of period	11,645	10,529
Cash and cash equivalents at end of period		10,529	9,200

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