April 12, 2022
Summary of Financial Results for the Second Quarter of Fiscal Year Ending August 31, 2022
(All financial information has been prepared in accordance with the Generally Accepted Accounting Principles in Japan)
Company name: | NPC Incorporated |
Stock code: | 6255 URL:https://www.npcgroup.net/eng/ |
Representative: | Masafumi Ito, President & CEO |
Contact: | General Affairs Department |
Tel: +81-(0)3-6240-1206 |
Filing date of securities report: Payment date of cash dividends:
Listing: Growth of TSEApril 14, 2022 -
Supplementary materials prepared for quarterly financial results:
Financial results meeting for institutional investors and securities analysts:
Yes Yes
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended February 28, 2022
(September 1, 2021 through February 28, 2022)
(1) Consolidated results of operations
(Percentages represent year-on-year changes)
Sales | Operating income (loss) | Ordinary income (loss) | Net income (loss) attributable to owners of the parent | |||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
6 months ended February 28, 2022 6 months ended February 28, 2021 | 1,592 5,792 | (72.5) - | 1 1,068 | (99.9) - | 21 1,051 | (97.9) - | (75) 725 | - - |
Earnings per share | Diluted earnings per share | |
Yen | Yen | |
6 months ended February 28, 2022 6 months ended February 28, 2021 | (3.51) 33.12 | - - |
[Note] From the beginning of FY2022, the Accounting Standard for Revenue Recognition and other related guidelines are applied.
The Accounting Standard is retroactively applied to the numbers related to the six months ended February 28, 2021. The change rate of the six months ended February 28, 2021 from the corresponding period of previous year is not listed due to the retroactive revision.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |
Million yen | Million yen | % | |
As of February 28, 2022 As of August 31, 2021 | 11,978 10,004 | 6,589 6,986 | 55.0 69.8 |
[Reference] Shareholders' equity (million yen): February 28, 2022: 6,589 August 31, 2021: 6,986
[Note] From the beginning of FY2022, the Accounting Standard for Revenue Recognition and other related guidelines are applied.
The Accounting Standard is retroactively applied to the numbers related to FY2021.
2. Dividends
Dividend per share | |||||
1Q-end | 2Q-end | 3Q-end | Year-end | Annual | |
Yen | Yen | Yen | Yen | Yen | |
Year ended August 31, 2021 | - | 0.00 | - | 2.00 | 2.00 |
Year ending August 31, 2022 | - | 0.00 | |||
Year ending August 31, 2022 (forecast) | - | 2.00 | 2.00 |
[Notes] Revision of dividend forecast during the period: None
3. Consolidated Forecast for the Fiscal Year ending August 31, 2022
(September 1, 2021 through August 31, 2022)
(Percentages represent year-on-year changes)
Net income
Sales
Operating income
Ordinary income
attributable to owners of the parent
Earnings per shareMillion yen
%Million yen
%Million yen
%Million yen
%YenFull year of FY2022
4,454
-
368
-
387
-
165
-7.66
[Notes] 1. Revision of consolidated forecast for FY2022 from the latest disclosure: Yes
2. From the beginning of FY2022, the Accounting Standard for Revenue Recognition and other related guidelines are applied.
The Consolidated Forecast shows the numbers after application of the Accounting Standard, and the increase/decrease rates year on year are not indicated.
4. Others
(1) Changes in significant subsidiaries during the period: None
(2) Adoption of accounting methods specific to preparation of quarterly consolidated financial statements: None
(3) Changes in accounting principles, procedures and presentation methods
1) Changes in accounting policies arising from revision of accounting standards: | Yes |
2) Other changes: | None |
3) Changes in accounting estimates: | None |
4) Restatement: | None |
(4) Number of shares outstanding (common shares) | |
1) Number of shares outstanding (including treasury stock) at the end of the period | |
February 28, 2022: 22,052,426 shares | |
August 31, 2021: 22,052,426 shares | |
2) Number of treasury stock at the end of the period |
February 28, 2022:
August 31, 2021:
553,910 shares 135,348 shares
3) Average number of shares during the period
Six months ended February 28, 2022: 21,593,889 shares Six months ended February 28, 2021: 21,910,670 shares
*This quarterly financial report is exempt from the quarterly review.
*Appropriate use of the forecast of financial results and other matters:
Forward-looking statements in this report such as financial results forecasts are based on the information available to NPC Incorporated ("the Company") at the time when this report is prepared and the assumption that the forecasts are reasonable. The actual results may significantly differ from the forecast due to various factors. Please refer to the 1. (2) Description of outlook, including consolidated earnings forecast on page 1 for conditions of assumptions for the forecast and notes concerning appropriate use of the forecast.
Table of Contents of Attached Materials
1. Qualitative Information Concerning Financial Results for for the Second Quarter Ended February 28, 2022 .. 2
(1) Description of operating results .................................................................................................................................... 2
(2) Description of outlook, including consolidated earnings forecast ................................................................................ 2
2. Consolidated Financial Statements for the Second Quarter Ended February 28, 2022 ......................................... 3
(1) Consolidated balance sheets .......................................................................................................................................... 3
(2) Consolidated statement of income ................................................................................................................................ 5
3. Other Information ........................................................................................................................................................ 6
(1) Production, Orders, and Sales ....................................................................................................................................... 6
1. Qualitative Information Concerning Financial Results for the Second Quarter Ended February 28, 2022
(1) Description of operating results
During the six months ended February 28, 2022, while signs of recovery in capital expenditures and corporate earnings were seen in the manufacturing industry, COVID-19 continued to cause economic uncertainty as "Quasi-State of Emergency" measures were imposed against its new variant. As for the global economy, a chronic shortage and longer delivery time of various products, which had started with semiconductor-related products, as well as price increase of raw materials and oil have impacted a wide range of industries.
Concerning the Machinery Business of NPC Group ("the Group"), in the US photovoltaic (PV) industry, which is our main market of the business, needs are increasing with support from government policies and active engagement for renewable energy by the States and other companies. Currently, market environment is becoming favorable for US PV manufacturers due to price increase of Chinese made PV panels and extension of safeguard duty on imported PV panels. As for automation machines for other industries, continuous capital expenditures are expected in strong sectors such as the electronic parts industry in Japan. In the US, there are needs for Japanese machine manufacturer that is capable of machine manufacturing and updating within the US. Meanwhile, the Machinery Business is being impacted by the longer delivery time of parts and increase in cost of fabricated metal products due to price increase of raw materials.
As for the PV industry in Japan, to which the Environmental Business of the Group belongs, while PV projects approved under FIT have been continuously installed, companies and local governments are introducing PV systems for self-consumption as well. Also, there are growing needs in Japan and overseas for establishing an appropriate recycling method and processing structure for PV panels as a considerable volume of discarded PV panels is expected in the future. The needs for panel disassembly equipment are growing especially in Europe, the US, and Australia as well as in Japan as there is an increasing number of waste management companies that commence intermediate treatment of PV panels.
Under such circumstances, the consolidated net sales were 1,592 million yen, 4,200 million yen decrease year on year, which was lower than the forecast. This is because of delay in sales booking of some projects due to the longer delivery time of parts as well as changes in on-site work schedule due to full operation of customers' factory. The Group's profits were low due to the weak sales while the profit margin remained at the same level as the forecast. Operating income was 1 million yen, 1,067 million yen decrease year on year. Ordinary income was 21million yen due to the non-operating income booked by cancellation of insurance, 1,029 million yen decrease year on year. Net loss attributable to owners of the parent was 75 million yen, compared with a net income of 725 million yen in the same period of the previous fiscal year.
Financial results by segment are as follows:
1) Machinery Business
In the Machinery Business, the Group implemented upgrading and expansion of the equipment of a US PV manufacturer, the Group's main customer. While it also booked the sales of PV module manufacturing equipment for other US PV manufacturer and automation machines for electronic parts and automobile industries, sales booking of some other projects delayed. As a result, the sales were 1,421 million yen, 4,197 million yen decrease year on year, operating income was 289 million yen, 1,027 million yen decrease year on year, which was lower than the forecast.
2) Environmental Business
In the Environmental Business, the Group booked sales of inspection service of PV power plants as scheduled, the sales of PV panel disassembly equipment (frame separator) to Europe, and plant factory business. Sales of PV panel reuse and recycling surpassed the forecast. As a result, the sales were 170 million yen, 2 million yen decrease year on year, and operating income was 0 million yen, 39 million yen decrease year on year.
(2) Explanation of consolidated forecast and other forward-looking statements
The business forecasts for the full year are the same as the forecasts in the "Announcement on the Differences between Business Forecasts and Results for the First Half and Revision of Business Forecasts Both for FY2022" released on April 12, 2022.
2. Consolidated Financial Statements for the Second Quarter Ended February 28, 2022 (September 1, 2021 through February 28, 2022)
(1) Consolidated balance sheets
(Thousand yen)
As of August 31, 2021 | As of February 28, 2022 | |
Assets | ||
Current assets | ||
Cash and deposits | 3,326,108 | 3,971,234 |
Notes and accounts receivable-trade and contract assets | 570,247 | 500,757 |
Electronically recorded monetary claims-operating | 130,464 | 1,465 |
Work in progress | 1,805,773 | 3,231,455 |
Raw materials and supplies | 5,150 | 35,037 |
Other | 117,058 | 398,328 |
Total current assets | 5,954,803 | 8,138,278 |
Noncurrent assets | ||
Property, plant and equipment | ||
Buildings and structures | 3,858,861 | 3,872,687 |
Accumulated depreciation | (1,880,190) | (1,960,959) |
Accumulated impairment loss | (8,073) | (8,073) |
Building and structures, net | 1,970,597 | 1,903,655 |
Machinery and equipment | 609,447 | 260,453 |
Accumulated depreciation | (154,790) | (134,416) |
Accumulated impairment loss | (376,294) | (73,136) |
Machinery and equipment, net | 78,362 | 52,899 |
Land | 1,548,050 | 1,548,050 |
Other | 303,112 | 337,029 |
Accumulated depreciation | (226,400) | (240,293) |
Accumulated impairment loss | (4,514) | (4,514) |
Other, net | 72,197 | 92,222 |
Construction in progress | 2,400 | - |
Total property, plant and equipment | 3,671,608 | 3,596,826 |
Intangible assets | ||
Other | 117,488 | 104,086 |
Total intangible assets | 117,488 | 104,086 |
Investments and other assets | ||
Deferred tax assets | 203,134 | 108,439 |
Other | 57,700 | 31,053 |
Total investments and other assets | 260,834 | 139,493 |
Total noncurrent assets | 4,049,931 | 3,840,406 |
Total assets | 10,004,735 | 11,978,685 |
[Note] The numbers parenthesized represent minus figures. |
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NPC Inc. published this content on 12 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2022 06:30:10 UTC.