Sanyo Shokai : Summary of Consolidated Financial Results for the Three Months Ended May 31, 2022 (Based on Japanese GAAP)

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 Three Months Ended May 31, 2022
		(Based on Japanese GAAP)
		June 30, 2022
Company name:	SANYO SHOKAI LTD.
Stock exchange listing:	Tokyo
Stock code:	8011	URL https://www.sanyo-shokai.co.jp/

Representative:	Representative Director,President & Chief	Shinji Oe
Operating Officer
	General Manager of Accounting
Inquiries:	Department,Accounting & Finance	Tatsuji Tsuchida	TEL [phone]
	Headquarters
Scheduled date to file Quarterly Securities Report:	July 14, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended May 31, 2022 (from March 1, 2022 to May 31, 2022)

(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		%
Three months ended May 31, 2022	14,355		-		502	-		593			-		559		-
Three months ended May 31, 2021	8,710		51.4		(566)	-		(524)			-		(748)		-
	Earnings per share			Diluted earnings per share
				Yen				Yen
Three months ended May 31, 2022			46.12				44.33
Three months ended May 31, 2021			(61.81)				-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of May 31, 2022		51,590					34,770				67.1
As of February 28, 2022		51,629					33,920				65.4
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 February 28, 2022		-		0.00			-				0.00			0.00
Year ending February 28, 2023		-
Year ending February 28, 2023 (Forecast)				0.00			-				40.00			40.00

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
Six months ending	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
24,650	-	(1,060)		-	(1,090)		-	(1,120)		-	(92.36)
August 31, 2022
Full year	56,000	-	1,200		-	1,140		-	900		-	74.22
					1

4. Notes

1. Changes in significant subsidiaries during the three months ended May 31, 2022 (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:	Yes
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 May 31, 2022	12,622,934	shares	As of February 28, 2022	12,622,934	shares
Number of treasury shares at the end of the period
	As of May 31, 2022	488,943	shares	As of February 28, 2022	488,866	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended May 31, 2022	12,134,037	shares	Three months ended May 31, 2021	12,109,424	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of February 28, 2022	As of May 31, 2022
Assets
Current assets
Cash and deposits	18,767	17,076
Notes and accounts receivable - trade	2,659	3,874
Merchandise and finished goods	7,819	7,408
Other	1,384	1,817
Allowance for doubtful accounts	(6)	(8)
Total current assets	30,626	30,169
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,443	3,477
Land	4,136	4,136
Other, net	1,081	1,063
Total property, plant and equipment	8,662	8,678
Intangible assets
Trademark right	3,323	3,226
Other	626	666
Total intangible assets	3,949	3,892
Investments and other assets
Investment securities	4,802	5,310
Leasehold and guarantee deposits	1,284	1,247
Retirement benefit asset	2,284	2,207
Other	28	92
Allowance for doubtful accounts	(8)	(8)
Total investments and other assets	8,390	8,850
Total non-current assets	21,003	21,420
Total assets		51,629	51,590

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			(Millions of yen)
		As of February 28, 2022	As of May 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	4,176	4,189
Current portion of convertible bond-type bonds with share	-	553
acquisition rights
Short-term borrowings	3,000	5,000
Current portion of long-term borrowings	2,800	-
Accrued expenses	1,615	1,881
Accrued consumption taxes	462	402
Income taxes payable	138	99
Provision for bonuses	212	300
Provision for sales returns	10	-
Other	1,827	555
Total current liabilities	14,242	12,983
Non-current liabilities
Convertible-bond-type bonds with share acquisition rights	553	-
Long-term borrowings	1,000	1,800
Long-term accounts payable - other	74	71
Deferred tax liabilities	899	1,056
Deferred tax liabilities for land revaluation	540	540
Retirement benefit liability	164	187
Other	233	180
Total non-current liabilities	3,465	3,836
Total liabilities	17,708	16,820
Net assets
Shareholders' equity
Share capital	15,002	15,002
Capital surplus	9,658	9,658
Retained earnings	6,769	7,334
Treasury shares	(994)	(994)
Total shareholders' equity	30,435	31,001
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,031	2,389
Deferred gains or losses on hedges	3	-
Revaluation reserve for land	1,199	1,199
Foreign currency translation adjustment	93	27
Total accumulated other comprehensive income	3,328	3,617
Non-controlling interests	156	151
Total net assets	33,920	34,770
Total liabilities and net assets		51,629	51,590

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		May 31, 2021	May 31, 2022
Net sales	8,710	14,355
Cost of sales	4,342	5,361
Gross profit	4,367	8,994
Selling, general and administrative expenses	4,934	8,491
Operating profit (loss)	(566)	502
Non-operating income
Interest income	0	0
Dividend income	-	0
Foreign exchange gains	17	73
Subsidy income	60	44
Other	17	5
Total non-operating income	94	123
Non-operating expenses
Interest expenses	20	24
Share of loss of entities accounted for using equity method	32	8
Other	0	0
Total non-operating expenses	53	32
Ordinary profit (loss)	(524)	593
Extraordinary income
Subsidy income	-	56
Total extraordinary income	-	56
Extraordinary losses
Loss on retirement of non-current assets	4	33
Impairment losses	-	8
Extraordinary loss due to closing and other	209	-
Total extraordinary losses	214	42
Profit (loss) before income taxes	(738)	608
Income taxes - current	9	53
Income taxes - deferred	(0)	(0)
Total income taxes	9	53
Profit (loss)	(748)	555
Loss attributable to non-controlling interests	-	(4)
Profit (loss) attributable to owners of parent		(748)	559

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