Teikoku Sen i : Consolidated Financial Results for the Second Quarter of Fiscal2023

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 Six Months Ended June 30, 2023 (Based on Japanese GAAP)

				August 9, 2023
Company name:	TEIKOKU SEN-I CO.,Ltd.
Stock exchange listing:	Tokyo
Stock code:	3302	URL https://www.teisen.co.jp/
Representative:	Chairman & CEO	Tsuyoshi Shiraiwa
Inquiries:	Vice President	Tatsuru Okamura	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 10, 2023
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 six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023)

(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	%
Six months ended June 30, 2023	17,196	6.0	2,259	(15.1)	2,725		(11.2)	1,855	(14.1)
Six months ended June 30, 2022	16,219	(4.4)	2,662	20.0	3,071		18.6	2,159	21.0
	Earnings per share		Diluted earnings per share
		Yen			Yen
Six months ended June 30, 2023		71.07			70.31
Six months ended June 30, 2022		81.72			80.26
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio		Net assets per share
	Millions of yen		Millions of yen				%		Yen
As of June 30, 2023		73,925			61,427				82.6	2,342.99
As of December 31, 2022		72,132			58,024				79.9	2,207.88

2. Cash dividends
		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen	Yen	Yen	Yen
Year ended December 31, 2022	-	0.00	-	50.00
Year ending December 31, 2023	-	0.00
Year ending December 31, 2023 (Forecast)			-	50.00

Total

Yen 50.00

50.00

3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	32,000	7.0	3,200	(28.2)	4,000	(24.5)	2,800	(23.5)	107.20

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2023 (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 June 30, 2023	27,444,400	shares	As of December 31, 2022	27,444,400	shares
Number of treasury shares at the end of the period
	As of June 30, 2023	1,385,902	shares	As of December 31, 2022	1,332,555	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2023	26,103,137	shares	Six months ended June 30, 2022	26,420,646	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Thousands of yen)
	As of December 31, 2022	As of June 30, 2023
Assets
Current assets
Cash and deposits	16,122,875	17,368,255
Notes and accounts receivable - trade, and contract assets	6,665,427	4,829,276
Securities	5,999,975	5,999,975
Merchandise and finished goods	5,523,505	4,218,094
Work in process	1,422,232	1,338,272
Raw materials and supplies	845,230	900,035
Other	1,152,637	911,698
Total current assets	37,731,884	35,565,607
Non-current assets
Property, plant and equipment
Buildings and structures, net	7,459,840	7,273,243
Machinery, equipment and vehicles, net	580,678	541,968
Tools, furniture and fixtures, net	322,999	391,357
Land	3,917,154	3,917,154
Construction in progress	162,408	306,711
Total property, plant and equipment	12,443,082	12,430,434
Intangible assets	68,581	68,864
Investments and other assets
Investment securities	21,496,667	25,452,865
Retirement benefit asset	98,884	73,502
Deferred tax assets	117,298	157,688
Other	176,458	176,402
Total investments and other assets	21,889,309	25,860,458
Total non-current assets	34,400,973	38,359,757
Total assets	72,132,858	73,925,365

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		(Thousands of yen)
	As of December 31, 2022	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	4,328,343	1,756,297
Current portion of long-term borrowings	45,000	23,000
Income taxes payable	683,579	869,887
Provision for bonuses for directors (and other officers)	5,000	-
Other	1,882,245	1,481,902
Total current liabilities	6,944,168	4,131,087
Non-current liabilities
Long-term guarantee deposits	536,490	506,132
Deferred tax liabilities	5,680,918	6,919,186
Retirement benefit liability	119,219	126,705
Provision for share awards for directors (and other	519,715	519,715
officers)
Asset retirement obligations	76,465	76,468
Long-term accounts payable - other	78,650	78,650
Other	152,837	139,932
Total non-current liabilities	7,164,296	8,366,790
Total liabilities	14,108,465	12,497,877
Net assets
Shareholders' equity
Share capital	1,582,867	1,582,867
Capital surplus	957,371	957,371
Retained earnings	42,950,232	43,480,464
Treasury shares	(980,485)	(1,067,433)
Total shareholders' equity	44,509,985	44,953,269
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	13,110,602	15,791,431
Deferred gains or losses on hedges	31,159	310,142
Total accumulated other comprehensive income	13,141,761	16,101,573
Share acquisition rights	372,646	372,646
Total net assets	58,024,393	61,427,488
Total liabilities and net assets	72,132,858	73,925,365

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

Consolidated statements of income (cumulative)

		(Thousands of yen)
	Six months ended	Six months ended
	June 30, 2022	June 30, 2023
Net sales	16,219,621	17,196,483
Cost of sales	11,424,761	12,572,932
Gross profit	4,794,859	4,623,550
Selling, general and administrative expenses	2,132,253	2,364,202
Operating profit	2,662,606	2,259,348
Non-operating income
Interest income	228	217
Dividend income	405,520	452,643
Other	16,354	22,944
Total non-operating income	422,104	475,805
Non-operating expenses
Interest expenses	4,411	1,392
Share of loss of entities accounted for using equity method	1,518	1,108
Foreign exchange losses	2,687	3,853
Commission expenses	3,726	2,465
Other	1,182	508
Total non-operating expenses	13,525	9,329
Ordinary profit	3,071,185	2,725,824
Extraordinary income
Gain on sale of non-current assets	227	-
Total extraordinary income	227	-
Extraordinary losses
Loss on disposal of non-current assets	353	62,483
Total extraordinary losses	353	62,483
Profit before income taxes	3,071,058	2,663,341
Income taxes - current	924,337	910,397
Income taxes - deferred	(12,321)	(102,325)
Total income taxes	912,016	808,071
Profit	2,159,042	1,855,269
Profit attributable to owners of parent	2,159,042	1,855,269

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