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Summary of Consolidated Financial Results for the Six Months Ended June 30, 2021 (Based on Japanese GAAP)
August 5, 2021 | ||||
Company name: | BASE, Inc. | |||
Stock exchange listing: | Tokyo | |||
Stock code: | 4477 | URL https://binc.jp/en | ||
Representative: | Representative Director and CEO | Yuta Tsuruoka | ||
Inquiries: | Director, Senior Executive Officer and CFO | Ken Harada | TEL 03(6441)2075 |
Scheduled date to file Quarterly Securities Report: | August 5, 2021 | |
Scheduled date to commence dividend payments: | - | |
Preparation of supplementary material on quarterly financial results: | Yes | |
Holding of quarterly financial results meeting: | Yes | (for institutional investors and analysts) |
(Amounts of less than one million yen are rounded down)
1. Consolidated financial results for the Six months ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
(1) Consolidated operating results (cumulative) | (% indicates changes from the previous corresponding period) | |||||||||
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, 2021 | 4,684 | 27.2 | (270) | － | (273) | － | (246) | － | ||
Six months ended June 30, 2020 | 3,681 | 118.2 | 612 | － | 613 | － | 503 | － | ||
(Note)Comprehensive Income (millions of yen) | |||
Six months ended June 30, 2021: (243) (－%) | Six months ended June 30, 2020: 503 (－%) | ||
Earnings per share | Diluted earnings per share | ||
Yen | Yen | ||
Six months ended June 30, 2021 | (2.24) | － | |
Six months ended June 30, 2020 | 4.94 | 4.55 |
(Notes) 1. Despite the existence of potential shares in the fiscal year ended June 30, 2021, diluted earnings per share are not indicated because net loss per share was recorded.
2. The Company conducted a stock split as of April 1, 2021, whereby each ordinary share was split into 5 shares. The afore-mentioned calculation of earnings per share and diluted earnings per share are based on the assumption that the stock split was conducted at the beginning of the fiscal year ended December 31, 2020.
- Consolidated financial position
Total assets | Net assets | Equity ratio | |||||||||||
Millions of yen | Millions of yen | % | |||||||||||
As of June 30, 2021 | 28,703 | 16,042 | 55.9 | ||||||||||
As of December 31, 2020 | 28,505 | 16,217 | 56.9 | ||||||||||
(Reference)Equity (millions of yen) As of June 30, 2021: 16,042. As of December 31, 2020: 16,217 | |||||||||||||
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 December 31, 2020 | － | 0.00 | － | 0.00 | 0.00 | ||||||||
Year ending December 31, 2021 | － | 0.00 | |||||||||||
Year ending December 31, 2021 | － | 0.00 | 0.00 | ||||||||||
(Forecast) | |||||||||||||
(Note) Revisions to most recent dividend forecast: None |
3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)
(% indicates changes from the previous corresponding period)
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 | 9,750 | 17.6 | (1,433) | － | (1,433) | － | (1,437) | － | (13.10) |
~10,536 | ~27.1 | ~(929) | ~(929) | ~(933) | ~(8.51) | ||||
(Notes) 1. Revisions to most recent consolidated results forecast: None
2. The Company conducted a stock split as of April 1, 2021, whereby each ordinary share was split into 5 shares. The afore-mentioned calculation of earnings per share is based on the assumption that the stock split was conducted at the beginning of the fiscal year ending
December 31, 2021.
4. Notes
- Changes in significant subsidiaries during the Six months ended June 30, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation): | No | |||
New: - ( | ), Exclusion: - ( | ) | ||
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: | 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: | No | |||
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, 2021 | 110,828,749 shares | As of December 31, 2020 | 109,697,000 shares | |
Number of treasury shares at the end of the period | ||||
As of June 30, 2021 | － shares | As of December 31, 2020 | － shares | |
Average number of shares during the period (cumulative from the beginning of the fiscal year) | ||||
Six months ended June 30, 2021 | 110,112,999 shares | Six months ended June 30, 2020 | 102,098,219 shares | |
(Note) The Company conducted a stock split as of April 1, 2021, whereby each ordinary share was split into 5 shares. The afore-mentioned calculation of total number of issued shares at the end of the period (including treasury shares) and average number of shares during the period (cumulative from the beginning of the fiscal year) are based on the assumption that the stock split was conducted at the beginning of the fiscal year ended December 31, 2020.
*The summary of quarterly financial results is not subject to a quarterly review by a certified public accountant or an auditing firm. *Explanation on the appropriate use of business forecasts and other special matters
(Notice regarding forward-looking statements, etc.)
Forward-looking statements or projections contained in this document are based on information that the Company has at the present time and certain premises that the Company deems reasonable. Such forward-looking statements are not intended to represent a commitment on the part of the Company to achieve them. Also, actual results may differ significantly due to various factors. Please see the "1. Qualitative information on results for the six months ended June 30, 2021 (3) Overview of forecast of operating results including consolidated financial results" on page 3 of the attached document for the conditions that form the basis of earnings forecasts and cautions for using earnings forecasts.
(Access to supplementary information on quarterly financial results and contents of quarterly financial results briefing)
The Company plans to hold a briefing for institutional investors and analysts on Thursday, August 5, 2021. We plan to post on the Company website the materials for results briefing, which will be used on that day.
(Changing units of amount)
The amounts of accounts and other items for our quarterly consolidated financial statements have been previously stated in units of thousands of yen. However, they have been changed to be stated in units of millions of yen from the first quarter of consolidated fiscal year ending December 31, 2021 and the three months ended March 31, 2021. For ease of comparison, figures for the previous consolidated fiscal year and the six months ended June 30, 2020 are also indicated in units of millions of yen.
Contents of Appendix | ||
1. Qualitative information on results for the six months ended June 30, 2021................................................................................................ | 2 | |
(1) | Overview of operating results..................................................................................................................................................................... | 2 |
(2) | Overview of financial position.................................................................................................................................................................... | 3 |
(3) | Overview of forecast of operating results including consolidated financial results .................................................................................. | 3 |
2. Quarterly consolidated financial statements and main noted items............................................................................................................. | 4 | |
(1) | Quarterly consolidated balance sheets....................................................................................................................................................... | 4 |
(2) | Quarterly consolidated statements of income and comprehensive income............................................................................................... | 5 |
(3) | Quarterly consolidated statement of cash flows......................................................................................................................................... | 7 |
(4) | Notes on quarterly consolidated financial statements................................................................................................................................ | 8 |
(Notes regarding going concern assumptions)................................................................................................................................................. | 8 | |
(Notes on significant changes in the amount of shareholders' equity)............................................................................................................ | 8 | |
(Segment information etc.).............................................................................................................................................................................. | 8 |
－ 1 －
1. Qualitative information on results for the six months ended June 30, 2021
(1) Overview of operating results
Advocating "Payment to the People, Power to the People." as its mission, the Group of the Company (hereinafter, "the Group") actively operates the BASE business providing e-commerce platforms BASE, and the PAY business providing PAY.JP, online payment services and PAY ID, payment services and through these services, the Group focuses on empowering MSMB (Micro, Small and Medium Businesses) and supporting start-up businesses.
In the cumulative 2nd quarter of the fiscal year under review, although vaccinations for COVID-19 started, the future remains uncertain. In this business environment, in order to achieve sustainable growth over the medium to long term, the BASE business continues to strive for aggressive marketing targeting MSMB, and to expand functions to improve the convenience of shop operations. In the PAY business, the Group is striving to expand the number of member stores by strengthening its products with the aim of creating online payment functions that are simpler and easier to implement and operate, targeting start-up companies and venture companies.
As a result of the above, our Group's consolidated net sales for the cumulative 2nd quarter of the fiscal year under review were ¥4,684 million (27.2% increase year on year), operating loss was ¥270 million (operating profit of ¥612 million in the same period of the previous year), ordinary loss was ¥273 million (ordinary profit of ¥613 million in the same period of the previous year), and loss attributable to owners of parent was ¥246 million (profit attributable to owners of parent of ¥503 million in the same period of the previous year).
The results of the segments are as follows.
A) BASE Business
In the BASE business for the cumulative 2nd quarter of the fiscal year under review, in order to achieve continuous business growth, we continued to improve promotion of TVCM, web marketing and other activities, with the aim of improving service awareness and promoting the opening of new shops. As a result, in May 2021, the cumulative number of shops opened exceeded 1.5 million, and the number of active shops per month increased significantly.
In addition, we have expanded the functions to make it easier for MSMB to run shops, such as the "Add Page App" that allows you to easily add pages to online shops and freely express the attractiveness of brands and products. In addition, we have focused on expanding and enhancing functions to improve the operational efficiency of large-scale shops, such as the "Smaregi Inventory Linkage App," which enables centralized management of inventory for both brick-and-mortar shops and online shops through a service linkage with the cloud POS register "Smaregi" operated by Smaregi, Inc., gaining continuous use by our existing customers.
In the cumulative 2nd quarter of the previous fiscal year, the gross merchandise volume grew significantly due to an increase in demand for the opening of online shops and the shift of consumers to e-commerce in response to the spread of COVID-19. In the cumulative 2nd quarter of the fiscal year under review, sales of hygiene products such as masks and disinfectants decreased, which decreased the impact of COVID-19, but gross merchandise volume grew owing to an increase in the number of active shops per month.
As a result, the gross merchandise volume during the cumulative 2nd quarter of the fiscal year under review, was ¥53,872 million (order base), ¥50,264 million (settlement base), and was 23.6% increase (order base) and 30.3% increase (settlement base) from the same period of the previous year.
While net sales and gross profit on sales for the cumulative 2nd quarter of the fiscal year under review increased as a result of growth in gross merchandise volume, the take rate decreased mainly due to a decrease in purchaser fees. The decrease in purchaser fees was due to a change in the composition ratio of means of settlement and an increase in settlement unit prices. In addition to a decrease in the take rate, an increase in the cost of sales ratio resulted in a decrease in the gross profit margin. The increase in the cost of sales ratio was due to a change in the composition of means of settlement.
As a result of the above, net sales were ¥4,027 million (22.9% increase year on year) and segment loss was ¥104 million (segment profit of ¥774 million in the same period of the previous year).
B) PAY Business
In the PAY business, the Group provides online settlement services "PAY.JP" and identity settlement services "PAY ID". In the cumulative 2nd quarter of the fiscal year under review, the gross merchandise volume grew significantly to ¥24,284 million (63.6% increase year on year) owing to the growth of existing member stores.
As a result of the above, net sales were ¥639 million (63.0% increase year on year) and segment loss was ¥35 million (segment loss of ¥52 million in the same period of the previous year).
C) Other Businesses
In other businesses, the Group provides services such as YELL BANK, which provides business funds to online shop operators using BASE. The number of its users has been steady since the service was launched in December 2018.
As a result of the above, net sales were ¥17 million (31.7% increase year on year) and segment loss was ¥34 million (segment loss of ¥24 million in the same period of the previous year).
－ 2 －
(2) Overview of Financial Position
(Assets)
Total assets as of the end of the 2nd quarter of the fiscal year under review were ¥28,703 million, an increase of ¥198 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥437 million in accounts receivable - trade, while an increase of ¥756 million in cash and deposits.
(Liabilities)
Liabilities as of the end of the 2nd quarter of the fiscal year under review were ¥12,661 million, an increase of ¥373 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥206 million in income taxes payable included in other due to payment of income taxes, while an increase of ¥418 million in accounts payable - trade, and ¥253 million in deposits received.
(Net assets)
Net assets as of the end of the 2nd quarter of the fiscal year under review were ¥16,042 million, a decrease of ¥175 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥246 million in retained earnings resulting from recording of loss attributable to owners of parent.
(Cash flow status)
Cash and cash equivalents as of the end of the 2nd quarter of the fiscal year under review (hereinafter "Cash flows") were ¥23,027 million, an increase of ¥756 million from the end of the previous fiscal year. A summary of cash flows and their factors for the cumulative 2nd quarter of the fiscal year under review are as follows:
(Cash flows from operating activities)
Cash flows provided by operating activities amounted to ¥756 million (¥2,611 million in the same period of the previous fiscal year). The main factors for the increase were a decrease in accounts receivable - trade of ¥437 million, an increase in accounts payable - trade of ¥418 million, and an increase in deposits received of ¥253 million. The main factors for the decrease were posting of loss before income taxes of ¥273 million and payment of income taxes of ¥131 million.
(Cash flows from investing activities)
Cash flows used in investing activities was ¥12 million (¥24 million in the same period of the previous fiscal year). This decrease resulted mainly from purchases of property, plant and equipment of ¥11 million.
(Cash flows from financing activities)
Cash flows provided by financing activities amounted to ¥12 million (¥1 million in the same period of the previous fiscal year). This was due to proceeds of ¥12 million from the issuance of new shares resulting from exercise of share acquisition rights.
(3) Overview of forecast of operating results including consolidated financial results
The consolidated earnings forecast for the fiscal year ending December 2021 remains unchanged from the content announced on February 10, 2021.
－ 3 －
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