November 11, 2021
Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022
(Six Months Ended September 30, 2021)
[Japanese GAAP] | ||
Company name: | C. Uyemura & Co., Ltd. | Listing: Second Section of the Tokyo Stock Exchange |
Stock code: | 4966 | URL: https://www.uyemura.co.jp/ |
Representative: | Hiroya Uyemura, President | |
Contact: | Shigeo Sakabe, Managing Director and Head of Corporate Management Division | |
Telephone: | +81-6-6202-8518 |
Scheduled date of filing of Quarterly Report: | November 11, 2021 |
Starting date of dividend payment: | - |
Preparation of supplementary materials for quarterly financial results: | Yes |
Holding of quarterly financial results meeting: | Yes (for institutional investors and analysts) |
Note: The original disclosure in Japanese was released on November 11, 2021 at 13:20 (GMT +9).
(All amounts are rounded down to the nearest million yen.)
1. Consolidated Financial Results (April 1, 2021 - September 30, 2021)
(1) Results of operations | (Percentages represent year-over-yearchanges.) | ||||||||
Sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
Six months ended Sep. 30, 2021 | 33,027 | 25.5 | 6,226 | 63.9 | 6,559 | 63.9 | 4,543 | 55.6 | |
Six months ended Sep. 30, 2020 | 26,319 | 8.2 | 3,799 | 12.4 | 4,003 | 15.1 | 2,920 | 19.4 |
Note: Comprehensive income (million yen) | Six months ended Sep. 30, 2021: | 6,332 | (up 133.9%) | |||
Six months ended Sep. 30, 2020: | 2,706 | (up 57.2%) | ||||
Net income per share | Net income per share | |||||
(basic) | (diluted) | |||||
Yen | Yen | |||||
Six months ended Sep. 30, 2021 | 261.61 | - | ||||
Six months ended Sep. 30, 2020 | 164.93 | - |
Notes: 1. Beginning with the first quarter of the fiscal year ending on March 31, 2022, the Company has applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). All figures for the six months ended September 30, 2021 incorporate this accounting standard.
2. The Company conducted a 2-for-1 common stock split effective on July 1, 2021. Net income per share has been calculated as if this stock split had taken place at the beginning of the previous fiscal year.
- Financial position
Total assets | Net assets | Equity ratio | Net assets per share | ||
Million yen | Million yen | % | Yen | ||
As of Sep. 30, 2021 | 90,587 | 72,272 | 79.8 | 4,193.94 | |
As of Mar. 31, 2021 | 85,105 | 69,473 | 81.6 | 3,929.41 | |
Reference: Shareholders' equity (million yen) | As of Sep. 30, 2021: 72,272 | As of Mar. 31, 2021: 69,473 |
Notes: 1. Beginning with the first quarter of the fiscal year ending on March 31, 2022, the Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). All figures as of September 30, 2021 incorporate this accounting standard.
2. The Company conducted a 2-for-1 common stock split effective on July 1, 2021. Net assets per share have been calculated as if this stock split had taken place at the beginning of the previous fiscal year.
2. Dividends
Dividend per share | ||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | ||||
Yen | Yen | Yen | Yen | Yen | ||||
Fiscal year ended Mar. 31, 2021 | - | 0.00 | - | 180.00 | 180.00 | |||
Fiscal year ending Mar. 31, 2022 | - | 0.00 | ||||||
Fiscal year ending Mar. 31, 2022 (forecast) | - | 90.00 | 90.00 |
Notes: 1. Revisions to the most recently announced dividend forecast: None
2. The Company conducted a 2-for-1 common stock split effective on July 1, 2021. Figures for the fiscal year ended March 31, 2021 are the actual amount of dividends before the stock split.
3. Consolidated Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(Percentages represent year-over-year changes.)
Sales | Operating profit | Ordinary profit | Profit attributable to | Net income per share | |||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full year | 65,000 | 16.2 | 12,000 | 26.4 | 12,500 | 26.0 | 8,400 | 17.8 | 474.76 |
Notes: 1. Revisions to the most recently announced consolidated forecast: Yes |
2. The Company conducted a 2-for-1 common stock split effective on July 1, 2021. Net income per share in the consolidated forecast for the fiscal year ending March 31, 2022 are adjusted to reflect the stock split.
*Notes
(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: - | Excluded: - |
- Application of the specific method for accounting treatment for preparation of quarterly consolidated financial statements: None
- Changes in accounting policies and accounting-based estimates, and restatements
- Changes in accounting policies due to revisions in accounting standards, others: Yes
- Changes in accounting policies other than 1) above: None
- Changes in accounting-based estimates: None
- Restatements: None
Note: For details, see "2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policies" on page 9 of the attachments.
- Number of shares outstanding (common shares)
- Number of shares outstanding at the end of the period (including treasury shares)
As of Sep. 30, 2021: | 19,756,080 shares | As of Mar. 31, 2021: | 19,756,080 shares |
2) Number of treasury shares at the end of the period | |||
As of Sep. 30, 2021: | 2,523,518 shares | As of Mar. 31, 2021: | 2,075,648 shares |
3) Average number of shares outstanding during the period | |||
Six months ended Sep. 30, 2021: | 17,368,693 shares | Six months ended Sep. 30, 2020: | 17,705,720 shares |
Note: The Company conducted a 2-for-1 common stock split effective on July 1, 2021. The number of shares outstanding at the end of the period, number of treasury shares at the end of the period and average number of shares outstanding during the period have been calculated as if this stock split had taken place at the beginning of the previous fiscal year.
* The quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
*Cautionary statement with respect to forward-looking statements and other special items
Forecasts of future performance in this report are based on assumptions judged to be valid and information currently available to the Company, but are not promises by the Company regarding future performance. Actual results are affected by various factors and may differ substantially. For discussion of the assumptions and notes of caution for usage, please refer to " 1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 4 of the attachments.
C. Uyemura & Co., Ltd. (4966) Second Quarter of the Fiscal Year Ending March 31, 2022 | ||
Contents of Attachments | ||
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 3 |
(3) | Explanation of Consolidated Forecast and Other Forward-looking Statements | 4 |
2. Quarterly Consolidated Financial Statements and Notes | 5 | |
(1) | Consolidated Balance Sheets | 5 |
(2) | Consolidated Statements of Income and Comprehensive Income | 7 |
For the Six-month Period | 7 | |
(3) | Consolidated Statements of Cash Flows | 8 |
(4) | Notes to Quarterly Consolidated Financial Statements | 9 |
Going Concern Assumption | 9 | |
Significant Changes in Shareholders' Equity | 9 | |
Changes in Accounting Policies | 9 | |
Segment and Other Information | 10 |
1
C. Uyemura & Co., Ltd. (4966) Second Quarter of the Fiscal Year Ending March 31, 2022
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
For the first half of the fiscal year ending on March 31, 2022 (hereinafter "the period under review"), the Japanese economy saw some signs of recovery with the gradual resumption of economic activities amid the lingering impact of the pandemic. However, the situation remained unstable due to the resurgence of COVID-19 caused by the spread of its variants. Despite an expected pickup in economy along with an increase in the vaccination rate, the outlook for the Japanese economy remains uncertain because it is not predictable when COVID-19 infection will be contained.
In the electronic device market, which is the Uyemura Group's main market area, demand for servers remained solid backed by the commercialization of the 5G (5th generation mobile communication system) related technologies and the wider spread of telework. In the car electronics segment, the production of automobiles and other products was affected by the shortage of semiconductors although the production of semiconductors themselves continued for the supply-demand balance to improve.
In this environment, the Group has focused on the development of high value-added products, and proposal and sales activities for these products to make the operations more profitable.
As a result, consolidated sales for the period under review were 33,027 million yen (up 25.5% year-over-year), operating profit 6,226 million yen (up 63.9%), ordinary profit 6,559 million yen (up 63.9%), and profit attributable to owners of parent 4,543 million yen (up 55.6%). Due to the application of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), net sales increased by 440 million yen, and operating profit and ordinary profit increased by 125 million yen each.
The results of operations by business segment are shown as below.
1) Surface finishing materials business
Both segment sales and profit of mainstay plating chemicals for printed wiring boards (PWBs) and package PWBs saw year-over-year increases thanks to an increase in 5G and semiconductor market demand.
Consequently, sales in the surface finishing materials business increased 39.1% year-over-year to 27,464 million yen and segment profit increased 59.6% year-over-year to 5,636 million yen.
2) Surface finishing machinery business
Segment sales of the surface finishing machinery business decreased year-over-year because of a decline in sales of general-purpose surface finishing machinery although demand for semiconductors and electronic components remained firm.
Consequently, sales in the surface finishing machinery business decreased 33.2% year-over-year to 2,808 million yen and segment profit increased 30.2% year-over-year to 293 million yen. Due to the application of the Accounting Standard for Revenue Recognition, net sales increased by 440 million yen and segment profit increased by 125 million yen.
3) Plating job business
Both segment sales and profit of the plating job business increased year-over-year. The business environment remained challenging with the persistent slowdown of the automotive industry in Thailand an d Indonesia due to the spread of COVID-19. Meanwhile, plating job operations for PWBs in Taiwan continued to show strong performance.
Consequently, sales in the plating job business increased 17.8% year-over-year to 2,328 million yen and segment profit was 35 million yen (compared with segment loss of 191 million yen in the same period of the previous fiscal year).
2
C. Uyemura & Co., Ltd. (4966) Second Quarter of the Fiscal Year Ending March 31, 2022
4) Real estate rental business
Both segment sales and profit of the real estate rental business increased year-over-year thanks to the rent revision for an office building for rent in Shin-Osaka.
Consequently, sales in the real estate rental business increased 3. 4% year-over-year to 418 million yen and segment profit increased 10.6% year-over-year to 253 million yen.
It is noted that sales of the segments above include intersegment sales and transfers.
(2) Explanation of Financial Position
1) Changes in financial position
Total assets increased 5,482 million yen from the end of the previous fiscal year to 90,587 million yen at the end of the period under review. This was primarily attributable to a 1,746 million yen increase in notes and accounts receivable-trade, and contract assets, a 1,661 million yen increase in land, a 740 million yen increase in merchandise and finished goods, a 738 millio n yen increase in work in process, and a 537 million yen increase in raw materials and supplies, which were partially offset by a 1,048 million yen decrease in cash and deposits.
Total liabilities increased 2,683 million yen from the end of the previous fiscal year to 18,315 million yen. This was primarily attributable to a 395 million yen increase in electronically recorded obligations-operating, a 278 million yen increase in deferred tax liabilities, a 272 million yen increase in notes and accounts payable-trade, and a 255 million yen increase in long-term accounts payable-other, which were partially offset by a 404 million yen decrease in income taxes payable.
Total net assets increased 2,798 million yen from the end of the previous fiscal year to 72,272 million yen. This was primarily attributable to a 3,001 million yen increase in retained earnings, a 1,705 million yen increase in foreign currency translation adjustment, which were partially offset by a 1, 990 million yen increase in treasury shares.
As a result, the equity ratio decreased by 1.8 percentage points from 81.6% at the end of the previous fiscal year to 79.8%.
2) Cash flows
Cash and cash equivalents (hereinafter "net cash") at the end of the period under review decreased 1,236 million yen from the end of the previous fiscal year to 24,912 million yen.
A summary of cash flows for the period under review is as follows:
(Cash flows from operating activities)
Net cash provided by operating activities was 3,567 million yen (compared with net cash provided of 3,545 million yen in the same period of the previous fiscal year). Positive factors included profit before income taxes of 6,562 million yen, depreciation of 926 million yen, and a 351 million yen increase in trade payables, while negative factors included income taxes paid of 2,246 million yen and a 1,909 million yen increase in inventories.
(Cash flows from investing activities)
Net cash used in investing activities was 1,682 million yen (compared with net cash used of 2,297 million yen in the same period of the previous fiscal year). Positive factors included proceeds from withdrawal of time deposits of 1,418 million yen, while negative factors included purchase of non-current assets of 1,786 million yen and payments into time deposits of 1,349 million yen.
(Cash flows from financing activities)
Net cash used in financing activities was 3,666 million yen (compared with 1,667 million yen used in the same period of the previous fiscal year). Negative factors included purchase of treasury shares of 2,000 million yen and dividends paid of 1,591 million yen.
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