Consolidated Financial Results for the Six Months Ended March 31, 2025 (under Japanese GAAP)（337KB）

May 7, 2025

Name of the Listed Company: COLOPL, Inc. Listed Stock Exchanges: Tokyo Stock Exchange

Security code: 3668 URL: https://colopl.co.jp/en/ Representative: Takashi Miyamoto, President and CEO

Contact: Yoshiaki Harai, Director and CFO Telephone +81-3-6721-7770 Scheduled date to file semi-annual securities report: May 13, 2025

Scheduled date to commence dividend payments: －

Preparation of supplementary material on semi-annual financial results: Yes

Holding of semi-annual financial results briefing: Yes (for institutional investors and analysts)

1. Consolidated Financial Results for the Six Months Ended March 31, 2025 (from October 1, 2024 to March 31, 2025)

   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended	million yen	%	million yen	%	million yen	%	million yen	%
      March 31, 2025	14,043	10.6	1,413	301.1	2,025	151.4	177	0.5
      March 31, 2024	12,702	(20.1)	352	(81.9)	805	(49.9)	177	(81.0)

      (Note) Comprehensive income Six months ended March 31, 2025: 77 million yen (up 242.5%)

      Six months ended March 31, 2024: 22 million yen (down 96.4%)

      	Basic earnings per share	Diluted earnings per share
      Six months ended	yen	yen
      March 31, 2025	1.39	-
      March 31, 2024	1.38	-

      (Note) Diluted earnings per share are not shown in the above table, as there were no residual shares.

   2. Consolidated financial position

   	Total assets	Net assets	Equity ratio
   As of	million yen	million yen	%
   March 31, 2025	75,919	68,940	90.8
   September 30, 2024	79,805	71,387	89.4

   Reference: Shareholder's equity As of March 31, 2025: 68,933 million yen

   As of September 30, 2024: 71,380 million yen

2. Cash dividends

   	Dividend per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Annual
   Fiscal year ended September 30, 2024 Fiscal year ending September 30, 2025	yen	yen	yen	yen	yen
   	- -	0.00 0.00	-	20.00	20.00
   Fiscal year ending September 30, 2025 (forecast)			-	-	-

   (Note) Revisions to the forecast of cash dividends most recently announced: None Dividends for the fiscal year ending September 30, 2025, are not yet decided.

3. Consolidated Financial Forecast for the Fiscal Year Ending September 30, 2025 (from October 1, 2024 to September 30, 2025) Due to the fact that the business environment surrounding our group is subject to rapid changes in the short term, it is difficult to calculate appropriate and reasonable figures for the outlook of our group's business performance, and therefore we do not disclose our business forecast.

   Notes.

   1. Significant changes in the scope of consolidation during the period: None

   2. Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes

      (Note) For details, please refer to "2. Semi-annual Consolidated Financial Statements and Major Notes (4) Notes to Semi-annual Consolidated Financial Statements (Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements)" on page 8 of the attached materials.

   3. Changes in accounting policies, changes in accounting estimates, and retrospective restatements

      1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

      2. Changes in accounting policies due to other than (ⅰ): None

      3. Changes in accounting estimates: None

      4. Retrospective restatement: None

         (Note) For details, please refer to "2. Semi-annual Consolidated Financial Statements and Major Notes (4) Notes to Semi-annual Consolidated Financial Statements (Notes on change in accounting policy)" on page 8 of the

         attached materials.

   4. Number of issued shares (common shares)

      1. Total number of shares issued at the end of the period (including treasury shares)

         As of March 31, 2025

         130,230,769 shares

         As of September 30, 2024

         130,144,640 shares

      2. Number of treasury shares at the end of the period

         As of March 31, 2025

         1,778,904 shares

         As of September 30, 2024

         1,778,834 shares

      3. Average number of shares during the period

Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm Proper use of earnings forecasts, and other special matters

Descriptions and statements concerning estimates and forecasts in this material are judgments and assumptions based on information currently available to the Company. Due to the uncertainties inherent in these judgments and assumptions, as well as changes in business management and internal or external conditions, actual results may differ substantially from predictions, and the Company does not guarantee the certainty of any details regarding these future predictions.

Accompanying Materials - Contents

1. Consolidated Results for the Six Months Ended March 31, 2025 2

   1. Analysis of consolidated business results 2

   2. Analysis of consolidated financial position 2

   3. Qualitative information on consolidated business forecasts 3

2. Semi-annual Consolidated Financial Statements and Major Notes 4

   1. Semi-annual Consolidated Balance Sheets 4

   2. Semi-annual Consolidated Statements of Income and Semi-annual Consolidated Statements of Comprehensive Income 5

      Semi-annual Consolidated Statements of Income 5

      Semi-annual Consolidated Statements of Comprehensive Income 6

   3. Semi-annual Consolidated Statements of Cash Flows 7

   4. Notes to Semi-annual Consolidated Financial Statements 8

(Notes on change in accounting policy) 8

(Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements) 8

(Notes on segment information) 9

(Notes on significant changes in the amount of shareholders' equity) 10

(Notes on going concern assumption) 10

1. Consolidated Results for the Six Months Ended March 31, 2025

   1. Analysis of consolidated business results

      With the Group's mission, "'Entertainment in Real Life': Making everyday more enjoyable and wonderful through

      entertainment", the Group has been working to enrich people's everyday lives through entertainment. In the six months ended March 31, 2025, the Entertainment Business has been keeping in mind the need to enhance engagement with users in conjunction with existing titles, while also focusing on developing new titles. The Investment and Development Business has focused primarily on investment and divestment in IT-related and entertainment companies in Japan and overseas.

      As a result, consolidated results for the six months ended March 31, 2025 were Net sales of 14,043 million yen (up 10.6% from the same period of the previous fiscal year), Operating profit of 1,413 million yen (up 301.1% from the same period of the

      previous fiscal year), Ordinary profit of 2,025 million yen (up 151.4% from the same period of the previous fiscal year), and Profit attributable to owners of parent of 177 million yen (up 0.5% from the same period of the previous fiscal year).

      Operating results by segment are as follows.

      1. Entertainment Business

         The Entertainment Business is responsible primarily for the development and operation of games for smartphones.

         In games for smartphones, "DRAGON QUEST WALK (planning and production: SQUARE ENIX CO., LTD., Development:

         COLOPL, Inc.)" performed well and continued to contributed to the Group's consolidated financial results. Although there

         were sales contributions from "FESBA+" released in August 2024 and "ISEKAI∞ISEKAI" released in January 2025, some existing titles saw a decline in sales due to the prolonged distribution period, resulting in a decrease in sales. In addition,

         advertising expenses increased due to the release of new titles.

         As a result, consolidated Net sales and Operating loss for the six months ended March 31, 2025 stood at 12,008 million yen (down 2.7% from the same period of the previous fiscal year) and 167 million yen (Operating profit of 479 million yen in the same period of the previous fiscal year ), respectively.

      2. Investment and Development Business

         The Group conducts the Investment and Development Business with a focus on investments in IT-related and entertainment companies in particular.

         The main source of profit for the six months ended March 31, 2025 was the sale of shares in Timee, Inc. In addition, impairment losses were recorded on a portion of operational investment securities held.

         As a result, consolidated Net sales and Operating profit for the six months ended March 31, 2025 stood at 2,034 million yen (up 467.8% from the same period of the previous fiscal year) and 1,579 million yen (Operating loss of 128 million yen in the same period of the previous fiscal year), respectively.

   2. Analysis of consolidated financial position

      1. Status of Assets, Liabilities and Net assets (Assets)

         Current assets as of March 31, 2025 were 65,485 million yen (down 1,781 million yen from September 30, 2024). This was mainly due to a decrease in Accounts receivable - trade, and contract assets and Operational investment securities.

         Non-current assets were 10,433 million yen (down 2,104 million yen from September 30, 2024). This was mainly due to a decrease in Investments and other assets.

         As a result, total assets were 75,919 million yen (down 3,885 million yen from September 30, 2024).

         (Liabilities)

         Current liabilities as of March 31, 2025 were 5,294 million yen (down 1,273 million yen from September 30, 2024). This was mainly due to a decrease in Accounts payable - other.

         In addition, Non-current liabilities were 1,684 million yen (down 164 million yen from September 30, 2024). This was mainly due to a decrease in Long-term borrowings.

         As a result, total liabilities were 6,979 million yen (down 1,438 million yen from September 30, 2024).

         (Net assets)

         Net assets as of March 31, 2025 were 68,940 million yen (down 2,447 million yen from September 30, 2024). This was mainly due to a decrease in Retained earnings resulting from the payment of dividends.

      2. Status of cash flows

      The balance of cash and cash equivalents at the end of the six months ended March 31, 2025 decreased 2,188 million yen from the end of the previous fiscal year, to 47,265 million yen.

      The status of each of the cash flow segments and contributing factors for changes during the six months ended March 31, 2025 are as follows.

      (Cash flows from operating activities)

      Net cash increased by 2,021 million yen in operating activities during the six months ended March 31, 2025 (increase of 1,544 million yen during the same period of the previous fiscal year). The main cash inflow was 1,449 million yen in Loss (gain) on valuation of investment securities and 660 million yen in Decrease (increase) in trade receivables.

      (Cash flows from investing activities)

      Net cash decreased by 1,450 million yen in investing activities during the six months ended March 31, 2025 (decrease of 2,646 million yen during the same period of the previous fiscal year). The main cash outflow was 1,039 million yen in Payments into time deposits.

      (Cash flows from financing activities)

      Net cash decreased by 2,896 million yen in financing activities during the six months ended March 31, 2025 (decrease of 562 million yen during the same period of the previous fiscal year). The main cash outflow was 2,564 million yen in Dividends paid.

   3. Qualitative information on consolidated business forecasts

Given significant short-term changes in the business environment surrounding the Group, the Company has difficulties in calculating the Group's earnings forecasts properly and reasonably, and therefore refrains from disclosing financial forecasts.