Faithnetwork Co.,ltdTSE: 3489

〔Delayed〕Non-consolidated Financial Results for the Nine Months Ended December 31, 2021

Feb 24, 2022 at 6:41 AM UTC · Issued by Faithnetwork Co.,ltd

Non-consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

February 14, 2022

Company name: FaithNetwork Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 3489

URL: https://faithnetwork.co.jp/en/

Representative: Jiro Hachiya, President and Representative Director

Contact: Yosuke Ishimaru, Director and Executive Officer

Phone: +81-3-6432-9937

Scheduled date of filing quarterly securities report: February 14, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Not scheduled

(Amounts of less than one million yen are rounded down.)

1. Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 to December 31, 2021)

(1) Operating Results							(% indicates changes from the previous corresponding period.)
			Net sales			Operating profit			Ordinary profit				Profit

	Nine months ended	Million yen	%		Million yen	%		Million yen	%	Million yen	%
	December 31, 2021	7,291		(30.2)				104	(33.2)			(74)		-		(61)	-
	December 31, 2020	10,439		18.8				156	(17.4)			20		103.2		5	86.2

		Basic earnings		Diluted earnings
			per share					per share

	Nine months ended				Yen						Yen
	December 31, 2021	(12.31)						-
	December 31, 2020				1.11						-

(2) Financial Position
			Total assets				Net assets			Equity ratio

					Million yen				Million yen				%
	As of December 31, 2021		19,235				4,402			22.9
	As of March 31, 2021			12,632				4,650			36.8
	(Reference) Equity: As of December 31, 2021: ¥4,402 million
	As of March 31, 2021: ¥4,650 million
2. Dividends
											Annual dividends

					1st				2nd			3rd		Year-end	Total
					quarter-end		quarter-end		quarter-end

							Yen			Yen			Yen		Yen			Yen
	Fiscal year ended March 31, 2021			-			0.00			-			32.00		32.00
	Fiscal year ending March 31, 2022			-			0.00			-

	Fiscal year ending March 31, 2022													37.00		37.00
	(Forecast)

(Note) Revision to the forecast for dividends announced most recently: Yes

For revision to the forecast for cash dividends, please refer to "Notice Regarding Revision to Full-year Financial Results Forecast and Revision to Cash Dividends Forecast (Increase)" released today (February 14, 2022) (available in Japanese only).

Breakdown of the year-end cash dividends for the fiscal year ending March 31, 2022: An ordinary dividend of ¥35.00 and a commemorative dividend of ¥2.00

3. Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

				(% indicates changes from the previous corresponding	period.)
	Net sales		Operating profit	Ordinary profit	Profit	Basic earnings
		per share


	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	17,000	(9.5)	1,500	40.3	1,250	39.6	850	45.3	171.50

(Note) Revision to the financial results forecast announced most recently: Yes

For revision to the financial results forecast, please refer to "Notice Regarding Revision to Full-year Financial Results Forecast and Revision to Cash Dividends Forecast (Increase)" released today (February 14, 2022) (available in Japanese only).

* Notes:

Accounting policies adopted specially for the preparation of quarterly financial statements: No
Changes in accounting policies, changes in accounting estimates and retrospective restatement
1. Changes in accounting policies due to the revision of accounting standards: Yes
2. Changes in accounting policies other than 1) above: No
3. Changes in accounting estimates: No
4. Retrospective restatement: No
Total number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

As of December 31, 2021: 4,980,000 shares

As of March 31, 2021: 4,980,000 shares

Total number of treasury shares at the end of the period: As of December 31, 2021: 26,668 shares
As of March 31, 2021: 77 shares
Average number of shares during the period:

Nine months ended December 31, 2021: 4,956,397 shares

Nine months ended December 31, 2020: 4,979,923 shares

These quarterly financial results are outside the scope of quarterly review by certified public accountants or an audit corporation.
Explanation of the appropriate use of financial results forecast and other notes

The earnings forecasts and other forward-looking statements herein are based on information available to the Company at the time of preparation and certain assumptions deemed to be reasonable, and actual results may differ significantly from the forecasts due to various factors.

(1) Quarterly Balance Sheets

				(Thousand yen)

		As of March 31, 2021	As of December 31, 2021

Assets
Current assets

Cash and deposits		3,992,550		3,950,877
Accounts receivable from completed construction	831,565	1,261,618
contracts

Real estate for sale		1,664,978		443,815
Real estate for sale in process	2,974,062	10,557,437
Advance payments to suppliers		158,417		81,706
Other	31,167	311,066
Total current assets		9,652,742		16,606,521
Non-current assets

Property, plant and equipment
Buildings	1,057,544	1,063,129
Structures		2,406		3,216
Machinery and equipment	101,514	101,514
Vehicles		18,298		18,298
Tools, furniture and fixtures	42,938	44,439
Land		1,289,983		1,289,983
Construction in progress		－	7,415
Accumulated depreciation		(251,427)		(291,673)
Total property, plant and equipment	2,261,260	2,236,324
Intangible assets		22,746		18,921
Investments and other assets	696,079	373,399
Total non-current assets		2,980,086		2,628,645
Total assets		12,632,828	19,235,166

				(Thousand yen)

		As of March 31, 2021	As of December 31, 2021

Liabilities
Current liabilities
Accounts payable for construction contracts		371,207		949,544
Short-term borrowings	469,890	1,047,995
Current portion of long-term borrowings		960,281		1,733,411
Current portion of bonds payable	46,500	40,000
Accounts payable - other		170,392		36,795
Income taxes payable	236,791	14,974
Advances received		540,907		540,961
Advances received on construction contracts in	200,795	504,107
progress

Deposits received		233,871		244,228
Provision for bonuses	90,763	52,390
Provision for costs after sales		13,048		7,891
Provision for loss on construction contracts	57,566	36,712
Provision for shareholder benefit program		2,700		15,084
Other	40,504	60,807
Total current liabilities		3,435,219		5,284,906
Non-current liabilities
Bonds payable		50,000		120,000
Long-term borrowings	4,421,243	9,372,809
Other		75,380		54,833
Total non-current liabilities	4,546,624	9,547,643
Total liabilities		7,981,843		14,832,549
Net assets
Shareholders' equity
Share capital	681,120	681,120
Capital surplus
Legal capital surplus	631,120	631,120
Other capital surplus		220		282
Total capital surplus	631,340	631,402
Retained earnings
Legal retained earnings	10,000	10,000
Other retained earnings
Reserve for special depreciation	5,083	1,270
Retained earnings brought forward		3,340,154		3,123,590
Total retained earnings	3,355,238	3,134,861
Treasury shares		(101)		(35,662)
Total shareholders' equity	4,667,597	4,411,721
Valuation and translation adjustments
Deferred gains or losses on hedges	(16,612)	(9,103)
Total valuation and translation adjustments		(16,612)		(9,103)
Total net assets	4,650,984	4,402,617
Total liabilities and net assets		12,632,828		19,235,166

(2) Quarterly Statements of Income

Nine Months Ended December 31

				(Thousand yen)

		For the nine months	For the nine months
		ended December 31, 2020	ended December 31, 2021

Net sales		10,439,571		7,291,776
Cost of sales	9,241,102	6,088,981
Gross profit		1,198,469		1,202,795
Selling, general and administrative expenses	1,041,951	1,098,263
Operating profit		156,517		104,531
Non-operating income
Subsidy income		410		－
Income from insurance	3,176	12,280
Other		374		1,418
Total non-operating income	3,961	13,698
Non-operating expenses
Interest expenses	94,852	125,729
Commission expenses		29,379		24,800
Registration license taxes and other	13,089	30,435
Other		2,280		11,799
Total non-operating expenses	139,601	192,765
Ordinary profit (loss)		20,876		(74,534)
Extraordinary income
Gain on sale of non-current assets		82		－
Total extraordinary income	82		－
Profit (loss) before income taxes		20,958		(74,534)
Income taxes - current	1,717	1,717
Income taxes - deferred		13,733		(15,232)
Total income taxes	15,450	(13,515)
Profit (loss)		5,507		(61,019)

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