Faithnetwork Co.,ltdTSE: 3489

〔Delayed〕Non-consolidated Financial Results for the Six Months Ended September 30, 2021

Nov 22, 2021 at 6:53 AM UTC · Issued by Faithnetwork Co.,ltd

Non-consolidated Financial Results

for the Six Months Ended September 30, 2021

[Japanese GAAP]

November 11, 2021

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: November 15, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled (for institutional investors and securities analysts)

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

1. Financial Results for the Six Months Ended September 30, 2021 (April 1, 2021 to September 30, 2021)

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

	Six months ended	Million yen	%	Million yen	%		Million yen		%	Million yen	%
	September 30, 2021	3,248		(66.4)			(269)	-		(388)			-			(270)	-
	September 30, 2020	9,672		64.7			330	538.3		251			-			172	-


		Basic earnings		Diluted earnings
		per share			per share

	Six months ended		Yen						Yen
	September 30, 2021	(54.56)						-
	September 30, 2020	34.55						-

(2) Financial Position
			Total assets					Net assets			Equity ratio

					Million yen					Million yen					%
	As of September 30, 2021		17,777					4,194				23.6
	As of March 31, 2021			12,632					4,650				36.8
(Reference) Equity: As of September 30, 2021: ¥4,194 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											-				32.00		32.00
	(Forecast)


	(Note) Revision to the forecast for dividends announced	most recently:	No

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	20,000	6.5	1,280	19.7	1,050	17.3	710	21.4	142.57

(Note) Revision to the financial results forecast announced most recently: No

* 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 September 30, 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 September 30, 2021: 26,668 shares
As of March 31, 2021: 77 shares
Average number of shares during the period:

Six months ended September 30, 2021: 4,957,939 shares

Six months ended September 30, 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.

2. Quarterly Financial Statements and Primary Notes

(1) Quarterly Balance Sheets

				(Thousand yen)

		As of March 31, 2021	As of September 30, 2021

Assets
Current assets

Cash and deposits		3,992,550		3,307,305
Accounts receivable from completed construction	831,565	840,193
contracts

Real estate for sale		1,664,978		443,815
Real estate for sale in process	2,974,062	10,001,016
Advance payments to suppliers		158,417		138,276
Other	31,167	103,307
Total current assets		9,652,742		14,833,915
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	-	6,092
Accumulated depreciation		(251,427)		(278,220)
Total property, plant and equipment	2,261,260	2,248,454
Intangible assets		22,746		19,605
Investments and other assets	696,079	675,722
Total non-current assets		2,980,086		2,943,782
Total assets		12,632,828	17,777,698

				(Thousand yen)

		As of March 31, 2021	As of September 30, 2021

Liabilities
Current liabilities
Accounts payable for construction contracts		371,207		575,551
Short-term borrowings	469,890	649,995
Current portion of long-term borrowings		960,281		1,988,111
Current portion of bonds payable	46,500	20,000
Accounts payable - other		178,741		57,914
Income taxes payable	236,791	5,546
Advances received		540,907		541,021
Advances received on construction contracts in	200,795	215,340
progress

Deposits received		233,871		215,801
Provision for bonuses	90,763	95,479
Provision for costs after sales		13,048		6,719
Provision for loss on construction contracts	57,566	36,712
Provision for shareholder benefit program		2,700		35,498
Other	32,155	27,821
Total current liabilities		3,435,219		4,471,512
Non-current liabilities
Bonds payable		50,000		40,000
Long-term borrowings	4,421,243	9,016,834
Other		75,380		54,828
Total non-current liabilities	4,546,624	9,111,662
Total liabilities		7,981,843		13,583,175
Net assets
Shareholders' equity
Share capital	681,120	681,120
Capital surplus
Legal capital surplus	631,120	631,120
Other capital surplus		220		183
Total capital surplus	631,340	631,303
Retained earnings
Legal retained earnings	10,000	10,000
Other retained earnings
Reserve for special depreciation	5,083	2,541
Retained earnings brought forward		3,340,154		2,912,811
Total retained earnings	3,355,238	2,925,353
Treasury shares		(101)		(35,858)
Total shareholders' equity	4,667,597	4,201,918
Valuation and translation adjustments
Deferred gains or losses on hedges	(16,612)	(7,396)
Total valuation and translation adjustments		(16,612)		(7,396)
Total net assets	4,650,984	4,194,522
Total liabilities and net assets		12,632,828		17,777,698

(2) Quarterly Statements of Income

Six Months Ended September 30

				(Thousand yen)

		For the six months	For the six months
		ended September 30, 2020	ended September 30, 2021

Net sales		9,672,148		3,248,643
Cost of sales	8,614,927	2,781,347
Gross profit		1,057,220		467,296
Selling, general and administrative expenses	726,412	736,382
Operating profit (loss)		330,808		(269,086)
Non-operating income
Subsidy income		10		-
Income from insurance	2,622	5,635
Other		280		1,347
Total non-operating income	2,913	6,983
Non-operating expenses
Interest expenses	66,952	74,305
Commission expenses		6,792		21,242
Registration license taxes and other	6,843	23,601
Other		1,562		7,532
Total non-operating expenses	82,149	126,681
Ordinary profit (loss)		251,571		(388,784)
Extraordinary income
Gain on sale of non-current assets		82		-
Total extraordinary income	82		-
Profit (loss) before income taxes		251,653		(388,784)
Income taxes - current	80,434	1,145
Income taxes - deferred		(834)		(119,402)
Total income taxes	79,600	(118,257)
Profit (loss)		172,052		(270,527)

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