Faithnetwork Co.,ltdTSE: 3489

〔Delayed〕Non-consolidated Financial Results for the Three Months Ended June 30, 2020

Aug 21, 2020 at 7:34 AM UTC · Issued by Faithnetwork Co.,ltd

Non-consolidated Financial Results

for the Three Months Ended June 30, 2020

[Japanese GAAP]

August 14, 2020

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: August 14, 2020

Scheduled date of commencing dividend payments: -

Availability of supplementary material on quarterly financial results: No

Schedule of quarterly financial results briefing session: Not scheduled

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

1. Financial Results for the Three Months Ended June 30, 2020 (April 1, 2020 to June 30, 2020)

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

Three months ended		Million yen	%		Million yen	%			Million yen	%	Million yen	%
June 30, 2020		1,913		11.2				(40)	-				(82)		-		(58)	-
June 30, 2019		1,721		38.7				(92)	-				(151)		-		(106)	-


		Basic earnings		Diluted earnings
		per share				per share

Three months ended			Yen							Yen
June 30, 2020		(11.69)						-
June 30, 2019		(21.33)						-

(2) Financial Position
			Total assets			Net assets				Equity ratio

					Million yen				Million yen				%
As of June 30, 2020				14,303				4,022			28.1
As of March 31, 2020				13,295				4,229			31.8
(Reference) Equity: As of June 30, 2020: ¥4,022 million
As of March 31, 2020: ¥4,229 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, 2020						-			0.00				-			30.00		30.00
Fiscal year ending March 31, 2021						-
Fiscal year ending March 31, 2021									0.00				-			30.00		30.00
(Forecast)


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

3. Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)

				(% 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	16,000	(6.5)	1,050	1.4	850	5.7	560	2.2	112.45

(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: No
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 June 30, 2020: 4,980,000 shares

As of March 31, 2020: 4,980,000 shares

Total number of treasury shares at the end of the period: As of June 30, 2020: 77 shares
As of March 31, 2020: 77 shares
Average number of shares during the period:

Three months ended June 30, 2020: 4,979,923 shares

Three months ended June 30, 2019: 4,980,000 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, 2020	As of June 30, 2020

Assets
Current assets

Cash and deposits		2,379,610		1,336,328
Accounts receivable from completed construction	252,257	508,992
contracts

Real estate for sale		549,452		2,563,389
Real estate for sale in process	7,661,249	7,328,876
Advance payments - trade		97,966		20,033
Other	73,390	220,903
Total current assets		11,013,927		11,978,524
Non-current assets

Property, plant and equipment
Buildings	901,333	941,989
Structures		2,406		2,406
Machinery and equipment	101,514	101,514
Vehicles		18,455		18,455
Tools, furniture and fixtures	41,121	42,663
Land		1,215,389		1,236,128
Accumulated depreciation	(191,583)	(204,236)
Total property, plant and equipment		2,088,638		2,138,922
Intangible assets	19,213	19,920
Investments and other assets		174,147		165,654
Total non-current assets	2,281,999	2,324,497
Total assets		13,295,926		14,303,022

				(Thousand yen)

		As of March 31, 2020	As of June 30, 2020

Liabilities
Current liabilities
Accounts payable for construction contracts		1,259,057		1,166,087
Short-term borrowings	339,650	1,469,000
Current portion of long-term borrowings		2,502,411		3,515,390
Current portion of bonds payable	73,400	73,400
Accounts payable - other		94,999		49,874
Income taxes payable	136,465	2,376
Advances received		377		493
Advances received on construction contracts in	169,565	173,477
progress

Deposits received		215,310		251,511
Provision for bonuses	102,214	47,651
Provision for costs after sales		9,809		10,050
Provision for loss on construction contracts	6,916	6,916
Other		22,489		55,359
Total current liabilities	4,932,665	6,821,590
Non-current liabilities
Bonds payable	96,500	96,500
Long-term borrowings		4,013,670		3,307,162
Other	23,963	55,370
Total non-current liabilities		4,134,134		3,459,032
Total liabilities	9,066,800	10,280,622
Net assets
Shareholders' equity
Share capital		681,120		681,120
Capital surplus
Legal capital surplus		631,120		631,120
Other capital surplus	220	220
Total capital surpluses		631,340		631,340
Retained earnings
Legal retained earnings		10,000		10,000
Other retained earnings
Reserve for special depreciation		8,700		7,429
Retained earnings brought forward	2,900,860	2,694,501
Total retained earnings		2,919,560		2,711,931
Treasury shares	(101)	(101)
Total shareholders' equity		4,231,919		4,024,289
Valuation and translation adjustments
Deferred gains or losses on hedges		(2,793)		(1,890)
Total valuation and translation adjustments	(2,793)	(1,890)
Total net assets		4,229,126		4,022,399
Total liabilities and net assets		13,295,926	14,303,022

(2) Quarterly Statements of Income

Three Months Ended June 30

				(Thousand yen)

		For the three months	For the three months
		ended June 30, 2019	ended June 30, 2020

Net sales		1,721,174		1,913,481
Cost of sales	1,461,012	1,652,696
Gross profit		260,161		260,784
Selling, general and administrative expenses	353,064	301,046
Operating loss		(92,903)		(40,261)
Non-operating income
Vending machine income		68		42
Income from insurance	1,569	966
Other		497		127
Total non-operating income	2,134	1,137
Non-operating expenses
Interest expenses	35,122	31,605
Commission expenses		20,116		6,373
Other	5,770	5,495
Total non-operating expenses		61,009		43,474
Ordinary loss	(151,778)	(82,598)
Loss before income taxes		(151,778)		(82,598)
Income taxes - current	572	572
Income taxes - deferred		(46,122)		(24,938)
Total income taxes	(45,549)	(24,366)
Loss		(106,228)		(58,232)