Faithnetwork Co.,ltdTSE: 3489

〔Delayed〕Non-consolidated Financial Results for the Three Months Ended June 30, 2021

Aug 20, 2021 at 7:03 AM UTC · Issued by Faithnetwork Co.,ltd

Non-consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

August 13, 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: August 13, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary material on quarterly financial results: Yes

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, 2021 (April 1, 2021 to June 30, 2021)

(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, 2021		1,414	(26.1)					(133)	-				(174)	-			(121)	-
	June 30, 2020		1,913	11.2					(40)	-				(82)	-			(58)	-


			Basic earnings		Diluted earnings
				per share				per share

	Three months ended						Yen							Yen
	June 30, 2021				(24.45)								-
	June 30, 2020				(11.69)								-

(2) Financial Position
				Total assets					Net assets				Equity ratio

							Million yen					Million yen			%
	As of June 30, 2021			15,402					4,318			28.0
	As of March 31, 2021			12,632					4,650			36.8
(Reference) Equity: As of June 30, 2021: ¥4,318 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							-
	Fiscal year ending March 31, 2022											0.00			-			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 June 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 June 30, 2021: 40,077 shares
As of March 31, 2021: 77 shares
Average number of shares during the period:

Three months ended June 30, 2021: 4,965,543 shares

Three months ended June 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 June 30, 2021

Assets
Current assets

Cash and deposits		3,992,550		3,638,603
Accounts receivable from completed construction	831,565	514,263
contracts

Real estate for sale		1,664,978		1,335,305
Real estate for sale in process	2,974,062	6,645,040
Advance payments to suppliers		158,417		196,597
Other	31,167	62,520
Total current assets		9,652,742		12,392,331
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	44,227
Land		1,289,983		1,289,983
Accumulated depreciation	(251,427)	(264,765)
Total property, plant and equipment		2,261,260		2,255,605
Intangible assets	22,746	21,173
Investments and other assets		696,079		733,295
Total non-current assets	2,980,086	3,010,074
Total assets		12,632,828		15,402,406

				(Thousand yen)

		As of March 31, 2021	As of June 30, 2021

Liabilities
Current liabilities
Accounts payable for construction contracts		371,207		281,639
Short-term borrowings	469,890	500,000
Current portion of long-term borrowings		960,281		1,301,291
Current portion of bonds payable	46,500	46,500
Accounts payable - other		170,392		72,606
Income taxes payable	236,791	2,294
Advances received		540,907		543,908
Advances received on construction contracts in	200,795	197,085
progress

Deposits received		233,871		267,293
Provision for bonuses	90,763	47,753
Provision for costs after sales		13,048		12,026
Provision for loss on construction contracts	57,566	36,712
Provision for shareholder benefit program		2,700		2,700
Other	40,504	49,077
Total current liabilities		3,435,219		3,360,889
Non-current liabilities
Bonds payable		50,000		50,000
Long-term borrowings	4,421,243	7,602,788
Other		75,380		70,539
Total non-current liabilities	4,546,624	7,723,328
Total liabilities		7,981,843		11,084,217
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 surplus	631,340	631,340
Retained earnings
Legal retained earnings	10,000	10,000
Other retained earnings
Reserve for special depreciation	5,083	3,812
Retained earnings brought forward		3,340,154		3,060,669
Total retained earnings	3,355,238	3,074,481
Treasury shares		(101)		(53,889)
Total shareholders' equity	4,667,597	4,333,052
Valuation and translation adjustments
Deferred gains or losses on hedges	(16,612)	(14,863)
Total valuation and translation adjustments		(16,612)		(14,863)
Total net assets	4,650,984	4,318,188
Total liabilities and net assets		12,632,828		15,402,406

(2) Quarterly Statements of Income

Three Months Ended June 30

				(Thousand yen)

		For the three months	For the three months
		ended June 30, 2020	ended June 30, 2021

Net sales		1,913,481		1,414,075
Cost of sales	1,652,696	1,211,555
Gross profit		260,784		202,520
Selling, general and administrative expenses		301,046	335,595
Operating loss		(40,261)		(133,075)
Non-operating income

Income from insurance		966		4,701
Other	170	67
Total non-operating income		1,137		4,768
Non-operating expenses

Interest expenses		31,605		29,051
Commission expenses	6,373	3,943
Registration license taxes and other		4,980		12,217
Other	514	755
Total non-operating expenses		43,474		45,968
Ordinary loss		(82,598)	(174,275)
Loss before income taxes		(82,598)		(174,275)
Income taxes - current		572	572
Income taxes - deferred		(24,938)		(53,448)
Total income taxes		(24,366)	(52,876)
Loss		(58,232)		(121,398)

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