For the Year Ended March 31, 2025
Management's Discussion and Analysis 1
Consolidated Balance Sheet 5
Consolidated Statement of Income 7
Consolidated Statement of Comprehensive Income 7
Consolidated Statement of Changes in Net Assets 8
Consolidated Statement of Cash Flows 11
Notes to Consolidated Financial Statements 12
Independent Auditor's Report 35
Management's Discussion and Analysis
Analysis of Financial Condition, Business Performance and Cash Flows by Management
An overview of the Group's financial condition, business performance and cash flows ("business performance") for the fiscal year ended March 2025, and the commentary and details of analysis and an evaluation of the Group's business performance from management's perspective are described below.
Matters concerning the future contained herein are determined as of the end of the fiscal year under review.
Business Performance for the Fiscal Year Ended March 2025
In the fiscal year ended March 31, 2025, the domestic economy improved gradually, although some areas remained sluggish. Regarding the outlook, the gradual recovery will continue supported by improvements in the employment and income environment and the effects of various policies. However, it is necessary to closely monitor not only inflation and interest rate trends but also U.S. trade policies, the increasingly tense international situation, and their impact on the domestic economy.
New supply of condominium units in the fiscal year ended March 2025 stood at 22,239 units (down by 17.0% year on year) in the Tokyo metropolitan area and 15,711 units (down by 0.5% year on year) in the Kinki area. By reducing the frequency of supply and the number of units per supply, the number of units supplied in both the Tokyo metropolitan area and Kinki area was falling below the previous fiscal year for three consecutive years. The upward trend of the unit price and the average market price continues both in the Tokyo metropolitan area and in the Kinki area. In the Tokyo metropolitan area, the unit price increased to 1,230 thousand yen/m2 (up by 6.9% year on year) and the average market price increased to 81.35 million yen (up by 7.5% year on year). They have reached a record high for the fourth consecutive fiscal year. In
the Kinki area, the unit price increased to 894 thousand yen/m2 (up by 7.2% year on year) and the average market price increased to 50.65 million yen (up by 2.6% year on year). The unit price reached a record high for the fourth consecutive fiscal year. Regarding sales status, there has been a growing tendency toward a more deliberate and prolonged sales approach, the initial-month sales rate was 66.8% (down by 3.1pt year on year) and the number of for-sale units being marketed as of the end of March 2025 increased to 6,116 (up by 8.0% year on year) in the Tokyo metropolitan area. In the Kinki area, the initial-month sales rate was 74.6% (up by 1.1pt year on year) and the number of for-sale units being marketed as of the end of March 2025 decreased to 2,597 (down by 5.8% year on year). The sales progressed steadily.
Under such circumstances, for the fiscal year ended under review, which represented the last year of the "Haseko Next Stage Plan" (Plan NS), the Company's medium-term business plan, although the gross profit margin of completed construction contracts declined due to higher costs of materials and labor, each company of Service-Related Business and Real estate-Related Business steadily accumulated profits. As a result, the consolidated ordinary profit exceeded the initial forecast of 80.0 billion yen, reaching 83.4 billion yen.
For the fiscal year ended March 2025, net sales were up by 7.6% year on year at 1,177.4 billion yen because of an increase in the sales of completed construction contracts and an increase in a transaction volume of real estate. The operating profit was down by 1.2% year on year at 84.7 billion yen due to an increase of Selling, general and administrative expenses, the ordinary profit was up by 0.1% year on year at 83.4 billion yen and net profit attributable to owners of parents was down by 38.5% year on year at 34.5
billion yen due to the extraordinary loss on impairment losses, loss on valuation of investment securities and provision for loss on litigation in the Overseas-related business. The operating profit ratio was 7.2% (down by 0.6 percentage points year on year) and ordinary profit ratio came to 7.1% (down by 0.5 percentage points year on year).
Performance by segment is described below.
Billions of yen
Construction-Related Business
Real Estate-Related Business
Service-Related Business
Overseas-Related Business
Net sales
796.7
(+20.2)
174.7
(+46.5)
276.4
(+8.8)
3.5
(+2.5)
Segment profit (loss)
53.5
(-4.4)
24.0
(+4.8)
18.1
(-1.1)
(5.7)
(-0.8)
Figures in parenthesis represent the amount of increase or decrease from the previous fiscal year.
Construction-Related Business
For construction works, projects owners have had high regard for the Company's ability in gathering land information as well as product planning, its attitude regarding construction quality and maintaining construction schedules, efficient production system, and such. Meanwhile, the gross profit margin of completed construction contracts lowered due to worsened construction profitability upon receiving orders and higher costs of materials and labor, among other factors.
In terms of orders for new construction of for-sale condominiums, the Company won orders for 87 projects in total throughout Japan consisting of 65 in the Tokyo metropolitan area including 21 large projects of at least 200 units and 22 in the Kinki and Tokai areas including 8 large projects of at least 200 units. In addition, aside from construction of for-sale condominiums, the Company received orders for 5 projects for rental housing, etc.
As for construction completion, the Company completed construction of 111 projects including 15 projects for rental condominium, etc.
The segment posted sales of 796.7 billion yen, a year-on-year increase of 2.6%, because of an increase in the sales of completed construction contracts by the Company. Operating profit was 53.5 billion yen, a year-on-year decrease of 7.6%, because of the decrease in the gross profit margin of completed construction contracts.
Real Estate-Related Business
The segment posted sales of 174.7 billion yen, a year-on-year increase of 36.3%, and operating profit of
24.0 billion yen, a year-on-year increase of 24.9% because transaction volume of other real estate increased despite of deliveries of new for-sale condominiums decreased.
Service-Related Business
In the large-scale repair work and interior remodeling, the sales decreased due to the short of back log on the beginning of the year, the profit remained flat due to the improved gross profit margin with effort of cost saving.
In the management of rental condominiums and corporate housing management agency services, the number of units Haseko operates reached a combined total of 194,222 units, an increase of 1.6% from the end of the previous fiscal year, due to a steady increase in new consignment of these services and continuation of ongoing consignment.
In consignment sales of newly built condominiums, the number of delivered units increased.
In real estate brokerage operations, the number of brokered units and the number of sold units in the renovation business both increased year on year.
In for-sale condominium management operations, the number of units the Haseko Group is consigned to manage reached 443,331 units (up by 1.5% year on year) with new consignment growing steady.
In the senior services business, the number of paid facilities for the elderly and housing for elderly in operation totaled 2,717 units (up by 6.6% year on year) due to increase in move-ins to paid facilities for the
elderly and housing for elderly.
The segment posted sales of 276.4 billion yen, a year-on-year increase of 3.3%, and operating profit of 18.1 billion yen, a year-on-year decrease 5.8%.
Overseas-Related Business
We have been progressing with the development of new for-sale detached housing business and operating commercial facility in Oahu, Hawaii.
The segment posted sales of 3.5 billion yen (the sales were 1.0 billion yen in the previous fiscal year), and operating loss of 5.7 billion yen (in contrast to operating loss of 4.9 billion yen in the previous fiscal year).
Financial Position
Total assets at the end of the consolidated fiscal year ended March 2025 amounted to 1,365.2 billion yen, increased by 14.0 billion yen from the end of the previous fiscal year. This is attributable to an increase in real estate for sale and costs on real estate business by investment to land for orders and for-sale condominium business.
Total liabilities were 833.2 billion yen, a decrease of 6.8 billion yen from the end of the previous fiscal year.
This is attributable to borrowing of debt and a decrease of notes payable, accounts payable for construction contracts and other.
Consolidated net assets were 532.0 billion yen, an increase of 20.8 billion yen from the end of the previous fiscal year, stemming from such factors as increase in retained earnings due to the recording of profit attributable to owners of paren.
As a result, the equity ratio was 39.0% compared with 37.8% at the end of the previous fiscal year.
Assets by segment are described below.
Billions of yen
Construction-Related Business
Real Estate-Related Business
Service-Related Business
Overseas-Related Business
Segment assets
390.4 (+7.1)
521.2 (+36.7)
310.5 (+36.7) 121.8 (+3.8)
Figures in parenthesis represent the amount of increase or decrease from the previous fiscal year.
Construction-Related Business
Assets of the Construction-Related Business amounted to 390.4 billion yen as of the end of the fiscal year under review, up by 7.1 billion yen from the end of the previous fiscal year, due to such factors as increases in real estate for sale associated with the progress of sales of lands for the purpose of receiving construction orders.
Real Estate-Related Business
Assets of the Real Estate-Related Business amounted to 521.2 billion yen as of the end of the fiscal year under review, up by 36.7 billion yen from the end of the previous fiscal year, as real estate for sale and cost on real estate business increased in accordance with steady progress in the purchase of for-sale condominiums, among other factors.
Service-Related Business
Assets of the Service-Related Business totaled 310.5 billion yen as of the end of the fiscal year under
review, up by 36.7 billion yen from the end of the previous fiscal year, as cash and deposits increased in accordance with increasing deposits, among other factors.
Overseas-Related Business
Assets of the Overseas-Related Business increased by 3.8 billion yen from the end of the previous fiscal year to 121.8 billion yen as of the end of the fiscal year, as investment securities increased because of investment, among other factors.
Cash Flows
Net cash provided by operating activities in the fiscal year ended March 2025 was 3.9 billion yen, fluctuated by 111.1 billion yen from the net cash used in operating activities totaling 115.0 billion yen in the previous fiscal year. Major factors included a decrease of 31.3 billion yen in cash as a result of a decrease in notes and accounts payables and deposits received (in contrast to an increase of 49.8 billion yen in cash for the previous year).
Net cash used in investing activities in the fiscal year was 32.5 billion yen, fluctuated by 7.4 billion yen from the net cash used in investing activities totaling 39.8 billion yen in the previous fiscal year. Major factors included an increase of 4.3 billion yen in cash as a result of sale of investment securities (in contrast to an increase of 0.5 billion yen in cash for the previous fiscal year).
Net cash used in financing activities in the fiscal year was 20.5 billion yen, fluctuated by 19.8 billion yen from the net cash used in financing activities totaling 0.8 billion yen in the previous fiscal year. Major factors included an increase of 5.0 billion yen in cash as a result of newly borrowing of debt and issuance of corporate bonds as well as repayment (in contrast to an increase of 23.5 billion yen in cash for the previous year).
As a result of the above, the balance of cash and cash equivalents at the end of the consolidated fiscal year totaled 235.8 billion yen, a decrease of 47.7 billion yen from 283.5 billion yen at the end of the previous consolidated fiscal year.
The financial resources and liquidity of funds of the Haseko Group are as follows.
The Haseko Group's demand for funds includes expenditures mainly for such purposes as operating funds for construction projects, acquisition of real estate on a short-term basis for the purpose of construction orders, purchase of for-sale real estate, and investments in rental properties and the overseas business. For such demand for funds, the Company intends to allocate profits from business activities and funds procured from borrowings and issuance of corporate bonds.
In the fiscal year under review, the Company repaid long-term borrowings totaling 10.0 billion yen upon maturity, while procuring 15.0 billion yen in a commitment line. Accordingly, the balance of debt including corporate bonds increased by 5.0 billion yen to 420.0 billion yen.
In addition, the Company has concluded a commitment line agreement whose amount is 100 billion yen with financial institutions in order to conduct stable and flexible procurement of working capital, ensuring sufficient liquidity in conjunction with cash and deposits.
CONSOLIDATED BALANCE SHEETAs of March 31, 2024 and 2025
ASSETS
Millions of yen
Thousands of
U.S. dollars (Note 4)
2024 | 2025 | 2025 | ||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and deposits (Notes 5 and 17) | ¥ | 284,129 | ¥ 235,976 | $1,578,223 | ||
Notes receivable, accounts receivable from completed | ||||||
construction contracts and other (Notes 3, 5 and10) | 148,526 | 148,607 | 993,892 | |||
Securities (Notes 5 and 6) | 2,255 | 3,305 | 22,103 | |||
Costs on construction contracts in progress | 12,733 | 13,578 | 90,811 | |||
Inventories (Note 7) | 552,811 | 631,624 | 4,224,344 | |||
Other current assets | 21,367 | 20,232 | 135,314 | |||
Allowance for doubtful accounts | (121) | (121) | (809) | |||
Total current assets | 1,021,700 | 1,053,200 | 7,043,876 | |||
Property, Plant and Equipment (Notes 8, 11)
Intangible Assets (Note 8)
175,625
11,036
143,883
12,404
962,297
82,961
Investments and Other Assets:
Investment securities (Notes 5 and 6) | 91,444 | 102,774 | 687,358 | |
Long-term loans receivable (Note 5) | 3,551 | 4,483 | 29,983 | |
Retirement benefit asset (Note 19) | 29,362 | 28,471 | 190,418 | |
Deferred tax assets (Note 20) | 5,545 | 6,794 | 45,442 | |
Other assets | 13,925 | 14,134 | 94,530 | |
Allowance for doubtful accounts (Note 5) | (958) | (941) | (6,292) | |
Total investments and other assets | 142,870 | 155,716 | 1,041,439 | |
Total assets | ¥1,351,231 | ¥1,365,203 | $9,130,573 |
As of March 31, 2024 and 2025
LIABILITIES AND NET ASSETS
Thousands of | ||||||
U.S. dollars | ||||||
Millions | of yen | (Note 4) | ||||
2024 | 2025 | 2025 | ||||
LIABILITIES | ||||||
Current Liabilities: | ||||||
Notes payable, accounts payable for construction contracts and other (Note 5) | ¥ | 100,694 | ¥ | 105,413 | $ 705,008 | |
Electronically recorded obligations - operating (Note 5) | 73,193 | 42,537 | 284,490 | |||
Short-term borrowings (Notes 5 and 9) | - | 15,000 | 100,321 | |||
Current portion of long-term borrowings (Notes 5 and 9) | 10,000 | 20,000 | 133,761 | |||
Current portion of bonds payable (Notes 5 and 9) | - | 40,000 | 267,523 | |||
Income taxes payable (Notes 5 and 20) | 15,853 | 14,820 | 99,116 | |||
Advances received on construction contracts in progress (Note 12) | 47,167 | 44,843 | 299,911 | |||
Deposits received - real estate business (Note 12) | 41,765 | 38,771 | 259,301 | |||
Deposits | 62,841 | 77,499 | 518,318 | |||
Provision for warranties for completed construction | 4,861 | 5,169 | 34,573 | |||
Provision for loss on construction contracts | 687 | 521 | 3,482 | |||
Provision for bonuses | 6,019 | 6,877 | 45,996 | |||
Provision for bonuses for directors (and other officers) | 208 | 151 | 1,007 | |||
Other current liabilities (Note 12) | 31,095 | 31,224 | 208,826 | |||
Total current liabilities | 394,383 | 442,824 | 2,961,635 | |||
Non-current Liabilities:: | ||||||
Bonds payable (Notes 5 and 9) | 120,000 | 80,000 | 535,045 | |||
Long-term borrowings (Notes 5, 9 and 18) | 285,000 | 265,000 | 1,772,338 | |||
Retirement benefit liability (Note 19) | 1,777 | 1,946 | 13,017 | |||
Provision for loss on litigation | 2,990 | 6,419 | 42,929 | |||
Provision for share awards (Note 3) | 4,427 | 4,824 | 32,266 | |||
Provision for share awards for directors (and other officers) (Note 3) | 481 | 459 | 3,070 | |||
Deferred tax liabilities (Note 20) | 11 | 11 | 73 | |||
Other non-current liabilities | 30,916 | 31,687 | 211,926 | |||
Total non-current liabilities | 445,601 | 390,347 | 2,610,665 | |||
Total liabilities | 839,985 | 833,170 | 5,572,300 | |||
Commitments and Contingent Liabilities (Notes 9 and 13)
NET ASSETS (Notes 16 and 21)
Shareholders' Equity:
Share capital | 57,500 | 57,500 | 384,564 | ||
Capital surplus | 7,373 | 7,373 | 49,313 | ||
Retained earnings | 461,707 | 472,561 | 3,160,519 | ||
Treasury shares, at cost - 28,009,610 shares in 2024 | (37,233) | ||||
- 28,041,754 shares in 2025 | (37,398) | (250,123) | |||
Total shareholders' equity | 489,347 | 500,036 | 3,344,274 | ||
Accumulated Other Comprehensive Income: | |||||
Valuation difference on available-for-sale securities | 10,452 | 10,215 | 68,318 | ||
Foreign currency translation adjustment | 11,101 | 22,938 | 153,409 | ||
Remeasurements of defined benefit plans | 345 | (1,155) | (7,727) | ||
Total accumulated other comprehensive income (loss) | 21,899 | 31,997 | 214,000 | ||
Non-controlling Interests | |||||
Total net assets | 511,246 | 532,033 | 3,558,274 | ||
Total liabilities and net assets | ¥1,351,231 | ¥1,365,203 | $9,130,573 | ||
For the years ended March 31, 2024 and 2025
Millions of yen
Thousands of
U.S. dollars (Note 4)
2024 | 2025 | 2025 | |||
Net Sales (Note 15) | ¥1,094,421 | ¥1,177,353 | $7,874,220 | ||
Cost of Sales (Note 15) | 933,811 | 1,010,828 | 6,760,487 | ||
Gross profit | 160,610 | 166,525 | 1,113,733 | ||
Selling, General and Administrative Expenses (Note 15) | 74,862 | 81,825 | 547,248 | ||
Operating profit | 85,747 | 84,701 | 566,485 | ||
Non-operating Income (Expenses): Interest and dividend income | 657 | 3,151 | 21,073 | ||
Foreign exchange gains | 459 | - | - | ||
Interest expenses | (2,450) | (3,549) | (23,734) | ||
Share of loss of entities accounted for using equity method | (456) | (779) | (5,210) | ||
Incidental expense for loan | (1,799) | (1,231) | (8,232) | ||
Other, net | 1,177 | 1,115 | 7,460 | ||
(2,413) | (1,292) | (8,644) | |||
Ordinary profit | 83,334 | 83,408 | 557,842 | ||
Extraordinary Income (Losses): Gain (Loss) on disposal or sales of non-current assets (Note 8) | (25) | (52) | (348) | ||
Gain on sale of investment securities | - | 191 | 1,279 | ||
National subsidies | 54 | 40 | 268 | ||
Impairment losses (Note 8) | (471) | (16,861) | (112,765) | ||
Loss on valuation of investment securities | - | (2,990) | (19,998) | ||
Provision for loss on litigation | - | (3,006) | (20,103) | ||
Other, net | (50) | (40) | (266) | ||
(492) | (22,717) | (151,932) | |||
Profit (Loss) before Income Taxes: | 82,842 | 60,692 | 405,910 | ||
Income Taxes (Note 20): Current | 28,347 | 26,888 | 179,830 | ||
Deferred | (1,544) | (647) | (4,326) | ||
26,803 | 26,241 | 175,504 | |||
Profit (Loss) | 56,039 | 34,450 | 230,406 | ||
Profit (Loss) Attributable to Non-controlling Interests | 1 | - | - | ||
Profit (Loss) Attributable to Owners of Parent (Note 21) | ¥ 56,038 | ¥ 34,450 | $ 230,406 | ||
For the years ended March 31, 2024 and 2025
Millions of yen | Thousands of U.S. dollars (Note 4) | |||
2024 | 2025 | 2025 | ||
Profit (Loss) | ¥56,039 | ¥34,450 | $230,406 | |
Other Comprehensive Income: Valuation difference on available-for-sale securities | 9,741 | (237) | (1,587) | |
Foreign currency translation adjustment | 5,861 | 11,836 | 79,161 | |
Remeasurements of defined benefit plans, net of tax | 7,335 | (1,501) | (10,036) | |
Total other comprehensive income (Note 25) | 22,936 | 10,098 | 67,538 | |
Comprehensive Income | 78,975 | 44,549 | 297,944 | |
Total Comprehensive Income Attributable to: Comprehensive income attributable to owners of parent | 78,974 | 44,549 | 297,944 | |
Comprehensive income attributable to non-controlling interests | 1 | - | - |
For the years ended March 31, 2024 and 2025
For the year ended March 31, 2024
Share capital
Capital surplus
Shareholders' equity
Retained earnings
Treasury shares
Total shareholders' equity
(Millions of yen) | |||||||||
Balance at April 1, 2023 | ¥57,500 | ¥7,373 | ¥427,878 | ¥(37,630) | ¥455,121 | ||||
Profit (Loss) attributable to owners of parent for | |||||||||
the year ended March 31, 2024 | - - | 56,038 | - | 56,038 | |||||
Cash dividend | - - | (22,209) | - | (22,209) | |||||
Purchase of treasury shares | - - | - | (5) | (5) | |||||
Disposal of treasury shares Net changes in items other than shareholders' | - 0 | - | 402 | 402 | |||||
equity | - | - | - | - | - | ||||
Total changes during the year | - | 0 | 33,829 | 397 | 34,226 | ||||
Balance at March 31, 2024 | ¥57,500 | ¥7,373 | ¥461,707 | ¥(37,233) | ¥489,347 | ||||
Accumulated other comprehensive income
Valuation
Total accumulated
difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
other comprehensive income (loss)
Non-controlling interests
Total net assets
Balance at April 1, 2023
Profit (Loss) attributable to owners of parent for the year ended March 31, 2024
Cash dividend
Purchase of treasury shares Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2024
¥ | 711 | ¥ 5,241 | ¥(6,989) | ¥ (1,037) | ¥ 4 | ¥454,088 | ||||
- | - | - | - | - | 56,038 | |||||
- | - | - | - | - | (22,209) | |||||
- | - | - | - | - | (5) | |||||
- | - | - | - | - | 402 | |||||
9,741 | 5,861 | 7,335 | 22,936 | (4) | 22,932 | |||||
9,741 | 5,861 | 7,335 | 22,936 | (4) | 57,158 | |||||
¥10,452 | ¥11,101 | ¥ 345 | ¥21,899 | ¥ - | ¥511,246 | |||||
(Millions of yen)
For the year ended March 31, 2025
Share capital
Capital surplus
Shareholders' equity
Retained earnings
Treasury shares
Total shareholders' equity
(Millions of yen) | |||||||||
Balance at April 1, 2024 | ¥57,500 | ¥7,373 | ¥461,707 | ¥(37,233) | ¥489,347 | ||||
Profit (Loss) attributable to owners of parent for | |||||||||
the year ended March 31, 2025 | - - | 34,450 | - | 34,450 | |||||
Cash dividend | - - | (23,597) | - | (23,597) | |||||
Purchase of treasury shares | - - | - | (545) | (545) | |||||
Disposal of treasury shares Net changes in items other than shareholders' | - 0 | - | 379 | 379 | |||||
equity | - | - | - | - | - | ||||
Total changes during the year | - | 0 | 10,854 | (165) | 10,689 | ||||
Balance at March 31, 2025 | ¥57,500 | ¥7,373 | ¥472,561 | ¥(37,398) | ¥500,036 | ||||
Accumulated other comprehensive income
Valuation
Total accumulated
difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
other comprehensive income (loss)
Non-controlling interests
Total net assets
Balance at April 1, 2024
Profit (Loss) attributable to owners of parent for the year ended March 31, 2025
Cash dividend
Purchase of treasury shares Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2025
¥10,452 | ¥11,101 | ¥ | 345 | ¥21,899 | ¥ - | ¥511,246 | ||||
- | - | - | - | - | 34,450 | |||||
- | - | - | - | - | (23,597) | |||||
- | - | - | - | - | (545) | |||||
- | - | - | - | - | 379 | |||||
(237) | 11,836 | (1,501) | 10,098 | - | 10,098 | |||||
(237) | 11,836 | (1,501) | 10,098 | - | 20,787 | |||||
¥10,215 | ¥22,938 | ¥(1,155) | ¥31,997 | ¥ - | ¥532,033 | |||||
(Millions of yen)
Share capital
Capital surplus
Shareholders' equity
Retained earnings
Treasury shares
Total shareholders' equity
(Thousands of U.S. dollars) (Note 4)
Balance at April 1, 2024 | $384,564 | $49,313 | $3,087,929 | $(249,018) | $3,272,788 | ||||
Profit (Loss) attributable to owners of parent for | |||||||||
the year ended March 31, 2025 | - - | 230,406 | - | 230,406 | |||||
Cash dividend | - - | (157,816) | - | (157,816) | |||||
Purchase of treasury shares | - - | - | (3,642) | (3,642) | |||||
Disposal of treasury shares Net changes in items other than shareholders' | - 0 | - | 2,537 | 2,537 | |||||
equity | - | - | - | - | - | ||||
Total changes during the year | - | 0 | 72,590 | (1,105) | 71,486 | ||||
Balance at March 31, 2025 | $384,564 | $49,313 | $3,160,519 | $(250,123) | $3,344,274 | ||||
Valuation difference on available-for-sale securities | Foreign currency translation adjustment | Remeasurements of defined benefit plans | Total accumulated other comprehensive income (loss) | Non-controlling interests | Total net assets | ||
(Thousands of U.S. | dollars) (Note 4) | ||||||
$69,905 | $74,247 | $2,309 | $146,462 | $ - | $3,419,250 | ||
- | - | - | - | - | 230,406 | ||
- | - | - | - | - | (157,816) | ||
- | - | - | - | - | (3,642) | ||
- | - | - | - | - | 2,538 | ||
(1,587) | 79,161 | (10,036) | 67,538 | - | 67,538 | ||
(1,587) | 79,161 | (10,036) | 67,538 | - | 139,024 | ||
$68,318 | $153,409 | $(7,727) | $214,000 | $ - | $3,558,274 |
Accumulated other comprehensive income
Balance at April 1, 2024
Profit (Loss) attributable to owners of parent for the year ended March 31, 2025
Cash dividend
Purchase of treasury shares Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2025
CONSOLIDATED STATEMENT OF CASH FLOWSFor the years ended March 31, 2024 and 2025
Profit (Loss) before income taxes | ¥ 82,842 | ¥ 60,692 | $ 405,910 | ||
Depreciation | 7,446 | 7,999 | 53,498 | ||
Impairment losses | 471 | 16,861 | 112,765 | ||
Amortization of goodwill | 203 | 203 | 1,359 | ||
Increase (Decrease) in allowance for doubtful accounts | 210 | (18) | (117) | ||
Increase (Decrease) in provision for loss on litigation | (30) | 3,076 | 20,570 | ||
Interest and dividend income | (657) | (3,151) | (21,073) | ||
Interest expenses | 2,450 | 3,549 | 23,734 | ||
Share of loss (profit) of entities accounted for using equity method | 456 | 779 | 5,210 | ||
Loss (Gain) on sale of investment securities | - | (191) | (1,279) | ||
Loss (Gain) on valuation of investment securities | - | 2,990 | 19,998 | ||
Loss (Gain) on disposal of non-current assets | 25 | 52 | 348 | ||
Loss (Gain) on valuation of inventories | 624 | 2,800 | 18,727 | ||
Decrease (Increase) in trade receivables | 20,558 | (212) | (1,418) | ||
Decrease (Increase) in costs on construction contracts in progress | (672) | (839) | (5,610) | ||
Decrease (Increase) in inventories | (41,395) | (49,704) | (332,423) | ||
Increase (Decrease) in trade payables | 16,717 | (25,990) | (173,820) | ||
Increase (Decrease) in advances received on construction contracts in progress | 18,536 | (2,324) | (15,546) | ||
Increase (Decrease) in deposit received-real estate | 14,519 | (2,999) | (20,060) | ||
Increase (Decrease) in deposits received | 17,288 | 14,658 | 98,033 | ||
Other | 9,171 | 2,013 | 13,464 | ||
Subtotal | 148,766 | 30,243 | 202,269 | ||
Interest and dividends received | 658 | 3,147 | 21,048 | ||
Interest paid | (2,379) | (3,511) | (23,485) | ||
Income taxes paid | (32,022) | (25,963) | (173,643) | ||
Net Cash Provided by Operating Activities | 115,023 | 3,916 | 26,188 | ||
Cash Flows from Investing Activities: | |||||
Payments into time deposits | (31) | (35) | (234) | ||
Proceeds from withdrawal of time deposits | - | 31 | 205 | ||
Purchase of securities | (705) | (787) | (5,263) | ||
Proceeds from redemption of securities | 705 | 787 | 5,263 | ||
Purchase of property, plant and equipment and intangible assets | (24,158) | (20,661) | (138,180) | ||
Proceeds from sale of property, plant and equipment and intangible assets | 154 | 28 | 190 | ||
Purchase of investment securities | (15,599) | (14,470) | (96,778) | ||
Proceeds from sales and withdrawal of investment securities | 482 | 4,331 | 28,967 | ||
Loan advances | (20,908) | (29,954) | (200,334) | ||
Proceeds from collection of loans receivable | 20,266 | 28,537 | 190,860 | ||
Payments of leasehold and guarantee deposits | (928) | (998) | (6,677) | ||
Proceeds from refund of leasehold and guarantee deposits | 721 | 804 | 5,375 | ||
Other | 156 | (85) | (572) | ||
Net Cash Used in Investing Activities | (39,846) | (32,472) | (217,178) | ||
Cash Flows from Financing Activities: | |||||
Net increase (decrease) in short-term borrowings | (31,500) | 15,000 | 100,321 | ||
Proceeds from long-term borrowings | 65,000 | - | - | ||
Repayment of long-term borrowings | (10,000) | (10,000) | (66,881) | ||
Proceeds from issuance of bonds | 20,000 | - | - | ||
Redemption of bonds | (20,000) | - | - | ||
Purchase of treasury shares | (5) | (545) | (3,642) | ||
Incidental expenses for loan | (1,819) | (1,236) | (8,269) | ||
Dividends paid | (22,209) | (23,597) | (157,816) | ||
Other | (220) | (168) | (1,123) | ||
Net Cash Used in Financing Activities | (753) | (20,545) | (137,409) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 736 | 1,407 | 9,409 | ||
Net Increase (Decrease) in Cash and Cash Equivalents | 75,161 | (47,695) | (318,990) | ||
Cash and Cash Equivalents at Beginning of Period | 208,333 | 283,493 | 1,896,023 | ||
Cash and Cash Equivalents at End of Period (Note 17) | ¥283,493 | ¥235,798 | $1,577,034 | ||
Cash Flows from Operating Activities:
2024
Millions of yen
Thousands of
U.S. dollars (Note 4)
2025 2025
NOTES TO CONSOLIDATED FINANCIAL STATEMENTSHaseko Corporation and Consolidated Subsidiaries For the years ended March 31, 2024 and 2025
Basis of Presentation
Haseko Corporation (the "Company") and its consolidated domestic subsidiaries maintain their books of account in conformity with the financial accounting standards of Japan, and Haseko America, Inc. and its subsidiaries ("Haseko America") maintain their books of account in conformity with the financial accounting standards of the United States of America.
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in Japan, which are different in certain respects as to application and disclosure requirements of International Financial Reporting Standards, and are compiled from the consolidated financial statements prepared by the Company as required by the Financial Instruments and Exchange Act of Japan.
Certain amounts in the prior year's financial statements have been reclassified to conform to the current year's presentation.
Certain reclassifications or summaries of accounts have been made to present the consolidated financial statements in a form which is more familiar to readers outside Japan.
Summary of Significant Accounting Policies
Scope of consolidation
The accompanying consolidated financial statements include the accounts of the Company and any significant companies controlled directly or indirectly by the Company. Companies over which the Company exercises significant influence in terms of their operating and financial policies have been accounted for by the equity method. As of March 31, 2025, the numbers of consolidated subsidiaries and affiliates accounted for by the equity method were 67 and 10 (63 and 7 in 2024), respectively. Investments in subsidiaries and affiliates which are not consolidated or accounted for by the equity method are carried at cost or less.
The fiscal year of Haseko America ends on December 31, and they are included in the consolidation as of that date. The necessary adjustments for significant transactions that occur during the period from January 1 to March 31 are made in the preparation of the consolidated financial statements.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, bank deposits that may be withdrawn on demand, negotiable deposits with a maturity of three months or less at the time of purchase and time deposits that can be easily withdrawn and bear no risk of value fluctuation.
Securities and investment securities
Securities other than investments in non-consolidated subsidiaries and affiliates are classified into two different categories, held-to-maturity and other securities. The Company holds no trading securities.
Held-to-maturity securities are stated at amortized cost. Marketable securities classified as other securities are stated at fair value. Valuation difference on available-for-sale securities are reported as a separate component of accumulated other comprehensive income at a net-of-tax amount. Non-marketable securities classified as other securities are stated at cost. Cost of securities sold is determined by the moving-average method.
Inventories
Costs on construction contracts in progress, real estate for sale, costs on real estate business and real estate for development are stated
at cost determined by the individual cost method. Raw materials are
stated at cost determined by the average method. Supplies are stated at cost determined by the individual cost method. The book value
of inventories on the balance sheets is written down based on the fall in profitability. Real estate for lease included in inventories is depreciated using the same method as that applied to property, plant and equipment.
Some consolidated subsidiaries have incorporated the interest paid on funds used for the real-estate development business into the costs of real estate for sale.
Property, plant and equipment
Depreciation of property, plant and equipment is principally computed by declining-balance method while the straight-line method is applied to buildings (excluding structures attached to buildings) acquired on or after April 1, 1998 and facilities attached to buildings and structures acquired on or after April 1, 2016. Certain consolidated subsidiaries depreciate property, plant and equipment by the straight-line method.
Intangible assets
Intangible assets are amortized by the straight-line method over the period estimated to be effective at the time of occurrence, except for Leasehold interests in land, which are not amortized.
Computer software for internal use is amortized by the straight-line method over the estimated useful period of five years.
Leases
Leased assets under finance leases that are deemed to have transferred ownership are depreciated using the same method as that applied to property, plant and equipment.
Leased assets under finance leases that are not deemed to have transferred its ownership are depreciated over the lease period as useful period using the straight-line method with no residual value.
Allowance for doubtful accounts
Allowance for doubtful accounts is provided for the estimated future loss on bad debt. It is estimated using the Company's experience of the loss ratio and a specific estimate of known doubtful accounts.
Provision for warranties for completed construction Provision for warranties for completed construction is provided for the estimated repair expense owed by the Company in the event of defects and liability for non-conformity found in the completed constructions after handover.
Provision for loss on construction contracts
In order to prepare for future losses from construction orders, estimated amounts of losses have been recorded for construction projects prior to delivery as of the end of fiscal year for those that are expected to generate losses and losses can be evaluated rationally.
Provision for bonuses
Provision for bonuses are provided for the estimated amount of bonuses to be paid to employees for the services rendered by the balance sheet date.
Provision for bonuses for directors (and other officers) Provision for bonuses for directors (and other officers) are provided for the estimated amount of bonuses to be paid to directors for the services rendered by the balance sheet date.
Provision for loss on litigation
Provision for loss on litigation is provided for the possible estimated loss arising from litigation.
Provision for share awards
In order to prepare for the provision of the Company's shares to its employees, estimated amounts of benefits earned in the fiscal year ended March 31, 2025 have been recorded.
Provision for share awards for directors (and other officers)
In order to prepare for the provision of the Company's shares to its directors and officers, estimated amounts of benefits earned in the fiscal year ended March 31, 2025 have been recorded.
Retirement benefits
The retirement benefit obligation for employees is attributed to each period by the benefit formula method.
Past service costs are amortized by the straight-line method over the average remaining service period of the employees (5-13 years) at the time of occurrence.
Actuarial differences are amortized from the next year in which the difference arises by the straight-line method over the average remaining service period of the employees (5-18 years).
Some consolidated subsidiaries calculate retirement benefit liability and retirement benefit expense by adopting the simplified method, which assumes their retirement benefit obligation to be equal to the benefits payable as if all eligible employees voluntarily terminated their employment at fiscal year end.
Accounting standards for significant revenues and expenses
The details of the main performance obligations for core businesses relating to revenues generated by contracts with customers of the Company or its consolidated subsidiaries and the timing of fulfilling these performance obligations were as follows.
Construction-Related Business
Primarily targeting the market for new housing supply, this business provides comprehensive construction services for condominiums, etc., from planning and design to construction. The main revenues recognized for this business are shown below.
(Construction Work)
Since the applicable performance obligations are fulfilled over a certain period of time and the value of the created assets controlled by customers increases as the construction work progresses, the revenue is recognized in accordance with the degree of progress
of the construction work. The degree of progress is measured by an input method based on costs incurred. The transaction price is
determined based on the construction contract, and compensation is received in stages at the times stipulated in the contract.
However, for the construction contracts in which the time from the transaction start date until the time when all performance obligations are expected to be completely fulfilled is extremely short, the revenue is recognized at the time when the performance obligations are completely fulfilled.
(Design and Supervision)
The performance obligations in the design services are to deliver the products to the customer, and the revenue is recognized at the time the performance obligations are fulfilled. The transaction price is determined by the service contract, and the compensation is received at the time stipulated in the contract.
The performance obligations in the supervision services are to supply supervisory services relating to construction work to the customer over the term of the contract, and the revenues are recognized over the contract term. The transaction price is determined based on the service contract, and the compensation is received at the time stipulated in the contract.
(Real Estate Sales, etc.)
The applicable performance obligations are fulfilled at the time the real estate sales transaction is completed, and the revenue are recognized at that time. The transaction price is determined based on the contract with the customer, and the compensation is received based on said contract.
Real Estate-Related Business
Mainly focusing on newly built for-sale condominiums, this business engages in construction and sales of real estate, etc. The main revenues recognized for this business are shown below.
(Construction and Sales of Real Estate, etc.)
The applicable performance obligations are fulfilled at the time the real estate sales transaction is completed, and the revenue is recognized at that time. The transaction price is determined based on the contract with the customer, and the compensation is received based on said contract.
Service-Related Business
Focusing mainly on services for existing housing, this business includes large-scale repair work and interior remodeling, condominium building management and leasing management, and consigned sales and real estate brokerage of for-sale condominiums. The main revenues were recognized as follows.
(Large-Scale Repair Work and Interior Remodeling, etc.)
Since the applicable performance obligations are fulfilled over a certain period of time and the value of the created assets controlled by customers increases as the repair work, etc. progresses, the revenue is recognized in accordance with the degree of progress
of the repair work, etc. The degree of progress is measured by an input method based on costs incurred. The transaction price is determined based on the service contract, and the compensation is received in stages at the times stipulated in the contract.
However, for the service contracts in which the time from the transaction start date until the time when all performance obligations are expected to be completely fulfilled is extremely short, the revenues is recognized at the time when the performance obligations are completely fulfilled.
(Condominium Building Management and Condominium Leasing Management, etc.)
The applicable performance obligations are fulfilled at a point in time or over a certain period of time, depending on the condominium management-related obligation details, and the revenue is recognized accordingly. The transaction price is determined based on the contract with the customer, and the compensation is received based on said contract.
(For-Sale Condominium Consigned Sales)
The applicable performance obligations are fulfilled at the point in time when the for-sale housing sold on consignment is transferred to the end user, and the revenue is recognized at that time. The transaction price is determined based on the contract with the customer, and the compensation is received based on said contract.
(Real Estate Brokerage, Renovations, etc.)
The applicable performance obligations are fulfilled at the time when
the real estate sales transaction is completed, and the revenue is recognized at that time. The transaction price is determined based on the contract with the customer, and the compensation is received based on said contract.
Overseas-Related Business
This business involves overseas real estate development and sales,
(24) Significant accounting estimates
Revenue recognition for contracts where performance obligations are satisfied over time
(1) Amount recorded in the consolidated financial statements for the fiscal years ended March 31, 2024 and 2025
Thousands of
and the main revenues were recognized as follows.
Millions of yen
U.S. dollars
(Real Estate Sales, etc.)
The applicable performance obligations are fulfilled at the time when
Completed construction contracts based on the method of recognizing revenue as performance obligations are satisfied
2024
2025
2025
the real estate sales transaction is completed, and the revenue is recognized at that time. The transaction price is determined based
over a certain period of time
¥488,213
¥549,509 $3,675,153
on the contract with the customer, and the compensation is received based on said contract.
Foreign currency translation
Receivables and payables denominated in foreign currencies are translated into Japanese yen at the foreign exchange rates prevailing at the respective balance sheet dates and a net exchange loss/gain is included in profit. Furthermore, the assets/liabilities and earnings/
expenses of overseas consolidated subsidiaries are translated at the foreign exchange rates prevailing at the respective balance sheet dates and the resulting translation adjustments are reported as "Foreign currency translation adjustment" in net assets.
Hedge accounting
The Company and its consolidated subsidiaries use interest rate swap contracts to hedge interest rate fluctuation risk on long-term borrowings with variable interest rates. Certain interest rate swap contracts which meet certain criteria as qualified hedges are not measured at fair value. The differences between paid and received amounts under such swap agreements are recognized in interest expenses as incurred.
The assessment of hedge effectiveness is omitted when the notional amounts, interest rates and contract periods of the hedging instruments and the hedged items are the same.
Amortization of goodwill
Goodwill is amortized on a straight-line basis over the period economic benefits are expected. However, immaterial amounts of goodwill are charged to income as incurred.
Income taxes
Deferred tax assets and liabilities have been recognized in the consolidated financial statements with respect to the differences between financial reporting and the tax bases of the assets and liabilities, and were measured using the enacted tax rates and laws which will be in effect when the differences are expected to reverse. The Company has applied Group Tax Sharing System.
Deferred assets
Issuance costs for straight bonds are charged to income.
(2) Information on significant accounting estimates related to the identified items
Calculation method
For performance obligations that are to be satisfied over a certain period of time and for which a reasonable estimate of the degree of completion can be made, the Company estimates the degree of completion related to the satisfaction of the performance obligation
and recognizes revenue based on that degree of completion, unless the period is very short. Progress is measured by the input method based on cost incurred, and the amount of completed work and cost of completed work for the fiscal years ended March 31, 2024 and 2025 are recognized accordingly.
Significant assumptions
The total costs on construction contracts that satisfy performance obligation over a certain period of time, which are the basis for revenue recognition in accordance with the percentage-of-completion method, are estimated by using the working budget for each construction contract. Each construction is unique in nature because its basic design and work contents are specifically instructed by each customer and also it requires certain assumptions and judgments made by
the in-charge department with expert knowledge and experience in constructions, and thus entails uncertainty. In addition, during a long period of construction, there may be a sharp increase in the costs of construction materials and labor or difficulties in their procurement as well as a decline in production capacity due to an insufficient number of subcontractors and other cooperative companies. Accordingly, the Company continuously revisits the total costs on construction works.
Effects on the consolidated financial statements for the next fiscal year
If there is a change in the progress of construction due to the incurrence of additional costs, change in contract amount, etc., it may pose a significant impact on the revenue from construction contracts in the consolidated financial statements of the next fiscal year.
Valuation of real estate inventories
Amount recorded in the consolidated financial statements for the fiscal years ended March 31, 2024 and 2025
Thousands of
Millions of yen U.S. dollars
The Company and some of its consolidated subsidiaries capitalize advertising expenses and other selling expenses for sales of real
Loss on valuation of real estate inventories
¥ 624
¥ 2,800
$ 18,727
estate incurred before delivery in real estate inventories and expense
Real estate for sale
266,332
312,779
2,091,887
them upon delivery.
Costs on real estate business
253,423
281,933
1,885,588
Real estate for development
33,056
36,912
246,869
Accounting treatment for advertising expenses
2024
2025
2025
Information on significant accounting estimates related to the identified items
Calculation method
If the net realizable value of real estate inventories as of March 31, 2024 and 2025, are lower than the acquisition costs, the net selling price is the value recorded in the consolidated balance sheet and the difference is recorded as loss on valuation of real estate inventories.
Significant assumptions
The net realizable value is calculated on the basis of estimated sales price and estimated selling expenses, etc. In addition, net realizable value is estimated by taking into account the transaction cases, estimated sales price and condominium demand forecast in neighboring areas.
Effects on the consolidated financial statements for the next fiscal year
If it becomes necessary to revise the net realizable value due to changes in future economic conditions, etc., such may have a significant impact on the consolidated financial statements for the next fiscal year.
Impairment losses on non-current assets
(1) Amount recorded in the consolidated financial statements for the fiscal years ended March 31, 2024 and 2025
Thousands of
There was no impact from these changes in accounting policies on the consolidated financial statements.
In addition, regarding the revision related to the treatment in the financial statements when gain/loss on sales of subsidiary shares with the consolidated group companies is deferred under tax, the Revised Guidance 2022 has been adopted from the beginning of the current fiscal year. The changes in accounting policies have been retrospectively applied and consolidated financial statements for
the previous fiscal year have been presented after the retrospective application. The change has no impact on the consolidated financial statements for the previous fiscal year.
(26) Accounting standards issued but not yet effective
On September 13, 2024, the ASBJ issued "Accounting Standard for Leases" (ASBJ Statement No. 34)
On September 13, 2024, the ASBJ issued "Implementation Guidance on Accounting Standard for Leases" (ASBJ Guidance No. 33)
Other amendments to related accounting standards, guidelines for applying accounting standards, practice reports and transfer guidelines.
Overview
Similar to international accounting standards, this standard stipulates that all leases by a lessee should be recorded as assets and liabilities.
Planned date of application
Millions of yen
U.S. dollars
The Company expects to adopt it from the beginning of the fiscal
Impairment losses
Property, plant and equipment Intangible assets
2024
¥ 471
175,625
11,036
2025
¥ 16,861
143,883
12,404
2025
$112,765 962,297
82,961
year ending March 31, 2028.
Impact of the application of the accounting standard, etc. The amount of the impact is under review at present.
(2) Information on significant accounting estimates related to the identified items
Calculation method
For the assets for which it is determined that impairment loss should be recognized as of March 31, 2024 and 2025, the book value is reduced to the recoverable amount and the difference is recorded as impairment loss.
Significant assumptions
The recoverable amount is based on net realizable value, future cash flows, and other factors. Significant assumptions are rental income and discount rate. These estimates are based on the property's location, transactions made in vicinity, rents, vacancy rates, and expected yields, etc.
Effects on the consolidated financial statements for the next fiscal year
If it becomes necessary to update rental income and discount rate due to changes in future economic conditions, etc., it may have a significant impact on the consolidated financial statements for the next fiscal year.
(25) Change in accounting policies
The Company has applied the "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022; the "Revised Accounting Standard of 2022") and other relevant ASBJ regulations from the beginning of the fiscal year ended March 31, 2025. Revisions to categories for recording current income taxes (taxation on other comprehensive income) conform to the transitional treatment in the proviso of paragraph 20-3 of the Revised Accounting Standard of 2022 and the transitional treatment in the proviso of paragraph 65-2 (2) of the "Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, October 28, 2022.
Supplemental Information
(Notes to consolidated balance sheet)
"Deposit", which had been included in "Other, net" in "Non-current liabilities" for the fiscal year ended March 31, 2024, has been presented separately for the current fiscal year due to an increase in the quantitative materiality. In order to reflect this change in presentation, the consolidated financial statements for the previous fiscal year have been reclassified.
As a result, ¥93,936 million presented as "Other, net" in "Non-current liabilities" in the consolidated balance sheets for the fiscal year ended March 31, 2024 has been reclassified and presented as "Deposit" at the amount of ¥62,841 million.
(Notes to consolidated statement of cash flows)
"Increase (decrease) in deposit received-real estate", which had been included in "Other" in "Cash Flows from Operating Income" for the fiscal year ended March 31, 2024, has been presented separately for the current fiscal year due to an increase in the materiality. In order to reflect this change in presentation, the consolidated financial statements for the previous fiscal year have been reclassified.
As a result, ¥23,960 million presented as "Other" in "Cash Flows from Operating Income" in the consolidated statement of cash flows for the fiscal year ended March 31, 2024 has been reclassified and presented as "Increase (decrease) in deposit received-real estate" at the amount of ¥14,519 million.
(Additional information)
(Performance-linked stock compensation system)
The Company has introduced a Board Benefit Trust (the "BBT Scheme") for Directors (excluding Outside Directors), Executive Vice Presidents, Executive Operating Officers and Senior Operating Officers of the Company, and the presidents, etc. of its Group companies (the "Group Officers") and the Stock-Granting Employee Stock Ownership Plan (the
"ESOP Scheme") for key employees of the Company and its Group companies (the "Group Key Employees").
BBT Scheme
Outline of the transaction
The BBT Scheme is a scheme in which the Company's shares, etc., are provided to Group Officers, as of the date of their retirement from office as a rule, through a trust established under the BBT Scheme (the "BBT Trust"), in accordance with the "officer stock benefit rules" set forth by the Company. The benefits of the Company's shares shall
are deducted in calculating basic profit attributable to owners of parent per share.
(Accounting for notes with maturity dates at fiscal year-end) Notes that mature at the end of the fiscal year are settled on the clearance dates. The following notes remained outstanding at the end of the fiscal year as the maturity date fell on a business holiday for financial institutions.
Thousands of
be acquired by the BBT Trust using the money contributed by the
Millions of yen
U.S. dollars
Company as the funds.
Accounting treatments for transactions of delivering the Company's own stock through trusts
The Company has continued to use a method, which it previously adopted, in accordance with the "Practical Solution on Transactions of Delivering the Company's Own Stock to Employees etc. through Trusts" (ASBJ Practical Issues Task Force No. 30 (revised 2015), March 26, 2015).
Notes receivable
Electronically recorded monetary claims - operating
Notes payable
Electronically recorded obligations -operating
U.S. Dollar Amounts
2024
¥ 1
1
73
3,420
2025
¥-
-
-
-
2025
$-
-
-
-
Residual shares of the Company held by the BBT Trust
The shares of the Company held by the BBT Trust were appropriated as treasury shares in net assets.
The book values of treasury shares were ¥1,056 million and
¥906 million ($6,060 thousand) as of March 31, 2024 and 2025, respectively, with the number of shares totaling 731,300 and 627,600 shares, respectively. The weighted average number of shares outstanding for the years ended March 31, 2024 and 2025 were 740,292 and 650,873 shares, respectively.
The number of shares standing and the weighted average number of shares outstanding are included in treasury shares which are deducted in calculating basic profit attributable to owners of parent per share.
ESOP Scheme
Outline of the transaction
The ESOP Scheme is a scheme in which the Company's shares, etc. are provided to Group Key Employees, as of the date of their retirement from the Haseko Group as a rule, through a trust established under the ESOP Scheme (the "ESOP Trust"), in accordance with the stock benefit rules set forth by the Company. The benefits of the Company's shares shall be acquired by the ESOP Trust using the money contributed by the Company as the funds.
Accounting treatments for transactions of delivering the Company's own stock through trusts
The Company has continued to use a method, which it previously adopted, in accordance with the "Practical Solution on Transactions of Delivering the Company's Own Stock to Employees etc. through Trusts" (ASBJ Practical Issues Task Force No. 30 (revised 2015), March 26, 2015).
3) Residual shares of the Company held by the ESOP Trust
The shares of the Company held by the ESOP Trust were appropriated as treasury shares in net assets.
The book values of treasury shares were ¥5,947 million and
¥5,717 million ($38,237 thousand) as of March 31, 2024 and 2025, respectively, with the number of shares totaling 4,091,500 and 3,933,600 shares, respectively. The weighted average number of shares outstanding for the years ended March 31, 2024 and 2025 were 4,114,107 and 3,945,316 shares, respectively.
The number of shares standing and the weighted average number of shares outstanding are included in treasury shares which
The U.S. dollar amounts are included solely for convenience of readers
outside Japan, at the prevailing exchange rate on March 31, 2025, which was ¥149.52=U.S.$1. The above translation should not be construed as a representation that yen have been, could have been, or could in the future be converted into U.S. dollars at the above or any other rate.
Financial Instruments Overview
Policy for financial instruments
The Company and its consolidated subsidiaries limit our investments to highly secure financial assets, and procure funds through issuance of straight bonds and borrowings from financial institutions. The Company and its consolidated subsidiaries use derivative instruments in order to hedge against interest rate fluctuations and do not enter into derivative transactions for trading or speculative purposes, in accordance with internal policy.
Nature and extent of risks arising from financial instruments
Notes receivable, accounts receivable from completed construction contracts and other, which are trade receivables of the Company and its consolidated subsidiaries, are exposed to credit risks of customers. Securities are the negotiable deposits which can easily be converted to cash and are subject to little risk of change in value and have high liquidity. As for investment securities, which are primarily stocks of companies with which the Company has business relationships, listed securities are exposed to market risks, and non-listed securities are
exposed to risks of fluctuations in the financial conditions of the issuers. In addition, the Company provides loans to its subsidiaries and affiliates.
Notes payable, accounts payable for construction contracts and other and electronically recorded obligations - operating, which are trade payables, are mostly due within a year. Bonds payable, borrowings and debt are means of fund procurement primarily in connection with business activities, and the Company uses derivative instruments (interest rate swap transactions) for a certain portion of these liabilities as hedging instruments to mitigate interest rate fluctuation risks and
to fix its interest payments. With regard to the method of evaluation of hedge effectiveness, the Company omitted the evaluation of the
effectiveness as the requirements for the special treatment of interest-rate swaps are satisfied. In addition, financial covenants have been applied to major borrowings and debt.
Risk management for financial instruments Management of credit risks (risks associated with business partners' default etc.)
With regard to trade receivables, in accordance with its internal rules, the Company checks the creditworthiness of its business partners, manages the balance of accounts receivable and monitors the status of any delay in collection, and works to obtain collateral when it is necessary to protect accounts receivable, in an endeavor
Fair values of financial instruments
The carrying value of financial instruments on the consolidated balance sheet as of March 31, 2024 and 2025, and estimated fair value are shown in the following tables.
Millions of yen
2024
to identify and mitigate risks on collections. Credit risk is also managed by its consolidated subsidiaries in accordance with its internal rules. Loans receivable are managed by the Company by conducting credit
Investment securities (Note 2) Long-term loans receivable
Carrying
value
¥ 32,393
3,551
Fair
value
¥ 32,393
Difference
¥ -
investigations on a regular basis in accordance with its internal
provisions and working to obtain collateral, if necessary. When the Company conducts derivative transactions, it deals exclusively with
Allowance for doubtful accounts Sub-total
Total
(24)
3,528 3,549 22
¥ 35,920 ¥ 35,942 ¥ 22
Japanese financial institutions that have high creditworthiness.
Bonds payable
120,000
119,056
(944)
Long-term borrowings
285,000
274,018
(10,982)
Management of market risks (interest rate fluctuation
Total
¥405,000 ¥393,074 ¥(11,926)
risks, etc.)
With regard to investment securities, the Company determines their fair values and evaluates the financial position of the issuers regularly. For derivative transactions, the Company operates a system that separates execution and management functions based on the internal rules that stipulate policies, usage/and the range of derivatives, and so forth.
Under the system, the balance of derivative transactions and the gains or loss from valuation are regularly reported to the director in charge of finance. Furthermore, derivative transactions by the Company and
its consolidated subsidiaries are conducted, in principle, as a means to hedge risks, and should work to reduce market risks that might arise between the targeted assets and the liabilities. As such, the Company
Note 1: Information on cash and deposits, notes receivable, accounts receivable from completed construction contracts and other, securities, notes payable, accounts payable for construction contracts and other, electronically recorded obligations
- operating, income taxes payable and current portion of long-term borrowings is omitted because these are settled in a short period of time and their carrying value approximates fair value.
Note 2: Securities, etc. that do not have market prices are not included in the preceding table. Details on such securities, etc., recorded on the consolidated balance sheet are below:
Millions of yen
2024
believes that market risks are fairly limited.
Management of liquidity risks (risks that the Company
Equity securities of affiliates Unlisted securities
¥28,026 24,974
may not be able to meet its obligation on scheduled due dates) associated with funds procurement
The Company endeavors to secure liquidity as the finance division prepares funding plans appropriately based on reports from each division and other information and implements fund procurement by utilizing commitment lines in coordination with the scheduled due
Note 3: Investments in partnerships, etc. and business entities equivalent to these for which the equity equivalents are recorded as a net amount on the consolidated balance sheet are omitted. The amount was ¥6,051 million as of March 31, 2024.
Millions of yen
2025
dates. In addition, the Company confirms the funding status of its consolidated subsidiaries to appropriately manage the funds of the Company and its consolidated subsidiaries as a whole.
Investment securities (Note 2) Long-term loans receivable
Carrying
value
¥ 31,907
4,483
Fair
value
¥ 31,907
Difference
¥ -
Supplementary explanation of the estimated fair value of financial instruments
Allowance for doubtful accounts Sub-total
Total
(23)
4,460 4,479 18
¥ 36,367 ¥ 36,385 ¥ 18
The fair value of financial instruments is based on their quoted market
Bonds payable
80,000
77,304
(2,696)
price, if available. When there is no quoted market price available, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different fair value. In addition, the notional amounts of derivatives in Note 18. Derivative Transactions are not
Long-term borrowings Total
265,000 246,382 (18,618)
¥345,000 ¥323,686 ¥(21,314)
Thousands of U.S. dollars
2025
necessarily indicative of the actual market risk involved in derivative transactions.
Carrying value
Fair value
Difference
Investment securities (Note 2)
$ 213,395
$ 213,395 $
-
Long-term loans receivable
29,983
Allowance for doubtful accounts
(154)
Sub-total
29,829 29,953 124
Total
$ 243,224 $ 243,348 $ 124
Bonds payable
535,045
517,017
(18,028)
Long-term borrowings 1,772,338 1,647,818 (124,520)
Total
$2,307,384
$2,164,835
$(142,549)
Note 1: Information on cash and deposits, notes receivable, accounts receivable from completed construction contracts and other, securities, notes payable, accounts payable for construction contracts and other, electronically recorded obligations -operating, short-term borrowings, current portion of long-term borrowings, current portion of bonds payable and income taxes payable is omitted because these are settled in a short period of time and their carrying value approximates fair value.
Note 2: Securities, etc. that do not have market prices are not included in the preceding table. Details on such securities, etc., recorded on the consolidated balance sheet are below:
Millions of yen
Thousands of
U.S. dollars
2025
2025
Equity securities of affiliates
¥40,588
$271,452
Unlisted securities
22,629
151,345
Note 3: Investments in partnerships, etc. and business entities equivalent to these for which the equity equivalents are recorded as a net amount on the consolidated balance sheet are omitted. The amount was ¥7,650 million ($51,165 thousand) as of March 31, 2025.
Redemption schedule for monetary receivables and securities with maturity dates at March 31, 2024 and 2025
Due within one year
Due after one year through five years
Millions of yen
2024
Due after five years through ten years
Due after ten years
Total
Cash and deposits
¥284,129
¥
-
¥ -
¥ -
¥284,129
Notes receivable and electronically recorded monetary claims
3,950
-
-
-
3,950
Accounts receivable from completed construction contracts
128,561
15,534
482
-
144,577
Securities
Negotiable certificates of deposits
2,255
- - -
2,255
Long-term loans receivable
3,227
107 130 88
3,551
Total
¥422,122
¥15,641
¥611
¥88
¥438,462
Due within one year
Due after one year through five years
Millions of yen
2025
Due after five years through ten years
Due after ten years
Total
Cash and deposits
¥235,976
¥
-
¥ -
¥
- ¥235,976
Notes receivable and electronically recorded monetary claims
1,936
-
-
- 1,936
Accounts receivable from completed construction contracts
119,739
26,687
245
- 146,671
Securities
Negotiable certificates of deposits
3,305
- - -
3,305
Long-term loans receivable
106
3,750 514 113
4,483
Total
¥361,061
¥30,437 ¥759 ¥113
¥392,370
Thousands of U.S. dollars
2025
Cash and deposits
Notes receivable and electronically recorded monetary claims Accounts receivable from completed construction contracts Securities
Negotiable certificates of deposits Long-term loans receivable
Total
$1,578,223
$ -
$ -
$ -
$1,578,223
12,947
-
-
-
12,947
800,821
178,487
1,637
-
980,945
22,103
-
-
-
22,103
709
25,079 3,438 757
29,983
$2,414,802
$203,566 $5,075 $757
$2,624,200
Due within one year
Due after one year through five years
Due after five years through ten years
Due after ten years
Total
Repayment schedule for short-term borrowings, bonds payable, and long-term borrowings at March 31, 2024 and 2025
Millions of yen Thousands of U.S. dollars
2024
2025
2025
Short-term Bonds
borrowings payable
Long-term borrowings
Short-term borrowings
Bonds payable
Long-term borrowings
Short-term borrowings
Bonds payable
Long-term borrowings
Due within 1 year
¥- ¥ -
¥ 10,000
¥15,000
¥40,000
¥ 20,000
$100,321
$267,523
$ 133,761
Due after 1 year through 2 years
- 40,000
20,000
-
-
10,000
-
-
66,881
Due after 2 years through 3 years
- -
10,000
-
20,000
20,000
-
133,761
133,761
Due after 3 years through 4 years
- 20,000
20,000
-
30,000
10,000
-
200,642
66,881
Due after 4 years through 5 years
- 30,000
10,000
-
10,000
25,000
-
66,881
167,202
Due after 5 years
- 30,000
225,000
-
20,000
200,000
-
133,761
1,337,614
Breakdown of financial instrument fair value by Level:
The fair value of financial instruments is categorized into the following three levels based on the observability and significance of the inputs for
Millions of yen
2025
measuring the fair value.
Level 1 fair value: Fair values measured by using market prices of applicable assets or liabilities formed in active markets as observable inputs for fair value measurement.
Level 2 fair value: Fair values measured by using the observable inputs other than those in Level 1.
¥-
¥ 4,479
¥-
¥ 4,479
-
4,479
-
4,479
-
77,304
-
77,304
-
246,382
-
246,382
¥-
¥323,686
¥-
¥323,686
Level 3 fair value: Fair value calculated using inputs that are unobservable. In cases where non-observable inputs relating to fair
Long-term loans receivable
Total assets Bonds payable
Long-term borrowings
Total liabilities
Level 1
Level 2
Level 3 Total
value measurement are used and multiple inputs are used that have a significant impact on the measurement of fair value, the fair value
Thousands of U.S. dollars
2025
$-
$ 29,953
$-
$ 29,953
-
29,953
-
29,953
-
517,017
-
517,017
is categorized into the lowest priority level of fair value measurement hierarchy within the level of each input used in the measurement.
Financial instruments recorded on the consolidated balance sheet at fair value
Long-term loans receivable
Total assets Bonds payable
Level 1
Level 2
Level 3 Total
Millions of yen
Long-term borrowings
-
1,647,818
-
1,647,818
2024
Total liabilities
$-
$2,164,835
$-
$2,164,835
Investment securities: Other securities
Level 1
Level 2 Level 3 Total
(Note 1)
Explanation of Assessment Methods Used in Fair Value Measurement and Inputs for
Equity securities Others
Total
¥28,645
-
¥28,645
¥-
-
¥-
Millions of yen
2025
¥ -
3,748
¥3,748
¥28,645 3,748
¥32,393
Fair Value Measurement
Investment securities
Investment securities and publicly traded shares are valued using the market price. Since publicly traded shares are traded on active markets, their fair value is categorized as Level 1. Since some preferred equity securities, etc. regulated by the Act on Securitization of Assets have a fair value measured using non-observable inputs for fair value measurement, they are categorized as Level 3.
Investment securities: Other securities
Level 1
Level 2
Level 3 Total
Long-term loans receivable
Long-term loans receivable are categorized by period, and their fair value is calculated using the discounted present value method, based on the interest rate determined by taking into account credit spreads and appropriate indicators such as future cash
Equity securities Others
Total
¥27,004
-
¥27,004
¥- ¥ -
- 4,903
¥- ¥4,903
¥27,004 4,903
¥31,907
flow, government bond yields, etc. for each credit management-related credit risk classification, and they are categorized as Level 2. Furthermore, the fair value of doubtful accounts receivable is calculated by similarly using the discounted present value of projected cash flow based on the discount rate or using the discounted present value method based on the anticipated return on investment, etc., and since
Thousands of U.S. dollars
2025
the effect of non-observable inputs on fair value is not significant, they are categorized as Level 2.
Level 1
Level 2
Level 3 Total
Long-term borrowings
Investment securities: Other securities
Equity securities
$180,602
$-
$ -
$180,602
Others
-
-
32,793
32,793
Total
$180,602
$-
$32,793
$213,395
The fair value is calculated using the discounted present value method, based on the total amount of principal and interest and the interest rate factoring in the remaining term and credit risks, and they are categorized as Level 2. For variable-interest longterm loans payable subject to special treatment as interest rate swaps, fair value is measured based on the present value of the total amount of principal and interest accounted for together with the interest rate swap transactions, discounted by the expected interest rate if similar new borrowings were entered into.
Financial instruments other than those recorded at fair value on the consolidated balance sheet
Millions of yen
2024
Bonds payable
The fair value of bonds payable is measured based on the market price. Since straight bonds are not necessarily traded on active markets even though they have a market price, they are categorized as Level 2.
¥-
¥ 3,549
¥-
¥ 3,549
-
3,549
-
3,549
-
119,056
-
119,056
-
274,018
-
274,018
¥-
¥393,074
¥-
¥393,074
(Note 2)
Long-term loans receivable
Total assets Bonds payable
Long-term borrowings
Total liabilities
Level 1
Level 2
Level 3 Total
Information on Financial Assets and Financial Liabilities Classified as Level 3 Fair Value Recorded on Consolidated Balance Sheets Based on Fair Value
Since the financial instruments categorized as Level 3 were not significant, this information has been omitte.
Investments in non-consolidated subsidiaries and affiliates were as follows:
Millions of yen
Thousands of
U.S. dollars
2024
2025
2025
Investment securities
¥27,456
¥40,018
$267,640
Other securities
570
570
3,812
Securities and Investment Securities
Securities classified as held-to-maturity debt securities as of March 31, 2024 and 2025 consisted of the following:
Millions of yen
2024
2025
Carrying
Fair
Unrealized
Carrying
Fair
Unrealized
value
value
gain (loss)
value
value
gain (loss)
Securities whose fair value exceeds their carrying value
¥ -
¥
- ¥-
¥ -
¥ -
¥-
Securities whose fair value does not exceed their carrying value
2,255
2,255
-
3,305 3,305 -
Total
¥2,255
¥2,255
¥-
¥3,305 ¥3,305 ¥-
Securities whose fair value exceeds their carrying value Securities whose fair value does not exceed their carrying value
Total
$ -
22,103
$22,103
$-
-
$-
Carrying value
Thousands of U.S. dollars
2025
Fair value
Unrealized gain (loss)
Other securities whose fair value is available as of March 31, 2024 and 2025 consisted of the following:
Millions of yen
2024
2025
Carrying
Acquisition
Unrealized
Carrying
Acquisition
Unrealized
value
cost
gain (loss)
value
cost
gain (loss)
Securities whose carrying value exceeds their acquisition cost:
Equity securities
¥28,645
¥14,711
¥13,934
¥26,071
¥13,303
¥12,768
Other
2,191
1,445
746
4,903 3,155 1,748
Sub-total
¥30,836
¥16,157
¥14,680
¥30,975 ¥16,458 ¥14,517
Securities whose carrying value does not exceed their acquisition cost:
Equity securities
¥ -
¥ -
¥ -
¥ 932 ¥ 1,001 ¥ (69)
Other
1,557
1,810
(253)
- - -
Sub-total
¥ 1,557
¥ 1,810
¥
(253)
¥ 932 ¥ 1,001 ¥ (69)
Total
¥32,393
¥17,967
¥14,426
¥31,907 ¥17,459
¥14,448
Thousands of U.S. dollars
2025
Carrying value
Acquisition cost
Unrealized gain (loss)
Securities whose carrying value exceeds their acquisition cost:
Equity securities
$174,367
$ 88,969
$85,398
Other
32,793
21,101
11,692
Sub-total
$207,160
$110,070
$97,090
Securities whose carrying value does not exceed their acquisition cost:
Equity securities
$ 6,236
$ 6,697
$ (461)
Other
-
-
-
Sub-total
$ 6,236
$ 6,697
$ (461)
Total
$213,395
$116,766
$96,629
Other securities sold for the years ended March 31, 2024 and 2025 were as follows:
Thousands of
For the fiscal year ended March 31, 2025
The Company recorded impairment losses of ¥2,990 ($19,998 thousand) million on investment securities.
2024
2025
2025
Equity securities:
Proceeds from sales
¥-
¥601
$4,022
Gain on sales
Loss on sales
-
-
191
-
1,279
-
For securities whose fair values at the end of the fiscal year
Impairment of investment securities
Millions of yen
U.S. dollars
have declined by 50% or more compared with their acquisition cost, loss on impairment is recorded without exception. For securities whose fair values at the end of the fiscal year have declined by 30% or more but less than 50% compared with their acquisition cost, loss on impairment is recorded as deemed necessary in consideration of the possibility of their recoverability.
For the fiscal year ended March 31, 2024 Not applicable.
Inventories
Inventories as of March 31, 2024 and 2025 consisted of the following:
2025
Number of
Use Type Location instances
Millions of yen
Thousands of
U.S. dollars
Real estate for construction-related business
Buildings
Suginami-ku, Tokyo 1
2024
2025
2025
Real estate for
Real estate for sale
¥266,332
¥312,779
$2,091,887
businesss
Costs on real estate business
253,423
281,933
1,885,588
Assets for
Tools, furniture
Nakamura-ku,
1
Real estate for development
33,056
36,912
246,869
real estate-related
and fixtures
Nagoya-shi
real estate-related
Buildings, etc.
Kita-ku, 3
Okayama-shi, etc.
¥552,811
¥631,624
$4,224,344
business Real estate for
service-related
Buildings, etc.
Naka-ku, 14
Nagoya-shi, etc.
Property, Plant and Equipment and Intangible Assets
Property, plant and equipment as of March 31, 2024 and 2025 consisted of the following:
Thousands of
business
Assets for service-related business
Real estate for overseas-related businesss
Tools, furniture and fixtures
Buildings, etc.
Fujisawa-shi, 3
Kanagawa, etc.
Hawaii, America 1
Millions of yen U.S. dollars
Buildings and structures Machinery, vehicles, tools, furniture
2024
and fixtures
13,191
12,898
86,266
for service-related business, which are grouped separately for the
Land
91,774
79,421
531,171
assessment of impairment.
Leased assets
1,062
1,250
8,360
¥ 95,784
2025
¥ 77,922
2025
$ 521,145
The Company and its consolidated domestic subsidiaries recognized impairment loss on certain real estate for construction-related business, real estate-related business, service-related business, and assets
Construction in progress Other securities
Sub-total
Accumulated depreciation
8,251
130
210,191
(34,566)
¥175,625
8,649
183
180,322
(36,439)
¥143,883
57,842
1,221
1,206,006
(243,708)
$ 962,297
(2024)
The decline in economic performance in the year ended March 31, 2024 triggered the recognition of impairment, and the carrying values of those assets have been written down to their recoverable amounts, resulting in impairment losses on non-current assets of
¥471 million for the year ended March 31, 2024, which were
Intangible assets as of March 31, 2024 and 2025 consisted of the following:
Thousands of
presented as "Extraordinary Losses" on the consolidated statement of income.
(2025)
Millions of yen
U.S. dollars
The decline in economic performance in the year ended March 31, 2025 triggered the recognition of impairment, and the carrying values of those assets have been written down to their recoverable amounts, resulting in impairment losses on non-current assets of ¥16,861 million ($112,765 thousand) for the year ended March 31, 2025, which were presented as "Extraordinary Losses" on the consolidated statement of income.
2024
2025
2025
Leasehold interests in land
¥ 1,895
¥ 1,948
$13,028
Goodwill
1,981
1,778
11,889
Other
7,160
8,679
58,043
¥11,036
¥12,404
$82,961
Gain (Loss) on disposal or sales of non-current assets for the years
ended March 31, 2024 and 2025 consisted of the following:
Thousands of
The details of impairment losses on non-current assets were as follows:
Millions of yen U.S. dollars
2024
2025
2025
Millions of yen
Thousands of
U.S. dollars
Buildings and structures
Machinery, vehicles, tools, furniture and fixtures
Land
Leased assets
¥(33)
14
(0)
¥(45)
(6)
11
(2)
$(304)
(39)
71
(16)
Buildings and structures Machinery, vehicles, tools, furniture
2024
and fixtures
314
1,448
9,685
Land
2
89
592
Leased assets
-
-
-
Intangible assets
-
-
-
¥471
¥16,861
$112,765
¥155
2025 2025
¥15,324 $102,489
Other
(3) (9)
(59)
¥(25)
¥(52)
$(348)
(4) Impairment losses
The Company and its consolidated domestic subsidiaries recognized impairment losses on the following non-current assets for the years ended March 31, 2024 and 2025.
2024
Number of
(2024)
The recoverable amount of real estate for service-related business and assets for service-related business are measured by the value in use. The value in use is set as zero because the valuation based on future cash flows is expected to be negative. Moreover, the discount
Use Type Location
instances
rate is omitted as undiscounted future cash flows before discounting
Real estate for service-related business
Assets for service-related business
Buildings, etc.
Tools, furniture and fixtures
Ichikawa-shi, 13
Chiba, etc
Higashiyamato- 9
shi, Tokyo, etc.
are expected to be negative.
(2025)
The recoverable amount of real estate for construction-related business, real estate for real estate-related business and assets for real estate-related business are measured by the net selling price calculated based on real estate appraisals, etc. The recoverable amount of real estates for service-related business and assets for
Short-term Borrowings, Long-term Borrowings, Bonds Payable and Lease Obligations
The following is a summary of the interest bearing debt as of March 31, 2024 and 2025:
Thousands of
service-related business are measured by the value in use. The
Average
interest
Millions of yen
U.S. dollars
value in use is set as zero because the valuation based on future cash flows is expected to be negative. Moreover, the discount rate is omitted as undiscounted future cash flows before discounting are expected to be negative. The recoverable amount of real estate for overseas-related business are measured by fair value.
(5) Rental properties
The Company and some of its consolidated subsidiaries own residential properties for lease, office buildings for lease (including land), commercial facilities for lease, etc., mainly in the Tokyo metropolitan area, the Kinki area and the Tokai area. Income and expenses of the leasing business related to the rental properties for the years ended March 31, 2024 and 2025 were ¥2,262 million and ¥1,733 million ($11,588 thousand), respectively.
Changes in the recorded amount of rental properties, etc. in the consolidated balance sheet during the year and fair value as of the end of the fiscal year were as follows.
Thousands of
Short-term borrowings Current portion of
long-term borrowings
Current portion of lease obligations
Bonds payable due Nov. 1, 2028
Bonds payable
due Jul. 19, 2029
Bonds payable
due Jul. 11, 2025
Bonds payable
due Jul. 12, 2030
Bonds payable
due Nov. 26, 2027
Bonds payable
due Mar. 13, 2026
Bonds payable
due Mar. 15, 2028
Bonds payable
due Dec. 14, 2028
0.77%
¥
-
¥ 15,000
$ 100,321
1.07%
10,000
20,000
133,761
-
94
147
983
0.52%
10,000
10,000
66,881
0.35%
10,000
10,000
66,881
0.24%
20,000
20,000
133,761
0.47%
20,000
20,000
133,761
0.30%
10,000
10,000
66,881
0.29%
20,000
20,000
133,761
0.57%
10,000
10,000
66,881
0.85%
20,000
20,000
133,761
1.20%
285,000
265,000
1,772,338
long-term borrowings
rate
2024
2025
2025
Millions of yen
U.S. dollars
due from 2026 to 2039
2024
2025
2025
Lease obligations
due from 2026 to 2031
- 235 336 2,244
Book value:
Balance at the beginning of the year
¥149,492
¥112,316
$751,174
Total
¥415,329
¥420,483
$2,812,216
Increase (decrease)
Balance at the end of the year Fair value
Notes:
(37,176) (19,255) (128,778)
112,316 93,061 622,397
¥133,312 ¥105,560 $705,989
Note: The weighted average interest rate for the end-of-year balance of outstanding debt is shown as the "average interest rate".
For lease obligations, the average interest rate is not stated because the amount equivalent to interest included in the total lease payments is allocated to each consolidated fiscal year by the straight-line method.
The rental properties are recorded on the consolidated balance sheet at their acquisition costs net of accumulated depreciation and impairment losses.
Of the amount of increase (decrease) for the year ended March 31, 2024, the increase is primarily attributable to acquisition of real estate of ¥14,833 million and transfer to rental properties of ¥1,825 million. The decrease is primarily attributable to transfer to real estate for sale of ¥52,508 million and depreciation of ¥1,685 million.
Of the amount of increase (decrease) for the year ended March 31, 2025,
The annual maturities of bonds payable, long-term borrowings and lease obligations (excluding the current portion) as of March 31, 2025 were as follows:
Thousands of
the increase is primarily attributable to acquisition of real estate of ¥12,415 million
Millions of yen
U.S. dollars
($83,029 thousand) and transfer to rental properties of ¥2,553 million ($17,077 thousand). The decrease is primarily attributable to transfer to real estate for sale of
Year ending March 31
Bonds payable
Long-term borrowings
Lease
obligations Total Total
¥32,727 million ($218,882 thousand) and depreciation of ¥1,138 million ($7,613 thousand).
real estate appraisal reports for major properties; and the calculations by the Company
2029
30,000
10,000
72
40,072
268,004
in accordance with the "Real Estate Appraisal Standards" for others. However, for
2030
10,000
25,000
23
35,023
234,233
certain properties the value at the time of acquisition or value obtained using a general
2031 and
The fair value at the end of the current fiscal year is the appraisal value taken from the
2027
2028
¥ -
20,000
¥ 10,000
20,000
¥133 107
¥ 10,133
40,107
$ 67,771
268,237
fair value calculation formula is stated as the fair value at the end of the current fiscal
thereafter
20,000 200,000 1 220,001 1,471,383
year when there has been no significant fluctuation in the index which is deemed to be a kind of appraised value or appropriately reflect market value since they were acquired or most recently appraised.
Total
¥80,000
¥265,000
¥336
¥345,336
$2,309,628
The Company has committed lines of credit available for immediate and stable borrowings with certain five financial institutions as of March 31, 2024 and 2025. The lines of credit and unused lines of credit as of March 31, 2024 and 2025 were as follows:
Millions of yen
Thousands of
U.S. dollars
2024
2025
2025
Line of credit
¥100,000
¥100,000
$668,807
Amount utilized
-
15,000
100,321
Unused line of credit
¥100,000
¥85,000
$568,486
Contract Assets
The amounts of the receivables arising from contracts with customers and the contract assets included in the notes receivable, accounts receivable from completed construction contracts and other as of March 31, 2024 and 2025 were as follows:
(2) Operating lease transactions (As lessee)
Outstanding future minimum lease payments under noncancelable operating leases as of March 31, 2024 and 2025 were summarized as follows:
Millions of yen
Thousands of
U.S. dollars
2024
2025
2025
Within one year
¥ 1,659
¥ 1,364
$ 9,126
Millions of yen
Thousands of
U.S. dollars
2024
2025
2025
Notes receivable
¥ 3,219
¥ 873
$ 5,837
Electronically recorded monetary claims
- operating
730
1,063
7,110
Accounts receivable from completed construction contracts
46,789
57,144
382,181
Contract assets
95,488
87,356
584,244
Over one year 17,496 16,050 107,340
Total
¥19,155
¥17,414
$116,466
Tax Purpose Reduction Entry
The amounts by which the acquisition costs of non-current assets were reduced due to government subsidies, etc. as of March 31, 2024 and 2025 were as follows.
(As lessor)
Outstanding future minimum lease income under noncancelable operating leases as of March 31, 2024 and 2025 were summarized as follows:
Thousands of
Millions of yen U.S. dollars
Millions of yen
Thousands of
U.S. dollars
Within one year
2024
¥ 2,392
2025
¥ 2,547
2025
$ 17,034
2024
2025
2025
Buildings and structures
¥54
¥94
$629
Machinery, vehicles, tools, furniture and fixtures
41
41
272
Over one year 18,956 15,958 106,727
Total
¥21,347
¥18,505
$123,761
Contract Liabilities
The amounts of contract liabilities included in advances received on construction contracts in progress, deposits received - real estate business and other current liabilities (other) as of March 31, 2024 and 2025 were as follows:
Thousands of
Supplementary Profit and Loss Information
Revenue from contracts with customers
As for net sales, revenues arising from contracts with customers and the revenues from other sources are not presented separately from each other. The amounts of revenue from contracts with customers is presented in "22. Revenue Recognition, 1. Disaggregated information on revenues arising from contracts with customers".
Provision for loss on construction contracts included in cost of
Millions of yen U.S. dollars
Advances received on construction contracts in progress
Deposits received - real estate business
2024
¥47,167 38,913
2025
¥44,843 25,100
2025
$299,991 167,869
sales for the years ended March 31, 2024 and 2025 were as follows:
Thousands of
Other current liabilities
2,786
2,737
18,307
Millions of yen
U.S. dollars
Contingent Liabilities
Thhe Company was contingently liable for guarantees on bank loans and other guarantees as of March 31, 2024 and 2025 as follows:
Cost of sales of completed construction contracts
Cost of sales of design and supervision
2024
¥381 55
2025
¥324 116
2025
$2,168 779
Millions of yen
Thousands of
U.S. dollars
Loss on valuation of inventories included in cost of sales for the years ended March 31, 2024 and 2025 were as follows:
Customers using housing loans and
2024
2025
2025
Millions of yen
Thousands of
U.S. dollars
other loans to purchase real estate, overseas affiliated companies
¥81,740
¥104,157 $696,611
2024
2025
2025
Lease Transactions
Finance lease transactions
Details of leased assets
Non-current assets are mainly assets for the "Service-related business".
Depreciation method of leased assets
Please refer to Note 2 (7) Summary of Significant Accounting Policies relating depreciations of leased assets.
Cost of sales - real estate
¥624
¥2,800 $18,727
Selling, general and administrative expenses for the years ended March 31, 2024 and 2025 consisted of the following:
Thousands of
Net Assets
Shares issued and treasury shares
Changes in number of shares issued and treasury shares for the year ended March 31, 2024 were as follows:
Millions of yen U.S. dollars
Provision for bonuses
other officers)
208
151
1,007
Provision for share awards
326
330
2,210
Provision for share awards for
directors (and other officers)
101
88
589
Retirement benefit expenses
1,039
624
4,170
Rents
3,930
4,149
27,751
Depreciation
2,843
3,052
20,411
Amortization
203
203
1,359
Other
39,427
42,825
286,416
Total
¥74,862
¥81,825
$547,248
Provision for bonuses for directors (and
2024
Salaries and allowances
¥24,378
¥27,661
$184,997
2023
Increase
Decrease
2024
2,406
2025
2,742
2025
18,338
Shares issued: Common stock Treasury shares:
Common stock
(Notes 1 and 2)
Notes:
Number of shares (Thousand shares)
300,794
-
-
300,794
28,283
2
277
28,009
Increase in treasury shares due to the request by shareholders for purchase of shares less than one standard unit.
Decrease in treasury shares due to the grant by the BBT and the Stock-Granting ESOP held as trust assets.
Research and development costs included in selling, general and administrative expenses for the years ended March 31, 2024 and 2025 were as follows:
Changes in number of shares issued and treasury shares for the year ended March 31, 2025 were as follows:
Number of shares (Thousand shares)
2024
Increase
Decrease
2025
Millions of yen
Thousands of
U.S. dollars
Shares issued: Common stock
300,794
- -
300,794
2024
2025
2025
Research and development costs
¥3,820
¥4,209
$28,147
Treasury shares:
Common stock
(Notes 1 and 2)
28,009
293
261
28,041
Notes:
Increase in treasury shares due to treasury shares acquired from a subsidiary upon a resolution by the Board of Directors.
Decrease in treasury shares due to the grant by the BBT and the Stock-Granting ESOP held as trust assets.
Dividends
(a) Dividends paid
In the year ended March 31, 2024
Type of shares
Total amount of dividend
(Millions of yen)
Dividend per share
(Yen)
Record date
Effective date
Common stock
¥11,104
¥40.00
March 31, 2023
June 30, 2023
Common stock
¥11,104
¥40.00
September 30, 2023
December 6, 2023
Resolution
Annual meeting of shareholders on
June 29, 2023 (Note1)
Board of Directors on November 10,
2023 (Note 2)
Notes:
The total amount of dividends includes ¥204 million as dividends to the Company's shares held by the BBT and the Stock-Granting ESOP as trust assets.
The total amount of dividends includes ¥193 million as dividends to the Company's shares held by the BBT and the Stock-Granting ESOP as trust assets.
In the year ended March 31, 2025
Total amount of dividend Dividend per share
Resolution
Common stock
¥12,492
$83,550
¥45.00
$0.30
March 31, 2024
June 28, 2024
Common stock
¥11,104
$74,266
¥40.00
$0.27
September 30, 2024
December 6, 2024
Annual meeting of shareholders on
June 27, 2024 (Note1)
Board of Directors on November 12,
2024 (Note 2)
Type of shares
(Millions of yen)
(Thousands of U.S. dollars)
(Yen)
(U.S. dollars)
Record date
Effective date
Notes:
The total amount of dividends includes ¥217 million ($1,451 thousand) as dividends to the Company's shares held by the BBT and the Stock-Granting ESOP as trust assets.
The total amount of dividends includes ¥182 million ($1,220 thousand) as dividends to the Company's shares held by the BBT and the Stock-Granting ESOP as trust assets.
(b) Dividends with the cut-off date in the year ended March 31, 2025 and the effective date in the year ending March 31, 2026
Total amount of dividend Dividend per share
Resolution
Annual meeting of shareholders on
June 27, 2025 (Note)
Type of shares Common stock
(Millions of yen)
¥12,479
(Thousands of U.S. dollars)
$83,461
(Yen)
¥45.00
(U.S. dollars)
$0.30
Record date March 31, 2025
Effective date June 30, 2025
Note: The total amount of dividends includes ¥205 million ($1,373 thousand) as dividends to the Company's shares held by the BBT and the Stock-Granting ESOP as trust assets.
Cash and Cash Equivalents
A reconciliation between cash and cash equivalents on the consolidated statement of cash flows and the cash and deposits on the consolidated balance sheet as of March 31, 2024 and 2025 were as follows:
Millions of yen
Thousands of
U.S. dollars
2024
2025
2025
Cash and deposits
¥284,129
¥235,976
$1,578,223
Time deposits with a deposit period of more than three months
(31)
(35)
(235)
Saving accounts for insurance agency
(361)
(143)
(958)
Negotiable certificates of deposit, which
are included in securities
1,550
2,518
16,840
Restricted deposit
(1,795)
(2,517)
(16,836)
Cash and cash equivalents
¥283,493
¥235,798
$1,577,034
Derivative Transactions
Derivative transactions for which hedge accounting is applied were as follows:
Hedge accounting method
Hedging instrument
Hedged item
Notional amount
As of March 31, 2024
Of which, maturing after one year
Fair value
Special treatment of interest rate swaps
Interest rate swap transaction Pay fixed / Receive floating
Long-term borrowings
¥182,650
(Millions of yen)
¥182,650
(Note)
Hedge accounting method
Hedging instrument
Hedged item
Notional amount
As of March 31, 2025
Of which, maturing after one year
Fair value
Special treatment of interest rate swaps
Interest rate swap transaction Pay fixed / Receive floating
Long-term borrowings
(Millions of yen)
¥182,650 ¥182,650
(Thousands of U.S. dollars)
(Note)
$1,221,576 $1,221,576
Note: The fair value of interest rate swaps accounted for by special treatment is included in the fair value of the applicable long-term borrowings as such swaps are accounted for together with the hedged long-term borrowings.
There were no derivative transactions for which hedge accounting were not applied as of March 31, 2024 and 2025.
Retirement Benefit Plans
The Company and its consolidated subsidiaries have a corporate pension plan as a defined benefit plan, and have an optional defined contribution pension plan as a defined contribution pension plan.
The changes in the retirement benefit obligation during the years ended March 31, 2024 and 2025 were as follows:
Thousands of
Some consolidated subsidiaries have adopted a lump-sum retirement allowance plan, a contract-type corporate pension fund plan and a smaller enterprise retirement allowance plan. They have also adopted a defined contribution pension fund as a defined contribution plan.
Millions of yen
U.S. dollars
Certain consolidated subsidiaries participate in the multi-employer pension plan. When the pension assets held by the multi-employer pension plan corresponding to the subsidiaries' contribution cannot be reliably determined, the accounting treatment applied is the same as that for a defined contribution plan.
2024
2025
2025
Balance at the beginning of the year
¥57,285
¥52,652
$352,142
Service cost
3,062
2,761
18,467
Interest cost
118
502
3,357
Actuarial gain or loss
(4,812)
135
904
Retirement benefit paid
(3,011)
(3,080)
(20,599)
The amount of past service costs occurred
Other
Balance at the end of the year
10 - -
(1) (88) (592)
¥52,652 ¥52,882 $353,679
The changes in plan assets during the years ended March 31, 2024 and 2025 were as follows:
Thousands of
The components of remeasurements of defined benefit plans included in accumulated other comprehensive income (before tax effect) as of March 31, 2024 and 2025 were as follows:
Millions of yen
U.S. dollars
Millions of yen
Thousands of
U.S. dollars
2024 | 2025 | 2025 | |
Balance at the beginning of the year | ¥74,062 | ¥80,237 | $536,634 |
2024
2025
2025
Expected return on plan assets | 1,810 | 1,957 | 13,088 | Unrecognized past service cost | ¥ (22) | ¥ (13) | $ (87) |
Actuarial gain or loss | 4,411 | (2,490) | (16,656) | Unrecognized actuarial gain or loss | (489) | 1,689 | 11,298 |
Contributions by the Company | 2,383 | 2,391 | 15,992 | Total | ¥(511) | ¥1,676 | $11,212 |
Retirement benefits paid | (2,944) | (3,017) | (20,177) | ||||
Other | 516 | 329 | 2,199 | ||||
alance at the end of the year ¥80,237 ¥79,407 $531,079 (7) The fair value of plan assets, by major category, as a percentage of | |||||||
total plan assets as of March 31, 2024 and 2025 were as follows: | |||||||
B
(3) The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of | 2024 | 2025 |
March 31, 2024 and 2025. Bonds | 54% | 55% |
Stocks | 21% | 17% |
Alternative investments (Note) | 18% | 21% |
Thousands of Life insurance general accounts, etc. 7% 7% Millions of yen U.S. dollars | ||
2024 2025 2025 Total | 100% | 100% |
Funded retirement benefit obligation ¥ 50,925 ¥ 51,000 $ 341,088 | ||
Plan assets at fair value | (80,237) (79,407) | (531,079) | Notes: Alternative investments are mainly investments in hedge funds. |
(29,313) (28,407) | (189,991) | ||
Unfunded retirement benefit obligation | 1,728 1,883 | 12,591 | The expected return on assets has been estimated based on the |
Retirement benefit liability in the balance sheet
(27,585) (26,525)
(177,400)
anticipated allocation to each asset class and the expected long-term returns on assets held in each category.
Retirement benefit liability
1,777
1,946
13,017
Asset for retirement benefits
Retirement benefit liability in the balance sheet
(29,362) (28,471)
¥(27,585) ¥(26,525)
(190,418)
$(177,400)
The assumptions used in accounting for the above plans were as follows:
2024
2025
The components of retirement benefit expense for the years ended Discount rates
0.4% - 1.1%
0.4% - 1.1%
March 31, 2024 and 2025 were as follows:
Expected rates of return on plan assets
1.0% - 2.5%
1.0% - 2.5%
(4)
Millions of yen
Thousands of
U.S. dollars
Defined Contribution Plan
2024
2025
2025
Service cost
¥ 2,611
¥ 2,480
$ 16,587
Interest cost
118
502
3,357
Expected return on plan assets
(1,810)
(1,957)
(13,088)
Amortization of actuarial loss
Amortization of past service cost
1,383
1
447
(9)
2,989
(59)
The required contributions to the defined contribution plans of consolidated subsidiaries for the years ended March 31, 2024 and 2025 were ¥46 million and ¥53 million ($354 thousand), respectively.
Retirement benefit expense Notes:
¥ 2,304 ¥ 1,463
$ 9,785
Multi-employer pension plan
The required contributions, which were accounted in the same way as the defined contribution plan for the years ended March 31, 2024 and 2025 were ¥41 million and ¥44 million ($326 thousand), respectively.
Service cost does not include the amounts contributed by employees with respect to welfare pension fund plans.
Retirement benefit expenses for consolidated subsidiaries adopting the simplified method which assumes retirement benefit obligation to be equal to the benefits payable as if all eligible employees voluntarily terminated their employment at fiscal
The most recent funded status was as follows:
Millions of yen
Thousands of
U.S. dollars
year-end are included in "Service cost".
(5) The components of remeasurements of defined benefit plans included in other comprehensive income (before tax effect) for the years ended March 31, 2024 and 2025 were as follows:
Pension assets
Total of the amount of actuarial obligations under pension funding program and minimum policy reserves
Difference
2023
¥3,808
4,739
¥ (932)
2024
¥4,463
4,757
¥ (294)
2024
$33,421
35,623
$ (2,202)
Millions of yen
Thousands of
U.S. dollars
The U.S. dollar amounts are calculated by the prevailing exchange rate on March 31, 2024, which was ¥151.41=U.S.$1.
2024
2025
2025
Past service cost
¥
(9)
¥
(9)
$ (59)
Actuarial gain or loss
10,606 (2,179)
(14,571)
Total
¥10,597 ¥(2,187)
$(14,630)
The average contribution ratio to total contributions made to all plans for the years ended March 31, 2023 and 2024 were 5.53% and 5.86%, respectively. This ratio does not accord with the actual contribution ratio of the Company group.
The differences of ¥(932) million as described above was due to past service cost under pension funding programs ¥(882) million and carry forward shortage ¥(50) million for the year ended March 31, 2023.
The differences of ¥(294) million ($(2,202) thousand) as described above was due to past service cost under pension funding programs ¥(655) million ($(4,902) thousand) and special reserve fund
¥361 million ($2,700 thousand) for the year ended March 31, 2024.
Past service costs under this program are amortized using the straight-line method (9 years and 6 months).
Income Taxes
The significant components of deferred tax assets and liabilities as of March 31, 2024 and 2025 were as follows:
Millions of yen
Thousands of
U.S. dollars
2024
2025
2025
Deferred tax assets:
Allowance for doubtful accounts
¥ 269
¥ 269
$ 1,802
Accrued business tax
1,130
1,087
7,268
Provision for warranties for completed
construction
1,503
1,598
10,689
Provision for bonuses
2,194
2,497
16,703
Retirement benefits liability
558
655
4,383
Loss on valuation of real estate for
sale (Note 1)
7,074
8,319
55,635
Impairment losses
968
4,845
32,405
Loss on valuation of investment
securities
920
946
6,330
Revaluation of assets on consolidation
6,848
6,767
45,256
Consideration for business transfer
25
-
-
Provision for share awards
1,366
1,531
10,240
Cumulative effects of changes in
accounting policies
2,828
2,391
15,990
Depreciation in excess
1,665
1,912
12,785
Capital gains
1,011
863
5,772
Tax loss carry forwards (Note 3)
5,209
8,194
54,805
Other
12,942
15,266
102,103
Sub-total
46,509
57,142
382,167
Valuation allowance pertaining to
tax loss carry forwards
(5,126)
(8,162)
(54,590)
Valuation allowance pertaining to
total deductible temporary difference
(20,910)
(27,168)
(181,704)
Valuation allowances (sub-total) (Note 2)
(26,036)
(35,331)
(236,294)
Total deferred tax assets
20,473
21,811
145,872
Deferred tax liabilities:
Valuation difference on available-for-sale securities
(4,188)
(4,272)
(28,571)
Prepaid pension cost
(9,021)
(8,999)
(60,185)
Revaluation of assets on consolidation
(220)
(225)
(1,505)
Other
(1,510)
(1,532)
(10,243)
Total deferred tax liabilities
(14,939)
(15,027)
(100,504)
Net deferred tax assets
¥ 5,534
¥ 6,784
$ 45,369
Notes:
Loss on valuation of real estate for sale includes ¥1,657 million and ¥1,802 million ($12,055 thousand) as of March 31, 2024 and 2025, respectively, for properties that were reclassified from "Current Assets" to "Property, Plant and Equipment" following a change in holding purpose.
Tax loss carry forwards and related deferred tax assets expire as follows:
Valuation allowances increased by ¥9,295 million ($62,166 thousand). The increase was mainly due to an increase in impairment losses and an increase in tax loss carryforwards at the Company's consolidated subsidiaries
As of March 31, 2024
Millions of yen
Within 1 year
After 1 year
through 2 years
After 2 years
through 3 years
After 3 years
through 4 years
After 4 years
through 5 years
After 5 years
Total
Tax loss carry forwards (a)
¥-
¥-
¥2
¥-
¥ 27
¥ 5,180
¥ 5,209
Valuation allowance
-
-
(1)
-
(27)
(5,098)
(5,126)
Deferred tax assets
-
-
1
-
0
82
83
(b)
Tax loss carry forwards are shown as the amounts multiplied by the statutory tax rate.
The Company recorded deferred tax assets of ¥83 million for tax loss carry forwards of ¥5,209 million (the amount multiplied by the statutory tax rate). The said deferred tax assets of ¥83 million represent the amount at which the Company recognized for part of the tax loss carry forwards totaling ¥5,209 million for HASEKO America, Inc. and 7 other consolidated subsid-
iaries. The deferred tax assets recognized for the tax carry forwards resulted from losses of ¥1 million for the fiscal year ended March 31, 2018, ¥0 million for the fiscal year ended March 31, 2019, ¥80 million for the fiscal year ended March 31, 2020, ¥1 million for the fiscal year ended March 31, 2022, ¥1 million for the fiscal year ended March 31, 2023, respectively (the amount multiplied by the statutory tax rate for each), as calculated by Sohgoh Real Estate Co., Ltd. and 3 other companies. As such, the Company determined that the amounts are recoverable in view of anticipated taxable income in the future, and did not recognize valuation allowances for them.
As of March 31, 2025
Within 1 year
After 1 year
through 2 years
After 2 years
through 3 years
Millions of yen
After 3 years
through 4 years
After 4 years
through 5 years
After 5 years Total
Tax loss carry forwards (a)
Valuation allowance
Deferred tax assets
¥- ¥2
- (0)
- 1
After 1 year
¥-
-
-
After 2 years
¥ 22
(22)
0
Thousands of U.S. dollars
After 3 years
¥ 516
(490)
26
After 4 years
¥ 7,655
(7,650)
4
¥ 8,194
(8,162)
32
(b)
Within 1 year
through 2 years
through 3 years
through 4 years
through 5 years
After 5 years Total
Tax loss carry forwards (a)
Valuation allowance
Deferred tax assets
$- $ 10
- (1)
- 9
$- $ 150
- (147)
- 3
$ 3,450
(3,275)
175
$ 51,195
(51,166)
29
$ 54,805
(54,590)
215
(b)
Tax loss carry forwards are shown as the amounts multiplied by the statutory tax rate.
The Company recorded deferred tax assets of ¥32 million ($215 thousand) for tax loss carry forwards of ¥8,194 million ($54,805 thousand) (the amount multiplied by the statutory tax rate). The said deferred tax assets of ¥32 million ($215 thousand) represent the amount at which the Company recognized for part of the tax loss carry forwards totaling ¥8,194 million ($54,805 thousand) for HASEKO America, Inc. and 7 other consolidated subsidiaries. The deferred tax assets recognized for the tax carry forwards resulted from losses of ¥1 million ($9 thousand) for the fiscal year ended March 31, 2018, ¥0 million ($3 thousand) for the fiscal year ended March 31, 2019, ¥26 million ($175 thousand) for the fiscal year ended March 31, 2020, ¥4 million ($29 thousand) for the fiscal year ended March 31, 2023, respectively (the amount multiplied by the statutory tax rate for each), as calculated by Hosoda Corporation and 3 other companies. As such, the Company determined that the amounts are recoverable in view of anticipated taxable income in the future, and did not recognize valuation allowances for them.
The reconciliation of the statutory tax rate to the effective income tax rate for the year ended March 31, 2024 and 2025 were as follows:
2024 2025
(4) Adjustment of deferred tax assets and deferred tax liabilities due to changes in corporate tax rates
Given the enactment of the "Act for Partial Amendment to the Income Tax Act, etc." (Act No. 13 of 2025) by the Japanese Diet on March 31, 2025, the special defense corporation tax will be imposed
Permanent non-deductible expenses
1.2
1.7
Permanent non-taxable items
(0.3)
(2.0)
Per capita inhabitant tax
0.3
0.4
Increase in valuation allowances
-
12.3
Decrease in valuation allowances
(1.6)
-
Tax credit for salary growth
(1.1)
(3.9)
Expiration of tax loss carry forwards
0.1
0.1
Consolidation goodwill
1.0
4.0
Tax rate differences between
the Company and consolidated
subsidiaries
1.7
0.1
Statutory tax rate (Adjustment)
30.6%
30.6%
effective from the fiscal year beginning on or after April 1, 2026.
In conjunction with the above, the Company calculates deferred tax assets and deferred tax liabilities related to the temporary differences expected to be eliminated in or after the fiscal years beginning on April 1, 2026 using the statutory tax rate changed.
As a result of this change, deferred tax assets (amount after deducting deferred tax liabilities) decreased ¥197 million ($1,315 thousand), valuation difference on available-for-sale securities, etc. decreased ¥126 million ($844 thousand), and deferred tax expense increased ¥71 million ($472 thousand) for the fiscal year ended March 31, 2025.
Other
0.6 (0.0)
Per Share Information
Effective income tax rate
32.4%
43.2%
Per share information as of and for the years ended March 31,
Accounting for corporate tax, local corporate tax and tax effect accounting
The Company and certain domestic consolidated subsidiaries
2024 and 2025 were as follows:
Yen U.S. dollars
have applied the Group Tax Sharing System, and corporate tax and local corporate tax, as well as their tax effects, are accounted for and disclosed under the "Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System" (PITF No.42, August 12, 2021).
Net assets per share Profit per share
Basic Diluted
2024
¥1,874.17
205.45
-
2025
¥1,950.61
126.20
-
2025
$13.05
0.84 -
The following is the basis for calculating the basic and diluted profit per share:
The following is the basis for calculating the net assets per share:
Thousands of
Thousands of
Millions of yen
U.S. dollars
Millions of yen
U.S. dollars
2024
2025
2025
Profit not attributable to owners of parent
Profit attributable to owners
- - -
shareholders:
2024 | 2025 | 2025 | Net assets | ¥511,246 | ¥532,033 $3,558,274 | |
Profit | ¥56,038 | ¥34,450 | $230,406 | Amount not attributable to common |
Non-controlling interests
Net assets attributable to common
- - -
of parent
Weighted average number of shares outstanding (thousands of shares)
¥56,038 272,754
¥34,450 272,982
$230,406
shareholders
Number of common shares of
the end of the period used in the calculation of the net assets per share (thousands of shares)
¥511,246
272,784
¥532,033
272,752
$3,558,274
Note: Shares owned by the Board Benefit Trust (BBT) and the Stock-Granting ESOP
held as trust assets are included in treasury shares, which is deducted in calculating basic profit attributable to owners of parent per share. The average numbers of shares outstanding during the years ended March 31, 2024 and 2025 were 28,039 thousand and 27,812 thousand, respectively, including 4,854 and 4,596 thousand of shares held by the BBT and the Stock-Granting ESOP as trust assets in 2024 and 2025.
Note: Shares owned by the Board Benefit Trust (BBT) and the Stock-Granting ESOP held as trust assets are included in treasury shares, which is deducted in calculating net assets per share. The numbers of treasury shares at March 31, 2024 and 2025 were 28,009 thousand and 28,041 thousand, respectively, including 4,822 and 4,561 thousand of shares held by the BBT and the
Stock-Granting ESOP as trust assets in 2024 and 2025.
Revenue Recognition
Disaggregated information on revenues arising from contracts with customers
Millions of yen | |||||||||
2024 | |||||||||
Reportable segments | |||||||||
Construction-related | Real estate-related Service-related Overseas-related | ||||||||
business | business business business | Total | |||||||
Construction work, etc. | ¥480,379 | ¥ - ¥ - ¥ - | ¥ 480,379 | ||||||
Design and supervision | 11,776 | - - - | 11,776 | ||||||
Real estate sales, etc. | 213,264 | 115,280 - - | 328,544 | ||||||
Large-scale repair work and interior remodeling,etc. | - | - 66,439 - | 66,439 | ||||||
Condominium building management and | |||||||||
condominium leasing management, etc. | - | - 70,441 - | 70,441 | ||||||
For-sale condominium consigned sales, real | |||||||||
estate brokerage and renovations, etc. | - | - 84,276 - | 84,276 | ||||||
Other | - | - 3,543 937 | 4,480 | ||||||
Revenue from contracts with customers | 705,419 | 115,280 224,699 937 | 1,046,334 | ||||||
Other revenue | 4,615 | 12,404 30,997 70 | 48,086 | ||||||
Sales to external customers | ¥710,034 | ¥127,684 ¥255,696 ¥1,007 | ¥1,094,421 | ||||||
Millions of yen | |||||||||
2025 | |||||||||
Reportable segments | |||||||||
Construction-related | Real estate-related Service-related Overseas-related | ||||||||
business | business business business | Total | |||||||
Construction work, etc. | ¥533,232 | ¥ - ¥ - ¥ - | ¥ 533,232 | ||||||
Design and supervision | 14,250 | - - - | 14,250 | ||||||
Real estate sales, etc. | 184,938 | 123,047 - 1,652 | 309,638 | ||||||
Large-scale repair work and interior remodeling, etc. | - | - 65,917 - | 65,917 | ||||||
Condominium building management and | |||||||||
condominium leasing management, etc. | - - 72,962 | - | 72,962 | ||||||
For-sale condominium consigned sales, real | |||||||||
estate brokerage and renovations, etc. | - | - | 91,119 | - | 91,119 | ||||
Other | - | - | 3,686 | 1,369 | 5,055 | ||||
Revenue from contracts with customers | 732,421 | 123,047 | 233,683 | 3,021 | 1,092,172 | ||||
Other revenue | 2,720 | 51,205 | 30,811 | 445 | 85,181 | ||||
Sales to external customers | ¥735,141 | ¥174,252 | ¥264,494 | ¥3,466 | ¥1,177,353 | ||||