Ga Technologies Co., Ltd.TSE: 3491

Summary of Consolidated Financial Results for the Year Ended October 31, 2021(Based on Japanese GAAP)

Dec 15, 2021 at 6:28 AM UTC · Issued by GA technologies Co., Ltd.

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended October 31, 2021

(Based on Japanese GAAP)

December 15, 2021

Company name:

GA technologies Co., Ltd.

Stock exchange listing:

Tokyo Stock Exchange

Stock code:

3491

URL:

https://www.ga-tech.co.jp/

Representative:

RYO HIGUCHI, President and Chief Executive Officer

Contact person:

SATOSHI MATSUKAWA, Executive Officer and Chief Accounting Officer

TEL：03-6230-9180

Scheduled date to file Securities Report:

January 27, 2022

Scheduled date to file Securities Report:

January 28, 2022

Scheduled date to commence dividend payments:

Preparation of supplementary material on quarterly financial results:

Yes

Holding of financial results meeting:

Yes

(for institutional investors and analysts, in Japanese)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended October 31, 2021 (November 1, 2020 to October 31, 2021)

(1) Consolidated operating results

(Percentage figures are the changes from the same period prior year)

Revenue

EBITDA※

Operating profit

Ordinary profit

Profit attributable

to owners of parent

Million yen

Year ended October 31, 2021

85,388

35.4

1,466

(48.8)

(39)

(431)

(1,269)

Year ended October 31, 2020

63,070

60.5

2,861

72.5

1,888

58.3

1,654

62.3

903

77.2

※EBITDA = Operating profits + Depreciation (Operating expenses) + Amortization of Goodwill

(NOTE) Comprehensive income: Year ended October 31, 2021

(1,246) million yen [-%]

Year ended October 31, 2020

893 million yen [76.3%]

		Diluted earnings	Return on	Ratio of ordinary	Ratio of operating
	Earnings per share	Income
	per share	equity	income to net sales
		to total assets

	Yen	Yen	%	%	%
Year ended October 31, 2021	(37.81)	-	(9.8)	(1.8)	(0.0)
Year ended October 31, 2020	31.25	29.42	14.0	10.9	3.0

(NOTE) 1.Despite the existence of diluted shares, Diluted earnings per share for the year ended October 31, 2021 are not stated since negative Earnings per share are recorded.

2.The Company conducted a 1:3 stock split for common stock with an effective date of November 1, 2020. Earnings per share and Diluted earnings per share have been calculated on the assumption that this stock split was conducted at the beginning of the previous year.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of October 31, 2021	30,177	18,733	62.0	532.67
As of October 31, 2020	18,584	7,137	38.4	242.84

(REFERENCE) Equity capital: As of October 31, 2021	18,724 million yen
	As of October 31, 2020	7,137 million yen

(NOTE) The Company conducted a 1:3 stock split for common stock with an effective date of November 1, 2020. Net assets per shared has been calculated on the assumption that this stock split was conducted at the beginning of the previous year.

(3) Consolidated cash flows

	Cash flows form	Cash flows from	Cash flows from	Cash & cash equivalents
	operating activities	investing activities	financing activities	at the end of period
	Million yen	Million yen	Million yen	Million yen
Year ended October 31, 2021	(390)	(1,958)	11,305	15,275
Year ended October 31, 2020	2,312	(3,766)	3,545	6,318

2. Cash dividends

		Dividends per share			Total	Dividends		Ratio of
							amount		dividends
	1st	2nd	3rd
				payout
	Fiscal			of		to net
	quarter-	quarter-	quarter-	Total		ratio
	year-end		dividends		assets
	end	end	end			(Consolidated)
				(Annual)			(Consolidated)


	Yen	Yen	Yen	Yen	Yen
Year ended October 31, 2020	-	0.00	-	0.00	0.00	-	-	-
Year ended October 31, 2021	-	0.00	-	0.00	0.00	-	-	-

Year ending October 31, 2022 (Forecast)	-	-	-	-	-			-

(NOTE) The Articles of Incorporation provide for dividends with record dates at the end of each second quarter and fiscal year. Currently, the forecast for dividends with these record dates for the fiscal year ending October 31, 2021 has not been determined.

3. Forecast of consolidated financial results for the fiscal year ending October 31, 2022 (November 1, 2021 to October 31, 2022) (Percentage figures are the changes from the same period prior year)

	Revenue	EBITDA※		Operating profit		Profit attributable to	Basic earnings
			owners of parent		per share

	Million yen	%	Million yen		%	Million yen		%	Million yen	%	Yen
Full year	110,000	-	4,000		-	57		-	(700)	-	(19.77)

※EBITDA = Operating profits + Depreciation (Operating expenses)

(NOTE) The Group has decided to voluntarily apply the International Financial Reporting Standards (IFRS) from the three months ending October 31, 2022 for its consolidated financial statements. The forecast above is based on IFRS and therefore the change ratio from the actual results of the fiscal year ended October 31, 2021 under the Japanese accounting standards to the forecast is not shown here.

4. Notes

(1) Changes in significant subsidiaries during the year ended October 31, 2021	Not applicable
(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Not applicable
Changes in accounting policies due to other reasons:	Not applicable
Changes in accounting estimates:	Not applicable
Restatement of prior period financial statements:	Not applicable

(3) Number of issued shares (common stock)

Total number of issued shares at the end of the period (including treasury shares):

	As of October 31, 2021	35,152,375 shares	As of October 31, 2020	29,393,115 shares
Total number of treasury shares at the end of the period:
	As of October 31, 2021	682 shares	As of October 31, 2020	621 shares
Average number of shares during the period (cumulative from the beginning of the fiscal year):
	As of October 31, 2021	33,559,888 shares	As of October 31, 2020	28,921,561 shares

(NOTE) The Company conducted a 1:3 stock split for common stock with an effective date of November 1, 2020. The total number of issued shares at the end of the period, Total number of treasury shares at the end of the period and Average number of shares during the period have been calculated on the assumption that this stock split was conducted at the beginning of the previous year.

Consolidated Financial Statements

Consolidated Balance Sheets

			(Million yen)
		As of October 31, 2020	As of October 31, 2021
Assets
Current assets
Cash and deposits	6,386	15,393
Accounts receivable - trade	147	185
Real estate for sale	1,386	2,795
Costs on uncompleted construction contracts	8	21
Supplies	48	32
Advance payments - trade	137	230
Prepaid expenses	270	263
Other	149	584
Allowance for doubtful accounts	(81)	(102)
Total current assets	8,453	19,405
Non-current assets
Property, plant and equipment
Buildings	866	986
Accumulated depreciation	(113)	(157)
Buildings, net	753	829
Vehicles	13	14
Accumulated depreciation	(6)	(9)
Vehicles, net	6	5
Tools, furniture and fixtures	171	215
Accumulated depreciation	(74)	(112)
Tools, furniture and fixtures, net	97	103
Leased assets	263	342
Accumulated depreciation	(61)	(104)
Leased assets, net	202	237
Construction in progress	170	178
Total property, plant and equipment	1,230	1,354
Intangible assets
Goodwill	3,762	4,554
Software	2,542	2,276
Software in progress	57	167
Other	1,086	938
Total intangible assets	7,449	7,937
Investments and other assets
Investment securities	410	362
Long-term time deposits	10	10
Leasehold and guarantee deposits	892	945
Long-term loans receivable	-	29
Deferred tax assets	54	32
Other	83	100
Total investments and other assets	1,450	1,480
Total non-current assets	10,130	10,772
Total assets		18,584	30,177

			(Million yen)
		As of October 31, 2020	As of October 31, 2021
Liabilities
Current liabilities
Short-term loans payable	1,503	300
Current portion of long-term loans payable	949	1,147
Current portion of bonds	40	2,050
Lease obligations	58	75
Accounts payable - other	988	1,558
Advances received on uncompleted construction	2	21
contracts

Income taxes payable	661	1
Accrued consumption taxes	210	85
Provision for fulfillment of guarantees	15	7
Provision for after-sales service	8	65
Deposits received	1,074	1,366
Other	210	235
Total current liabilities	5,723	6,914
Non-current liabilities
Bonds payable	2,110	405
Long-term loans payable	2,383	2,722
Lease obligations	149	152
Deferred tax liabilities	337	293
Provision for vacancy loss	77	61
Asset retirement obligations	407	431
Other	256	461
Total non-current liabilities	5,722	4,529
Total liabilities	11,446	11,443
Net assets
Shareholders' equity
Capital stock	1,182	7,219
Capital surplus	3,931	10,727
Retained earnings	2,039	770
Treasury shares	(0)	(0)
Total shareholders' equity	7,152	18,715
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(14)	7
Foreign currency translation adjustment	-	0
Total accumulated other comprehensive income	(14)	8
Share acquisition rights	0	9
Total net assets	7,137	18,733
Total liabilities and net assets		18,584	30,177

Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

			(Million yen)
		Year ended	Year ended
		October 31, 2020	October 31, 2021
Net sales	63,070	85,388
Cost of sales	53,208	73,940
Gross profit	9,861	11,447
Selling, general and administrative expenses	7,973	11,487
Operating profit (loss)	1,888	(39)
Non-operating income
Interest income	0	0
Other	17	23
Total non-operating income	17	24
Non-operating expenses
Interest expenses	67	65
Commission fee	121	254
Bond issue expenses	21	6
Share issue expenses	-	63
Other	42	25
Total non-operating expenses	251	416
Ordinary profit (loss)	1,654	(431)
Extraordinary losses
Impairment loss	60	621
Loss on sales and retirement of non-current assets	0	1
Loss on valuation of investment securities	-	101
Other	1	27
Total extraordinary losses	61	752
Profit (loss) before income taxes	1,592	(1,183)
Income taxes - current	805	107
Income taxes - deferred	(116)	(21)

Total income taxes	688	85

Profit (loss)	903	(1,269)
Profit (loss) attributable to owners of parent		903	(1,269)

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