Consolidated Financial Results for the Six Months Ended September 30, 2024 [JGAAP]
October 31, 2024 | ||
Company name: Heiwa Real Estate Co., Ltd. | Stock exchange listings: | |
Tokyo, Nagoya, Sapporo, Fukuoka | ||
Code number: 8803 | https://www.heiwa-net.co.jp/en/ | |
Representative: | Representative Executive Officer, President and CEO Kiyoyuki Tsuchimoto | |
Contact: | Director, Executive Officer, General Manager of | Takahisa Aoyama |
Corporate Planning Department | ||
Telephone number: | (81) 3-3666-0181 |
Scheduled date for submitting the Semi-annual Securities Report: November 13, 2024
Scheduled date to commence dividend payments: December 2, 2024
Availability of supplementary briefing material on interim results: Yes
Interim results briefing session: Yes (For institutional investors and analysts)
(Figures are rounded down to the nearest million yen.) 1. Consolidated Financial Results for the Six Months of the Fiscal Year Ending March 31, 2025 (From April 1 to September 30, 2024)
(1) Consolidated Results of Operations | (% indicates year-on-year changes.) | ||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||||||||
owners of parent | |||||||||||||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||||||
18,761 | -33.4 | 5,254 | -43.2 | 4,581 | -46.6 | 3,431 | -48.5 | ||||||||||||||
September 30, 2024 | |||||||||||||||||||||
Six months ended | 28,191 | 13.0 | 9,254 | 82.6 | 8,574 | 86.8 | 6,659 | 57.0 | |||||||||||||
September 30, 2023 | |||||||||||||||||||||
(Note) Comprehensive | income: | ||||||||||||||||||||
Six months ended September 30, 2024: ¥2,196 million (-69.1%) | |||||||||||||||||||||
Six months ended September 30, 2023: ¥7,096 million (171.6%) | |||||||||||||||||||||
Earnings per share | Diluted earnings per share | ||||||||||||||||||||
Six months ended | Yen | Yen | |||||||||||||||||||
100.37 | - | ||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||
Six months ended | 186.07 | - | |||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||
(2) Consolidated Financial Position | |||||||||||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||||||||||
Millions of yen | Millions of yen | % | Yen | ||||||||||||||||||
As of September 30, 2024 | 390,141 | 114,908 | 29.5 | 3,441.48 | |||||||||||||||||
As of March 31, 2024 | 405,979 | 125,645 | 30.9 | 3,510.66 | |||||||||||||||||
(Reference) Equity: | |||||||||||||||||||||
As of September 30, 2024: ¥114,908 million | |||||||||||||||||||||
As of March 31, 2024: ¥125,645 million | |||||||||||||||||||||
2. Dividends | |||||||||||||||||||||
Annual dividends per share | |||||||||||||||||||||
End of 1Q | End of 2Q | End of 3Q | Year-end | Total | |||||||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||||||
Year ended March 31, 2024 | - | 58.00 | - | 108.00 | 166.00 | ||||||||||||||||
Year ending March 31, 2025 | - | 63.00 | |||||||||||||||||||
Year ending March 31, 2025 (Forecast) | - | 63.00 | 126.00 |
(Note) Revision of most recently announced planned dividend: None Year-end dividends paid for the fiscal year ended March 31, 2024: Ordinary dividend: ¥58.00 per share
Special dividend: ¥50.00 per share
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2025 (From April 1, 2024 to March 31, 2025)
(% indicates year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per share | |||||
owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Full year | 41,600 | -6.4 | 12,300 | -5.5 | 10,700 | -6.7 | 8,500 | 0.6 | 251.56 |
(Note) Revision of most recently announced forecast of financial results: None
Notes:
- Significant changes in the scope of consolidation during the period under review: None Subsidiaries added to the scope of consolidation: None
Subsidiaries removed from the scope of consolidation: None
(Note) During the six months ended September 30, 2024, Tokyo Nihonbashi Kabutocho Hotel Co., Ltd. was newly established and included in the scope of consolidation, however, it does not fall into the significant changes in the scope of consolidation.
(2) Application of specific accounting treatment in the preparation of the interim consolidated financial statements for the period under review: Yes
(Note) For details, please refer to the section on page 9 entitled, "Notes on specific accounting treatment used in the preparation of the interim consolidated financial statements for the period under review" under "(4) Notes to Interim Consolidated Financial Statements" in "2. Interim Consolidated Financial Statements and Notes."
- Changes in accounting policies, changes in accounting estimates, and corrections of errors
- Changes in accounting policies accompanying the revisions to items such as accounting standards: Yes
- Changes in accounting policies other than 1) above: Not applicable
- Changes in accounting estimates: Not applicable
- Corrections of errors: Not applicable
(Note) For details, please refer to the section on page 9 entitled, "Notes on changes in accounting policies," under "(4) Notes to Interim Consolidated Financial Statements" in "2. Interim Consolidated Financial Statements and Notes."
- Total number of issued shares (common stock)
- Total number of issued shares at end of period (including treasury shares)
- Total number of treasury shares at end of period
- Average number of shares during period
As of September 30, | 38,859,996 shares | As of March 31, 2024 | 38,859,996 shares |
2024 | |||
As of September 30, | 5,470,895 shares | As of March 31, 2024 | 3,070,344 shares |
2024 | |||
Six months ended | 34,189,288 shares | Six months ended | 35,789,160 shares |
September 30, 2024 | September 30, 2023 | ||
(Note) Treasury shares include Heiwa Real Estate Co., Ltd. (the "Company")'s shares held in a trust account for a stock compensation plan for executive officers and managing officers of the Company and certain subsidiaries, and for a trust account for the Company's employee stock ownership plan.
・This report of interim financial results was not subject to a review by certified public accountants or an auditing firm.
・Explanations for the appropriate use of the forecast of financial results and other points to note
- Disclaimer: The forecast amounts and other forward-looking statements contained in this document are based on currently available information and certain assumptions deemed reasonable by the Company at the time of preparing this report. Accordingly, the Company offers no guarantee that such forecasts will be achieved. Actual results may differ substantially from these forecasts. For details on the Company's forecast of financial results, please refer to the supplementary information in the briefing presentation.
- An overview of operating results was disclosed in the supplementary information for this report on October 31, 2024, on the Company's website (https://www.heiwa-net.co.jp/en/ir/ir_library/) and the Tokyo Stock Exchange's Timely Disclosure network (TDnet) website. Please refer to the information using either website.
Table of Contents
1. Overview of Operating Results……………………………………………………………………………………………… | 2 |
2. Interim Consolidated Financial Statements and Notes……………………………………………………………………… | 3 |
(1) Interim Consolidated Balance Sheets…………………………………………………………………………………… | 3 |
(2) Interim Consolidated Statements of Income and Interim Consolidated Statements of Comprehensive Income...……… | 5 |
Interim Consolidated Statements of Income………………………………………………………………………… | 5 |
Interim Consolidated Statements of Comprehensive Income………………………………………………………… | 6 |
(3) Interim Consolidated Statements of Cash Flows………………………………………………………………………… | 7 |
(4) Notes to Interim Consolidated Financial Statements…………………………………………………………………… | 9 |
Notes on changes in accounting policies……………………………………………………………………………… | 9 |
Notes on specific accounting treatment used in the preparation of the interim consolidated financial statements for | 9 |
the period under review………………………………………………………………………………………………… | |
Notes on segment information, etc……………………………………………………………………………………… | 9 |
Notes in case of significant changes in shareholders' equity…………………………………………………………… | 10 |
Notes on going concern assumption…………………………………………………………………………………… | 10 |
- 1 -
1. Overview of Operating Results
An overview of operating results was disclosed in the supplementary information for this report on October 31, 2024, on the Company's website (https://www.heiwa-net.co.jp/en/ir/ir_library/) and the Tokyo Stock Exchange's TDnet website. Please refer to the information using either website.
- 2 -
2． Interim Consolidated Financial Statements and Notes
(1) Interim Consolidated Balance Sheets
(Millions of yen) | ||||
As of March 31, 2024 | As of September 30, 2024 | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 20,416 | 14,539 | ||
Trade accounts receivable | 2,114 | 2,112 | ||
Securities | 8,005 | - | ||
Real estate for sale | 20,645 | 18,687 | ||
Real estate for sale in process | 567 | 567 | ||
Operating investments in capital | 551 | 544 | ||
Other | 956 | 754 | ||
Allowance for doubtful accounts | (0) | (0) | ||
Total current assets | 53,257 | 37,205 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings and structures, net | 84,557 | 81,862 | ||
Land | 184,669 | 182,866 | ||
Other, net | 6,294 | 12,323 | ||
Total property, plant and equipment | 275,522 | 277,051 | ||
Intangible assets | 31,320 | 31,326 | ||
Investments and other assets | ||||
Investment securities | 38,072 | 37,031 | ||
Other | 7,425 | 7,173 | ||
Total investments and other assets | 45,498 | 44,204 | ||
Total non-current assets | 352,341 | 352,583 | ||
Deferred assets | 381 | 352 | ||
Total assets | 405,979 | 390,141 |
- 3 -
(Millions of yen) | |||
As of March 31, 2024 | As of September 30, 2024 | ||
Liabilities | |||
Current liabilities | |||
Trade accounts payable | 1,923 | 643 | |
Current portion of bonds payable | 3,624 | 4,849 | |
Short-term borrowings | 800 | 1,700 | |
Current portion of long-term borrowings | 16,681 | 15,992 | |
Income taxes payable | 1,674 | 1,219 | |
Provisions | 381 | 266 | |
Other | 3,967 | 4,159 | |
Total current liabilities | 29,052 | 28,829 | |
Non-current liabilities | |||
Bonds payable | 27,864 | 24,540 | |
Long-term borrowings | 173,703 | 173,017 | |
Long-term accounts payable - other | 8,391 | 8,262 | |
Provisions | 213 | 258 | |
Retirement benefit liability | 126 | 175 | |
Asset retirement obligations | 683 | 681 | |
Other | 40,298 | 39,468 | |
Total non-current liabilities | 251,282 | 246,403 | |
Total liabilities | 280,334 | 275,233 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 21,492 | 21,492 | |
Capital surplus | 19,720 | 19,720 | |
Retained earnings | 61,012 | 60,560 | |
Treasury shares | (9,989) | (19,039) | |
Total shareholders' equity | 92,235 | 82,733 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 17,339 | 16,090 | |
Deferred gains or losses on hedges | (6) | 7 | |
Revaluation reserve for land | 16,076 | 16,076 | |
Total accumulated other comprehensive income | 33,409 | 32,174 | |
Total net assets | 125,645 | 114,908 | |
Total liabilities and net assets | 405,979 | 390,141 | |
- 4 -
- Interim Consolidated Statements of Income and Interim Consolidated Statements of Comprehensive Income Interim Consolidated Statements of Income
(Millions of yen) | ||||
Six months ended | Six months ended | |||
September 30, 2023 | September 30, 2024 | |||
Net sales | 28,191 | 18,761 | ||
Cost of sales | 16,389 | 10,854 | ||
Gross profit | 11,801 | 7,907 | ||
Selling, general and administrative expenses | 2,547 | 2,653 | ||
Operating profit | 9,254 | 5,254 | ||
Non-operating income | ||||
Interest income | 7 | 8 | ||
Dividend income | 224 | 287 | ||
Other | 11 | 18 | ||
Total non-operating income | 243 | 314 | ||
Non-operating expenses | ||||
Interest expenses | 818 | 898 | ||
Other | 104 | 88 | ||
Total non-operating expenses | 922 | 986 | ||
Ordinary profit | 8,574 | 4,581 | ||
Extraordinary income | ||||
Gain on sale of investment securities | 1,197 | - | ||
Total extraordinary income | 1,197 | - | ||
Extraordinary losses | ||||
Loss on retirement of non-current assets | 11 | 8 | ||
Total extraordinary losses | 11 | 8 | ||
Profit before income taxes | 9,760 | 4,573 | ||
Income taxes | 3,101 | 1,141 | ||
Profit | 6,659 | 3,431 | ||
Profit attributable to owners of parent | 6,659 | 3,431 |
- 5 -
Interim Consolidated Statements of Comprehensive Income
(Millions of yen) | ||
Six months ended | Six months ended | |
September 30, 2023 | September 30, 2024 | |
Profit | 6,659 | 3,431 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 437 | (1,248) |
Deferred gains or losses on hedges | - | 13 |
Total other comprehensive income | 437 | (1,235) |
Comprehensive income | 7,096 | 2,196 |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of parent | 7,096 | 2,196 |
- 6 -
(3) Interim Consolidated Statements of Cash Flows
(Millions of yen) | |||
Six months ended | Six months ended | ||
September 30, 2023 | September 30, 2024 | ||
Cash flows from operating activities | |||
Profit before income taxes | 9,760 | 4,573 | |
Depreciation | 2,819 | 2,829 | |
Loss on retirement of non-current assets | 11 | 8 | |
Amortization of goodwill | - | 21 | |
Increase (decrease) in allowance for doubtful accounts | (24) | (0) | |
Increase (decrease) in provision for bonuses | (45) | (68) | |
Increase (decrease) in retirement benefit liability | 50 | 49 | |
Interest and dividend income | (231) | (296) | |
Interest expenses | 818 | 898 | |
Amortization of bond issuance costs | 26 | 27 | |
Loss (gain) on sale of investment securities | (1,197) | - | |
Decrease (increase) in trade receivables | (17) | 2 | |
Decrease (increase) in inventories | 7,976 | 1,955 | |
Decrease (increase) in operating investments in capital | 8 | 7 | |
Decrease (increase) in prepaid expenses | (39) | (62) | |
Decrease (increase) in accounts receivable - other | 315 | (370) | |
Increase (decrease) in trade payables | (358) | (551) | |
Increase (decrease) in advances received | 267 | 1,907 | |
Increase (decrease) in accrued consumption taxes | 1,028 | (1,578) | |
Increase (decrease) in deposits received | 33 | 1 | |
Increase (decrease) in leasehold and guarantee deposits received | (16) | (398) | |
Other,net | (263) | 1,088 | |
Subtotal | 20,921 | 10,043 | |
Interest and dividends received | 254 | 297 | |
Interest paid | (814) | (904) | |
Income taxes paid | (2,703) | (1,558) | |
Net cash provided by (used in) operating activities | 17,656 | 7,878 |
- 7 -
(Millions of yen) | |||
Six months ended | Six months ended | ||
September 30, 2023 | September 30, 2024 | ||
Cash flows from investing activities | |||
Purchase of securities | (2,000) | - | |
Proceeds from sale and redemption of securities | 2,000 | 2,005 | |
Purchase of investment securities | (991) | (769) | |
Proceeds from sale and redemption of investment securities | 1,681 | 11 | |
Purchase of property, plant and equipment | (8,367) | (5,197) | |
Purchase of intangible assets | (33) | (34) | |
Purchase of long-term prepaid expenses | (68) | (40) | |
Payments for guarantee deposits | (1) | (183) | |
Proceeds from refund of guarantee deposits | 57 | 75 | |
Other,net | 1 | 0 | |
Net cash provided by (used in) investing activities | (7,722) | (4,131) | |
Cash flows from financing activities | |||
Net increase (decrease) in short-term borrowings | (900) | 900 | |
Proceeds from long-term borrowings | 9,200 | 5,630 | |
Repayments of long-term borrowings | (7,142) | (7,005) | |
Redemption of bonds | (2,301) | (2,099) | |
Proceeds from increased long-term accounts payable | 3,800 | - | |
Repayments of long-term accounts payable | - | (129) | |
Purchase of treasury shares | (10) | (9,053) | |
Dividends paid | (1,933) | (3,866) | |
Other,net | 0 | 0 | |
Net cash provided by (used in) financing activities | 713 | (15,623) | |
Effect of exchange rate change on cash and cash equivalents | - | - | |
Net increase (decrease) in cash and cash equivalents | 10,648 | (11,876) | |
Cash and cash equivalents at beginning of period | 25,807 | 26,316 | |
Cash and cash equivalents at end of period | 36,456 | 14,439 |
- 8 -