Consolidated Financial Results for the Three Months Ended June 30, 2024 [JGAAP]
July 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 | ||
Scheduled date to commence dividend payments: - | |||
Availability of supplementary briefing material on quarterly results: Yes | |||
Quarterly results briefing session: No |
(Figures are rounded down to the nearest million yen.)
1. Consolidated Financial Results for the Three Months of the Fiscal Year Ending March 31, 2025 ( From April 1 to June 30, 2024)
(1) Consolidated Results of Operations | (% indicates year-on-year changes.) | ||||||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||||||||||||
owners of parent | |||||||||||||||||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||||||||||
10,579 | -29.6 | 2,961 | -54.1 | 2,739 | -55.9 | 2,093 | -58.2 | ||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||
Three months ended | 15,028 | -13.6 | 6,447 | 115.6 | 6,211 | 113.8 | 5,001 | 128.8 | |||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||
(Note) Comprehensive income: | |||||||||||||||||||||||||
Three months ended June 30, 2024: ¥2,170 million (-53.0%) | |||||||||||||||||||||||||
Three months ended June 30, 2023: ¥4,622 million (467.5%) | |||||||||||||||||||||||||
Earnings per share | Diluted earnings per share | ||||||||||||||||||||||||
Three months ended | Yen | Yen | |||||||||||||||||||||||
59.82 | - | ||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||
Three months ended | 139.76 | - | |||||||||||||||||||||||
June 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 June 30, 2024 | 393,643 | 114,883 | 29.2 | 3,440.72 | |||||||||||||||||||||
As of March 31, 2024 | 405,979 | 125,645 | 30.9 | 3,510.66 | |||||||||||||||||||||
(Reference) Equity: | |||||||||||||||||||||||||
As of June 30, 2024: ¥114,883 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 | - | ||||||||||||||||||||||||
Year ending March 31, 2025 (Forecast) | 63.00 | - | 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 per share
Special dividend: ¥50 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 - Application of specific accounting treatment in the preparation of the consolidated financial statements for the period under
review: Yes
For details, please refer to the section on page 7 entitled, "Notes on specific accounting treatment used in the preparation of the consolidated financial statements for the period under review," under "(3) Notes to Consolidated Financial Statements" in "2. 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 7 entitled, "Notes on changes in accounting policies," under "(3) Notes to Consolidated Financial Statements" in "2. 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 June 30, 2024 | 38,859,996 shares | As of March 31, 2024 | 38,859,996 shares |
As of June 30, 2024 | 5,470,669 shares | As of March 31, 2024 | 3,070,344 shares |
Three months ended | 34,989,451 shares | Three months ended | 35,787,737 shares |
June 30, 2024 | June 30, 2023 | ||
(Note) Treasury shares include 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.
- Review of the attached consolidated financial statements by a certified public accountant or auditing firm: None
・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 July 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. Consolidated Financial Statements and Notes……………………………………………………………………………… | 3 |
(1) Consolidated Balance Sheets…………………………………………………………………………………………… | 3 |
(2) Consolidated Statements of Income and Comprehensive Income……………………………………………………… | 5 |
Consolidated Statements of Income………………………………………………………………………………… | 5 |
Consolidated Statements of Comprehensive Income………………………………………………………………… | 6 |
(3) Notes to Consolidated Financial Statements……………………………………………………………………………… | 7 |
Notes on changes in accounting policies……………………………………………………………………………… | 7 |
Notes on specific accounting treatment used in the preparation of the consolidated financial statements for the period | 7 |
under review…………………………………………………………………………………………………………… | |
Notes on segment information, etc.…………………………………………………………………………………… | 7 |
Notes in case of significant changes in shareholders' equity…………………………………………………………… | 8 |
Notes on going concern assumption…………………………………………………………………………………… | 8 |
Notes to consolidated statements of cash flows………………………………………………………………………… | 8 |
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1. Overview of Operating Results
An overview of operating results was disclosed in the supplementary information for this report on July 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.
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2. Consolidated Financial Statements and Notes
- Consolidated Balance Sheets
(Millions of yen) | |||
As of March 31, 2024 | As of June 30, 2024 | ||
Assets | |||
Current assets | |||
Cash and deposits | 20,416 | 14,090 | |
Trade accounts receivable | 2,114 | 2,630 | |
Securities | 8,005 | 2,000 | |
Real estate for sale | 20,645 | 18,720 | |
Real estate for sale in process | 567 | 567 | |
Operating investments in capital | 551 | 547 | |
Other | 956 | 1,330 | |
Allowance for doubtful accounts | (0) | (0) | |
Total current assets | 53,257 | 39,888 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 84,557 | 83,498 | |
Land | 184,669 | 185,146 | |
Other, net | 6,294 | 7,353 | |
Total property, plant and equipment | 275,522 | 275,998 | |
Intangible assets | 31,320 | 31,326 | |
Investments and other assets | |||
Investment securities | 38,072 | 38,904 | |
Other | 7,425 | 7,159 | |
Total investments and other assets | 45,498 | 46,064 | |
Total non-current assets | 352,341 | 353,388 | |
Deferred assets | 381 | 366 | |
Total assets | 405,979 | 393,643 |
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(Millions of yen) | |||
As of March 31, 2024 | As of June 30, 2024 | ||
Liabilities | |||
Current liabilities | |||
Trade accounts payable | 1,923 | 1,122 | |
Current portion of bonds payable | 3,624 | 5,274 | |
Short-term borrowings | 800 | 1,900 | |
Current portion of long-term borrowings | 16,681 | 16,616 | |
Income taxes payable | 1,674 | 716 | |
Provisions | 381 | 110 | |
Other | 3,967 | 3,746 | |
Total current liabilities | 29,052 | 29,487 | |
Non-current liabilities | |||
Bonds payable | 27,864 | 25,978 | |
Long-term borrowings | 173,703 | 173,301 | |
Long-term accounts payable - other | 8,391 | 8,391 | |
Provisions | 213 | 234 | |
Retirement benefit liability | 126 | 146 | |
Asset retirement obligations | 683 | 685 | |
Other | 40,298 | 40,534 | |
Total non-current liabilities | 251,282 | 249,273 | |
Total liabilities | 280,334 | 278,760 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 21,492 | 21,492 | |
Capital surplus | 19,720 | 19,720 | |
Retained earnings | 61,012 | 59,221 | |
Treasury shares | (9,989) | (19,039) | |
Total shareholders' equity | 92,235 | 81,395 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 17,339 | 17,386 | |
Deferred gains or losses on hedges | (6) | 24 | |
Revaluation reserve for land | 16,076 | 16,076 | |
Total accumulated other comprehensive income | 33,409 | 33,487 | |
Total net assets | 125,645 | 114,883 | |
Total liabilities and net assets | 405,979 | 393,643 |
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- Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income
(Millions of yen) | |||
Three months ended | Three months ended | ||
June 30, 2023 | June 30, 2024 | ||
Net sales | 15,028 | 10,579 | |
Cost of sales | 7,269 | 6,286 | |
Gross profit | 7,759 | 4,292 | |
Selling, general and administrative expenses | 1,312 | 1,331 | |
Operating profit | 6,447 | 2,961 | |
Non-operating income | |||
Interest income | 3 | 3 | |
Dividend income | 207 | 267 | |
Other | 4 | 4 | |
Total non-operating income | 216 | 275 | |
Non-operating expenses | |||
Interest expenses | 403 | 445 | |
Other | 48 | 51 | |
Total non-operating expenses | 451 | 496 | |
Ordinary profit | 6,211 | 2,739 | |
Extraordinary income | |||
Gain on sale of investment securities | 1,197 | - | |
Total extraordinary income | 1,197 | - | |
Extraordinary losses | |||
Loss on retirement of non-current assets | 2 | 4 | |
Total extraordinary losses | 2 | 4 | |
Profit before income taxes | 7,406 | 2,735 | |
Income taxes | 2,405 | 642 | |
Profit | 5,001 | 2,093 | |
Profit attributable to owners of parent | 5,001 | 2,093 |
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Consolidated Statements of Comprehensive Income
(Millions of yen) | |||
Three months ended | Three months ended | ||
June 30, 2023 | June 30, 2024 | ||
Profit | 5,001 | 2,093 | |
Other comprehensive income | |||
Valuation difference on available-for-sale securities | (379) | 46 | |
Deferred gains or losses on hedges | - | 30 | |
Total other comprehensive income | (379) | 77 | |
Comprehensive income | 4,622 | 2,170 | |
Comprehensive income attributable to | |||
Comprehensive income attributable to owners of parent | 4,622 | 2,170 |
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- Notes to Consolidated Financial Statements Notes on changes in accounting policies
Application of the Accounting Standard for Current Income Taxes
Effective from April 1, 2024, the Company applied the revised Accounting Standard for Current Income Taxes (Statement No.- issued by the Accounting Standards Board of Japan (ASBJ) on October 28, 2022. Accordingly, the Company applied the revised classification of income taxes, specifically taxation related to other comprehensive income, in accordance with the transitional accounting treatment subject to Paragraph 20-3 of this standard, as well as Paragraph 65-2 (2) of the revised Guidance on Accounting Standard for Tax Effect Accounting (Guidance No. 28) issued by the ASBJ on October 28, 2022. This change in accounting policy did not impact results posted in the consolidated financial statements for the period under review.
Notes on specific accounting treatment used in the preparation of the consolidated financial statements for the period under review Calculation of income taxes
Tax-effect accounting was applied to reasonably estimate the effective tax rate on profit before income taxes in the current fiscal year, including the three-month period under review. The amount of profit before income taxes is multiplied by the estimated effective tax rate to calculate the amount of income taxes.
Notes on segment information, etc.
I. Results for the three-month period from April 1, 2023 to June 30, 2023 1. Information on net sales and profit/loss by reportable segment
(Millions of yen)
Reportable segments | Adjustments | Amount in | |||
consolidated financial | |||||
Asset Management | (Note 1) | ||||
Building Business | Total | statements (Note 2) | |||
Business | |||||
Net sales | |||||
Net sales from | 14,412 | 615 | 15,028 | - | 15,028 |
external customers | |||||
Intersegment sales | 11 | - | 11 | (11) | - |
and transfers | |||||
Total | 14,424 | 615 | 15,039 | (11) | 15,028 |
Segment profit | 6,756 | 214 | 6,970 | (523) | 6,447 |
(Notes) 1. The negative adjustments to segment profit of ¥523 million mainly include corporate expenses amounting to ¥523 million that belong to the administration division and are not allocated to any of the reportable segments.
2. Segment profit is adjusted with operating profit in the consolidated statements of income.
2. Information on impairment losses of non-current assets, goodwill, and other items by reportable segment Not applicable
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- Results for the three-month period from April 1, 2024 to June 30, 2024
1. Information on net sales and profit/loss by reportable segment
(Millions of yen)
Reportable segments | Adjustments | Amount in | |||
consolidated financial | |||||
Asset Management | (Note 1) | ||||
Building Business | Total | statements (Note 2) | |||
Business | |||||
Net sales | |||||
Net sales from | 9,879 | 699 | 10,579 | - | 10,579 |
external customers | |||||
Intersegment sales | 11 | - | 11 | (11) | - |
and transfers | |||||
Total | 9,891 | 699 | 10,591 | (11) | 10,579 |
Segment profit | 3,159 | 315 | 3,474 | (513) | 2,961 |
(Notes) 1. The negative adjustments to segment profit of ¥513 million mainly include corporate expenses amounting to ¥513 million that belong to the administration division and are not allocated to any of the reportable segments.
2. Segment profit is adjusted with operating profit in the consolidated statements of income.
2. Information on impairment losses of non-current assets, goodwill, and other items by reportable segment
No events that could have a significant impact on impairment loss recognition or goodwill amounts occurred during the period under review.
Notes in case of significant changes in shareholders' equity
During the three months ended June 30, 2024, the Company acquired 2,400,000 of its own shares on June 10, 2024, through the Tokyo Stock Exchange Trading Network for off-floor share repurchases (ToSTNeT-3) in accordance with a decision by its Board of Directors in a meeting held on June 7, 2024. As a result, the Company's shares worth ¥9,049 million (including repurchases of odd-lot shares) were added to treasury shares, bringing the total to ¥19,039 million as of June 30, 2024.
Notes on going concern assumption
Not applicable
Notes to consolidated statements of cash flows
Consolidated statements of cash flows have not been prepared for the three months ended June 30, 2024. Amounts for depreciation (including intangible fixed asset-related amortization costs excluded from goodwill) and amortization of goodwill during the period are as follows.
Three months ended | Three months ended | |
June 30, 2023 | June 30, 2024 | |
Depreciation | ¥1,405 million | ¥1,419 million |
Amortization of goodwill | - | 10 |
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