Semi-annual Securities Report
2024
(Interim period of the 73rd term)
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Semi-annual
Securities Report
- This document is the print version of the Semi-annual Securities Report submitted via the Electronic Disclosure for Investors' NETwork (EDINET), pursuant to Article 27-30-2 of the Financial Instruments and Exchange Act of Japan, to which a table of contents and pagination have been added.
- The Report on Interim Review attached to the Semi-annual Securities Report submitted via EDINET and the letter of confirmation submitted alongside the Semi-annual Securities Report are appended to the end of this document.
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Contents | |||
Page | |||
[Cover page] | 4 | ||
Part 1. Corporate information | 5 | ||
1. | Corporate overview | 5 | |
1. | Trends in major management indicators | 5 | |
2. | Lines of business | 5 | |
2. Business overview | 6 | ||
1. | Business and other risks | 6 | |
2. | Management analysis of financial standing, business results, and cash flow | 6 | |
3. | Major business contracts, etc | 8 | |
3. Information on filing company | 9 | ||
1. | Information on stock, etc | 9 | |
2. | Directors | 11 | |
4. | Financial information | 12 | |
1. | Semi-annual Consolidated Financial Statements | 13 | |
2. | Other | 22 | |
Part 2. Information concerning guarantor of filing company | 23 |
Independent Auditor's Report on Interim Review of Semi-annual Consolidated Financial Statements
Confirmation Letter
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[Cover page]
Document filed:
Legal basis:
Submitted to:
Filing date:
Semi-annual accounting period: Company name (Japanese): English name:
Name and title of representative: Location of head office: Telephone no.:
Name of administrative contact: Nearest point of contact: Telephone no.:
Name of administrative contact:
Locations where this document is available for public inspection:
Semi-annual Securities Report
Item 1 of the Table for Article 24-5, Paragraph 1 of the Financial Instruments and Exchange Act
Director-General, Kinki Local Finance Bureau
August 9, 2024
Interim period of the 73rd term (January 1 - June 30, 2024)
ザ・パック株式会社
THE PACK CORPORATION
Hideaki Yamashita, President & CEO
9-3 Higashiobase 2-chome,Higashinari-ku, Osaka, Japan
+81-6-4967-1221
Ikuo Shimomura, Director, Corporate General Manager
9-3 Higashiobase 2-chome,Higashinari-ku, Osaka, Japan
+81-6-4967-1221
Ikuo Shimomura, Director, Corporate General Manager
THE PACK CORPORATION
(9-3 Higashiobase 2-chome,Higashinari-ku, Osaka, Japan)
Tokyo Stock Exchange
(2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan)
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Part 1. Corporate information
1. Corporate overview
1. Trends in major management indicators
Term | Interim period of the | |
72nd term | ||
Fiscal period | January 1 - | |
June 30, 2023 | ||
Net sales | (million yen) | 44,878 |
Ordinary profit | (million yen) | 3,147 |
Profit attributable to owners of | (million yen) | 2,133 |
parent | ||
Comprehensive income (loss) | (million yen) | 2,942 |
Net assets | (million yen) | 67,705 |
Total assets | (million yen) | 93,831 |
Basic earnings per share | (yen) | 112.16 |
Diluted earnings per share | (yen) | 112.08 |
Capital adequacy ratio | (%) | 72.1 |
Cash flow from (used in) | (million yen) | 5,066 |
operating activities | ||
Cash flow from (used in) | (million yen) | (5,413) |
investment activities | ||
Cash flow from (used in) | (million yen) | (703) |
financing activities | ||
Ending balance of cash and cash | (million yen) | 17,719 |
equivalents | ||
Interim period of the
73rd term
January 1 -
June 30, 2024
46,617
3,662
2,999
3,002
72,952
98,723
157.69
157.60
73.9
6,301
(97)
(2,084)
22,210
72nd term
January 1, 2023 - December 31, 2023
97,714
8,063
5,652
7,059
71,156
98,847
297.07
296.86
71.9
4,443
(3,962)
(1,407)
17,812
Note: Trends in key management indicators for the reporting company are not provided because the Company prepares semi-annual consolidated financial statements.
2. Lines of business
No material changes occurred in the lines of business pursued by the Group (i.e., the Company and its affiliates) during the semi-annual consolidated accounting period under review.
No changes affecting major affiliates emerged.
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2. Business overview
-
Business and other risks
During the semi-annual consolidated accounting period under review, no new business or other risks were incurred. Additionally, no material changes arose with respect to the business and other risks presented in the Securities Report for the preceding fiscal year. - Management analysis of financial standing, business results, and cash flow
Forward-looking statements in the text below are based on judgments made as of the end of the semi-annual consolidated accounting period under review. - Business performance
In the semi-annual period under review, Japan's economy appeared set to depart from deflationary patterns due to progress in passing on higher costs to buyers, supported by robust capital investments, strong spending by foreign visitors, and an overall recovery in consumption attributable to rising wages and fiscal policies. Nevertheless, due to soaring energy costs, the rising cost of imported goods driven by yen devaluation, and an extended period during which prices outstripped wage growth, households became more cautious about spending. Prospects for the economy remain uncertain.
In the United States, an environment supporting consumer spending continued, including strong consumer finances due to positive employment and income conditions, and high stock prices and yields. Thus, the US economy remained firm on the back of strong consumer spending.
In China, the slump in the real estate market continued. Despite the presentation of economic stimulus policies to halt the vicious cycle, consumer spending remained sluggish against a backdrop of discouraging employment and income conditions and declining consumer confidence.
Under these circumstances, the Group adopted "Evolution-Start of purpose-based management and Sustainable Management-" as the slogan for our Medium-Term Management Plan. This plan seeks to achieve consolidated net sales of 107,000 million yen and operating income of 8,300 million yen for the fiscal year ending December 31, 2025. Toward this goal, group companies worked as a team to increase earnings in various ways, including by venturing into new markets, making significant capital expenditures, and improving quality management.
Due to these efforts, during the semi-annual period under review, net sales grew 3.9% to 46,617 million yen; operating profit grew 18.4% to 3,525 million yen; ordinary profit grew 16.3% to 3,662 million yen; and profit attributable to owners of parent grew 40.6% to 2,999 million yen.
The business performance for each segment is reviewed below. - Paper Products
The paper products segment accounted for 71.5% of consolidated net sales for the semi-annual period under review. Thanks in part to a gradual recovery in consumer spending and booming tourism demand, including inbound tourism, sales of paper bags, which accounted for 30.6% of consolidated sales, grew 9.9% year on year to 14,279 million yen.
Sales of paper cartons, which accounted for 26.0% of consolidated sales, grew 7.6% to 12,120 million yen. Contributing factors included strong sales to the market for souvenirs, chiefly in cartons for food products, as well as sales of cartons for takeout/delivery food products.
Despite robust sales to the manufacturing sector, following on from last year, sales of corrugated boxes, which accounted for 12.7% of consolidated sales, fell by 6.6% to 5,926 million yen due to revised package specifications for the e-commerce sector. - 6 -
- Paper Products
- Business performance
Printing sales, which accounted for 2.2% of consolidated sales, fell 12.3% to 995 million yen due to reduced hours of production as facilities were upgraded or replaced.
Overall, sales in this segment grew 5.0% to 33,322 million yen. Operating profit rose 16.5% year on year to 3,164 million yen.
-
Film Packaging
The film packaging segment accounted for 13.6% of consolidated sales for the semi-annual period under review. Segment sales were down 4.6% year on year to 6,347 million yen due to lower sales of products in mail order and to specialty retail stores with the migration from film to paper packaging.
Improvements in production efficiency helped soften this decline. Operating profit was up 39.7% to 403 million yen. - Other Businesses
Other businesses accounted for 14.9% of consolidated sales for the semi-annual period under review. Strong sales of sewn products and non-woven bags to specialty retail stores helped boost sales in this segment by 7.1% to 6,947 million yen. Operating profit rose 7.0% to 519 million yen.
-
Film Packaging
- Analysis of Financial Position
Total assets at the end of the semi-annual period under review were 98,723 million yen, down 124 million yen from the end of the previous fiscal year. Major factors included a decline of 5,569 million yen in notes and accounts receivable-trade, offset by increases of 3,898 million yen in cash and deposits and 888 million yen in machinery, equipment, and vehicles.
Liabilities fell 1,919 million yen to 25,771 million yen. The primary factors were declines of 2,190 million yen in notes and accounts payable-trade and 589 million yen in electronically recorded obligations-operating.
Net assets grew by 1,795 million yen to 72,952 million yen. Key factors included an increase of 2,083 million yen in retained earnings, offset by a decline of 364 million yen in valuation differences on available-for-sale securities. - Cash flow
The balance of cash and cash equivalents at the end of the semi-annual period under review was up 25.3%, or 4,491 million yen year on year, to 22,210 million yen.
(Cash flow from operating activities)
Cash flow from operating activities in the semi-annual period under review stood at 6,301 million yen (compared to cash flow of 5,066 million yen in the preceding semi-annual period). Factors contributing to this figure include the recording of 4,381 million yen in profit before income taxes, a decrease of 5,703 million yen in notes and accounts receivable-trade, and depreciation of 1,006 million yen. These factors more than offset the decrease of 2,846 million yen in notes and accounts payable-trade and increase of 444 million yen in inventories.
(Cash flow used in investment activities)
Cash flow used in investment activities in the semi-annual period under review stood at 97 million yen (compared to cash flow used of 5,413 million yen in the preceding semi-annual period). This figure reflects various factors, including 3,500 million yen used in purchase of securities, 1,958 million yen used in purchase of property, plant, and equipment, and 635 million yen used in purchase of intangible assets, despite 5,600 million yen in proceeds from sales of securities.
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(Cash flow used in financing activities)
Cash flow used in financing activities in the semi-annual period under review stood at 2,084 million yen (compared to net cash used of 703 million yen in the preceding semi-annual period). This figure reflects various factors, including cash dividends paid of 1,046 million yen, an increase of 668 million yen in deposits for purchase of treasury shares, and purchase of treasury shares of 334 million yen.
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Management policies, management strategies, etc.
No material changes occurred in the Group's established management policies, management strategies, or other plans during the semi-annual consolidated accounting period under review. - Major business and financial issues
No material changes arose with regard to major business or financial issues during the semi-annual consolidated accounting period under review. - Research and development activities
Total research and development costs recorded during the semi-annual consolidated accounting period under review amounted to 243 million yen.
3. Major business contracts, etc.
No major business contracts, etc. were concluded and no associated decisions were made during the semi-annual consolidated accounting period under review.
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3. Information on filing company
1. Information on stock, etc.
- Total number of shares, etc.
- Total number of shares
Class | Total number of authorized shares |
Common stock | 77,000,000 |
Total | 77,000,000 |
(ii) Shares issued and outstanding
Current number of shares | Name of exchange on | |||
Current number of shares | which shares are listed or | |||
issued as of the end of | issued as of the filing | financial instruments | ||
Class | the semi-annual | trading industry | Details | |
date | ||||
accounting period | association with which | |||
(August 9, 2024) | ||||
(June 30, 2024) | shares are registered and | |||
authorized | ||||
Common | 19,900,000 | 19,900,000 | Tokyo Stock Exchange | One trading unit consists |
stock | Prime Market | of 100 shares. | ||
Total | 19,900,000 | 19,900,000 | - | - |
- Information on stock acquisition rights, etc.
- Stock option plan details Not applicable
- Information on other stock acquisition rights, etc. Not applicable
- Information on exercise of bonds with stock acquisition rights and strike price adjustment terms, etc. Not applicable
- Trends in total shares issued and outstanding, capital, etc.
Increase | Balance of total | Increase | Balance of | Increase | Balance of | |
(decrease) in total | ||||||
Date | shares issued and | (decrease) in | (decrease) in | |||
shares issued and | capital | capital reserve | ||||
outstanding | outstanding | capital | (million yen) | capital reserve | (million yen) | |
(thousand shares) | (million yen) | (million yen) | ||||
(thousand shares) | ||||||
January 1 - | - | 19,900 | - | 2,553 | - | 2,643 |
June 30, 2024 | ||||||
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(5) | Major shareholders | |||
As of June 30, 2024 | ||||
Percentage of total | ||||
shares issued and | ||||
Name | Address | Shares owned | outstanding | |
(thousand) | (not including treasury | |||
stock) | ||||
(%) | ||||
Morita Kinen Fukushizaidan | 1984-40 Nakatomigaoka 2-chome, Nara, Nara | 2,081 | 10.98 | |
Prefecture | ||||
The Master Trust Bank of Japan, Ltd. | Akasaka Intercity AIR, 8-1 Akasaka 1-chome, | 1,348 | 7.11 | |
(Trust Account) | Minato-ku, Tokyo | |||
The Pack Trading Partners Stock | 9-9 Higashiobase 2-chome,Higashinari-ku, | 1,256 | 6.63 | |
Ownership Plan | Osaka, Japan | |||
BBH for Fidelity Low-Priced Stock Fund | 245 Summer Street, Boston, Massachusetts | |||
(Principal All Sector Subportfolio) | 02210, USA | 1,052 | 5.55 | |
(7-1 Marunouchi 2-chome,Chiyoda-ku, | ||||
(Standing proxy: MUFG Bank, Ltd.) | ||||
Tokyo, Japan) | ||||
Custody Bank of Japan, Ltd. | 8-12 Harumi 1-chome,Chuo-ku, Tokyo, Japan | 975 | 5.14 | |
(Trust Account) | ||||
Custody Bank of Japan, Ltd. | 8-12 Harumi 1-chome,Chuo-ku, Tokyo, Japan | 876 | 4.62 | |
(Trust Account 4) | ||||
Custody Bank of Japan, Ltd. | ||||
(re-entrusted to Resona Bank; Hokuetsu | 8-12 Harumi 1-chome,Chuo-ku, Tokyo, Japan | 706 | 3.73 | |
Corporation retirement benefits trust | ||||
account) | ||||
Daio Paper Corporation | 60 Mishimakamiyacho 2-chome, | 573 | 3.02 | |
Shikokuchuo, Ehime Prefecture, Japan | ||||
MUFG Bank, Ltd. | 7-1 Marunouchi 2-chome,Chiyoda-ku, | 494 | 2.61 | |
Tokyo, Japan | ||||
Shichijo Paper Trading Co., Ltd. | 20-10 Nihonbashi 2-chome,Chuo-ku, Tokyo, | 474 | 2.50 | |
Japan | ||||
Total | - | 9,840 | 51.90 | |
Note: | In addition to the above, the Company holds 938,000 shares of treasury stock. |
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