Consolidated Financial Results
for the Fiscal Year Ended September 30, 2021
[Japanese GAAP]
November 12, 2021 | ||||
Company name: | Shinnihonseiyaku Co., Ltd. | Stock exchange listing: | Tokyo Stock Exchange | |
Code number: | 4931 | URL: | https://corporate.shinnihonseiyaku.co.jp | |
Representative | Takahiro Goto, President & Representative Director and Chief Executive Officer | |||
Contact: | Kazuhiro Tagami, Director of the Board | (TEL) +81-92-720-5800 |
Scheduled date of ordinary general meeting of shareholders | December 22, 2021 |
Scheduled date of commencing dividend payments: | December 23, 2021 |
Scheduled date of filing the securities report | December 23, 2021 |
Availability of supplementary briefing material on financial results | Yes |
Schedule of financial results briefing session | Yes (For institutional investors and analysts) |
(Amounts less than 1 million yen are rounded down.) |
1. Consolidated Financial Results for the Fiscal Year Ended September 30, 2021 (October 1, 2020 to September 30, 2021)
(1) Consolidated Operating Results
(% indicates changes from the previous fiscal year.)
Net Sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | |||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
Fiscal year ended | 33,899 | - | 3,424 | - | 3,414 | - | 2,317 | - | |||
September 30, 2021 | |||||||||||
Fiscal year ended | - | - | - | - | - | - | - | - | |||
September 30, 2020 | |||||||||||
(Note) Comprehensive income | Fiscal year ended September 30, 2021 |
Fiscal year ended September 30, 2020 |
2,317 million yen (- %)
- million yen (- %)
Basic earnings per | Diluted earnings per | Return on equity | Ordinary profit to | Operating profit | |
share | share | total assets ratio | margin | ||
Yen | Yen | ％ | ％ | ％ | |
Fiscal year ended | 107.45 | 106.43 | 14.5 | 14.7 | 10.1 |
September 30, 2021 | |||||
Fiscal year ended | - | - | - | - | - |
September 30, 2020 | |||||
(Reference) Share of profit (loss) of entities accounted for using equity method:
Fiscal year ended September 30, 2021 - million yen Fiscal year ended September 30, 2020 - million yen
(Note) As the Company began preparing consolidated financial statements in the fiscal year ended September 30, 2021, the figures for the previous fiscal year or percentage changes between the fiscal year ended September 30, 2021 and the previous fiscal year are not presented. Return on equity and the ordinary profit rate to total assets for the fiscal year ended September 30, 2021 were calculated on the basis of the year-end equity and total assets respectively since the fiscal year ended September 30, 2021 is the first fiscal year that consolidated financial statements were prepared for.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | Net assets per share | ||
Million yen | Million yen | % | yen | ||
As of September 30, 2021 | 23,197 | 16,174 | 68.9 | 747.07 | |
As of September 30, 2020 | - | - | - | - | |
(Reference) Equity: As of September 30, 2021 | 15,990 million yen | ||||
As of September 30, 2020 | - million yen |
(Note) As the Company began preparing consolidated financial statements in the fiscal year ended September 30, 2021, the figures for the fiscal year ended September 30, 2020 are not presented.
(3) Status of Cash Flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |
operating activities | investing activities | financing activities | at the end of the period | |
Million yen | Million yen | Million yen | Million yen | |
Fiscal year ended | 2,071 | (1,359) | 672 | 13,652 |
September 30, 2021 | ||||
Fiscal year ended | - | - | - | - |
September 30, 2020 | ||||
(Note) As the Company began preparing consolidated financial statements in the fiscal year ended September 30, 2021, the figures for the fiscal year ended September 30, 2020 are not presented.
2. | Dividends | ||||||||||
Annual dividends | Dividend | Dividends to | |||||||||
Total amount | net assets | ||||||||||
1st quarter- | 2nd quarter- | 3rd quarter- | payout ratio | ||||||||
Year-end | Total | of dividends | ratio | ||||||||
end | end | end | (consolidated) | ||||||||
(consolidated) | |||||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | ||||
Fiscal year ended | - | 0.00 | - | 30.00 | 30.00 | 642 | - | - | |||
September 30, 2020 | |||||||||||
Fiscal year ended | - | 0.00 | - | 32.50 | 32.50 | 695 | 30.2 | 4.4 | |||
September 30, 2021 | |||||||||||
Fiscal year ending | - | - | |||||||||
September 30, 2022 | 0.00 | 30.00 | 30.00 | 31.1 | |||||||
(Forecast) |
(Note) As the Company began preparing consolidated financial statements in the fiscal year ended September 30, 2021, the dividend payout ratio (consolidated) and dividend to net assets ratio (consolidated) for the previous fiscal year are not presented. The dividend to net assets ratio (consolidated) for the fiscal year ended September 30, 2021 was calculated based on year-end netassets per share (consolidated) since the fiscal year ended September 30, 2021 is the first fiscal year that consolidated financial statements were prepared for.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending September 30, 2022 (October 1, 2021 to September 30, 2022)
(% indicates changes from the previous fiscal year.)
Net Sales | Operating profit | Ordinary profit | Profit attributable | Basic earnings | ||||||
to owners of parent | per share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 37,000 | - | 3,095 | - | 3,020 | - | 2,067 | - | 96.60 |
(Note) As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) and other standards have been applied since the beginning of the fiscal year ending September 30, 2022, the financial result forecast reflects figures based on the above standards. Accordingly, percentage changes presenting the year-on-year increase (decrease) from financial results prior to the application of the standards are not presented.
- Notes
- Significant changes to subsidiaries during the period (transfers of specific subsidiaries with changes in the
scope of consolidation) | Yes |
New company: One (Company Name) | Flatcraft, Inc. |
(Former Flatcraft Preparatory, Inc.) | |
Excluded - company (Company name) - |
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) | Changes in accounting policies due to the revision of accounting standards: | No | |||
2) | Changes in accounting policies other than 1) above: | No | |||
3) | Changes in accounting estimates: | No | |||
4) | Retrospective restatement: | No | |||
(3) Total number of shares issued (common stock) | |||||
1) | Total number of shares issued at the end of | As of September | 21,855,200 shares | As of September | 21,611,300 shares |
the period (including treasury shares) | 30, 2021 | 30, 2020 | |||
2) | Total number of treasury shares at the end | As of September | 451,385 shares | As of September | 190,140 shares |
of the period | 30, 2021 | 30, 2020 | |||
3) | Average number of shares during the | Fiscal year ended | 21,571,578 shares | Fiscal year ended | 21,546,178 shares |
period | September 30, 2021 | September 30, 2020 |
- These financial results are outside the scope of audit by certified public accountants or auditing firms.
-
Explanation on the proper use of financial results forecast and other notes
Financial results forecasts and other forward-looking statements herein are based on currently available information and certain assumptions that the Company deems as reasonable and are not intended to represent promises by the Company to achieve them. Actual results may vary significantly depending on various factors. Please refer to "1. Overview of Operating Results, etc. (4) Future Prospects" on page 3 of the attached material for the conditions that form the basis of the financial results forecast and precautions for using the financial results forecast.
(How to obtain the Supplementary Briefing Material and the contents of the financial results briefing)
The Company plans to deliver an online financial results briefing for institutional investors and analysts on Wednesday, November 12, 2021. The supplementary briefing material used in this briefing is disclosed today on TDnet as well as posted on the Company's website.
Table of Contents | ||
1. Overview of Operating Results, etc. ........................................................................................................................... | 2 | |
(1) | Overview of Operating Results for the Fiscal Year Under Review ...................................................................... | 2 |
(2) | Overview of Financial Position for the Fiscal Year Under Review ...................................................................... | 2 |
(3) | Overview of Cash Flows for the Fiscal Year Under Review ................................................................................ | 2 |
(4) | Future Prospects ................................................................................................................................................... | 3 |
2. Basic Policy Regarding Selection of Accounting Standards....................................................................................... | 3 | |
3. Consolidated Financial Statements and Primary Notes .............................................................................................. | 4 | |
(1) | Consolidated Balance Sheet ................................................................................................................................. | 4 |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .............................. | 6 |
(3) | Consolidated Statement of Changes in Equity...................................................................................................... | 8 |
(4) | Consolidated Statement of Cash Flows ................................................................................................................ | 9 |
(5) | Notes to the Consolidated Financial Statements................................................................................................. | 10 |
(Notes on going concern assumption)....................................................................................................................... | 10 | |
(Notes when there was a substantial change in the amount of shareholders' equity)................................................ | 10 | |
(Segment Information, etc.) ...................................................................................................................................... | 10 | |
(Additional information)........................................................................................................................................... | 10 | |
(Per Share Information) ............................................................................................................................................ | 11 | |
(Significant subsequent events) ................................................................................................................................ | 11 |
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1. Overview of Operating Results, etc.
-
Overview of Operating Results for the Fiscal Year Under Review
During the consolidated fiscal year ended September 30, 2021, the Japanese economy continued to face tough conditions due to the declaration of a state of emergency and the issuance of semi-emergency measures as COVID- 19 spread broadly. Although a moderate recovery is expected to start primarily due to progress in vaccinations, there is no prospect for the end of the pandemic, and the outlook for the economic conditions in Japan and overseas is projected to remain uncertain.
Under such a market environment, during the consolidated fiscal year under review, we attempted to expand existing business by deploying new products and new brands and broaden new business areas through M&A.
In the Mail Order segment, up-selling of PERFECT ONE Wrinkle Stretch Gel to existing customers continued to be strong throughout the fiscal year thanks to aggressive product proposals by call center communicators, and simultaneously, cross-selling of seasonal products, mainly UV care products, remained firm. Domestic EC sales expanded steadily as a result of the airing of brand commercials featuring Kento Nakajima as the endorser, the implementation of sales promotional measures linked with social media, and the strengthening of digital marketing that made better use of apps and social media.
In the Direct Store Sales/Wholesale segment, while the business environment continued to be harsh with the number of people visiting the stores declining, resulting from the pandemic, we engaged in raising brand awareness and acquiring customers through measures including the holding of pop-up events and campaigns exclusive to stores. Further, in September, sales of our products started on a full-scale basis in drugstores, and this allowed us to make progress in developing a new point of contact with customers.
In the Overseas Sales segment, we engaged in business activities while closely monitoring the status of economic activities in each region. Sales at "W11" and "618," which were two major events, exceeded those of the previous year as a result of carrying out marketing that leveraged social media and KOL in China, the main market, in an effort to raise brand awareness.
In the Smart Health Care Business, which we launched on the back of greater health consciousness and awareness of preventing illness (self-defense) resulting from the impact of the pandemic, we worked to expand and reinforce points of contact with customers and raise brand awareness through putting the supplement "BODY AURA" on the market.
We turned Flatcraft, Inc., which handled edible oils, centered on MCT oil, into a subsidiary at the end of June, and thus kick-started our expansion into the wellness food area.
As a result of the foregoing, for the consolidated fiscal year under review, net sales were 33,899 million yen, operating profit was 3,424 million yen, ordinary profit was 3,414 million yen, and profit attributable to owners of parent was 2,317 million yen.
As the Company began preparing consolidated financial statements in the consolidated fiscal year under review, a comparison with the previous year is not presented.
The Group's business segments consist of Mail Order, Direct Store Sales/Wholesale, and Overseas Sales of cosmetics and merchandise related to healthcare. As the ratio of Direct Store Sales/Wholesale and Overseas Sales to overall sales is insignificant, and their materiality as disclosed information is low, a description by business segment has been omitted. - Overview of Financial Position for the Fiscal Year Under Review
Total assets as of the end of the consolidated fiscal year under review were 23,197 million yen. The main components were cash and deposits of 13,652 million yen, accounts receivable-trade of 3,196 million yen, property, plant and equipment of 2,157 million yen, and intangible assets of 1,435 million yen.
Total liabilities as of the end of the consolidated fiscal year under review were 7,023 million yen. The main components were accounts payable-other of 2,108 million yen, long-term borrowings of 1,839 million yen, and income taxes payable of 739 million yen.
Net assets as of the end of the consolidated fiscal year under review were 16,174 million yen. The main components were share capital of 4,158 million yen, capital surplus of 4,150 million yen, and retained earnings of 8,532 million yen. - Overview of Cash Flows for the Fiscal Year Under Review
Cash and cash equivalents as of the end of the consolidated fiscal year under review were 13,652 million yen.
The status of each cash flow at the end of the consolidated fiscal year under review and their factors are as follows. (Cash flows from operating activities)
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