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 Six Months Ended June 30, 2024 (Based on Japanese GAAP)
August 9, 2024 | |||||
Company name: | TEIKOKU SEN-I CO.,Ltd. | ||||
Stock exchange listing: | Tokyo | ||||
Stock code: | 3302 | URL https://www.teisen.co.jp/ | |||
Representative: | Chairman & CEO | Tsuyoshi Shiraiwa | |||
Inquiries: | Vice President | Tatsuru Okamura | TEL 03(3281)3022 | ||
Scheduled date to file Semi-annual Securities Report: | August 13, 2024 | ||||
Scheduled date to commence dividend payments: | - | ||||
Preparation of supplementary material on financial results: | No | ||||
Holding of financial results meeting: | Yes | (for institutional investors and analysts) |
(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024)
(1) Consolidated operating results (cumulative) | Percentages indicate year-on-year changes | ||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||||
owners of parent | |||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||
Six months ended June 30, 2024 | 17,869 | 3.9 | 2,127 | (5.8) | 2,688 | (1.4) | 1,899 | 2.4 | |||||||||
Six months ended June 30, 2023 | 17,196 | 6.0 | 2,259 | (15.1) | 2,725 | (11.2) | 1,855 | (14.1) | |||||||||
Earnings per share | Diluted earnings per share | ||||||||||||||||
Yen | Yen | ||||||||||||||||
Six months ended June 30, 2024 | 72.75 | 72.10 | |||||||||||||||
Six months ended June 30, 2023 | 71.07 | 70.31 | |||||||||||||||
(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 | 79,883 | 65,966 | 82.2 | 2,512.38 | |||||||||||||
As of December 31, 2023 | 79,204 | 64,976 | 81.6 | 2,479.19 | |||||||||||||
2. Cash dividends | |||||||||||||||||
Annual dividends per share | |||||||||||||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Fiscal year-end | Total | |||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||
Year ended December 31, 2023 | - | 0.00 | - | 50.00 | 50.00 | ||||||||||||
Year ending December 31, 2024 | - | 0.00 | |||||||||||||||
Year ending December 31, 2024 (Forecast) | - | 50.00 | 50.00 |
3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Percentages indicate 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 | 34,000 | 21.3 | 3,500 | 35.4 | 4,500 | 26.1 | 3,200 | 30.9 | 122.80 |
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4. Notes | ||
(1) | Significant changes in the scope of consolidation during the six months ended June 30, 2024: | No |
(2) | Application of special accounting methods for preparing interim consolidated financial statements: | No |
(3) | 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: | No | |
Changes in accounting policies due to other reasons: | No | |
Changes in accounting estimates: | No | |
Restatement of prior period financial statements: | No |
(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024 | 27,524,400 | shares | As of December 31, 2023 | 27,444,400 | shares | |
Number of treasury shares at the end of the period | ||||||
As of June 30, 2024 | 1,374,209 | shares | As of December 31, 2023 | 1,385,908 | shares | |
Average number of shares during the period (cumulative from the beginning of the fiscal year) | ||||||
Six months ended June 30, 2024 | 26,115,424 | shares | Six months ended June 30, 2023 | 26,103,137 | shares |
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Interim consolidated financial statements
Consolidated balance sheets
(Thousands of yen) | ||
As of December 31, 2023 | As of June 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 12,998,600 | 14,258,432 |
Notes and accounts receivable - trade, and contract assets | 6,299,418 | 4,882,569 |
Securities | 5,999,975 | 7,999,899 |
Merchandise and finished goods | 6,587,179 | 4,753,003 |
Work in process | 1,254,835 | 1,440,935 |
Raw materials and supplies | 968,733 | 975,558 |
Other | 2,288,650 | 2,444,634 |
Total current assets | 36,397,394 | 36,755,033 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures, net | 7,145,846 | 7,094,233 |
Machinery, equipment and vehicles, net | 685,516 | 593,543 |
Tools, furniture and fixtures, net | 360,604 | 357,308 |
Land | 3,917,154 | 3,917,154 |
Construction in progress | 62,350 | 121,397 |
Total property, plant and equipment | 12,171,472 | 12,083,637 |
Intangible assets | 31,934 | 29,140 |
Investments and other assets | ||
Investment securities | 30,086,834 | 30,492,594 |
Retirement benefit asset | 126,433 | 91,779 |
Deferred tax assets | 124,782 | 174,192 |
Other | 265,532 | 256,683 |
Total investments and other assets | 30,603,582 | 31,015,250 |
Total non-current assets | 42,806,990 | 43,128,028 |
Total assets | 79,204,384 | 79,883,062 |
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(Thousands of yen) | ||
As of December 31, 2023 | As of June 30, 2024 | |
Liabilities | ||
Current liabilities | ||
Accounts payable - trade | 2,932,624 | 1,269,085 |
Current portion of long-term borrowings | - | 22,000 |
Income taxes payable | 214,369 | 880,673 |
Other | 1,329,801 | 1,870,996 |
Total current liabilities | 4,476,796 | 4,042,756 |
Non-current liabilities | ||
Long-term borrowings | - | 78,000 |
Long-term guarantee deposits | 475,775 | 439,769 |
Deferred tax liabilities | 8,285,439 | 8,370,664 |
Retirement benefit liability | 121,949 | 128,899 |
Provision for share awards for directors (and other | 582,052 | 582,052 |
officers) | ||
Asset retirement obligations | 76,471 | 76,474 |
Long-term accounts payable - other | 78,650 | 78,650 |
Other | 130,714 | 119,652 |
Total non-current liabilities | 9,751,052 | 9,874,163 |
Total liabilities | 14,227,848 | 13,916,919 |
Net assets | ||
Shareholders' equity | ||
Share capital | 1,582,867 | 1,635,762 |
Capital surplus | 957,371 | 1,028,587 |
Retained earnings | 44,070,500 | 44,645,298 |
Treasury shares | (1,067,446) | (1,062,870) |
Total shareholders' equity | 45,543,293 | 46,246,777 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 19,012,026 | 19,182,705 |
Deferred gains or losses on hedges | 48,569 | 269,723 |
Total accumulated other comprehensive income | 19,060,595 | 19,452,429 |
Share acquisition rights | 372,646 | 266,936 |
Total net assets | 64,976,535 | 65,966,142 |
Total liabilities and net assets | 79,204,384 | 79,883,062 |
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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)
Consolidated statements of income (cumulative)
(Thousands of yen) | ||
Six months ended | Six months ended | |
June 30, 2023 | June 30, 2024 | |
Net sales | 17,196,483 | 17,869,660 |
Cost of sales | 12,572,932 | 13,340,749 |
Gross profit | 4,623,550 | 4,528,911 |
Selling, general and administrative expenses | 2,364,202 | 2,400,969 |
Operating profit | 2,259,348 | 2,127,942 |
Non-operating income | ||
Interest income | 217 | 1,108 |
Dividend income | 452,643 | 551,712 |
Other | 22,944 | 14,548 |
Total non-operating income | 475,805 | 567,370 |
Non-operating expenses | ||
Interest expenses | 1,392 | 1,289 |
Share of loss of entities accounted for using equity method | 1,108 | 581 |
Foreign exchange losses | 3,853 | 5,126 |
Commission expenses | 2,465 | - |
Other | 508 | 85 |
Total non-operating expenses | 9,329 | 7,083 |
Ordinary profit | 2,725,824 | 2,688,228 |
Extraordinary losses | ||
Loss on disposal of non-current assets | 62,483 | 35 |
Total extraordinary losses | 62,483 | 35 |
Profit before income taxes | 2,663,341 | 2,688,193 |
Income taxes - current | 910,397 | 922,402 |
Income taxes - deferred | (102,325) | (134,035) |
Total income taxes | 808,071 | 788,366 |
Profit | 1,855,269 | 1,899,827 |
Profit attributable to owners of parent | 1,855,269 | 1,899,827 |
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Consolidated statements of comprehensive income (cumulative)
(Thousands of yen) | ||
Six months ended | Six months ended | |
June 30, 2023 | June 30, 2024 | |
Profit | 1,855,269 | 1,899,827 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 2,680,828 | 170,678 |
Deferred gains or losses on hedges | 278,982 | 221,154 |
Total other comprehensive income | 2,959,811 | 391,833 |
Comprehensive income | 4,815,080 | 2,291,660 |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of parent | 4,815,080 | 2,291,660 |
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Consolidated statements of cash flows
(Thousands of yen) | ||
Six months ended | Six months ended | |
June 30, 2023 | June 30, 2024 | |
Cash flows from operating activities | ||
Profit before income taxes | 2,663,341 | 2,688,193 |
Depreciation | 303,474 | 360,789 |
Interest and dividend income | (452,860) | (552,821) |
Interest expenses | 1,392 | 1,289 |
Share of loss (profit) of entities accounted for using equity | 1,108 | 581 |
method | ||
Increase (decrease) in provision for bonuses for directors (and | (5,000) | - |
other officers) | ||
Decrease (increase) in retirement benefit asset | 25,382 | 34,653 |
Increase (decrease) in retirement benefit liability | 7,485 | 6,950 |
Loss (gain) on disposal of non-current assets | 62,483 | 35 |
Decrease (increase) in trade receivables | 1,748,514 | 1,708,420 |
Decrease (increase) in inventories | 1,333,904 | 1,641,251 |
Increase (decrease) in trade payables | (2,304,336) | (1,419,981) |
Increase (decrease) in guarantee deposits received | (30,376) | (35,376) |
Decrease (increase) in other current assets | 375,618 | (79,560) |
Increase (decrease) in other current liabilities | (308,455) | 252,666 |
Other, net | (4,897) | 27,192 |
Subtotal | 3,416,779 | 4,634,283 |
Interest and dividends received | 452,810 | 551,921 |
Interest paid | (1,277) | (2,368) |
Income taxes paid | (723,641) | (277,715) |
Net cash provided by (used in) operating activities | 3,144,672 | 4,906,121 |
Cash flows from investing activities | ||
Payments into time deposits | (1,953,077) | (950,302) |
Proceeds from withdrawal of time deposits | 1,953,077 | 1,953,078 |
Purchase of securities | (5,499,950) | (6,999,797) |
Proceeds from redemption of securities | 5,000,000 | 5,000,000 |
Purchase of property, plant and equipment | (308,499) | (213,673) |
Payments for retirement of property, plant and equipment | (2,750) | (31,469) |
Purchase of intangible assets | (48,448) | (590) |
Purchase of investment securities | (99,399) | (163,416) |
Purchase of long-term prepaid expenses | - | (1,200) |
Net cash provided by (used in) investing activities | (959,046) | (1,407,369) |
Cash flows from financing activities | ||
Proceeds from short-term borrowings | 720,000 | 360,000 |
Repayments of short-term borrowings | (720,000) | (360,000) |
Proceeds from long-term borrowings | - | 100,000 |
Repayments of long-term borrowings | (22,000) | - |
Repayments of lease liabilities | (12,905) | (11,061) |
Proceeds from issuance of shares | - | 80 |
Purchase of treasury shares | (86,948) | (131) |
Dividends paid | (1,318,391) | (1,325,029) |
Net cash provided by (used in) financing activities | (1,440,245) | (1,236,142) |
Net increase (decrease) in cash and cash equivalents | 745,380 | 2,262,608 |
Cash and cash equivalents at beginning of period | 15,169,798 | 12,045,523 |
Cash and cash equivalents at end of period | 15,915,178 | 14,308,132 |
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