Yondoshi Holdings, Inc.TSE: 8008

CONSOLIDATED FINANCIAL REPORT（Japanese GAAP） FIRST HALF (INTERIM PERIOD) OF THE FISCAL YEAR ENDING FEBRUARY 28, 2025 (March 1, 2024 to August 31, 2024)

Oct 11, 2024 at 6:10 AM UTC · Issued by Yondoshi Holdings, Inc.

CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）

FIRST HALF (INTERIM PERIOD) OF THE FISCAL YEAR ENDING

FEBRUARY 28, 2025

(March 1, 2024 to August 31, 2024)

October 11, 2024

YONDOSHI HOLDINGS INC. is listed on the Prime Market of the Tokyo Stock Exchange under the securities code number 8008.

Representative:	Hidetoshi Masuda, President and Representative Director
Inquiries:	Masahiko Nishimura, Managing Director, Managing Executive Officer

representative for Operations Tel: +81-3-5719-3295 URL: https:// yondoshi.co.jp/

Semi-annual Securities Report filing date (planned): October 15, 2024

Supplemental materials prepared for quarterly financial results: Yes

Holding of quarterly financial results meeting: Yes (for analysts and institutional investors)

Dividend payment commencement date (planned): November 8, 2024

(Millions of yen rounded down)

1. Consolidated Operating Results for the First Half of Fiscal 2024

(March 1, 2024 to August 31, 2024)

Consolidated Operating Results (Cumulative)

(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)

		Net sales		Operating Income	Ordinary Income		Profit attributable to
				owners of parent

		Millions of yen	％	Millions of yen	％	Millions of yen	％		Millions of yen	％
FY2024 First Half		19,460	1.8	835	(21.9)	1,048	(18.4)	671	(3.5)
FY2023 First Half		19,110	3.2	1,069	65.7	1,284	56.2	696	35.7

Note: Comprehensive income	FY2024 First Half: 758 million yen (-40.3%)	FY2023 First Half: 1,269 million yen (－%)
		Net Income	Net Income per
		per Share		Share after Dilution
			Yen		Yen
FY2024 First Half			31.32		-
FY2023 First Half			32.49		-

(Reference) Operating income before the amortization of goodwill:

FY 2024 First Half: ¥1,083 million FY 2023 First Half: ¥1,317 million

The Company considers operating income before the amortization of goodwill to be an important management indicator.

Consolidated Financial Position

	Total Assets	Net Assets	Net Assets to Total	Net Assets per Share
	Assets

	Millions of yen	Millions of yen	%	Yen
August 31, 2024	50,624		38,493	76.0	1,792.27
February 29, 2024	50,643		38,596	76.2	1,798.49

(Reference)Shareholders' equity:	August 31, 2024: 38,473 million yen	February 29, 2024: 38,577 million yen

2.	Dividends
				Dividends per Share
(Record Date)	End of 1Q	End of 2Q	End of 3Q	Year-end	Annual
		Yen	Yen	Yen	Yen	Yen
Fiscal 2023	-	41.50	-	41.50	83.00
Fiscal 2024	-	41.50
Fiscal 2024			-	41.50	83.00
(Forecast)

Note: Revision to the most recently announced cash dividend forecast: No

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3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2025

(March 1, 2024 to February 28, 2025)

			(% figures for the full fiscal	year represent year-on-year	increase or decrease)
	Net Sales		Operating Income	Ordinary Income	Profit attributable to	Net Income
		owners of parent	per Share

	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Fiscal year
ending	41,000	3.9	2,350	12.1	2,800	11.3	1,600	23.0	74.57
February 28,

2025

Note: Revision to the most recently announced operating results forecast: No (Reference) EPS before the amortization of goodwill in FY 2024 is ¥97.71.

Notes

Changes in Important Subsidiaries during the Period: No
Application of Special Accounting Practices in the Preparation of the Semi-annual Consolidated Financial Statements: Yes
Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1. Changes of accounting principles in line with revisions to accounting and other standards: No
2. Changes of accounting principles other than 1) above: No
3. Changes in accounting estimates: No
4. Retrospective restatement: No
Number of Shares Issued and Outstanding (Common Stock)

1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:

August 31, 2024: 24,331,356 shares

Feb. 29, 2024: 24,331,356 shares

2. Total number of treasury stock as of the period-end:

August 31, 2024: 2,865,282 shares

Feb. 29, 2024: 2,881,696 shares

3. Average number of shares for the period (Interim period)

FY2024 First Half: 21,457,046 shares

FY2023 First Half: 21,443,223 shares

Note: The number of recorded treasury stock includes 121,668 of the Company' shares held by the Shares Grant Trust for Officers as of the end of the second quarter of the subject consolidated fiscal year.

The financial statement summary is not subject to auditing by certified public accountants or audit firms.

Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items

The forecasts of operating results and other items concerning the future contained in this document are based on management's assumptions and beliefs that are determined to be reasonable in light of currently available information, YONDOSHI HOLDINGS INC. cautions readers that due to a variety of factors actual results may differ materially from forecasts. For the underlying assumptions regarding results forecasts as well as cautionary notes on the use of results forecasts, see: First Half (Interim Period) Financial Results (Attachment) Page 5, "1. Qualitative Information on Semi-annual Results (3) Explanation of Consolidated Results Forecasts and Other Future Predictions".
The Company plans to hold a financial results briefing on October 11, 2024 (Friday) for institutional investors and analysts. Presentation materials used that day will be posted to the Company's website promptly after the briefing.

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Contents
1. Qualitative Information on Semi-annual Results	4
(1)	Explanation of Business Results	4
(2)	Explanation of Financial Condition	4
(3)	Explanation of Consolidated Results Forecasts and Other Future Predictions	5
2. Semi-annual Consolidated Financial Statements and Notes	6
(1)	Semi-annual Consolidated Balance Sheets	6
(2)	Semi-annual Consolidated Statements of Income and Semi-annual Consolidated	8
	Statements of Comprehensive Income
	Semi-annual Consolidated Statements of Income	8
	Semi-annual Consolidated Statements of Comprehensive Income	9
(3)	Semi-annual Consolidated Statements of Cash Flows	10
(4)	Notes to Semi-annual Consolidated Financial Statements	12
	(Notes Regarding Going Concern Assumptions)	12
	(Notes Regarding Substantial Changes in Shareholders' Equity)	12
	(Application of Special Accounting Treatment in the Preparation of the Consolidated	12
	Financial Statements)
	(Changes in Accounting Policies)	12
	(Additional Information)	12
	(Segment Information)	13
	(Matters related to Revenue Recognition)	14
	(Material Subsequent Events)	14

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1. Qualitative Information on Semi-annual Results

(1) Explanation of Business Results

During the second quarter cumulative period (March 1, 2024, to August 31, 2024) of fiscal 2024 (ending February 2025), the Japanese economy trended toward moderate recovery, with improvement in corporate earnings, employment conditions and incomes. Nevertheless, the outlook for the future remains uncertain because of higher raw material costs, rising prices due to the depreciation of the yen, and heightened geopolitical risks.

In the retail sector, spending on high-ticket items remained firm, and demand from inbound tourism expanded. However, wage increases have not kept pace with the rise in commodity prices, and with real wages in decline, consumers continue to focus on saving money and lower prices, leading to more widespread polarization of consumption.

Under such circumstances, during the fiscal year ending February 2025, the initial year of the 7th Medium-Term Management Plan, YONDOSHI HOLDINGS Group, with a basis on responding to the business environment, is focusing on value provided to customers, and implementing various measures to establish a foundation for dynamic future growth. In addition, the Company practiced sustainable management to establish a highly trusted corporate group, and worked to enhance enterprise value by strengthening internal controls, providing shareholder returns, and making medium- to long-term investments linked to earnings growth.

As a result, net sales for the subject second quarter cumulative period amounted to ¥19,460 million (up 1.8% from the same period of the previous fiscal year), with operating income of ¥835 million (down 21.9%), ordinary income of ¥1,048 million (down 18.4%), and profit attributable to owners of parent to ¥671 million (down 3.5%). Operating income before the amortization of goodwill, which the Company considers to be an important management indicator, amounted to ¥1,083 million (down 17.7%).

Operating results by business segment were as follows.

Brand Business

The F.D.C. Products Group, which handles the Brand Business, is working to strengthen its foundation by revising product and sales promotion strategies to expand support among female customers. Despite a temporary increase in up-front expenses for merchandising reforms to expand product ranges by taste and the implementation of brand promotions, sales to female customers continued to expand.

As a result, net sales in the Brand Business segment amounted to ¥7,168 million (down 8.9% from the same period of the previous fiscal year), with operating income of ¥382 million (down 28.2%), for declines in both revenue and earnings.

Apparel Business

Retailer age Co., Ltd., operator of the everyday fashion brand PALETTE, recorded an increase in sales on the opening of seven new stores, which was more than planned, and growth at existing locations.

Apparel manufacturing and wholesaler The AS'TY Group expanded measures with major business partners, leading to positive performance in both revenue and earnings.

As a result, net sales in the Apparel Business segment amounted to ¥12,291 million (up 9.4% from the same period of the previous fiscal year), with operating income of ¥705 million (down 9.3%), for a revenue gain with earnings decline.

Explanation of Financial Condition Assets, Liabilities and Net Assets
Total assets at the end of the subject second quarter cumulative period (August 31, 2024) amounted to ¥50,624 million, a decrease of ¥18 million from the end of the previous fiscal year (February 29, 2024). This was due mainly to decreases of ¥360 million in merchandise and finished goods, and ¥248 million in goodwill, against an increase of ¥916 million in cash and deposits. Total liabilities amounted to ¥12,131 million, an increase of ¥83 million from the end of the previous fiscal year, due mainly to an increase of ¥243 million in income taxes payable, against a decrease of ¥84 million in asset retirement obligations. Total net assets at the end of the subject period amounted to ¥38,493 million, a decrease of ¥102 million from the end of the previous fiscal year, due mainly to a decrease of ¥223 million in retained earnings, against an increase of ¥149 million in valuation difference on available-for-sale securities.

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Cash Flows

Cash and cash equivalents at the end of the subject second quarter cumulative period amounted to ¥2,482 million, an increase of ¥469 million from the end of the previous fiscal year (February 29, 2024).

(Cash Flows from Operating Activities)

Net cash provided by operating activities amounted to ¥1,958 million, an increase of ¥601 million from the same period of the previous fiscal year. This was due mainly to a decrease in income taxes paid.

(Cash Flows from Investing Activities)

Net cash used in investing activities amounted to ¥156 million, an increase of ¥2,183 million from the same period of the previous fiscal year. This was due mainly to a decrease in purchase of investment securities, and proceeds from sale of investment securities.

(Cash Flows from Financing Activities)

Net cash used in financing activities amounted to ¥890 million, a decrease of ¥2,087 million from the same period of the previous fiscal year. This was due mainly to a decrease in short-term borrowings.

(3) Explanation of Consolidated Results Forecasts and Other Future Predictions

Consolidated results forecasts for fiscal 2024 are unchanged from those announced on April 12, 2024.

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2. Semi-annual Consolidated Financial Statements and Notes

Semi-annualConsolidated Balance Sheets

			(Millions of yen)
		End of the Fiscal Year Ended	End of the Second Quarter of
		February 29, 2024	the Fiscal Year Ending
		(As of February 29, 2024)	February 28, 2025
			(As of August 31, 2024)
ASSETS
Current assets:
Cash and deposits	1,579	2,496
Notes and accounts receivable ― trade	2,905	3,007
Merchandise and finished goods	8,080	7,720
Work in process	108	92
Raw materials and supplies	430	385
Other current assets	842	397
Allowance for doubtful accounts		(5)	(4)
Total current assets		13,941	14,095
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net	4,027	3,944
Land	5,839	5,839
Other, net		449	401
Total property, plant and equipment		10,316	10,185
Intangible assets:
Goodwill	1,241	993
Other intangible assets		483	462
Total intangible assets		1,724	1,455
Investments and other assets:
Investment securities	20,530	20,653
Net defined benefit asset	443	460
Other	3,733	3,820
Allowance for doubtful accounts		(47)	(47)
Total investments and other assets		24,660	24,887
Total noncurrent assets		36,701	36,528
Total assets		50,643	50,624

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５．（要約）四半期連結財務諸表(Millions of yen)

	End of the Fiscal Year Ended	End of the Second Quarter of
	February 29, 2024	the Fiscal Year Ending
	(As of February 29, 2024)	February 28, 2025
		(As of August 31, 2024)
LIABILITIES
Current liabilities:
Notes and accounts payable ― trade	2,369	2,099
Electronically recorded obligations - operating	699	896
Income taxes payable	252	495
Provision for bonuses	271	180
Provision for directors' bonuses	48	30
Asset retirement obligations	86	2
Other	1,878	2,012
Total current liabilities	5,605	5,718
Noncurrent liabilities:
Provision for share-based remuneration for directors (and	243	253
other officers)
Retirement benefit liability	494	470
Asset retirement obligations	979	944
Other	4,724	4,743
Total noncurrent liabilities	6,441	6,412
Total liabilities	12,047	12,131
NET ASSETS
Shareholders' equity:
Capital stock	2,486	2,486
Capital surplus	7,178	7,178
Retained earnings	30,567	30,344
Treasury stock	(6,123)	(6,090)
Total shareholders' equity	34,109	33,918
Other accumulated comprehensive income:

Valuation difference on available-for-sale securities Deferred gains or losses on hedges

Revaluation reserve for land Remeasurements of defined benefit plans Total other accumulated comprehensive income

Subscription rights to shares

Total net assets

Total liabilities and net assets

4,857	5,007
8	(63)
(233)	(233)
(165)	(155)
4,467	4,554
18	20
38,596	38,493
50,643	50,624

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Semi-annualConsolidated Statements of Income and Semi-annual Consolidated Statements of Comprehensive Income
Semi-annual Consolidated Statements of Income

			(Millions of yen)
		Previous Interim Consolidated	Subject Interim Consolidated
		Accounting Period	Accounting Period
		(March 1, 2023 to	(March 1, 2024 to
		August 31, 2023)	August 31, 2024)
Net sales	19,110	19,460
Cost of Sales	9,737	10,203
Gross profit	9,373	9,256
Selling, general and administrative expenses	8,303	8,421
Operating income	1,069	835
Non-operating income
Interest income	72	71
Dividends received	113	126
Foreign exchange gains	9	7
Other	22	16
Total non-operating income	217	222
Non-operating expenses
Interest expenses	0	0
Commission expenses	―	7
Loss on cancellation of insurance policies	0	―
Other	0	1
Total non-operating expenses	1	8
Ordinary income	1,284	1,048
Extraordinary income
Gain on sales of investment securities	―	340
Total extraordinary income	―	340
Extraordinary loss
Impairment loss	59	93
Loss on closing of stores	23	4
Building demolition expenses	―	177
Total extraordinary losses	83	276
Net income before income taxes	1,200	1,112
Total income taxes	504	440
Net income	696	671
Profit attributable to owners of parent		696	671

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Semi-annual Consolidated Statements of Comprehensive Income

		(Millions of yen)
	Previous Interim Consolidated	Subject Interim Consolidated
	Accounting Period	Accounting Period
	(March 1, 2023 to	(March 1, 2024 to
	August 31, 2023)	August 31, 2024)
Income before minority interests	696	671
Other comprehensive income
Other valuation difference on available-for-sale securities	523	149
Deferred gains or losses on hedges	44	(72)
Foreign currency translation adjustments	(2)	―
Remeasurements of defined benefit plans, net of tax	8	10
Total other comprehensive income	572	86
Comprehensive income	1,269	758
Comprehensive income attributable to
Comprehensive income attributable to owners of the	1,269	758
parent

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(3) Semi-annual Consolidated Statements of Cash Flows

(Millions of yen)

Previous Interim Consolidated

Accounting Period

(March 1, 2023 to

August 31, 2023)

Subject Interim Consolidated

Accounting Period

(March 1, 2024 to

August 31, 2024)

Cash flows from operating activities:
Income before income taxes	1,200	1,112
Depreciation	342	323
Impairment loss	59	93
Amortization of goodwill	248	248
Increase (decrease) in allowance for doubtful accounts	0	(1)
Increase (decrease) in provision for bonuses	(56)	(90)
Increase (decrease) in net defined benefit liability	(10)	(24)
Increase (decrease) in other provision	26	(7)
Interest and dividends income	(185)	(197)
Interest expenses	0	0
Foreign exchange losses (gains)	(0)	0
Loss (gain) on sales of investment securities	―	(340)
Decrease (increase) in notes and accounts receivable	37	(102)
― trade

Decrease (increase) in inventories	289	421
Increase (decrease) in notes and accounts payable ―	42	(71)
trade

Increase (decrease) in accounts payable ― other	(35)	(80)
Increase (decrease) in accrued consumption taxes	7	112
Increase (decrease) in advances received	(116)	6
Decrease (increase) in other assets	209	219
Increase (decrease) in other liabilities	(97)	70
Subtotal	1,963	1,693
Interest and dividends income received	182	200
Interest expenses paid	(0)	(0)
Income taxes paid	(913)	(253)
Income taxes refund	125	317
Net cash provided by (used in) operating activities	1,356	1,958

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