Kinjiro : Consolidated Financial Results for the Nine Months Ended September 30,2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended September 30, 2021

[Japanese GAAP]

November 10, 2021

Company name: Kinjiro Co.,Ltd.
Stock exchange listing: Tokyo
Code number: 4013
URL: https://www.kinjiro-e.com
Representative: Minoru Kamura	President
Contact: Shinichi Tanaka	Executive Officer

Phone: [phone]

Scheduled date of filing quarterly securities report: November 10, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended September 30, 2021 (January 01, 2021 to September 30, 2021)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit		Profit attributable to
				owners of parent
Nine months ended	Million yen	%		Million yen	%	Million yen	%		Million yen	%
September 30, 2021		2,475	(4.2)		199	(51.6)	194	(52.4)			129	(50.5)
September 30, 2020		2,585	-		413	-	408	-			261	-
(Note) Comprehensive income:	Nine months ended September 30, 2021:	¥		131 million	[	(49.8) %]
		Nine months ended September 30, 2020:	¥		261 million	[		-%]
		Basic earnings	Diluted earnings per
		per share		share
Nine months ended			Yen			Yen
September 30, 2021			12.54			-
September 30, 2020			34.78			-
(2) Consolidated Financial Position
		Total assets		Net assets	Capital adequacy ratio
As of			Million yen			Million yen			%
September 30, 2021			9,763			8,965			91.8
December 31, 2020			10,984			9,896			90.1
(Reference) Equity: As of	September 30, 2021:	¥	8,965 million
As of	December 31, 2020:	¥	9,896 million

2. Dividends

				Annual dividends
	1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
	Yen		Yen	Yen		Yen	Yen
Fiscal year ended December 31, 2020	-		0.00	-		20.00	20.00
Fiscal year ending December 31, 2021	-		0.00	-
Fiscal year ending December 31, 2021						17.00	17.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 3rd quarter dividend for the fiscal year ending December 31, 2021 :
Commemorative dividend	10.00 yen
Special dividend	10.00 yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2021(January 01, 2021 to December 31, 2021) (% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share
			Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year			3,550		3.4	489	(13.0)	470		(8.1)	328	(0.4)	32.09
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the nine months ended September 30, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:									)
Exclusion:	-	(Company name:									)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 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 issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

	September 30, 2021:	10,420,000	shares
	December 31, 2020:	10,420,000	shares
2)	Total number of treasury shares at the end of the period:
	September 30, 2021:	435,800	shares
	December 31, 2020:	- shares
3)	Average number of shares during the period:
	Nine months ended September 30, 2021:		10,327,501 shares
	Nine months ended September 30, 2020:		7,524,562 shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Thousand yen)
			As of December 31,2020	As of September 30,2021
Assets
	Current assets
		Cash and deposits	9,234,228	7,560,111
		Notes and accounts receivable - trade	587,143	547,431
		Inventories	67,688	55,281
		Other	56,484	236,171
		Allowance for doubtful accounts	-	(3)
		Total current assets	9,945,545	8,398,992
	Non-current assets
		Property, plant and equipment	372,739	604,348
		Intangible assets
		Software	118,970	89,688
		Software in progress	261,938	368,136
		Other	1,856	10,631
		Total intangible assets	382,766	468,456
		Investments and other assets
		Other	284,482	292,711
		Allowance for doubtful accounts	(1,220)	(1,220)
		Total investments and other assets	283,262	291,490
		Total non-current assets	1,038,768	1,364,295
	Total assets	10,984,313	9,763,288
Liabilities
	Current liabilities
		Notes and accounts payable - trade	71,397	57,399
		Current portion of long-term borrowings	44,592	44,592
		Income taxes payable	181,915	28
		Provision for bonuses	-	62,648
		Unearned revenue	224,721	226,464
		Other	282,337	158,409
		Total current liabilities	804,964	549,542
	Non-current liabilities
		Long-term borrowings	94,451	61,007
		Provision for retirement benefits for directors (and	50,976	42,354
		other officers)
		Retirement benefit liability	120,408	127,687
		Asset retirement obligations	17,036	17,214
		Total non-current liabilities	282,872	248,263
	Total liabilities	1,087,836	797,806
Net assets
	Shareholders' equity
		Share capital	4,099,300	4,099,300
		Capital surplus	4,056,450	4,056,450
		Retained earnings	1,738,240	1,659,339
		Treasury shares	-	(853,890)
		Total shareholders' equity	9,893,990	8,961,199
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	(34)	7
		securities
		Foreign currency translation adjustment	2,521	4,275
		Total accumulated other comprehensive income	2,486	4,283
	Total net assets	9,896,477	8,965,482
Total liabilities and net assets	10,984,313	9,763,288

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

		(Thousand yen)
	For the nine months	For the nine months
	ended September 30,2020	ended September 30,2021
Net sales	2,585,336	2,475,924
Cost of sales	877,646	949,986
Gross profit	1,707,689	1,525,937
Selling, general and administrative expenses	1,294,192	1,325,990
Operating profit	413,496	199,947
Non-operating income
Interest income	75	113
Foreign exchange gains	-	213
Subsidy income	-	595
Surrender value of insurance policies	1,443	608
Other	69	123
Total non-operating income	1,589	1,653
Non-operating expenses
Interest expenses	247	207
Commission expenses	90	6,733
Share issuance costs	2,962	-
Going public expenses	2,720	-
Other	74	86
Total non-operating expenses	6,093	7,027
Ordinary profit	408,991	194,573
Profit before income taxes	408,991	194,573
Income taxes	147,251	65,074
Profit	261,739	129,499
Profit attributable to owners of parent	261,739	129,499

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)

			(Thousand yen)
		For the nine months	For the nine months
		ended September 30,2020	ended September 30,2021
Profit	261,739	129,499
Other comprehensive income
	Valuation difference on available-for-sale securities	(13)	42
	Foreign currency translation adjustment	(66)	1,754
	Total other comprehensive income	(80)	1,796
Comprehensive income	261,659	131,296
Comprehensive income attributable to
	Comprehensive income attributable to owners of	261,659	131,296
	parent