Nexyz : Consolidated Results for the Second Quarter of the Fiscal Year to September 2024（426KB）

Consolidated Results for th Second Quarter of the Fiscal Year to September	2024
(Japanese Accounting Standards)
	(English Translation of "Kessan Tanshin")
May 15, 2024	Exchanges Listed: TSE (Standard Market)
Company Name: NEXYZ.Group Corporation	Location of Company Headquarters: Tokyo
Securities Code: 4346	（URL https://www.nexyzgroup.jp/）

Position of Representative: President and Representative Director		Name: Takami Kondo
Contact : Executive Managing Director, Administrative Division Manager		Name: Yasuhiro Matsui	Tel.[phone]
				( Amounts truncated to the nearest million yen.)
1. Consolidated results for the Second Quarter of the Fiscal Year to September 2024
(from Oct. 1, 2023 to Mar. 31, 2024)
(1) Consolidated Results of Operations	(Amounts in percentages show a comparison with the previous same period results.)
	Net Sales		Operating Income		Ordinary Income
	Yen Mln	%		Yen Mln	%		Yen Mln	%
March 2024	10,874	8.4		297	0.8		285	(0.1)
March 2023	10,035	14.1		295	―		286	―
(Note) Comprehensive income	March 2024	(14) million yen	(―％)	March 2023		310 million yen	(―％)
	Net income attributable to	Earnings per Share		Fully Diluted
	owners of the parent			Earnings per Share
	Yen Mln	%		Yen			Yen
March 2024	(174)	―		(13.40)			―
March 2023	207	―		15.92			―

(Note) The percentage change of operating income and ordinary income from the corresponding period of previous year is not shown for the six months ended March 31, 2023 because the rate of change exceeded 1,000%.

(Note) Diluted net income per share is not presented because there are no dilutive shares.

(2) Consolidated Financial Position		(Amounts truncated to the nearest million yen.)
	Total Assets	Net Assets Value	Capital Ratio		Net Assets per Share
	Yen Mln		Yen Mln	%	Yen
March 2024	15,310		3,149	7.6	89.50
September 2023	15,445		3,701	10.9	129.01

(Note) Shareholders' equity: March 20241,164 million yen September 2023 1,678 million yen

2. Consolidated annual dividend

			Annual Dividend Per Share
	End of first	End of secound	End of third	End of Year	Total
	quarter (Yen)	quarter (Yen)	quarter (Yen)	(Yen)	(Yen)
September 2023	―	0.00	―	20.00	20.00
September 2024	―	0.00
September 2024			―	20.00	20.00
(Forecast)

3. Consolidated Forecast for the fiscal year ending September 2024 (October 1, 2023～September 30, 2024)

				(Percentages indicate changes from the previous term)
	Net Sales		Operating Income		Ordinary Income
	Yen Mln	%	Yen Mln	%	Yen Mln	%
Full Fiscal Year	23,000	4.8	1,000	30.5	1,000	37.7
	Net income attributable to		Earnings per Share
	Yen Mln	%		Yen

Full Fiscal Year	600	(19.9)	46.12
Note: Revisions to the most recently disclosed dividend forecasts: No

		(Millions of yen)
	As of September 30, 2023	As of March 31, 2024
Assets
Current assets
Cash and deposits	4,982	5,882
Notes and accounts receivable - trade	2,520	2,945
Lease receivables	3,172	2,232
Merchandise	617	468
Accounts receivable - other	434	370
Other	668	550
Allowance for doubtful accounts	△1,253	△1,320
Total current assets	11,142	11,130
Non-current assets
Property, plant and equipment
Buildings, net	976	972
Tools, furniture and fixtures, net	97	104
Other, net	2	1
Total property, plant and equipment	1,077	1,078
Intangible assets
Software	98	103
Other	0	0
Total intangible assets	98	103
Investments and other assets
Investment securities	1,027	1,021
Leasehold and guarantee deposits	645	649
Deferred tax assets	924	756
Other	1,703	1,726
Allowance for doubtful accounts	△1,173	△1,155
Total investments and other assets	3,127	2,998
Total non-current assets	4,303	4,180
Total assets	15,445	15,310

		(Millions of yen)
	As of September 30, 2023	As of March 31, 2024
Liabilities
Current liabilities
Accounts payable - trade	1,825	1,703
Short-term borrowings	1,700	2,005
Current portion of long-term borrowings	1,636	1,727
Accounts payable - other	738	710
Income taxes payable	280	－
Contract cancellation adjustment reserve	1,554	2,003
Provision for bonuses	333	130
Other	1,401	1,188
Total current liabilities	9,469	9,469
Non-current liabilities
Long-term borrowings	1,928	2,335
Other	345	356
Total non-current liabilities	2,274	2,692
Total liabilities	11,743	12,161
Net assets
Shareholders' equity
Share capital	100	100
Capital surplus	1,130	1,051
Retained earnings	1,155	721
Treasury shares	△898	△899
Total shareholders' equity	1,487	973
Accumulated other comprehensive income
Valuation difference on available-for-	188	188
sale securities
Foreign currency translation adjustment	2	2
Total accumulated other comprehensive	190	190
income
Non-controlling interests	2,023	1,984
Total net assets	3,701	3,149
Total liabilities and net assets	15,445	15,310

		(Millions of yen)
	Six months ended	Six months ended
	March 31, 2023	March 31, 2024
Net sales	10,035	10,874
Cost of sales	4,592	5,023
Gross profit	5,443	5,851
Selling, general and administrative expenses	5,148	5,553
Operating profit	295	297
Non-operating income
Receipt benefit	2	－
Income on support of operating	1	－
Reversal of allowance for doubtful accounts	－	25
Other	10	8
Total non-operating income	14	33
Non-operating expenses
Interest expenses	14	12
Loss on investments in investment	2	5
partnerships
Provision of allowance for doubtful accounts	5	－
Commission expenses	0	0
Donations	－	25
Other	0	0
Total non-operating expenses	23	45
Ordinary profit	286	285
Extraordinary income
Gain on sale of investment securities	9	23
Total extraordinary income	9	23
Extraordinary losses
Loss on valuation of investment securities	0	－
Total extraordinary losses	0	－
Profit before income taxes	295	308
Income taxes - current	189	152
Income taxes - refund	△119	－
Income taxes - deferred	△85	170
Total income taxes	△16	323
Profit (loss)	312	△14
Profit attributable to non-controlling	105	159
interests
Profit (loss) attributable to owners of parent	207	△174

		(Millions of yen)
	Six months ended	Six months ended
	March 31, 2023	March 31, 2024
Profit (loss)	312	△14
Other comprehensive income
Valuation difference on available-for-sale	△1	0
securities
Foreign currency translation adjustment	△0	0
Total other comprehensive income	△2	0
Comprehensive income	310	△14
Comprehensive income attributable to
Comprehensive income attributable to owners	205	△174
of parent
Comprehensive income attributable to non-	105	159
controlling interests

		(Millions of yen)
	Six months ended	Six months ended
	March 31, 2023	March 31, 2024
Cash flows from operating activities
Profit before income taxes	295	308
Depreciation and amortization	56	63
Increase (decrease) in contract cancellation	156	448
adjustment reserve
Increase (decrease) in provision for bonuses	193	△202
Increase (decrease) in allowance for	408	48
doubtful accounts
Interest and dividend income	△1	△0
Interest expenses	14	12
Loss (gain) on sale of investment securities	△9	△23
Loss (gain) on valuation of investment	0	－
securities
Decrease (increase) in trade receivables	△290	△420
Decrease (increase) in lease receivables	1,216	955
Decrease (increase) in inventories	△33	148
Decrease (increase) in advances paid	△32	△65
Increase (decrease) in trade payables	△116	△122
Increase (decrease) in accrued consumption	469	△174
taxes
Increase (decrease) in deposits received	△69	△44
Other, net	125	93

Subtotal

Interest and dividends received

Interest paid

Income taxes refund (paid)

Refund of income taxes for prior periods Net cash provided by (used in) operating activities

Cash flows from investing activities Purchase of investment securities Proceeds from sale of investment securities Purchase of property, plant and equipment Purchase of intangible assets

Payments of leasehold and guarantee deposits Proceeds from refund of leasehold and guarantee deposits

Other, net

Net cash provided by (used in) investing activities

Cash flows from financing activities

Net increase (decrease) in short-term borrowings

Proceeds from long-term borrowings

Repayments of long-term borrowings

Dividends paid

Purchase of shares of subsidiaries not resulting in change in scope of consolidation

Other, net

Net cash provided by (used in) financing activities

Effect of exchange rate change on cash and cash equivalents

2,383	1,026
1	0
△14	△12
7	△276
19	－
2,396	737
△25	△1
12	26
△36	△36
△23	△20
△8	△24
75	8
△22	△37
△28	△85
－	300
1,730	1,300
△1,038	△801
△260	△258
－	△277
31	△14
462	247
△0	0

Net increase (decrease) in cash and cash	2,829	900
equivalents
Cash and cash equivalents at beginning of	2,831	4,982
period
Cash and cash equivalents at end of period	5,660	5,882