Seikitokyu Kogyo : Consolidated Financial Results for the Three Months Ended June 30, 2021

Consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

August 6, 2021

Company name: SEIKITOKYU KOGYO CO., LTD.

Stock exchange listing: Tokyo Stock Exchange

Code number: 1898

URL: https://www.seikitokyu.co.jp

Representative: Yoshikazu Taira, Representative Director, President

Contact: Takanori Kawano, General Manager, Finance Department

Phone: [phone]

Scheduled date of filing quarterly securities report: August 6, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing materials on quarterly financial results: Unavailable

Schedule of quarterly financial results briefing session: Not scheduled

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021 to June 30, 2021)

(1) Consolidated Operating Results (Cumulative)										(% indicates year-on-year changes)
				Net sales				Operating profit			Ordinary profit			Profit attributable to
											owners of parent
	Three months ended		Million yen	%		Million yen	%				Million yen	%			Million yen	%
	June 30, 2021		18,619		23.6					528	56.2				512	49.3		360	12.0
	June 30, 2020		15,060		14.5					338	174.6				343	181.7		321	(78.8)
	(Note) Comprehensive	income: Three months	ended June 30, 2021:	¥394 million [23.8%]
				Three months ended June 30, 2020: ¥318 million [(79.7)%]
			Basic earnings			Diluted earnings
				per share						per share
	Three months ended					Yen							Yen
	June 30, 2021					8.99							-
	June 30, 2020					7.99							-
(2) Consolidated Financial Position
				Total assets					Net assets		Equity ratio		Net assets per share
						Million yen					Million yen			%				Yen
	As of June 30, 2021				72,517					38,756			53.4				977.45
	As of March 31, 2021				79,409					40,790			51.4				1,010.99
	(Reference) Equity: As of June 30, 2021: ¥38,756 million
			As of March 31, 2021: ¥40,790 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 March 31, 2021						-			0.00				-				43.00		43.00
	Fiscal year ending March 31, 2022						-
	Fiscal year ending March 31, 2022									0.00				-				30.00		30.00
	(Forecast)
(Note) Revision to the forecast for	dividends announced most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

							(% indicates year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
First half	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
40,600	16.2	1,100	(50.8)	1,100	(50.7)	700	(65.1)	17.65
Full year	86,400	(4.0)	4,800	(43.3)	4,700	(44.0)	3,100	(40.2)	78.18

(Notes) Revision to the financial results forecast announced most recently: Yes

The Company revised only the consolidated financial results forecast for the six months ending September 30, 2021, which was announced on May 12, 2021.

* Notes:

1. Changes in significant subsidiaries during the period under review
   (Changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No

(Note) For details, please see "Quarterly Consolidated Financial Statements and Primary Notes, (3) Notes to Quarterly Consolidated Financial Statements, (Changes in accounting policies)" on page 6 of the attachment.

1. Number of shares issued (common shares)
   1) Total number of shares issued at the end of the period (including treasury shares):

June 30, 2021:	40,414,407 shares
March 31, 2021:	40,414,407 shares
2) Total number of treasury shares at the end of the period:
June 30, 2021:	763,502 shares
March 31, 2021:	67,641 shares

3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year):

Three months ended June 30, 2021:	40,107,508 shares
Three months ended June 30, 2020:	40,294,432 shares

• These consolidated financial results are outside the scope of quarterly review by certified public accountants or audit corporations.
• Explanation of the proper use of financial results forecasts and other notes

Financial results forecasts are based on information available and certain assumptions deemed reasonable by the Company at the time of preparation of this document, which may contain various uncertain factors. Thus, actual results and outcomes may differ from these forecasts.

(Reference) Non-Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(% indicates year-on-year changes)

	Net sales		Ordinary profit	Profit		Basic earnings
			per share
First half	Million yen	%	Million yen	%	Yen	%	Yen
39,500	21.1	1,100	(49.1)	800	(57.6)	20.18
Full year	82,200	(3.0)	4,400	(44.7)	3,000	(37.3)	75.66

(Note) Revision to the financial results forecast announced most recently: Yes

The Company revised only the non-consolidated financial results forecast for the six months ending September 30, 2021, which was announced on May 12, 2021.

• Explanation of the proper use of financial results forecast and other notes
  Financial results forecasts are based on information available and certain assumptions deemed reasonable by the Company at the time of preparation of this document, which may contain various uncertain factors. Thus, actual results and outcomes may differ from these forecasts.

Quarterly Consolidated Financial Statements and Primary Notes

(1) Quarterly Consolidated Balance Sheets

					(Million yen)
			As of March 31, 2021		As of June 30, 2021
Assets
Current assets
Cash and deposits	14,035	22,192
Notes receivable, accounts receivable from	34,150	19,549
completed construction contracts and other
Costs on construction contracts in progress	2,565	487
Raw materials and supplies	386	405
Other	2,683	4,173
Allowance for doubtful accounts			-	(7)
Total current assets	53,821	46,801
Non-current assets
Property, plant and equipment
Buildings and structures	9,220	9,380
Machinery, vehicles, tools, furniture and			20,681		20,894
fixtures
Land	14,327	14,327
Construction in progress	245	442
Accumulated depreciation		(20,820)	(21,125)
Total property, plant and equipment	23,655	23,919
Intangible assets			263	273
Investments and other assets
Other	1,669	1,522
Total investments and other assets			1,669		1,522
Total non-current assets			25,588	25,715
Total assets		79,409	72,517

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					(Million yen)
			As of March 31, 2021		As of June 30, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for			21,767		18,475
construction contracts and other
Short-term borrowings	7	104
Income taxes payable	1,147	56
Advances received on construction contracts in	2,070	2,290
progress
Provision for warranties for completed			15		17
construction
Provision for loss on construction contracts	7	5
Provision for bonuses	1,645	767
Other		4,216	4,408
Total current liabilities	30,877	26,125
Non-current liabilities
Long-term borrowings	5,000	5,000
Retirement benefit liability	2,597	2,490
Other	144	144
Total non-current liabilities			7,742	7,634
Total liabilities	38,619	33,760
Net assets
Shareholders' equity
Share capital	2,000	2,000
Capital surplus	519	519
Retained earnings	38,767	37,304
Treasury shares	(40)	(644)
Total shareholders' equity			41,246	39,178
Accumulated other comprehensive income
Valuation difference on available-for-sale	21	15
securities
Foreign currency translation adjustment	(15)	(16)
Remeasurements of defined benefit plans	(461)	(420)
Total accumulated other comprehensive			(455)		(422)
income
Total net assets			40,790	38,756
Total liabilities and net assets		79,409	72,517

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