Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect, or any other forms of damages arising from this translation.
Consolidated Financial Results for the Three Months Ended November 30, 2021 [Japanese GAAP]
January 14, 2022 | |||
Company name: Valuence Holdings Inc. | Stock exchange listing: Tokyo Stock Exchange | ||
Securities code: | 9270 | URL: https://www.valuence.inc/ | |
Representative: | (Title) Representative Director | (Name) Shinsuke Sakimoto | |
Contact: | (Title) Director and CFO | (Name) Shinichiro Sato | (TEL) +81-3-4580-9983 |
Scheduled date for filing quarterly securities report: | Scheduled date for commencing dividend payments: ― | ||
January 14, 2022 | |||
Preparation of supplementary quarterly financial results briefing materials: Yes | |||
Holding of quarterly financial results briefing: | Yes (For institutional investors and analysts) |
(Amounts of less than one million yen are truncated.)
1. Consolidated financial results for the three months ended November 30, 2021 (September 1, 2021 to November 30, 2021)
(1) Consolidated operating results (cumulative)
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
Three months ended | 13,254 | 12.1 | 197 | (57.5) | 169 | (62.4) | 45 | (79.1) | |
November 30, 2021 | |||||||||
Three months ended | 11,823 | 1.8 | 464 | (37.8) | 450 | (37.8) | 217 | (53.5) | |
November 30, 2020 | |||||||||
Note: Comprehensive income: | Three months ended | 73 million yen |
November 30, 2021 | [-65.5%] |
Three months ended | 214 million yen |
November 30, 2020 | [-54.9%] |
Basic earnings | Diluted earnings | |
per share | per share | |
Yen | Yen | |
Three months ended | 3.44 | 3.42 |
November 30, 2021 | ||
Three months ended | 16.53 | 16.28 |
November 30, 2020 | ||
(2) Consolidated financial position
Total assets | Net assets | Equity capital ratio | |||
Million yen | Million yen | % | |||
As of November 30, | 20,493 | 7,053 | 33.4 | ||
2021 | |||||
As of August 31, 2021 | 18,727 | 7,270 | 38.0 | ||
(Reference only) Equity | Three months ended | 6,847 million yen | Fiscal year ended in August 2021 7,115 million yen | ||
November 30, 2021 | |||||
2. Dividends
Annual dividends | ||||||||||||
First | Second | Third | Fiscal | Total | ||||||||
quarter-end | quarter-end | quarter-end | Year-end | |||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||
Fiscal year ended in | ― | 0.00 | ― | 25.00 | 25.00 | |||||||
August 2021 | ||||||||||||
Fiscal year ending in | ― | |||||||||||
August 2022 | ||||||||||||
Fiscal year ending in | 0.00 | ― | 25.00 | 25.00 | ||||||||
August 2022 (forecast) | ||||||||||||
Note: Revision to the dividend forecast announced most recently: None |
3. Consolidated financial results forecast for the fiscal year ending in August 2022 (September 1, 2021 to August 31, 2022)
(% indicates year-over-year change)
Net sales | Operating profit | Ordinary profit | Profit attributable | Basic earnings | ||||||
to owners of parent | per share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 64,300 | 22.4 | 1,800 | 54.0 | 1,700 | 74.0 | 920 | 26.9 | 70.00 |
Note: Revision to the financial results forecast announced most recently: None
- Notes
- Changes in significant subsidiaries during the current period (changes in specified subsidiaries resulting in the changes in the scope of consolidation): None
- Accounting treatments adopted specially for the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and retrospective restatements
- Changes in accounting policies due to application of new or revised accounting standards: Yes
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting estimates: | None |
4) | Retrospective restatements: | None |
(Note) For details, please refer to "2. Quarterly consolidated financial statements and major notes (3) Notes on quarterly consolidated financial statements (Changes in accounting policies)" on page 10 of the attached materials.
- Number of shares of common stock issued
- Number of shares issued at the end of the period (including treasury stock)
- Number of shares of treasury stock at the end of the period
- Average number of shares of common stock during the period (cumulative)
As of November 30, | 13,334,420 shares | Fiscal year ended in | 13,326,170 shares |
2021 | August 2021 | ||
As of November 30, | 200,127 shares | Fiscal year ended in | 134,384 shares |
2021 | August 2021 | ||
Three months ended | 13,172,591 shares | Three months ended | 13,145,150 shares |
November 30, 2021 | November 30, 2020 | ||
- These quarterly financial results are not subject to quarterly review procedures to be performed by certified public accountants or an audit firm.
- Explanation on appropriate use of financial results forecasts and other matters of note
Financial results forecasts and other forward-looking statements provided in these materials are based on information available to the Company and certain other assumptions deemed reasonable as of the date of publication of this document, and do not represent any guarantee that the Company will achieve these results. Actual financial results and other aspects of business performance may differ significantly from these forecasts owing to various factors. Please refer to "1. Qualitative information on quarterly financial results (3) Explanation of consolidated financial results forecast and other forward-looking information" on page 5 of the attached materials for conditions forming the basis for financial results forecasts, notes regarding the use of financial results forecasts, and other information.
- Table of contents of the attached materials
(2) | Explanation of financial conditions .................................................................................................................................. | 5 |
(3) | Explanation of consolidated financial results forecast and other forward-looking information ........................................ | 5 |
2. Quarterly consolidated financial statements and major notes ..................................................................................................... | 6 | |
(1) | Quarterly consolidated balance sheet ................................................................................................................................ | 6 |
(2) | Quarterly consolidated statements of income and comprehensive income ....................................................................... | 8 |
(3) | Notes on quarterly consolidated financial statements ..................................................................................................... | 10 |
(Notes regarding going concern assumptions) .................................................................................................................... | 10 | |
(Notes in the case of significant changes in amount of shareholders' equity) ..................................................................... | 10 | |
(Change in scope of consolidation or equity method application)....................................................................................... | 10 | |
(Changes in accounting policies)......................................................................................................................................... | 10 | |
(Additional information) ..................................................................................................................................................... | 11 | |
(Important subsequent events)............................................................................................................................................. | 11 |
-1-
1. Qualitative information on quarterly financial results
-
Explanation of business results
The Company Group is currently promoting efforts to achieve the VG1000 mid-term management plan for the period through the fiscal year ending in August 2025. The Company Group aims to transform itself into a recurring revenue model to achieve sustainable growth by becoming a Global Reuse Platformer, providing partners ("partner" referring hereinafter to a reuse business operator in an auction) around the world with one-stop support in the buying and selling of luxury brand items.
In the fiscal year ending in August 2022, the second year of the mid-term management plan, the Company Group will continue to make proactive investments as it did in the previous fiscal year and will increase expenses related to system development, operation, and maintenance in addition to advertising and personnel expenses. In terms of system development, the Company Group plans to develop AI for purchasing and sales channel selection, develop customer management infrastructure, and develop for the launch of fulfillment services. Thus, the amortization costs for system development and the costs for operating and maintaining systems, including existing systems, are expected to increase..
As a result of the implementation of the above plan as scheduled, the Company Group's consolidated financial results for the three months under review were as follows. Effective from the three months under review, the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., have been applied. With regard to the application of the Accounting Standard or Revenue Recognition, etc., in accordance with the transitional treatment prescribed in the provisions of Paragraph 84 of the Accounting Standard for Revenue Recognition, the new accounting policy has not been applied retrospectively for the first quarter of the previous fiscal year. For details, please refer to "2. Quarterly consolidated financial statements and major notes
(3) Notes on quarterly consolidated financial statements (Changes in accounting policies)."
Net sales | 13,254 million yen | (Up 12.1% from the previous corresponding period) |
Operating profit | 197 million yen | (Down 57.5% from the previous corresponding period) |
Ordinary profit | 169 million yen | (Down 62.4% from the previous corresponding period) |
Profit attributable to | 45 million yen | (Down 79.1% from the previous corresponding period) |
owners of parent | ||
The Company Group has only one business segment-reuse business involving brand name products, antiques, works of art, and other items. Thus, information by segment is omitted.
Specific initiatives in the three months under review were as follows.
First, as a measure to enhance buying operations, the Company Group opened 3 new offices in Japan. For overseas offices, it opened one office in Germany and two offices in Malaysia in collaboration with partners. As a result, the total number of buying offices of the Company Group as a whole as of the end of the three months under review was 128 stores in Japan and 24 stores overseas. For openings of domestic offices in the fiscal year ending in August 2022, the Company Group does not plan to significantly expand the office network in order to focus on improving purchasing efficiency by increasing purchases per office. Overseas, the Company Group continues to consider the regions and timing of new office openings in cooperation with partners while closely monitoring the status of infection of COVID-19. In addition, the Company Group has started full-scale support for the purchase operations of "i'm green," consultation service for purchasing and receipt operated by Isetan Mitsukoshi. In addition to purchases through the Company Group's buying offices, the Group aims to further expand buying operations by strengthening alliances with other companies.
Turning to purchases, the number of customers served and purchases decreased due to the rapid increase in the number of people infected with COVID-19 from August to mid-September. However, from mid-September onward, the number of customers served and purchases recovered due to the decrease in the number of infected people and the effect of TV commercials that aired in September. As a result, purchases exceeded that of the first quarter of the previous fiscal year, which was not affected by the state of emergency declaration, and reached a record high.
-2-
Quarterly trends in purchases and the number of buying offices are as follows.
Purchases and Buying Offices
With respect to selling operations, although purchases reached a record high, net sales decreased because the
Company Group secured inventory for measures to strengthen retailing from the second quarter onward, including new store openings, in addition to low inventory at the beginning of the period.
From November, the number of times the STAR BUYERS AUCTION ("SBA") is held has increased from twice a month to every day from Wednesday to Saturday, with new items being displayed during the held days. The Company Group believes that this change will shorten the inventory turnover period and thus reduce the risk of market fluctuations. As the closing time for bidding is set based on Japan time, there are some issues such as the closing time for bidding overseas being late at night or early in the morning due to time zone differences, but the Company Group is making adjustments to optimize operations.
In addition, as the Company Group will undertake more consignment sales under the retail brand ALLU in the fulfillment service that it plans to develop, the Company Group is improving its sales capabilities by expanding its retail inventory. This resulted in a strong 52.5% increase in retail sales from the immediately preceding quarter.
As mentioned above, by increasing the number of SBA held while expanding retail, the Company Group is working to optimize the balance of the sales between SBA and retail while preventing the overall inventory turnover period from becoming longer.
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Valuence Holdings Inc. published this content on 14 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 January 2022 06:51:09 UTC.