Consolidated Financial Results

for the Three Months Ended June 30, 2022 [Under Japanese GAAP]

July 29, 2022

Company name: HONDA TSUSHIN KOGYO CO.,LTD.

Listing: Tokyo Stock Exchange

Securities code: 6826

URL: https://www.htk-jp.com/

Representative: Kinji Kashio, Representative Director and President

Inquiries: Osamu Mizuno, Director, Chief Financial Officer

Telephone: +81-3-6853-5800

Scheduled date to commence dividend payments: None

Scheduled date to submit the Quarterly Securities Report: August 9, 2022

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2021 (from April 1, 2022 to June 30,

2022)

(1) Consolidated Results of Operations (cumulative)

(Percentages indicate year-on-year changes.)

Net Sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

％

Millions of yen

％

Millions of yen

％

Millions of yen

％

June 30, 2022

5,419

28.9

349

299.4

501

337.2

330

242.3

June 30, 2021

4,204

35.3

87

-

114

-

96

-

(Note) Comprehensive income: Three months ended June 30, 2022: ¥494 million [398.2%]

Three months ended June 30, 2021: ¥99 million [-%]

Profit per share

Fully diluted profit

per share

Three months ended

Yen

Yen

June 30, 2022

14.31

-

June 30, 2021

4.19

-

(2) Consolidated Financial Position

Total assets

Net assets

Equity-to-asset ratio

Net assets per share

As of

Millions of yen

Millions of yen

％

Yen

June 30,2021

16,811

11,914

70.9

516.14

March 31, 2022

16,261

11,697

71.9

506.74

(Reference) Equity:

As of June 30, 2022: ¥11,914 million

As of March 31, 2022: ¥11,697 million

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

−

0.00

−

12.00

12.00

March 31, 2021

Fiscal year ending

−

March 31, 2023

Fiscal year ending

0.00

−

0.00

0.00

March 31, 2023 (Forecast)

(Note) Revisions of dividend forecast from recently announced figures: Yes

3. Earnings Forecast of Consolidated Financial Results for Fiscal Year Ending March 31, 2023 (From April 1, 2022 to March 31, 2023)

(% indicates changes from the previous corresponding term)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Profit per share

owners of parent

Millions of yen

％

Millions of yen

％

Millions of yen

％

Millions of yen

％

Yen

Full year

20,000

8.4

1,400

59.9

1,400

34.2

1,000

44.1

43.32

(Note) Revisions of forecast of financial results from recently announced figures: None

* Notes

  1. Changes in significant subsidiaries during the period
    (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Adoption of specific accounting treatments to the preparation of quarterly consolidated financial statements: Yes
  3. Changes in accounting policies, changes in accounting estimates, and restatement
  1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
  2. Changes in accounting policies due to other reasons: None
  3. Changes in accounting estimates: None
  4. Restatement: None

(4) Number of issued shares (common shares)

  1. Total number of issued shares at the end of the period (including treasury shares):
  2. Number of treasury shares at the end of the period:
  3. Average number of shares outstanding during the period:

As of

25,006,200

As of

25,006,200

June 30, 2022

shares

March 31, 2022

shares

As of

1,922,244

As of

1,922,244

June 30, 2022

shares

March 31, 2022

shares

Three months ended

23,083,956

Three months ended

23,049,756

June 31, 2022

shares

June 30, 2021

shares

  • Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

Table of Contents of Appendix

1. Qualitative Information on Quarterly Consolidated Financial Performance

2

(1)

Explanation of operating results

2

(2)

Explanation of financial position

2

(3)

Explanation of forward-looking statements, including forecasts of consolidated business performance

2

2. Quarterly Consolidated Financial Statements and Principal Notes

3

(1)

Quarterly Consolidated Balance Sheets

3

(2)

Quarterly Consolidated Statements of Income and Comprehensive Income

5

(3)

Notes to quarterly consolidated financial statements

6

(Notes on the going concern assumption)

6

(Notes on significant changes in the amount of shareholders' equity)

6

(Notes on accounting methods specific to preparation of quarterly financial statements)

6

(Changes in accounting policies)

6

1

1. Qualitative Information on Quarterly Consolidated Financial Performance

  1. Explanation of operating results

Overview of the fiscal year under review

In the first quarter under review, net sales remained on an upward trend, having increased 28.9% from the same period of the previous year (April to June 2021) and 6.4% from the previous quarter (January to March, 2022), to 5,419 million yen. This reflects the growth of the connector business in all sectors on the back of brisk demand. Operating profit improved significantly to 349 million yen (up 299.4% from the year-ago level and up 21.1% from the previous quarter), with increases in fixed cost and procurement and distribution costs and a decrease in profit from the information system business absorbed by gain from increase in sales of the connector business, streamlining of operations, and the effect of exchange rate. Further, due to the generation of foreign exchange gains of 146 million yen, ordinary profit increased to 501 million yen (up 337.2% from the year-ago level). As a result, profit attributable to owners of parent was 330 million yen (up 242.3% from the year-ago level).

See the Supplementary Material to Financial Results for details.

  1. Explanation of financial position (Assets)

Total assets were 16,811 million yen, an increase of 549 million yen from the end of the previous fiscal year. This mainly reflects an increase in trade receivables.

(Liabilities)

Liabilities increased 332 million yen from the end of the previous fiscal year, to 4,896 million yen. This is attributable mainly to an increase in trade payables.

(Net assets)

Net assets increased 217 million yen from the end of the previous fiscal year, to 11,914 million yen. This mainly reflects an increase in foreign currency translation adjustment.

  1. Explanation of forward-looking statements, including forecasts of consolidated business performance Regarding the full-year consolidated earnings forecast, there has been no change to the forecast

consolidated financial results for the fiscal year ending March 31, 2023, which was announced on May 11, 2022.

2

2. Quarterly Consolidated Financial Statements and Principal Notes

  1. Quarterly Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2022

As of June 30, 2022

Assets

Current assets

Cash and deposits

5,007

4,987

Notes and accounts receivable - trade

3,804

4,129

Electronically recorded monetary claims-operating

905

888

Merchandise and finished goods

1,010

1,140

Work in process

536

563

Raw materials and supplies

1,103

1,202

Other

386

274

Allowance for doubtful accounts

(2)

(2)

Total current assets

12,752

13,184

Non-current assets

Property, plant and equipment

2,627

2,769

Intangible assets

289

265

Investments and other assets

Deferred tax assets

339

342

Other

254

252

Allowance for doubtful accounts

(3)

(3)

Total investments and other assets

591

592

Total non-current assets

3,508

3,626

Total assets

16,261

16,811

3

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Honda Tsushin Kogyo Co. Ltd. published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 11:05:04 UTC.