(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail.

Consolidated Financial Report

For the Three Months Ended June 30, 2023

July 27, 2023

Company Name:

Meitec Corporation

Representative:

Hideyo Kokubun

President, Group CEO

Code No.:

9744 TSE Prime Market

[Fractions of one million yen are rounded down]

1. Consolidated Results for the 1st Quarter (April 1, 2023 to June 30, 2023)

(1) Consolidated operating results

(% is comparison to the previous fiscal year)

Net Sales

Operating Profit

Ordinary Profit

Profit Attributable to

Owners of Parent

Millions of Yen

％

Millions of Yen

％

Millions of Yen

％

Millions of Yen

％

Three months ended June 30, 2023

31,302

9.3

4,238

13.8

4,225

12.9

2,638

11.3

Three months ended June 30, 2022

28,632

13.6

3,725

45.9

3,741

44.9

2,370

47.5

(Note) Comprehensive Income;

Three months ended June 30, 2023:

2,669

million yen

[ 10.7% ]

Three months ended June 30, 2022:

2,410

million yen

[ 44.1% ]

Earnings per Share

Diluted Net Income

per Share

Yen

Yen

Three months ended June 30, 2023

33.65

－

Three months ended June 30, 2022

29.58

－

(Note) The Company conducted a share split with a ratio of three shares for one share of common stock on July 1, 2022. Earnings per share is calculated assuming the share split to have been conducted at the start of the previous fiscal year.

(2) Consolidated financial position

Total Assets

Net Assets

Equity Ratio

Millions of Yen

Millions of Yen

%

As of June 30, 2023

79,686

44,447

55.8

As of March 31, 2023

84,576

46,719

55.2

Reference: Shareholders' Equity;

as of June 30, 2023:

44,447

million yen

as of March 31, 2023:

46,719

million yen

2. Dividends

Annual Dividends per Share

1st Quarter

2nd Quarter

3rd Quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY ended March 31, 2023

―

39.00

―

63.00

102.00

FY ending March 31, 2024

―

FY ending March 31, 2024 (Forecast)

40.00

―

49.00

89.00

(Note) Revision of dividends forecast from recent forecast:

None

(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail.

3. Consolidated Forecasts for Fiscal Year ending March 31, 2024

(% is comparison to the same period of previous fiscal year)

Operating

Ordinary

Profit Attributable

Earnings

Net Sales

to Owners of

Profit

Profit

per Share

Parent

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Yen

Yen

Yen

Yen

Yen

Six months ending September 30, 2023

62,400

7.5

7,800

2.8

7,900

3.5

5,200

1.8

66.31

FY ending March 31, 2024

126,500

6.2

16,800

2.0

16,800

1.6

11,500

(6.1)

146.64

(Note) Revision of performance forecast from recent forecast:

None

Notes to Financial Statements

  1. Significant changes involving subsidiaries during the term: Yes (Changes in specific subsidiaries that affected the scope of consolidation) Newly consolidated:1 (MEITEC SPLIT PREPARATORY COMPANY)
  2. Adoption of special accounting treatment for preparing quarterly consolidated financial statements: Yes
  3. Changes in accounting policies, changes in accounting estimates, and restatements

i. Change in accounting policies :

None

ii. Changes not relating to i. :

None

iii. Changes in accounting estimates :

None

iv. Restatements :

None

  1. Number of shares issued (common stock)
    1. Number of shares issued at the fiscal year end (including treasury shares)

1st quarter ended June 30, 2023:

82,500,000

FY ended March 31, 2023:

82,500,000

ii. Number of treasury shares at the fiscal year end

1st quarter ended June 30, 2023:

4,078,465

FY ended March 31, 2023:

4,078,400

iii. Average number of shares outstanding during the period (first quarter cumulative)

1st quarter ended June 30, 2023:

78,421,587

1st quarter ended June 30, 2022:

80,125,788

(Note) The Company conducted a share split with a ratio of three shares for one share of common stock on July 1, 2022.

Number of shares issued at the fiscal year end, number of treasury shares at the fiscal year end, and average number of shares outstanding during the period have been calculated assuming the share split to have been conducted at the start of the previous fiscal year.

  • This report is not included in the scope of the audit or the certified public accountant.
  • Advice relating to appropriate use of financial forecasts and other relevant information

Earnings forecasts and other forward-looking statements in this release are based on data currently available to management and certain assumptions that management believes are reasonable, and it is not intended to promise its achievement. Actual results may therefore differ materially from these statements for various reasons. Some important factors that might have an effect on business performance pertain to Business Risks stated in the Company's annual securities report and other information already released, but factors influencing business performance are not limited to those released.

(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail.

1. Qualitative Information on the Consolidated Results for the 1st Quarter

Qualitative Information on the Consolidated Operating Results

During the first quarter of the current fiscal year (the three months from April 1, 2023 to June 30, 2023), the legal status of COVID-19 was downgraded to Category V, and economic and social activity was normalizing. However, the economic outlook remained uncertain as a tense international situation, increases in the prices of resources, and other factors continued.

As a result of investment in technological development focused on the next generation of products by the leading manufacturers that constitute the Company's major clients, the order environment was strong.

Under these circumstances, as a result of the Company continuing proactive recruitment with an eye on medium- and long-term growth, the number of engineers across the Group increased, including 824 (MT: 459, MF: 365) newly graduated employees joining the Group in April 2023. In addition, as a result of steady progress in assignments of both new and existing employees in response to orders, the Company achieved both an increase in the number of engineers assigned to clients and improvement in the utilization ratio. Note that working hours decreased slightly year on year, mainly due to a decrease in overtime work.

Mainly due to these factors, consolidated net sales for the period under review increased ¥2,670 million, or 9.3%, from a year earlier to ¥31,302 million. Consolidated cost of sales increased ¥1,992 million, or 9.5%, from a year earlier to ¥22,889 million, due mainly to an increase in labor expenses associated with growth in the number of engineers, and consolidated selling, general and administrative expenses increased ¥164 million, or 4.1%, from a year earlier to ¥4,175 million. As a result, consolidated operating profit increased ¥512 million, or 13.8%, from a year earlier to ¥4,238 million.

Consolidated ordinary profit increased ¥483 million, or 12.9%, from a year earlier to ¥4,225 million, while profit attributable to owners of parent increased ¥268 million, or 11.3%, from a year earlier to ¥2,638 million.

For details, please refer to "Results for the 1st Quarter of the Fiscal Year Ending March 31, 2024" released today on the Company's website.

2．Consolidated Financial Statements

(1)Consolidated Balance Sheets

(Millions of Yen)

Fiscal year ended

The 1st Quarter ended

Mar. 31, 2023

Jun. 30, 2023

Assets

Current assets

Cash and deposits

51,028

45,058

Notes and accounts receivable - trade

17,354

18,250

Work in process

172

240

Other

928

1,038

Total current assets

69,484

64,587

Non-current assets

Property, plant and equipment

Buildings and structures, net

3,124

3,081

Other, net

1,661

1,653

Total property, plant and equipment

4,785

4,735

Intangible assets

Other

369

344

Total intangible assets

369

344

Investments and other assets

Deferred tax assets

8,994

8,980

Other

944

1,041

Allowance for doubtful accounts

(2)

(2)

Total investments and other assets

9,935

10,019

Total non-current assets

15,091

15,098

Total assets

84,576

79,686

Liabilities

Current liabilities

Income taxes payable

2,694

1,436

Provision for bonuses for directors (and other officers)

181

64

Provision for bonuses

9,955

4,986

Other

7,993

11,637

Total current liabilities

20,824

18,125

Non-current liabilities

Retirement benefit liability

17,032

17,113

Total non-current liabilities

17,032

17,113

Total liabilities

37,856

35,238

Net assets

Shareholders' equity

Share capital

5,000

5,000

Capital surplus

1,259

1,259

Retained earnings

49,207

46,905

Treasury shares

(7,795)

(7,796)

Total shareholders' equity

47,671

45,369

Accumulated other comprehensive income

Revaluation reserve for land

(662)

(662)

Remeasurements of defined benefit plans

(289)

(259)

Total accumulated other comprehensive income

(951)

(921)

Total net assets

46,719

44,447

Total liabilities and net assets

84,576

79,686

（2）Consolidated Statements of Income and Comprehensive Income

(Consolidated Statements of Income)

(Millions of Yen)

The 1st Quarter ended

The 1st Quarter ended

Jun. 30, 2022

Jun. 30, 2023

Net sales

28,632

31,302

Cost of sales

20,896

22,889

Gross profit

7,736

8,413

Selling, general and administrative expenses

4,010

4,175

Operating profit

3,725

4,238

Non-operating income

Interest income

0

0

Subsidy income

14

3

Other

1

1

Total non-operating income

15

4

Non-operating expenses

Commitment fees

0

0

Other

0

17

Total non-operating expenses

0

18

Ordinary profit

3,741

4,225

Extraordinary losses

Loss on retirement of non-current assets

0

0

Total extraordinary losses

0

0

Profit before income taxes

3,740

4,224

Income taxes

1,370

1,585

Profit

2,370

2,638

Profit attributable to owners of parent

2,370

2,638

(Consolidated Statements of Comprehensive Income)

(Millions of Yen)

The 1st Quarter ended

The 1st Quarter ended

Jun. 30, 2022

Jun. 30, 2023

Profit

2,370

2,638

Other comprehensive income

Remeasurements of defined benefit plans, net of tax

39

30

Total other comprehensive income

39

30

Comprehensive income

2,410

2,669

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

2,410

2,669

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Meitec Corporation published this content on 27 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2023 08:11:31 UTC.