Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2017
[Japanese GAAP] (non-consolidated)
November 11, 2016
Name of Company
GreenPeptide Co., Ltd.
Listed Market Mothers, TSE
TSE Code4594
URL http://www.green-peptide.com/
Representative(Title)
President & CEO(Name) Kenichi Nagai
Contact(Title)
Director/CFO(Name) Teruhiko Sakai(TEL) +81-3-5840-7697
Scheduled date of submission of quarterly report: November 11, 2016
Scheduled date of dividend payment commencement:―
Supplementary materials for quarterly financial statements: NoneBriefing of quarterly financial results: Yes ( for analysts and institutional investors )(Millions of yen, rounded down to the nearest million)

1. Results of the 2nd quarter of the fiscal year ending March 31, 2017 (April 1, 2016 – September 30, 2016)(1) Results of Operation(Percentages represent changes from the same quarter of previous year)
Net income
Net sales
Operating income
Ordinary income
for the quarter
Million yen

Six months ended September 30, 2016
Six months ended September 30, 2015

317
415

% Million yen‐23.8―% Million yen‐468‐606‐472‐593――% Million yen%‐476
‐594

―
―

―
―

Fully diluted net
Net earnings perearnings per share forshare for the quarterthe quarter
Yen

Yen

Six months ended September 30, 2016―‐14.58Six months ended September 30, 2015―‐23.50(Notes)
1. As for class A preferred stocks (42,428 shares), upon exercise of the acquisition request with put options in consideration ofordinary stocks, we issued 42,428 shares of ordinary stock effective July 14, 2015 and acquired the mentioned class A preferredstocks as treasury stocks. The treasury stocks were cancelled effective the same day. Then, the Company conducted a 100-for-1
stock split of its ordinary stocks effective July 31, 2015. Net income per share for the quarter has been calculated as if a series oftransaction for the stock split was conducted at the beginning of the previous fiscal year.
2. Fully diluted net earnings per share for the quarter is not stated as net loss was recorded for this period although there are residualshares.
(2) Financial Positions
Total assets

Net assets

Million yen

As of September 30, 2016
As of March 31, 2016
(Reference)
Shareholders’ equityEquity ratio

Million yen

4,066
2,877
As of September 30, 2016 3,885 Million yen%

3,917
2,720
As of March 31, 2016

95.6
94.6
2,720 Million yen

2. Dividends
Annual Dividends per share
End of 1Q

End of 2Q

Yen

End of 3Q

Year-end

Annual

Yen

Yen

Yen

Yen

Fiscal Year ended March 31, 2016―
0.00
Fiscal Year ending March 31, 2017―
0.00
Fiscal Year ending March 31, 2017 (Forecast)(Notes) Corrections to most recently disclosed dividend projections : None

―

0.00

0.00

―

0.00

0.00

―1―

3. Projected financial results for fiscal year ending March 31, 2017 (April 1, 2016 – March 31, 2017)
Net sales
Million yen(Percentages represent changes from the same period of previous year)
Net income
Operating income Ordinary income
Net income
per share% Million yen% Million yen

Full year
406―‐50.5 ‐1,306‐1,306(Notes) Corrections to most recently disclosed financial results projections : None% Million yen%Yen‐1,308―‐41.14―[Notes](1) Application of special accounting methods for the preparation of quarterly financial statements: None

(2) Changes in significant accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to revisions of accounting standards, etc.

: Yes2) Changes in accounting policies due to other reasons than above 1): None3) Changes in accounting estimates: None4) Restatements: None(3) Number of shares outstanding (common stock)1) Number of shares outstanding at the endof fiscal term (including treasury stocks)2) Number of treasury stocks at the end offiscal term3) Average number of shares during thefiscal term (cumulative from beginningof quarter)As of September 30,
2016
As of September 30,
2016
Six months ended
September 30, 2016

34,018,400 shares― shares32,698,468 shares

As of March 31,
2016
As of March 31,
2016
Six months ended
September 30, 2015

31,807,700 shares― shares25,307,700 shares(Notes) Due to a 100-for-1 stock split which was conducted with an effective date of July 31, 2015, the number of shares is calculated
as if such stock split was implemented at the beginning of the previous fiscal year.

* Disclosure on the status of the quarterly review procedures.
Although this quarterly financial report is not subject to the requirement of the quarterly review procedures under theFinancial Instruments and Exchange Act, the quarterly review procedures for the quarterly financial statements havebeen completed at the time of disclosure of the quarterly financial report.
* Explanations regarding appropriate use of forecasts and projections of financial results, and other specific notes.
All forecasts and projections contained in this presentation are based on the information currently available to themanagement and they are not intended to represent our promise to attain them as a goal. Furthermore, due to various
reasons, actual results may differ substantially.

―2―

Financial statements for the quarter(1) Balance sheets for the quarter(Thousands of yen)
As of March 31, 2016
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise and finished products
Work in process
Raw materials and supplies
Advance payments - trade
Advance payments - otherAccounts receivable - otherConsumption taxes receivable
Other

2,555,458
106,749
12,666

As of September 30, 2016

－23,573
8,061
63,031
9,338
2,074
10,404

3,596,765
87,29911,366
3,133
23,573
2,889
124,846
21,104
11,806
13,151

2,791,358

3,895,936

Non-current assets
Property, plant and equipment
Facilities attached to buildings, net
Machinery and equipment, netTools, furniture and fixtures, net

12,424737
35,35940,150394
75,812

Total property, plant and equipment

Total current assets

48,521

116,358

Intangible assets
Software
Software in progress

1,903
9,352

14,177

Total intangible assets

11,256

14,177

Investments and other assets
Guarantee deposits
Long-term prepaid expenses

24,0732,041

38,7081,309

26,11540,017

Total investments and other assets
Total non-current assets
Total assets―3―－85,893

170,553

2,877,251

4,066,489

(Thousands of yen)
As of March 31, 2016
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Provision for retirement benefits
Deferred tax liabilities
Asset retirement obligations
Total non-current liabilities

As of September 30, 2016

66,30829,922
2,988
10,487
16,361
2,828

34,35948,356
3,742
11,3782,889
4,424

128,897

105,150

18,5201,715
7,455

22,7644,300
16,457

27,69043,521

156,588

148,672

1,988,085
1,971,670

2,809,052
2,792,637‐1,239,092‐1,715,918

Total shareholders' equity

2,720,663

3,885,771

Subscription rights to shares－32,0462,720,663

3,917,817

2,877,251

4,066,489

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings

Total net assets
Total liabilities and net assets―4―

(2) Statements of operations for the quarter
For the first six months (ended September 30, 2016)(Thousands of yen)Six months ended
September 30, 2015
Net sales
Cost of sales

Six months ended
September 30, 2016

415,904
389,011317,030
312,909

Gross profit

26,892

4,120

Selling, general and administrative expenses

633,600

472,961

Operating loss

‐606,707‐468,841

71

143,324

Non-operating income
Interest income
Foreign exchange gains
Subsidy income
Other－12,789
70

Total non-operating income
Non-operating expenses
Foreign exchange losses
Stock issuance expenses－
101

12,931

3,440

181

－
6,710

－

Other－

516

Total non-operating expenses

181

7,227

‐593,957‐472,627

－

372

－

372

‐593,957‐473,000884

Ordinary loss
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred

‐141

1,240
2,585

Total income taxes

742

3,826

‐594,699‐476,826

Net loss―5―

(3) Statements of Cash Flows for the quarter(Thousands of yen)

Cash flows from operating activities
Loss before income taxes
Depreciation
Share-based compensation expenses
Loss on retirement of non-current assets
Increase (decrease) in provision for retirement benefits
Interest and dividend income
Subsidy income
Decrease (increase) in accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in accounts payable - trade
Increase (decrease) in advances received
Other, net

Six months ended
September 30, 2015

Six months ended
September 30, 2016

‐593,957
8,825‐473,000
15,5355,054372
4,244－－2,873‐71‐12,789‐5,852
27,825
8,607

SubtotalInterest and dividend income received
Subsidy income received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of subscription rights to shares
Proceeds from issuance of shares resulting from exercise ofsubscription rights to shares
Net cash provided by (used in) financing activities‐14－
19,449‐28,11754,585‐1,834‐31,948‐13,472‐66,642‐538,070‐542,25671
12,78914‐1,841‐1,923‐527,050‐544,165‐1,467‐250‐71,699‐4,527‐1,717‐76,226－

45,099－1,616,599－－

1,661,699

Net increase (decrease) in cash and cash equivalents‐528,767

1,041,306

Cash and cash equivalents at beginning of period

823,737

2,555,458

Cash and cash equivalents at end of period

294,9693,596,765―6―