4. Notes(1) Changes in significant subsidiaries during the six months ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:No
Yes

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

22,557,200 shares As of September 30, 2022

22,557,200 shares

Number of treasury shares at the end of the period
As of March 31, 2023

665,307 shares As of September 30, 2022

689,178 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2023

21,879,764 shares Six months ended March 31, 2022

221,901,032 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of September 30, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade2,273,548
2,231,307

1,430,445
2,644,982

Accounts receivable - otherOther

2,261,020
1,090,946

2,320,075
1,198,935

Total current assets

7,856,821

7,594,438

1,073,502

1,055,408

900,317

1,016,752

102,359

198,404

1,002,676

1,215,156

Investment securitiesGuarantee deposits

119,164
694,850

117,182
707,223

Insurance funds
Deferred tax assets

764,910379,101

428,033
380,514

Other

588,880685,747

2,546,906

2,318,701

4,623,086

4,589,266

Non-current assets
Property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Deferred assets

11,213

8,094

12,491,121

12,191,800

200,000

200,000

342,449
1,110,741

323,493
1,239,875

Deposits received
Lease liabilities

395,611110,000459,412
125,483

Provision for bonuses
Other

178,002668,298

136,935
522,585

Total current liabilities

3,005,103

3,007,785

Non-current liabilities
Long-term borrowings

256,250

230,320

Bonds payable
Lease liabilities

400,000
704,300

300,000
713,094

Retirement benefit liability
Asset retirement obligations

416,197
304,576

417,769
308,935

Other

259,227

117,282

Total assets
Liabilities
Current liabilities
Current portion of bonds payable
Income taxes payable
Accounts payable - otherTotal non-current liabilities
Total liabilities

32,340,551

2,087,402

5,345,655

5,095,188

(Thousands of yen)
As of September 30, 2022

As of March 31, 2023

Net assets
Shareholders' equity
Share capital

3,158,703

3,158,703

Capital surplus
Retained earnings

585,325
3,908,226

585,325
3,838,085

Treasury shares(552,474)(528,680)

Total shareholders' equity

7,099,781

7,053,434

Valuation difference on available-for-sale securities

45,684

43,177

Total accumulated other comprehensive income

45,684

43,177

Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4

7,145,466

7,096,611

12,491,121

12,191,800

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

March 31, 2022

March 31, 2023

Net sales
Cost of sales

5,926,708
1,217,392

6,454,083
1,534,560

Gross profit

4,709,316

4,919,522

Selling, general and administrative expenses

3,486,360

4,157,111

Operating profit

1,222,955

762,410

Interest and dividend income
Guarantee commission received

1,735
4,554

199
4,647

Gain on sales of gold bullion
Foreign exchange gains

18,65818,022

––

Other

3,123

2,849

Total non-operating income

46,093

7,696Interest expenses
Commission expenses

6,372
68,487

8,877
83,840

Other

3,979

10,390Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on cancellation of insurance policies
Total extraordinary income

78,839103,108

1,190,210

666,999

–

9,972

–

9,972

Extraordinary losses
Loss on retirement of non-current assets

1,929–

Loss on termination of ESOP trust
Loss on cancellation of insurance policies

10,925––35,783

Total extraordinary losses

12,85435,783

Profit before income taxes
Income taxes

1,177,355

641,187

406,536

316,621

Profit770,819

324,565

Profit attributable to owners of parent

770,819

324,5655Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income

Six months ended

Six months ended

March 31, 2022

March 31, 2023

770,819

324,565(75,268)(2,507)(75,268)(2,507)

Comprehensive income

695,550

322,058

Comprehensive income attributable toComprehensive income attributable to owners of parent

695,550

322,058––

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

March 31, 2022

March 31, 2023

1,177,355

641,187

Depreciation
Increase (decrease) in provision for bonuses

209,855(11,105)

266,143(41,067)

Increase (decrease) in retirement benefit liability
Interest and dividend income

9,303(1,735)2,983(199)Interest expenses on borrowings and bonds
Amortization of deferred assets

6,372
3,368

8,877
3,118

Gain on sales of gold bullion
Loss on retirement of non-current assets(18,658)
1,929

–
–

Loss on termination of ESOP trust
Loss (gain) on cancellation of insurance policies

10,925––25,811

Decrease (increase) in trade receivables
Decrease (increase) in accounts receivable - other(678,780)
309,680(413,675)(59,140)

Decrease (increase) in deposits paid
Decrease (increase) in long-term prepaid expenses(139,314)(144,760)(52,231)(76,565)

Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other(160,420)(189,702)(125,269)
119,739

Other, net(188,228)(144,894)

Subtotal

196,084

154,816

1,088

199

Interest paid
Income taxes paid

(6,468)(552,318)(8,937)(323,900)

Net cash provided by (used in) operating activities(361,614)(177,821)

Interest and dividends received

Cash flows from investing activities
Purchase of property, plant and equipment(72,278)(89,761)

Purchase of investment securities
Purchase of intangible assets(1,367)(232,458)(1,629)(280,026)

Proceeds from cancellation of insurance funds
Payments of guarantee deposits–(59,038)

311,065(14,031)

Proceeds from refund of guarantee deposits
Other, net

7,540
73,391

1,744(28,181)(284,211)(100,821)

Cash flows from financing activities
Proceeds from long-term borrowings

Net cash provided by (used in) investing activities

300,000–

Repayments of long-term borrowings
Purchase of treasury shares(103,700)(298,636)(25,930)(34)

Proceeds from disposal of treasury shares
Redemption of bonds

132,925(100,000)

22,930(100,000)

Dividends paid
Other, net(337,726)(49,249)(394,103)(60,464)

Net cash provided by (used in) financing activities(456,386)(557,602)

Effect of exchange rate change on cash and cash equivalents

18,022(6,857)

Net increase (decrease) in cash and cash equivalents(1,084,189)(843,103)

Cash and cash equivalents at beginning of period

3,206,034

2,270,524

Cash and cash equivalents at end of period

2,121,844

1,427,4207