Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since
no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. Thissummary does not constitute any guarantee and will not compensate any losses and/or damage stemming from actions taken based on thesestatements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.

Consolidated Financial Reportfor the Third Quarter of Fiscal 2024 Ending March 31, 2024 (Japanese GAAP)
Company Name:Grandy House Corporation
Stock Exchange Listing:
Securities Code:
8999
URL:
Representative:
Yasuro Hayashi, President
Inquiries:
Ryuji Umeki, Executive Officer & Administration Manager
Scheduled date of quarterly securities report filing:
February 13, 2024
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials:
None
Quarterly results briefing held:
None

February 13, 2024
Tokyo Stock Exchange
https://www.grandy.co.jp
TEL: +81-28-650-7777(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024
(April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results
Net Sales(Percentage figures show the year-on-year increase (decrease).)Net Income Attributable
Operating Income
Ordinary Income
to Owners of the Parent(¥ million)%(¥ million)%(¥ million)%(¥ million)%

37,502(7.8)

781(69.8)

586(75.9)

314(81.2)

40,6890.4

2,586(15.7)

2,433(16.5)

1,677(14.5)

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022
Note: Comprehensive income

Nine months ended December 31, 2023: ¥365 million (−78.7%)
Nine months ended December 31, 2022: ¥1,716 million (−12.0%)(¥)

Net Income per Share(Diluted)
(¥)

10.93

10.88

57.73

57.36

Total Assets(¥ million)
75,83372,645Net Assets(¥ million)
24,82926,196Net Income per Share

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022

(2) Consolidated Financial Position

December 31, 2023
March 31, 2023
Reference: Shareholders' equity

December 31, 2023:
March 31, 2023:¥24,802 million¥26,158 million

1Q-End2Q-EndShareholders' Equity Ratio
%
32.7
36.0

Net Assets per Share(¥)
881.77889.12

2. Dividends

(¥)
—
—

Fiscal 2023
Fiscal 2024
Fiscal 2024 (Forecast)

Annual Dividend per Share
3Q-End
(¥)
(¥)
0.00
—
0.00
—

Period-End

Total

(¥)
32.00

(¥)
32.00

32.00

32.00

Note: Revisions to the most recently announced forecast of cash dividends in the current quarter: None

3. Consolidated Financial Forecasts for Fiscal 2024 (April 1, 2023 to March 31, 2024)

Net Sales

Full Fiscal Year(¥ million)
54,000Operating Income%(2.2)(¥ million)
1,900%(42.9)(Percentage figures show the year-on-year increase (decrease).)Net Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)%(¥ million)
%
(¥)
1,620
(47.8)
1,000(53.9)
34.95

Note: Revisions to the most recently announced financial forecasts in the current quarter: None

* Notes(1) Significant changes to subsidiaries during the period(Changes in significant subsidiaries resulting in changes in the scope of consolidation): None
Newly included: —Excluded: —(2) Adoption of specific methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting estimates, and restatements
1) Changes in accounting policies due to revision to accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatements:(4) Number of issued shares (common stock)1) Number of issued shares(including treasury shares)
2) Number of treasury shares
3) Average number of shares during the period

None
None
None
None

December 31, 2023

30,823,200 shares

March 31, 2023

December 31, 2023
Nine months ended
December 31, 2023

2,695,345 shares

March 31, 2023
1,402,345 shares
Nine months ended
29,059,695 shares
December 31, 2022

28,788,825 shares

30,823,200 shares

Note: The number of treasury shares at the end of the fiscal year includes shares held by "Grandy House Employee Stock
Holding Partnership Exclusive Trust Account" (756,700 shares on December 31, 2023, 959,300 shares on March
31, 2023). The shares of the Company held by "Grandy House Employee Stock Holding Partnership Exclusive
Trust Account" are included in treasury shares and deducted from the calculation of the average number of shares
during the period (848,870 shares for the nine months ended December 31, 2023, 1,085,440 shares for the ninemonths ended December 31, 2022).
*

This consolidated quarterly financial report is not subject to quarterly review by a certified public accountant or an
audit firm.

*

Explanation concerning the appropriate use of financial forecasts and other special instructions
Results forecasts and other forward-looking statements contained in this report are based on assumptions, beliefs, anduncertainties in light of information available to the Company's management as of the publication date. Actual results may
differ materially from forecasts due to a variety of factors. Therefore, the Company does not guarantee the accuracy of
forecasts and other forward-looking statements and its ability to achieve stated targets.

Attachment Materials: Table of Contents
1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS.................................................................. 2(1) Explanation regarding Operating Results ........................................................................................................... 2(2) Explanation regarding Financial Position .......................................................................................................... 3(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts ....................................... 3
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ................................................. 4(1) Quarterly Consolidated Balance Sheets ............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................................... 6(Quarterly Consolidated Statements of Income)(Consolidated cumulative third quarter) ......................................................................................................6(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative third quarter) ......................................................................................................7(3) Notes to Quarterly Consolidated Financial Statements ...................................................................................... 8(Notes on Going Concern Assumptions)............................................................................................................8(Notes on Significant Changes in the Amount of Shareholders' Equity) ...........................................................8(Additional Information) ....................................................................................................................................8(Segment Information) .......................................................................................................................................9― 1 ―1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
In the cumulative first nine months of the consolidated fiscal year under review, the Japanese economy saw amoderate recovery as economic activities were normalizing and the employment and income environment was
improving in the wake of the downgrading of COVID-19 to a Class 5 disease. On the other hand, uncertain
factors were also observed, such as the possibility that the downside risk of overseas economies would influence
the Japanese economy, as well as rising prices.
In the housing sector, the number of construction starts of detached houses remained below the level of thesame month of the previous year from November 2022 as consumer appetite for purchasing declined due tohousing prices running high. Based on the deterioration of housing construction starts, the Government revised
the economic outlook for the housing construction field and most recently, downgraded it to "weak." In ourbusiness areas, as the number of housing construction starts remained low nationwide, a decline manifested itself
noticeably in the Northern Kanto area, in comparison to the Tokyo metropolitan area.
Under those circumstances, the Grandy House Group has upheld the basic policies of "Strengthen ourbusiness foundations and expand business areas for sustainable growth in the new home sales business," "Expand
the scale of the housing stock business and maximize synergies with the new home sales business" and"Strengthen our response to sustainability (ESG) issues" in the third medium-term business plan (from the fiscal
year ended March 31, 2022 to the fiscal year ending March 31, 2024). Accordingly, the Group has made efforts tofurther improve its corporate value.
In the new home sales, our core business, we strove to expand the scale of our business in the Tokyo
metropolitan area and promoted efforts to enhance product appeal by increasing supplies of ZEH houses andlong-life quality housing there. As a result, the number of homes sold rose in the Tokyo metropolitan area.
However, the number of homes sold decreased in the Northern Kanto area, compared to the same period of theprevious year when there was special demand related to the pandemic, resulting from the deterioration of themarket conditions. Additionally, the situation regarding the securing of profits also remained tough ascompetition intensified, associated with a slowdown in demand.
As a result, the Grandy House Group's consolidated cumulative operating results for the third quarter of fiscal
2024 were as follows: Net sales were ¥37,502 million, a decrease of 7.8% year-on-year; operating income was¥781 million, a decrease of 69.8% year-on-year; ordinary income was ¥586 million, a decrease of 75.9% year-onyear; and net income attributable to owners of the parent totaled ¥314 million, a decrease of 81.2% year-on-year.
Operating results by business segment were as follows.
a. Real Estate Sales
In new home sales, amid the continued posting of strong sales by the Sora Town series, which has all homes
as ZEH houses and includes "Tsukuba Matsushiro II" (a total of 103 lots in the city of Tsukuba) and"Kashiwanoha Campus Liwie" (a total of 40 lots in the city of Kashiwa), by "Mizunoiro, Mio no sora,
Nagareyama-Unga (a total of 28 lots in the city of Nagareyama)" and by other projects, we made efforts to
expand business in the Tokyo metropolitan area and cultivate demand in the Northern Kanto area throughmeasures including starting the sale of "~Oboro~Akitsu" (a total of 11 lots), which has all homes for sale certified
as long-life quality housing, in the city of Kiyose, Tokyo, and "Irodori no mori, the 11th phase in Hanekawa, thecity of Oyama" (a total of 31 lots), a project which has the concept of responding to resident diversity, in thequarter under review. In terms of products, we strove to supply products that took household budgets and theenvironment into consideration by promoting the installation of "Ohisama EcoCute," which makes better use ofexcess electricity during the daytime from solar power generation, in addition to expanding supplies of ZEH
houses and long-life quality housing.
Through these efforts, the number of homes sold increased in the Tokyo metropolitan area from the same
period of the previous year. However, the number of new homes sold decreased by 129 year-on-year to 923 in the
cumulative nine months of the fiscal year under review as the conditions for capturing orders continued to bedifficult in the Northern Kanto area mainly due to a surge in the prices of homes for sale.
In existing home sales, the selling price of existing homes increased from the same period of the previous
year due to surges in the purchasing price of existing homes and costs for renovation. Additionally, the conditions
for receiving orders remained tough primarily due to a stagnation in demand and the rising momentum for major
home builders to revise the price of new low-cost homes. Under such circumstances, the number of homes solddecreased by 7 year-on-year to 92 in the cumulative nine months of the fiscal year under review.

― 2 ―As a result, sales in the real estate sales segment in the consolidated cumulative third quarter of fiscal 2024
under review decreased by 6.5% year-on-year to ¥34,928 million, with a segment profit of ¥172 million, adecrease of 91.3% year-on-year.
b. Construction Material Sales
In construction material sales, the conditions for receiving orders for pre-cut wood, the main product, remained
tough amid the number of new housing starts for wooden houses below the level of a year earlier for 21 consecutive
months to the end of the quarter under review. On the other hand, construction wood prices remained on a
downward trend after the peak of the summer of the previous year, reflecting the stagnation of housing demand.
Under these circumstances, we focused on ramping up the activity to find new business and receive orders forconstruction wood other than pre-cut wood for the purpose of receiving more orders in the Saitama area.
Nonetheless, our sales and profit decreased year-on-year due to a stagnation in demand and intensifying
competition for capturing orders.
As a result, sales of the construction material sales segment in the consolidated cumulative third quarter offiscal 2024 under review decreased by 28.0% year-on-year to ¥2,242 million, with a segment profit of ¥224 million,a decrease of 40.8% year-on-year.
c. Real Estate Leasing
Real estate leasing saw a sales increase as the operational ratio remained high despite the large-scalerenovation implemented for part of offices for leasing and others, as well as Sun Village Shonan (a total of 173
units in the city of Kashiwa, Chiba Prefecture), which we had acquired in the fourth quarter of the previous fiscal
year, contributed to earnings. The parking business exceeded the year-on-year level of earnings because 63 payby-the-hour parking lots (in front of the railway station of Koganei, Tochigi Prefecture), which we had acquiredin June this year, started operation in addition to an upward trend in the operational ratio of pay-by-the-hourparking lots, resulting from the normalization of social and economic activities. As a result, sales in the realestate leasing segment in the consolidated cumulative third quarter of fiscal 2024 under review were ¥331
million, an increase of 48.3% year-on-year, with a segment profit of ¥169 million, an increase of 32.8% year-onyear.
(2) Explanation regarding Financial Position
As of the end of the third quarter of consolidated fiscal 2024, consolidated total assets had risen to ¥75,833
million, an increase of ¥3,188 million compared to the end of the previous consolidated fiscal year. This wasprimarily due to an increase in inventories, resulting from various factors, such as the acquisition of housing lots
associated with an expansion of the area and others for the real estate sales business and a slowdown in the paceof sales of detached houses.
Liabilities stood at ¥51,004 million, an increase of ¥4,555 million compared to the end of the previous
consolidated fiscal year. This was mainly due to an increase in loans payable resulting from a rise in inventories.
Total net assets stood at ¥24,829 million as of December 31, 2023. This represents a decrease of ¥1,366
million from the balance as of March 31, 2023. This was due to decreases resulting from the payment ofdividends and the repurchase of the Company's own stock despite the acquisition of net income attributable toowners of parent.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
There have been no changes from the consolidated and non-consolidated financial forecasts announced on
November 13, 2023.

― 3 ―2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)
Third Quarter of FY2024(As of December 31, 2023)

FY2023(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits

10,839,975

8,444,040

574,709526,058

11,352,157

14,409,839

17,584

7,400

Real estate for sale in process

33,998,068

36,449,967

Merchandise and finished goods

376,807

293,528

Raw materials and supplies

176,128

138,119

Other

989,203

1,101,036(1)(3,448)58,324,634

61,366,541

Notes and accounts receivable – trade andcontract assets
Real estate for sale
Costs on uncompleted construction contracts

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

3,818,539

3,706,914

Machinery, equipment and vehicles, net

18,98014,899Tools, furniture and fixtures, net

52,58048,418Land

7,261,402

7,535,538

Leased assets, net

77,202

52,810Construction in progress

20,00028,665

11,248,706

11,387,248

891,319

788,474

Total property, plant and equipment
Intangible assets
Goodwill
Other

65,24658,761

Total intangible assets

956,566

847,235

177,000

229,450

9,217

10,796

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets

618,717650,490

Other

1,227,394

1,213,531

Total investments and other assets

2,032,329

2,104,268

14,237,601

14,338,752

Bond issuance costs

83,078

128,563

Total deferred assets

83,078

128,563

72,645,313

75,833,857

Total non-current assets
Deferred assets

Total assets― 4 ―(Thousands of Yen)FY2023(As of March 31, 2023)

Third Quarter of FY2024(As of December 31, 2023)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,668,472

3,416,757

Short-term loans payable

15,262,600

18,772,800

Current portion of bonds

500,000

300,000

3,103,044

4,472,310

Lease obligations

34,12426,544

Income taxes payable

367,833

56,292Current portion of long-term loans payable

Provision for warranties for completed construction

189,175

174,564

Other

1,039,922

1,000,936

Total current liabilities

24,165,172

28,220,205

Bonds payable

4,600,000

6,800,000

Long-term loans payable

16,232,236

14,426,639

Non-current liabilities

Lease obligations

50,80531,966

Provision for directors' retirement benefits

257,787

261,099

1,014,424

1,113,727

128,876

150,852

22,284,129

22,784,285

46,449,301

51,004,490

Capital stock

2,077,500

2,077,500

Capital surplus

2,674,902

2,682,651

Retained earnings

21,983,746

21,326,200

Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Treasury shares(629,596)(1,387,099)

26,106,551

24,699,252

Valuation difference on available-for-sale securities

52,000103,094

Total accumulated other comprehensive income

52,000103,094

37,46027,02026,196,011

24,829,366

72,645,313

75,833,857

Total shareholders' equity
Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets― 5 ―(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated cumulative third quarter)(Thousands of Yen)
Nine months ended
December 31, 2022
(From April 1, 2022 to
December 31, 2022)

Nine months ended
December 31, 2023
(From April 1, 2023 to
December 31, 2023)

Net sales

40,689,563

37,502,565

Cost of sales

33,276,391

31,881,912

Gross profit

7,413,172

5,620,652

Selling, general and administrative expenses

4,827,086

4,838,897

Operating income

2,586,086

781,755

99

81

Non-operating income
Interest income
Dividends income

5,611

5,861

Commission

23,41921,263

Insurance claim income

1,096

25,338–

14,611

Other

34,34040,221

Total non-operating income

64,568107,377

Interest expenses

190,421

270,687

Commission for syndicate loan

11,344

5,571

Other

15,62926,095

Total non-operating expenses

217,395

302,354

2,433,259

586,777

Gain on sales of non-current assets

95,81011,184Gain on reversal of share acquisition rights

2,220

–

Total extraordinary income

98,03011,184

Loss on retirement of non-current assets

10,827

10,815

Total extraordinary loss

10,827

10,815

Net income before income taxes

Reversal of provision for warranties forcompleted construction

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

2,520,461

587,146

Income taxes – current

776,059

305,656

Income taxes – deferred

66,814(33,129)

Total income taxes

842,874

272,527

Net income

1,677,587

314,619

Net income attributable to owners of the parent

1,677,587

314,619― 6 ―(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative third quarter)(Thousands of Yen)
Nine months ended
December 31, 2022
(From April 1, 2022 to
December 31, 2022)

Nine months ended
December 31, 2023
(From April 1, 2023 to
December 31, 2023)

1,677,587

314,619

Valuation difference on available-for-sale securities

39,00051,094

Total other comprehensive income

39,00051,094

1,716,587

365,713

1,716,587

365,713––

Net income
Other comprehensive income

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests― 7 ―(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
The Company repurchased its own stock of 1,600,000 shares on the basis of the resolution made at the meetingof its Board of Directors held on August 17, 2023. As a result of this repurchase, treasury shares increased by¥757,502 thousand during the cumulative nine months of the consolidated fiscal year under review to ¥1,387,099
thousand at the end of the cumulative nine months of the consolidated fiscal year under review.
(Additional Information)(Transactions for Distributing the Company's Own Stock to Employees, etc. through Trusts)
The Company has adopted the "trust-type employee stock holding incentive plan (E-Ship®)" (hereinafterreferred to as "the Plan") for the purpose of providing its employees with incentives to enhance the corporate
value of the Company on a medium-to long-term basis in the fiscal year ended March 31, 2022.
(1) Overview of transactions
The Plan is an incentive plan for all employees who are members of "the Grandy House Employee Stock
Holding Partnership" (hereinafter referred to as "the Stock Partnership"). The Company has established the"Grandy House Employee Stock Holding Partnership Exclusive Trust" (hereinafter referred to as "the Trust") in atrust bank. The Trust will acquire in advance after its establishment the number of Grandy House shares to be
expected to be acquired by the Stock Partnership over a six-year period. At a later date, the Trust will sell its
holdings of Grandy House shares to the Stock Partnership on a continual basis. If an amount equivalent to thegains from sale of shares is accumulated at the end of the term of the Trust, the relevant amount equivalent to thegains from the sale of shares will be distributed as residue assets to those who satisfy the criteria of beneficiaries.
The Company warranties the repayment of loans payable for the Trust to acquire shares of the Company.
Therefore, if an amount equivalent to the loss from sale of shares accumulates due to a decline in the price ofshares of the Company, causing a debt equivalent to a loss from sale of the relevant shares remains in the Trust at
the end of the term of the Trust, the Company will assume the repayment of the relevant remaining borrowing.
(2) Grandy House's own company stock remaining in the TrustGrandy House's own company stock remaining in the Trust is recorded as treasury shares in net assets inaccordance with the book value (excluding the amount of incidental expenses) in the Trust. The book value andthe number of the relevant treasury shares are ¥553,516 thousand and 959,300 shares for the previous
consolidated fiscal year, and ¥436,615 thousand and 756,700 shares for the consolidated third quarter of fiscal
2024 under review.
(3) The book value of loans payable recorded by the application of the gross method
The previous consolidated fiscal year: ¥534,370 thousand
The consolidated third quarter of fiscal 2024 under review: ¥410,240 thousand― 8 ―(Segment Information)
I. The cumulative nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment

Net sales
Sales to externalcustomers
Inter-segment sales
or transfers
Total
Segment profit

Adjustments(Note 1)(Thousands of Yen)
AmountRecorded on
Quarterly
Consolidated
Statements ofIncome (Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

37,352,449

3,113,473

223,640

40,689,563—

40,689,563

40,1403,689,595

61,355

3,791,090(3,791,090)—

37,392,589
1,977,121

6,803,068
379,176

284,995
128,041

44,480,654
2,484,340(3,791,090)(51,081)

40,689,563
2,433,259

Notes: 1 Adjustments of segment profit (−¥51,081 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
II. The cumulative nine months ended December 31, 2023 (April 1, 2023 to December 31, 2023)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment

Net sales
Sales to externalcustomers
Inter-segment sales
or transfers
Total
Segment profit

Adjustments(Note 1)(Thousands of Yen)
AmountRecorded on
Quarterly
Consolidated
Statements ofIncome (Note 2)

Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

34,928,548

2,242,372

331,644

37,502,565—

37,502,565

39,5102,916,919

62,8303,019,260(3,019,260)—

34,968,058
172,669

5,159,292
224,555

394,474
169,982

40,521,825
567,207(3,019,260)
19,56937,502,565
586,777

Notes: 1 Adjustments of segment profit (¥19,569 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.

― 9 ―