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 First Quarter of Fiscal 2021 Ending March 31, 2021 (Japanese GAAP)
August 3, 2020
Company Name:Grandy House Corporation
Stock Exchange Listing: Tokyo Stock Exchange
Securities Code:
8999
URL:
https://www.grandy.co.jp
Representative:
Yasuro Hayashi, President
Inquiries:
Takanori Saito, Administration Manager
TEL: +81-28-650-7777
Scheduled date of quarterly securities report filing:
August 6, 2020
Scheduled date of dividend payment commencement:―
Preparation of quarterly supplementary explanatory materials: None
Quarterly results briefing held:
None(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2021
(April 1, 2020 to June 30, 2020)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Sales

Operating Income

Net Income Attributableto Owners of the Parent(¥ million)%

Ordinary Income(¥ million)%(¥ million)%(¥ million)

%

9,349

(11.4)

(127)

―

(107)

―

(107)

―

10,5502.0

589(16.8)

632(15.1)

420

43.3

Three months ended
June 30, 2020Three months ended
June 30, 2019
Note: Comprehensive income

Three months ended June 30, 2020: (¥92) million (-%)
Three months ended June 30, 2019: ¥419 million (49.6%)
Net Income per ShareNet Income per Share(Diluted)(¥)(¥)

Three months ended
June 30, 2020Three months ended
June 30, 2019(3.69)

―

14.58

14.40

(2) Consolidated Financial Position

June 30, 2020
March 31, 2020
Reference: Shareholders' equity

Total Assets
Net Assets(¥ million)(¥ million)
60,387
21,382
55,98622,143June 30, 2020:¥21,211 million
March 31, 2020: ¥21,972 million

Shareholders' Equity Ratio
%
35.1
39.2

Net Assets per Share(¥)
729.66755.83

2. Dividends
Annual Dividend per Share
1Q-EndFiscal 2020
Fiscal 2021

2Q-End(¥)――

3Q-End(¥)
0.00―
Fiscal 2021 (Forecast)
Note: Dividends for the year ending March 31, 2021 (forecast) have yet to be decided.

Period-End

Total

(¥)
―

(¥)
23.00

(¥)
23.00

―

―

―

3. Consolidated Financial Forecasts for Fiscal 2021 (April 1, 2020 to March 31, 2021)
We have not yet determined consolidated financial forecasts for fiscal 2021 because it is difficult at this time to reasonably
assess the impact of the COVID-19 outbreak.
We will release the forecasts for fiscal 2021 promptly as soon as it becomes possible to do so.

* Notes(1) Significant changes to subsidiaries during the period(Transfers of specific subsidiaries with 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 restatement of revisions
1) Changes in accounting policies due to revision to accounting standards, etc.: None
2) Changes in accounting policies other than 1):
None3) Changes in accounting estimates:
None4) Restatements:
None(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

June 30, 2020

30,823,200 shares March 31, 2020

30,823,200 shares

June 30, 2020

1,752,445 shares March 31, 2020

1,752,445 shares

Three months ended
June 30, 2020Three months ended
29,070,755 shares
June 30, 201928,857,955 shares*This consolidated quarterly financial report is not subject to a quarterly review by a certified public accountant or an
audit firm.

*

Explanation concerning the appropriate use of 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 first quarter) .......................................................................................................6(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative first 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(Supplemental Information) ...............................................................................................................................8(Segment Information) .......................................................................................................................................9― 1 ―1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
During the first three months of the consolidated fiscal year under review, confidence in the Japanese
economy rapidly eroded. This was caused by the negative growth in real GDP that occurred in the January-March
2020 period for two consecutive terms due to voluntary restraints on going out, corporate activities, and so on in
response to the spread of COVID-19 as well as by the even more serious economic slowdown that followed thedeclaration of a state of emergency in April this year.
In the housing sector, the business environment is also in an extremely severe situation due to restrictions on
business activities, voluntary restraints on customers going out, and other measures that have been implemented
in response to the spread of COVID-19. Although economic activity resumed after the termination of the state of
emergency in May, the sector remains in critical condition due to concerns over a second wave of COVID-19.
Under these circumstances, the Grandy House Group continued its efforts to develop management
infrastructure for responding to emergency situations by not only continuing to take measures for preventing
infections, but also creating a sales system that utilizes IT technologies and a production structure for flexibly
responding to changing environments, while continuing to ensure the safety of its customers and the health of its
employees as the top priority issue.
With regard to new home sales, one of our core operations, we worked to increase sales by starting to selllarge housing lots and reinforcing the sales structure in Saitama Prefecture and Kanagawa Prefecture, where we
had expanded our sales areas in the previous fiscal year, while enhancing our online sales activities andimplementing thorough measures against infections. In respect of existing home sales, we endeavored to secure
inventory with a view to expanding the number of completed home sales amid worsening purchasing conditions,such as the suspension of auction bidding.
However, although the level of orders that we received for new homes after the termination of the state of
emergency recovered to the level of the previous fiscal year, the significant impact of the economic slowdown in
the first half of the current quarter led to a year-on-year decline in both the number of completed new andexisting home sales and net sales. In terms of profit, an operating loss was posted due to a decrease in net sales
and other factors such as a decline in the gross margin ratio as a result of tighter inventory controls, and anincrease in selling, general and administrative expenses and in the amortization cost of goodwill of the subsidiaryacquired in the previous fiscal year.
As a result of these factors, the Grandy House Group's consolidated results for the first quarter of fiscal 2021
under review were as follows. We had net sales of ¥9,349 million, a decrease of 11.4% year-on-year; anoperating loss of ¥127 million, compared to an operating income of ¥589 million during the same period of theprevious year; an ordinary loss of ¥107 million, compared to an ordinary income of ¥632 million during the same
period of the previous year; and a net loss attributable to the owners of the parent of ¥107 million, compared to a
net income attributable to the owners of the parent of ¥420 million during the same period of the previous year.
Results by business segment are presented as follows.
a. Real Estate Sales
In the new home sales, we have endeavored to increase non-contact sales activities, where properties are
introduced via e-mail and online, in order to prevent infections by COVID-19 while also offering inspections of
newly completed homes in the form of guided visits by-appointment only. In Saitama Prefecture, which is a newsales area that we added in the previous fiscal year, we enhanced our advertisements to improve our brandrecognition and increased the number of sales personnel based there. Meanwhile, our subsidiary in Kanagawa
Prefecture, which we acquired in the previous fiscal year, worked to strengthen its construction division so that it
could construct homes by itself.
In Tsukuba, Ibaraki Prefecture, we began selling large housing lots called "Yotsuba no Mori Tsukuba
Matsushiro" (103 lots in total) as a successor to "Yotsuba no Mori," which we sold out of in the previous fiscal
year. In terms of products, we continued to differentiate ourselves from our competitors by providing highadded-value products. As part of our efforts, we pursued the creation of a townscape that excels in comfort andsafety in consideration of families with young children by developing promenades and designing vehicle traffic
paths, built homes featuring multipurpose spaces that can be used for working from home, and so on.
However, the number of orders that we received for new homes slowed considerably until the termination of
the declaration of the state of emergency, which had had a significant impact on the number of property
inspections by customers and other factors due to restrictions on business activities and voluntary restraints ongoing out. Although the level of orders that we received for new homes after the termination of the declaration
recovered to the same level as that for the previous fiscal year, the number of completed home sales in the first― 2 ―quarter of fiscal 2021 under review was 277 (a decrease of 39 homes year-on-year) due to the significant impactof the sharp drop in orders that we experienced in the first half of the current quarter.
In existing home sales, we continued our efforts to build up our inventory with a view to expanding thenumber of completed home sales. However, due to the impact that measures imposed in response to the spread of
COVID-19, including the suspension of auction bidding and restraints on customers going out, had on bothpurchasing and sales, the number of completed home sales in the first quarter of fiscal 2021 under review was 33(a decrease of 2 homes year-on-year).
As a result of these factors, sales in the real estate sales segment during the first quarter of fiscal 2021 underreview decreased by 12.0% year-on-year to ¥8,620 million. We had a segment loss of ¥169 million, compared toa segment profit of ¥573 million during the same period of last year.
b. Construction Material Sales
In the construction material sales, the number of new housing starts for wooden houses fell considerably
year-on-year throughout the country due to the slowdown in economic activity and purchasing activity caused by
the spread of COVID-19 shortly after the new year. This demonstrated a remarkable decline in construction
material demand. Wood material prices continued to remain generally low, affected by a fall in the wholesale
prices of construction materials due to reduced demand and other factors.
Under these circumstances, the volume of construction material sales decreased significantly despite theGrandy House Group having made efforts to secure orders for construction materials and ensure thorough credit
management as a top priority.
As a result of these factors, sales in the construction material sales segment in the first quarter of fiscal 2021
under review decreased by 3.2% year-on-year to ¥664 million. We had a segment profit of ¥16 million, adecrease of 26.8% year-on-year.
c. Real Estate Leasing
In the real estate leasing, more tenants whose businesses had deteriorated requested a reduction or exemption
from rent due to the economic slowdown caused by the spread of COVID-19, and the operation rate exhibited aworsening trend in both the office building and parking markets.
The Grandy House Group continued to face severe conditions as well, because it supported rent reductions,rent exemptions and other measures for leased offices and the like to prevent a deterioration in the operation rate,
and the operation rate for parking lots and others decreased due to voluntary restraints on going out, despite anincrease in the number of properties leased year-on-year.
As a result of these factors, sales in the real estate leasing segment in the first quarter of fiscal 2021 underreview were ¥64 million, an increase of 0.8% year-on-year. We had a segment profit of ¥39 million, a decreaseof 5.3% year-on-year.
(2) Explanation regarding Financial Position
As of the end of the first quarter of consolidated fiscal 2021 under review, total consolidated assets rose to¥60,387 million, an increase of ¥4,401 million compared to the end of the previous consolidated fiscal year. Thiswas due to an increase in deposits caused primarily by the acquisition of housing lots to reflect the expanded areaof the real estate sales business and having secured liquidity in hand.
Liabilities increased to ¥39,005 million, an increase of ¥5,162 million from the end of the previous
consolidated fiscal year. This was mainly due to an increase in short-term loans payable following the acquisitionof housing lots and having secured liquidity in hand.
Total net assets stood at ¥21,382 million as of June 30, 2020, down ¥760 million compared with the end of
the previous fiscal year. This was mainly due to accounting for the net loss attributable to owners of the parent aswell as for the payment of dividends.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
Although the state of emergency was terminated and economic activity has gradually resumed, there is noprospect of the COVID-19 situation returning to normal because of concerns about a second wave. We have notyet determined consolidated financial forecasts and dividend payments for fiscal 2021 because it is difficult at
this time to reasonably assess the impact that the COVID-19 outbreak will have on our financial results given thelevel of uncertainty concerning economic activity and business trends.
We will release the forecasts for fiscal 2021 promptly as soon as it becomes possible to do so.

― 3 ―2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)
Fiscal 2020
(As of March 31, 2020)

First Quarter of FY2021(As of June 30, 2020)

AssetsCurrent assets
Cash and deposits

10,351,397

12,928,152

607,498

445,127

16,799,116

19,407,875

7,198

5,119

Real estate for sale in process

13,899,184

13,494,413

Merchandise and finished goods

238,209

188,799

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

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

113,833

127,709

1,039,355

864,417(4,934)(4,053)43,050,859

47,457,561

Non-current assets
Property, plant and equipment
Buildings and structures, net

3,418,991

3,392,453

Machinery, equipment and vehicles, net

43,85540,421Tools, furniture and fixtures, net

55,94958,032

6,002,977

6,011,624

105,071

96,402

Land
Leased assets, net
Construction in progress

8,411

17,651

9,635,258

9,616,585

1,302,697

1,268,416

102,366

99,978

1,405,064

1,368,394

Investment securities

329,226

343,650

Long-term loans receivable

35,914

33,771

Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets

457,977

485,953

1,045,367

1,041,995(9,148)(9,145)

1,859,337

1,896,225

12,899,659

12,881,204

35,593

49,117

Deferred assets
Bond issuance costs
Total deferred assets
Total assets― 4 ―35,593

49,11755,986,112

60,387,884

(Thousands of Yen)
Fiscal 2020
(As of March 31, 2020)

First Quarter of FY2021(As of June 30, 2020)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,249,367

2,859,048

Short-term loans payable

22,218,600

26,932,900

Current portion of long-term loans payable

695,958

691,674

Current portion of bonds

21,00021,000

Lease obligations

37,32336,199

Income taxes payable

367,350

36,655

Provision for warranties for completed construction

70,872

74,112

Other691,928

1,028,824

27,352,399

31,680,414

Bonds payable

1,824,000

2,313,500

Long-term loans payable

Total current liabilities
Non-current liabilities

3,597,965

3,926,699

Lease obligations

77,603

69,121

Provision for directors' retirement benefits

203,579

203,570

Net defined benefit liability

720,938

746,574

Asset retirement obligations

12,296

12,314Other

54,20353,3736,490,585

7,325,153

33,842,985

39,005,567

2,077,500

2,077,500

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

2,291,248

2,291,248

Retained earnings

17,905,056

17,129,245

Treasury shares(301,297)(301,297)

21,972,507

21,196,696–

15,000Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

― 5 ―

–

15,000170,620

170,620

22,143,127

21,382,316

55,986,112

60,387,884

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated cumulative first quarter)(Thousands of Yen)
Three months ended
June 30, 2019
(From April 1, 2019 toJune 30, 2019)

Three months ended
June 30, 2020
(From April 1, 2020 toJune 30, 2020)

Net Sales

10,550,042

9,349,252

Cost of sales

8,678,606

7,990,045

Gross profit

1,871,435

1,359,207

Selling, general and administrative expenses

1,281,578

1,486,239

589,856(127,031)

Operating income (loss)
Non-operating income
Interest income

193

561

Dividends income

2,953

2,903

Operations consignment fee

57,92649,637

Office work fee

38,02233,452

Other

3,290

9,706

102,386

96,260Interest expenses

55,68670,561

Commission for syndicate loan

1,666

2,491

Other

2,695

3,415

Total non-operating expenses

60,04876,468632,194(107,239)

Loss on retirement of non-current assets

4,872

3,598

Total extraordinary loss

4,872

3,598

Net income before income taxes (net loss before income taxes)

627,322(110,837)

Income taxes – current

181,958

24,934

Income taxes – deferred

24,695(28,588)

Total income taxes

206,653(3,653)

Net income (loss)

420,668(107,183)

Net income (loss) attributable to owners of the parent

420,668(107,183)

Total non-operating income
Non-operating expenses

Ordinary income (loss)
Extraordinary loss

― 6 ―(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative first quarter)(Thousands of Yen)

Net income (loss)

Three months ended
June 30, 2019
(From April 1, 2019 toJune 30, 2019)

Three months ended
June 30, 2020
(From April 1, 2020 toJune 30, 2020)

420,668(107,183)(695)

15,000

Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income(695)

15,000419,973(92,183)

419,973(92,183)––

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)
Not applicable.
(Additional Information)
The Grandy House Group makes accounting estimates (impairment review for non-current assets including
goodwill, valuation of inventory, etc.) based on information available as of the date on which the quarterly
consolidated financial statements are prepared. In making such estimates, however, we have assumed that social
activities that have been slowed due to the COVID-19 outbreak will gradually start to recover in the second halfof fiscal 2021 and almost fully recover to the level before the outbreak by the end of fiscal 2021.
Note that there has been no significant change to our assumptions concerning the impact of the COVID-19
outbreak that we described as supplemental information in our securities reporting for fiscal 2020.

― 8 ―(Segment Information)
Segment Information
I. The three months ended June 30, 2019 (April 1, 2019 to June 30, 2019)
1. Information relating to the amounts of net sales and profit or loss by reportable segment
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

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

Net Sales
Sales to external
9,800,186
686,172
63,683
10,550,042–
customers
Inter-segment sales–
819,404
21,221
840,626(840,626)
and transfers
Total
9,800,186
1,505,577
84,905
11,390,669(840,626)
Segment profit (loss)
573,653
22,044
41,244
636,942(4,748)Notes: 1 Adjustments of segment profit (−¥4,748 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted to ordinary income described in quarterly consolidated statements of income.

10,550,042–
10,550,042
632,194

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
II. The three months ended June 30, 2020 (April 1, 2020 to June 30, 2020)
1. Information relating to the amounts of net sales and profit or loss by reportable segment
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

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

Net Sales
Sales to external
8,620,916
664,165
64,1709,349,252–
customers
Inter-segment sales–
604,668
20,228624,896(624,896)
and transfers
Total
8,620,916
1,268,834
84,3999,974,149(624,896)
Segment profit (loss)(169,144)
16,13439,061(113,947)
6,708
Notes: 1 Adjustments of segment profit or loss (¥6,708 thousand) are eliminations of inter-segment transactions.
2 Segment profit or loss has been adjusted to ordinary loss described in quarterly consolidated statements of income.

9,349,252–
9,349,252(107,239)

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

― 9 ―