Financial Results for the Second Quarter ended September 30, 2008
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

November 6, 2008
Company name:

HANWA Co.,Ltd.

Listed stock exchange: Tokyo, Osaka

Stock exchange code:8078(URL http://www.hanwa.co.jp)

Representative:
Enquiries:

Shuji Kita
Tetsuro Akimoto

The date of issue of audited financial statements:

President
Senior Managing Director of Accounting Dept.
TEL 81 - 3 - 3544 - 2190
November 14, 2008 The date of payout of dividend: December 3, 2008１．Consolidated financial results for the second quarter ended September 30, 2008 (Rounded down to millions of yen)
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the second quarter
ended September 30, 2008
ended September 30, 2007

Operating income

Ordinary income

Net income(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

911,263736,050

23.8
18.3

19,81911,981

65.4
18.4

19,340
11,25571.8
18.0

10,216
7,108

43.7
24.4

Net income
per share
For the second quarter
ended September 30, 2008
ended September 30, 2007

Net income
per share(diluted)

(yen)

(yen)

－－

48.34
33.63

(2) Consolidated financial position
Total assets(Millions of yen)

578,539
482,014

September 30, 2008
March 31, 2008

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

105,576
100,926
As of September 30, 2008
As of March 31, 2008

Shareholders' equity
per share(％)

(yen)

18.1
20.7
104,747 million yen
100,111 million yen

495.72473.70２．Cash dividends
First quarter（effective date）

Cash dividends per share
Second quarter
Third quarter
Year-end(yen)Year ended March 31, 2008
Year ending March 31, 2009
（estimated）－－－(yen)

6.00
6.00－(yen)－－－

Annual
(yen)

6.00
－
6.00

(yen)

12.00
－
12.00

３．Forecast of consolidated financial results for fiscal year ending March 31, 2009 （％ of change from previous year）
Net sales

Operating income

Ordinary income

Net income(Millions of yen) (％)(Millions of yen) (％)(Millions of yen) (％)(Millions of yen) (％)

Net income
per share(yen)Annual
1,710,000
13.4
29,90026.1
27,40028.8
15,100
15.1
71.46* The above forecasts reflect assumptions and prospects based on the information currently available.They are subject
to a number of risks and uncertainties that could cause actual results to differ materially from this information.

－１－

HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2008

《Consolidated Balance Sheets》(Rounded down to millions of yen)

Millions of yen
March 31, 2008

September 30, 2008 Increase(Decrease)

AssetsCurrent assets;
Cash and deposits
Trade notes and accounts receivable
Inventories
OthersAllowance for doubtful receivables
Total current assets

14,191
263,192
92,982
21,297(891)
390,772

19,762
324,089
115,265
24,420(1,066)482,471

5,571
60,89722,283
3,123(175)
91,69924,453
18,28842,741808

25,282
18,86544,148
787

829
577
1,407
(21)

31,44317,005(756)
47,692
91,242
482,01434,30917,702(879)
51,132
96,068578,539

2,866
697
(123)
3,440
4,826
96,525Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Current portion of bonds payable
Income taxes payable
Accrued bonuses
OthersTotal current liabilities

168,287
49,73817,00010,0004,813
1,763
29,416
281,019

213,293
89,71424,00010,0007,405
2,316
31,498378,227

45,00639,976
7,000
―
2,592
553
2,082
97,208Long-term liabilities;
Bonds payable
Long-term loans payable
Employees' retirement benefits
OthersTotal long-term liabilities
Total liabilities

10,00079,325
8
10,735100,068
381,088

10,00077,07026
7,638
94,735472,963―(2,255)18(3,097)(5,333)91,87545,651
4
51,028(130)
96,55445,651
5
59,973(150)
105,480

―
1
8,945
(20)
8,926

5,397
143
(16)
(1,966)
3,557
814
100,926
482,014

232
(182)
(16)
(765)
(732)
828
105,576
578,539(5,165)
(325)
―
1,201
(4,289)14
4,650
96,525

Fixed assets;
Property and equipment;
Land
OthersTotal property and equipment
Intangible assets
Investments and other assets;
Investment securities
OthersAllowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

Liabilities;

Net assets;
Shareholders' equity;
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments;
Net unrealized holding gains on securities
Deferred hedge profit and loss
Land revaluation difference
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets－２－HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2008

《Consolidated Statements of Income》(Rounded down to millions of yen)

Millions of yen
Second quarterended
September 30,
2007

Second quarter
ended
September 30,
2008

Increase(Decrease)

Net sales
Cost of sales
Gross profit

736,050
710,358
25,692

911,263876,342
34,920175,213
165,984
9,228

Selling, general and administrative expenses
Operating income

13,71011,981

15,10019,819

1,390
7,838

604
521
531
282
1,940

560
479
1,341
262
2,643

(44)
(42)
810
(20)
703

2,096
569
2,665
11,255

2,163
959
3,122
19,340

67
390
457
8,085

230
230

――

(230)
(230)

Total other expenses
Income before income taxes and minority interest―――
11,485

720
908
1,628
17,711

720
908
1,628
6,226

Income taxes
Minority interest in net income
Net income

4,347
29
7,108

7,470
24
10,216

3,123(5)3,108Other income;Interest income
Dividend income
Foreign exchange gain
OthersTotal other income
Other expenses;
Interest expenses
OthersTotal other expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss;
Loss on devaluation of investments securities
Foreign exchange loss on common stock reduction of consolidated subsidiary－３－HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2008

《Consolidated Statements of Cash Flows》(Rounded down to millions of yen)

Millions of yen
Second quarter
Secondendedquarter ended
September 30, September 30,2007
2008
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Increase(decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense
Gain on sales of investment securities of unconsolidated subsidiaries
Loss on devaluation of investments securities

Increase(Decrease)(Increase)decrease in trade receivables(Increase)decrease in inventories
Increase(decrease) in trade notes and accounts payable
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

11,485999
55(1,125)
2,096
(230)
―
―
(4,706)(5,454)
10,677
1,411
15,2091,115(2,036)(4,052)
10,236

17,7111,129
298(1,039)
2,163
―
720
908
(60,968)(22,171)
44,933(1,776)(18,091)
1,030(2,153)(4,720)(23,934)

6,226
130
243
86
67230
720
908
(56,262)(16,717)
34,256(3,187)(33,300)
(85)
(117)
(668)
(34,170)

Cash flows from investing activities:
Payment for time deposits
Payment for purchase of property and equipment
Proceeds from sale of property and equipment
Payment for purchase of investment securities
Proceeds from sale of investment securities(Increase)decrease in short - term loans receivable, net
Increase in long - term loans receivableCollection of long-term loans receivable
Other, net
Net cash used in investing activities―(1,613)17(1,572)
377
(953)
(5)
166(482)(4,064)(187)(2,806)323(14,167)
2,068
(27)
(10)
52
40
(14,713)(187)(1,193)306(12,595)
1,691
926
(5)
(114)
522
(10,649)

Cash flows from financing activities:
Increase(decrease) in short-term loans, net
Increase(decrease) in commercial paper, net
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payment for cash dividends
Cash dividends paid to minority interest in consolidated subsidiaries
Other, net
Net cash provided by (used in) financing activities(18,611)
2,500
―
(25)
9,950
(1,481)(17)(14)(7,700)40,5677,000
5,000(7,625)―(1,270)(4)(31)
43,63659,1784,500
5,000(7,600)(9,950)211
13(17)
51,336

Effect of exchange rate changes on cash and cash equivalents
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of period

64(1,463)
10,228
8,765

395
5,383
14,17819,562

331
6,846
3,950
10,797

Foreign exchange loss on common stock reduction of consolidated subsidiary－４－HANWA co.,ltd.

Financial Results for the Second Quarter ended September 30, 2008

《Segment information》
Business segment information
The Companies' operations are classified into five business segments as follows:
Steel: Steel bars and shapes, steel plates and sheets, special steels, wire products, steel pipes,
and steelmaking raw materials
Metals and alloys: Nickel, chromium, stainless scrap and solar cell-related materials and products
Non-ferrous metals: Copper, aluminium, lead, zinc, tin, antimony and other metals
Foods: Frozen seafoods and meat products
Petroleum and chemicals : Petroleum products, chemical products, and cement
Other business: Lumber, machinery, and others
Segment information by business category for the second quarter ended September 30, 2007 and 2008, is as follows:(Rounded down to millions of yen)

Millions of yen

Second quarter
ended September 30, 2007
Net sales
Operating income

MetalsNon-ferrous

Steel & alloys
370,016 111,009
7,716
3,370

metals34,541
1,484

Millions of yen

Second quarter
ended September 30, 2008
Net sales
Operating income

Petroleum OtherFoods & chemicals business Total Corporate Consolidated
43,956 144,726 31,799 736,050－ 736,050
931,124
939 14,729 (2,748) 11,981

Steel498,948
12,784

Petroleum OtherMetals Non-ferrous& alloys metals Foods & chemicals business

98,5093,715

37,3101,183－５－43,601 204,324
1,100
2,392

Total Corporate Consolidated
28,568 911,263－ 911,263
1,614 22,790 (2,971) 19,819