Financial Results for the First Quarter ended June 30, 2007
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

August 9,2007
Company name:

HANWA Co.,Ltd.

Listed stock exchange:
Stock exchange code:

Tokyo, Osaka
8078

Representative:
Enquiries:

Shuji Kita
Tetsuro Akimoto(URL http://www.hanwa.co.jp)
President
Managing Director of Accounting Dept.
TEL 81 - 3 - 3544 - 2190
(Rounded down to millions of yen)

１．Consolidated financial results for the first quarter ended June 30, 2007
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the first quarter
ended June 30, 2007
ended June 30, 2006
Year ended March 31, 2007

Ordinary income

Net income(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

379,274
296,966
1,320,021

27.7
13.0

7,065
5,088
20,864

38.9
(8.2)

6,757
5,389
19,170

25.4
(3.6)

4,484
3,164
11,42341.7(6.3)

Net income
per share
For the first quarter
ended June 30, 2007
ended June 30, 2006
Year ended March 31, 2007

Operating income

Net income
per share(diluted)

(yen)

(yen)

－－－

21.22
14.96
54.03

(2) Consolidated financial position
Total assets
June 30, 2007
June 30, 2006
March 31, 2007

Shareholders'equity ratio

Net assets(Millions of yen)

(Millions of yen)

525,280
424,730
476,178

102,91486,50098,254

19.5
20.2
20.5

(％)

Cash flows from
Investing activities

Cash flows from
Financing activities

Shareholders' equity
per share(yen)483.22405.23461.21(3) Consolidated cash flows situation
Cash flows fromOperating activities
For the first quarter
ended June 30, 2007
ended June 30, 2006
Year ended March 31, 2007

(Millions of yen)

Cash and cash
equivalents at end of year
(Millions of yen)
(Millions of yen)

(29,725)(23,915)(36,192)

(336)
1,421
(5,955)39,846
18,83934,325Interim(yen)
5.00

Cash dividends per share
Year-end
(yen)
7.00

Annual(yen)
12.00

6.00

6.00

12.00

(Millions of yen)

20,517
14,918
10,228

２．Cash dividends（effective date）
Year ended March 31, 2007
Year ending March 31, 2008
（estimated）

Note: Breakdown of the year-end dividend of the year ended March 31, 2007

the ordinary dividend of 5 yen
the commemorative dividend of 2 yen

３．Forecast of consolidated financial results for fiscal year ending March 31, 2008
No change from the forecast of consolidated financial results announced on May 16, 2007.

－１－HANWA co.,ltd.

Financial Results for the First Quarter ended June 30, 2007

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

Millions of yen
March 31, 2007

June 30, 2007

Increase(Decrease)

AssetsCurrent assets;
Cash and deposits
Trade notes and accounts receivable
InventoriesOthers
Allowance for doubtful receivables
Total current assets

10,245259,372
88,22025,344(911)
382,271

20,534292,325
91,586
24,633(965)
428,114

10,28932,953
3,366
(711)
(54)
45,84324,453
16,37840,831
701

24,453
16,63341,086
685

―
255
255
(16)

38,167
14,955(749)
52,37393,906476,178

40,841
15,264(713)
55,393
97,165525,280

2,674
309
36
3,020
3,259
49,102Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Accrued bonuses
OthersTotal current liabilities

160,429
43,141
17,5001,693
28,330251,095

166,357
64,61140,000872
26,039297,880

5,928
21,47022,500(821)(2,291)
46,785Long-term liabilities;
Bonds payable
Long-term loans payable
OthersTotal long-term liabilities
Total liabilities

10,000101,950
14,878
126,828
377,924

10,00098,937
15,546
124,484
422,365―(3,013)668(2,344)44,44145,651
3
40,660(109)
86,20545,651
3
43,663(113)
89,204

―
―
3,003
(4)
2,999

11,405
838
(16)
(947)
11,280768
98,254476,178

13,161485(16)(698)
12,931
778
102,914525,280

1,756(353)
―249
1,651
10
4,660
49,102

Fixed assets;
Property and equipment;
LandOthers
Total 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 First Quarter ended June 30, 2007

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

Millions of yen
First quarter ended First quarter ended
Increase(Decrease)
June 30, 2006
June 30, 2007
Net sales
Cost of sales
Gross profit

296,966
285,644
11,321

379,274
365,587
13,68782,30879,943
2,366

6,233
5,088

6,622
7,065

389
1,977

650
670
1,321

792
356
1,148

142
(314)
(173)

847
171
1,019
5,389

1,265
190
1,456
6,757

418
19
437
1,368

Total extraordinary income
Income before income taxes and minority interest

―
―
5,389

230
230
6,987

230
230
1,598

Income, inhabitant & business tax - current
Income tax expense-deferred
Minority interest in net income
Net income

1,593
627
3
3,164

2,141
340
20
4,484

548
(287)
17
1,320

Selling, general and administrative expenses
Operating income
Other income;Interest and dividend incomeOthers
Total other income
Other expenses;
Interest expenses
OthersTotal other expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities of unconsolidated subsidiaries－３－HANWA co.,ltd.

Financial Results for the First Quarter ended June 30, 2007

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

Millions of yen
First quarter
First quarter
ended
ended
June 30, 2006 June 30, 2007
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Interest and dividend income
Interest expense
Gain on sales of investment securities of unconsolidated subsidiaries
Increase 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

Increase(Decrease)

5,389
524
(650)
847
―
(20,454)280(1,839)(4,564)(20,467)741(696)(3,492)(23,915)

6,987
486
(792)
1,265
(230)
(32,809)(3,299)5,670(2,880)(25,601)
728(953)(3,898)(29,725)

1,598
(38)
(142)
418
(230)
(12,355)(3,579)7,509
1,684(5,134)
(13)
(257)
(406)
(5,810)Cash flows from investing activities:
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
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(552)
3(528)
2,778(253)―42(67)1,421(621)
5(220)
369
(124)
―
154
99(336)(69)2308(2,409)
129
―
112
166
(1,757)

Cash flows from financing activities:
Increase(decrease) in short-term loans, net
Increase in commercial paper, net
Proceeds from long-term debt
Repayments of long-term debt
Payment for cash dividends
Other, net
Net cash provided by (used in) financing activities

12,563
10,000―(3,012)(708)(2)
18,83918,44922,500―(12)(1,069)(21)
39,846

5,886
12,500―3,000(361)(19)
21,007

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 from newly consolidated subsidiaries
Cash and cash equivalents at end of year(421)
(4,076)18,985
8
14,918503
10,288
10,228―20,517924
14,364(8,757)(8)
5,599－４－HANWA co.,ltd.

Financial Results for the First Quarter ended June 30, 2007

《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
Non-ferrous metals: Nickel, copper, aluminium, lead, zinc, tin, antimony, other metals, and solar cell-relatedmaterials and products
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 first quarter ended June 30, 2006 and 2007, is as follows:(Rounded down to millions of yen)

Millions of yen

First quarter ended June 30, 2006
Net sales
Costs and expenses
Operating income

Steel154,658
151,518
3,140

Petroleum Other
Metal and Non-ferrous
alloysmetals Foods & chemicals business

33,26032,197
1,063

16,21915,333886

55,45754,920536

Total Corporate Consolidated
13,384 296,966― 296,966
12,930 290,626
1,251 291,878
453
6,339 (1,251) 5,088

Millions of yen

First quarter ended June 30, 2007
Net sales
Costs and expenses
Operating income

23,98523,725260

Steel
187,229
182,821
4,407

Petroleum Other
Metal and Non-ferrous
alloysmetals Foods & chemicals business

63,21961,4791,740

18,41017,401
1,009

24,26224,013248

69,50568,980525

Total Corporate Consolidated
16,646 379,274― 379,274
16,192 370,888
1,320 372,209453
8,385 (1,320) 7,065

Notes:
Corporate costs and expenses mainly consist of expenses of administrative departments.
Corporate assets mainly consist of cash and equivalents, investment securities and assets of administrative departm－５－