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

November 14, 2007
Company name:

HANWA Co.,Ltd.

Listed stock exchange:
Stock exchange code:
Representative:
Enquiries:

Tokyo, Osaka
8078
Shuji Kita
Tetsuro Akimoto

The date of issue of audited financial statements:(URL http://www.hanwa.co.jp)
President
Managing Director of Accounting Dept.
TEL 81 - 3 - 3544 - 2190
December 14, 2007 The date of payout of dividend: December 3, 2007

１．Consolidated financial results for the interim period ended September 30, 2007
(Rounded down to millions of yen)
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the interim period
ended September 30, 2007
ended September 30, 2006
Year ended March 31, 2007

Operating income

Ordinary income

Net income(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

736,050
622,184
1,320,021

18.3
18.9

11,981
10,122
20,86418.4
4.0

11,255
9,538
19,170

18.0
4.5

7,108
5,715
11,42324.4
4.1

Net income
per share
For the interim period
ended September 30, 2007
ended September 30, 2006
Year ended March 31, 2007

Net income
per share(diluted)

(yen)

(yen)

－33.6327.03－54.03－
Note: Equity in earnings of unconsolidated subsidiaries and affiliates
The interim period ended September 30, 2007 － million yen
The interim period ended September 30, 2006 － million yen

Year ended March 31, 2007

－ million yen(2) Consolidated financial position
Total assets
As ofSeptember 30, 2007
September 30, 2006
March 31, 2007

(Millions of yen)

Note: Shareholders' equity

Shareholders'equity ratio

Net assets(Millions of yen)

Shareholders' equity
per share(％)

103,082
489,459
428,645
88,382476,178
98,254As of September 30, 2007 102,249 million yen
87,625 million yen
As of September 30, 2006

(yen)

20.9
20.4
20.5

483.80414.42461.21

As of March 31, 2007

97,485 million yen(3) Consolidated cash flows situation
Cash flows fromOperating activities
For the interim period
ended September 30, 2007
ended September 30, 2006
Year ended March 31, 2007

Cash flows from
Investing activities(Millions of yen)

10,236(21,106)(36,192)

Cash flows from
Financing activities(Millions of yen)

Cash and cash equivalents
at end of the period(Millions of yen)
(Millions of yen)

(4,064)110(5,955)(7,700)10,45734,325

8,765
8,026
10,228

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

Interim(yen)
5.00
6.00

Cash dividends per share
Year-end(yen)
7.00

6.00
Note: Breakdown of the year-end dividend of the year ended March 31, 2007

Annual(yen)
12.00

12.00
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（％ 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
1,435,000
8.7
22,400
7.4
20,000
4.3
12,200
6.8
57.72* 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 Interim period ended September 30, 2007

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

Millions of yen
March 31, 2007

September 30, 2007 Increase(Decrease)

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

10,245259,372
88,2201,096
24,247(911)
382,271

8,778
264,317
93,8602,064
24,141(926)
392,235(1,467)
4,945
5,640
968
(106)
(15)
9,964

11,22724,453
5,150
40,831
701

11,231
24,453
5,910
41,594
764

4－760
763
63

38,167327
14,628(749)
52,37393,906476,178

39,642285
15,728(790)
54,86597,224489,459

1,475
(42)
1,100
(41)
2,492
3,318
13,281

Current liabilities;
Trade notes and accounts payable
Short-term loans payable
Commercial paper
Income taxes payable
Accrued bonuses
OthersTotal current liabilities

160,429
43,141
17,5004,050
1,69324,280
251,095

171,500
32,35820,0004,463
2,051
26,980257,354

11,071(10,783)
2,500
413
358
2,700
6,259

Long-term liabilities;
Bonds payable
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities by land revaluation
OthersTotal long-term liabilities
Total liabilities

10,000101,950
8,179
2,798
3,901
126,828
377,924

20,00094,325
7,967
2,798
3,932
129,023
386,377

10,000(7,625)
(212)
－31
2,195
8,453

45,651
3
40,660(109)
86,20545,651
4
46,287(125)
91,817－1
5,626
(16)
5,611

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

11,663
(233)
(16)
(981)
10,431
833
103,082
489,459257(1,071)
0(34)
(848)
64
4,828
13,281

Fixed assets;
Property and equipment;
Buildings and structures
LandOthers
Total property and equipment
Intangible assets
Investments and other assets;
Investment securities
Long-term loans receivable
OthersAllowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

Liabilities;

Net assets;
Shareholders' equity;
Common stockCapital 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 Interim period ended September 30, 2007

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

Millions of yen
Interim period ended Interim period ended
Increase(Decrease)
September 30, 2006 September 30, 2007

Net sales
Cost of sales
Gross profit

622,184599,206
22,977736,050
710,358
25,692

113,866
111,152
2,715

Selling, general and administrative expenses
Operating income

12,855
10,122

13,71011,981

855
1,859

931
401
1,333

1,125
814
1,940

194
413
607

1,449
467
1,916
9,538

2,096
569
2,665
11,255

647
102
749
1,717

Total extraordinary income
Income before income taxes and minority interest

―
―
9,538

230
230
11,485

230
230
1,947

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

3,76966(11)5,715

4,630(282)297,108861(348)
40
1,393

Other income;Interest and dividend income
OthersTotal 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 Interim period ended September 30, 2007

《Consolidated Statements of Changes in Net Assets》(Rounded down to millions of yen)

Millions of yenShareholders' equity

Balance at March 31, 2006

Valuation and translation adjustments
Net
Total
Total
Total
DeferredForeignLand
valuation Minority
net
Common Capital Retained Treasury sharehol unrealized
hedge
currency
andholding
revaluationinterests
translation
profit andassetsstock surplus earnings stockders'
gains ondifference adjustments translation
loss
adjustments
equity securities
45,651
2 31,288(67) 76,874 10,445―(16) (1,159)
9,270
808 86,954

Increase (decrease) during the term:
Cash dividends paid
Bonuses to directors
Staff and workers' bonuses andwelfare fundNet income
Purchase of treasury stocks
Deposition of treasury stocks
Effect from change in scope of
consolidated subsidiaries
Net increase (decrease) during
the term, except for items
under shareholders' equity
Total increase (decrease)
Balance at September 30, 2006

(1,057)(150)(1,057)(150)(1,057)
(150)

(1)

(1)

(1)

5,715
(8)
0

5,715
(8)
0214

214

5,715
(8)
00
214

―
45,6510
2

4,721
36,010

(7)
(74)

4,714
81,589(2,887)

(398)

―

51

(3,234)(51)(3,286)(2,887)
7,558

(398)
(398)

―
(16)

51
(1,107)(3,234)
6,035

(51)
757

1,428
88,382Millions of yen
Shareholders' equity

Balance at March 31, 2007

Valuation and translation adjustments
Net
Total
Total
Total
DeferredForeignLand
valuation Minority
net
Common Capital Retained Treasury sharehol unrealized
hedge
currencyinterests
andholding
revaluationtranslation
profit andassets
ders'stock surplus earnings stock
gains ondifference adjustments translation
loss
adjustments
equity securities
838
45,651
3 40,660(109) 86,205 11,405(16)(947) 11,280
768 98,254

Increase (decrease) during the term:
Cash dividends paid
Staff and workers' bonuses andwelfare fundNet income
Purchase of treasury stocks
Deposition of treasury stocks
Net increase (decrease) during
the term, except for items
under shareholders' equity
Total increase (decrease)
Balance at September 30, 2007

(1,479)(1,479)(1,479)

(2)

(2)

(2)

7,108
(19)
5

7,108
(19)
5

7,108
(19)
3

1

―
45,651

1
4

5,626
46,287

(16)
(125)

－４－

5,611
91,817257(1,071)

―

(34)

(848)

257
11,663(1,017)
(233)

―(16)

(34)
(981)

(848)
10,431

64

(783)

64
4,828
833 103,082

HANWA co.,ltd.

Financial Results for the Interim period ended September 30, 2007

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

Millions of yen
Interim period
ended
September 30,
2006

Interim period
ended
September 30,
2007

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
Increase in trade receivables
Increase in inventories
Increase 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

9,538
996
(283)
(931)
1,449
―
(24,347)(6,831)
11,067(7,868)(17,210)
1,068(1,416)(3,547)(21,106)

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

1,947
3338
(194)
647
(230)19,641
1,377(390)9,279
32,41947(620)(505)
31,342

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
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(941)
10(1,938)
2,778
25
―
61115
110

(1,613)17(1,572)
377(953)(5)
166(482)(4,064)(672)
7366(2,401)
(978)
(5)
105
(597)
(4,174)

Cash flows from financing activities:Increase(decrease) in short-term loans, net
Increase in commercial paper, net
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

14,577―(3,025)―(1,061)(25)(7)
10,457(18,611)
2,500
(25)
9,950
(1,481)(17)(14)(7,700)(33,188)
2,500
3,000
9,950(420)8(7)(18,157)

Effect of exchange rate changes on cash and cash equivalents
Net 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 the period(430)(10,967)
18,9858
8,02664(1,463)
10,228―8,765494
9,504(8,757)(8)739－５－Increase(Decrease)

HANWA co.,ltd.

Financial Results for the Interim period ended September 30, 2007

《Segment information》
Business segment informationThe 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 interim period ended September 30, 2006 and 2007, is as follows:(Rounded down to millions of yen)

Millions of yen

Interim period
ended September 30, 2006
Net sales
Costs and expenses
Operating income

Interim period
ended September 30, 2007
Net sales
Costs and expenses
Operating income

Steel
323,293316,757
6,536

Metal and Non-ferrous
alloysmetals74,90572,581
2,324

32,79831,221
1,576

Petroleum OtherFoods & chemicals business Total Corporate Consolidated
47,079 116,852 27,254 622,184－ 622,184
47,054 115,460 26,324 609,400
2,661 612,06225
1,391
929 12,784(2,661) 10,122

Millions of yen
Metal and Non-ferrous
alloysmetalsSteel
370,016 111,009
362,300 107,638
7,716
3,370

34,54133,056
1,484

Petroleum OtherFoods & chemicals business Total Corporate Consolidated
43,956 144,726 31,799 736,050－ 736,050
43,862 143,602 30,860 721,320
2,748 724,069
93
1,124
939 14,729(2,748) 11,981

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 departments.

－６－