Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Six Months Ended June 30, 2024
[Japanese GAAP]
August 13, 2024
Company name: ACSL Ltd.
Listing:
Tokyo
Securities code: 6232
URL:
https://www.acsl.co.jp/
Representative: Satoshi Washiya
Representative Director and CEO
Inquiries:
Kensuke Hayakawa
Board Director and CFO
Telephone:+81-3(6456)0931
Scheduled date to file semi-annual securities report: August 13, 2024
Scheduled date to commence dividend payments: Availability of supplementary briefing material on financial results: Yes
Holding of financial results briefing: Yes(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended June 30, 2024 (January 1, 2024 to June 30, 2024)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended
June 30, 2024
2,050
290.6
(1,026)(963)(1,010)June 30, 2023
524
(49.1)
(880)
(923)
(935)
(Note) Comprehensive income:Six months ended June 30, 2024:¥(1,000) million [-%]
Six months ended June 30, 2023:¥(897) million [-%]
Basic earnings
per share
Six months ended
June 30, 2024
June 30, 2023

Diluted earnings pershare
Yen

Yen

(68.62)(73.67)-(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen
As ofJune 30, 20246,180
December 31, 2023
5,094
(Reference) Equity: As of June 30, 2024:
As of December 31, 2023:

Capital adequacy ratio

Millions of yen

¥
¥%

1,539
2,264
1,440 million
2,147 million

23.3
42.2

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended December 31, 2023

-0.00

-

0.00

0.00

Fiscal year ending December 31, 2024

-0.00
-

0.00

0.00

Fiscal year ending December 31, 2024
(Forecast)(Note) Revision to the forecast for dividends announced most recently:―1―No3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2024(January 1, 2024 to December 31, 2024)(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen% Millions of yen% Millions of yen

Full year
3,340 272.6(3,060)(Note) Revision to the financial results forecast announced most recently:(1,860)No* Notes:(1) Significant changes in the scope of consolidation during the period:No% Millions of yen%

Yen--(130.53)(1,935)(2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations: No
2) Changes in accounting policies due to other reasons: No
3) Changes in accounting estimates: No4) Restatement: No(4) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2024:
14,921,675 shares
December 31, 2023:
14,514,261 shares
2) Number of treasury shares at the end of the period:
June 30, 2024:
130 shares
December 31, 2023:
130 shares
3) Average number of shares outstanding during the period:
Six months ended June 30, 2024:
Six months ended June 30, 2023:

14,724,992 shares
12,701,282 shares―2―Semi-annual Consolidated Financial Statements
Semi-annual Consolidated Balance Sheets(Thousands of yen)
As of December 31, 2023

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

1,499,555
139,282

1,770,363
1,326,904

491,762572,699

9,787
535,586

Raw materials
Other

1,175,419
324,582

1,097,230
443,631

Total current assets

4,203,302

5,183,504

Property, plant and equipment
Intangible assets

68,181
208,989

63,441
173,235

Investments and other assets
Investment securities

Merchandise and finished goods
Work in process

Non-current assets

241,987

307,783

Other372,391

452,852

Total investments and other assets

614,379

760,635

891,549

997,313

5,094,851

6,180,817

317,574
895,000

960,846
1,005,047

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Other
Total current liabilities
Non-current liabilities
Convertible-bond-type bonds with shareacquisition rights
Long-term borrowings
Deferred tax liabilities

390,647

262,768

1,603,222

2,228,661

1,215,812

972,650-

1,440,000

11,302-

1,227,114

2,412,650

2,830,337

4,641,311

Share capital
Capital surplus

971,479
6,304,928141,422
2,383,219

Retained earnings
Treasury shares(5,137,336)(382)(1,103,198)(382)

Total shareholders' equity

2,138,689

1,421,060

9,210

19,154

9,210

19,154

115,585

98,157

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

―3―

1,028

1,134

2,264,514

1,539,505

5,094,851

6,180,817

Semi-annual Consolidated Statements of Income and Comprehensive Income
Semi-annual Consolidated Statements of Income(Thousands of yen)
For the six months
ended June 30, 2023
Net sales
Cost of sales

For the six months
ended June 30, 2024

524,831534,2822,050,144
1,949,642

Gross profit (loss)(9,450)100,502

Selling, general and administrative expenses

871,253

1,126,823

Operating loss

(880,704)(1,026,321)

170

134

592

54,501Non-operating income
Interest income
Share of profit of entities accounted for using equity
methodForeign exchange gains

33,418-

Subsidy income
Other

76,702
2,234

24,793
2,713

Total non-operating income

113,118

82,142

4,527

10,174

Bond issuance costs
Foreign exchange losses

119,087
-

7,230

Other

32,372

1,696

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Expenses related to voluntary retirement
Total extraordinary losses

155,987

19,101(923,572)(963,279)

-

5,194

-

5,194-

62,573-62,573

Loss before income taxes(923,572)(1,020,658)

Income taxes - current

2,545

1,145

Income taxes - deferred

9,734(11,302)

Total income taxes
Loss
Loss attributable to non-controlling interests
Loss attributable to owners of parent―4―12,279(10,157)(935,852)(1,010,501)

(138)

(142)

(935,714)(1,010,358)

Semi-annual Consolidated Statements of Comprehensive Income(Thousands of yen)
For the six months
ended June 30, 2023
Loss
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

For the six months
ended June 30, 2024

(935,852)(1,010,501)

32,555
(396)

139

6,008

9,804

38,167

9,943

Comprehensive income(897,685)(1,000,557)

Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests(897,615)(1,000,415)

(69)

(142)

―5―

Semi-annual Consolidated Statements of Cash Flows(Thousands of yen)
For the six months
ended June 30, 2023
Cash flows from operating activities
Loss before income taxes

For the six months
ended June 30, 2024

(923,572)(1,020,658)

Depreciation
Bond issuance costs

56,127
119,087

69,137-Loss on valuation of inventories
Interest income

17,594(170)

58,689(134)

Interest expenses
Decrease (increase) in trade receivables

4,527
345,527

10,174(1,187,621)

Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers(668,998)
237,504

538,587(71,247)

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
Other, net(491,069)(227,455)

643,271
57,75966,122(42,881)

48,713(269,707)(1,416,062)(1,214,631)

Interest and dividends received
Interest paid

314
(3,346)14(12,249)

Income taxes paid

(5,024)(5,184)(1,424,118)(1,232,051)(19,130)(18,025)(33,546)-(52,250)(1,489)Subtotal

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Other, net

60-(52,616)(71,765)

Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings(290,000)-

110,047
1,440,000

Proceeds from issuance of shares
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Proceeds from issuance of convertible bonds
Proceeds from issuance of share acquisition rights
Proceeds from share issuance to non-controllingshareholders
Other, net

309,325-

41,373

19,627

1,270,412
8,045--

247-(121)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents

1,339,157

1,569,799

318

4,824

(137,260)

270,808

Cash and cash equivalents at beginning of period

1,356,252

1,499,555

Cash and cash equivalents at end of period

1,218,992

1,770,363

Net cash provided by (used in) investing activities
Cash flows from financing activities―6―