Summary of Consolidated Financial Results for theSecond Quarter of Fiscal Year 2023 (Japanese GAAP)
October 31, 2023
Company name:Securities code:
Representative:
Contact:

Nippon Chemiphar Co., Ltd.
Listing: Tokyo Stock Exchange4539
URL: https://www.chemiphar.co.jp/english/
Kazushiro Yamaguchi, President & CEO
Shinji Nakajima, Corporate Officer and Senior Manager of Accounts & Finance Department
Phone: 03-3863-1211
Scheduled date of dividend payout:–Supplementary documents for quarterly financial results: Yes
Quarterly financial results briefing:
None*Amounts less than one million yen are rounded down

1. Consolidated Financial Results for the Second Quarter of FY2023 (from April 1, 2023 to September 30, 2023)(Percentages represent year-on-year changes.)(1) Business Results
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Six months ended

Million yen%

Million yen%

Million yen%

Million yen%

September 30, 2023
September 30, 2022

14,837
16,237

(8.6)
4.3

(298)
167–(18.8)

10752(98.6)
190.7

31896

(96.5)
291.6(Note) Comprehensive income:Six months ended September 30, 2023: 213 million yen (down 67.4 %)Six months ended September 30, 2022: 656 million yen (109.3%)

Earnings pershare
Six months ended

Diluted earnings
per share

Yen

September 30, 2023
September 30, 2022

Yen

8.72
248.43––(2) Financial Position
Total assets
As of

September 30, 2023
March 31, 2023
(Reference) Equity:

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

50,87048,571

18,54818,53436.5
38.1

5,139.65
5,130.65

As of September 30, 2023: 18,548 million yenAs of March 31, 2023: 18,517 million yen

2. Dividends
Dividend per share
End of Q1

End of Q2

Yen
Year ended

March 31, 2023
Year ending

March 31, 2024

End of Q3

Yen–0.00–0.00

Year ending

March 31, 2024 (forecast)End of fiscalyear

Yen

Annual

Yen

Yen–

50.00

50.00

–

50.00

50.00

(Note) Revision to the forecast for dividends announced most recently: None

3. Forecast of Consolidated Financial Results for the FY2023 (from April 1, 2023 to March 31, 2024)(Percentages represent year-on-year changes.)

Net sales
Full-yearOperating profit

Million yen%

Million yen

32,7003.6200

Profit attributable toowners of parent

Ordinary profit%

Earnings per share

Million yen%

Million yen%

Yen

100

70.460(82.3)

16.62–(Note) Revision to the financial results forecast announced most recently: None

* Notes(1) Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanied by a change in the scopeof consolidation): No(2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies accompanying amendments to accounting standards, etc.: No(ii) Changes in accounting policies other than (i):No
(iii) Changes in accounting estimates:No(iv) Restatement:No(4) Number of shares outstanding (common stock)(i) Number of shares outstanding at the end of the period (including treasury shares)
As of September 30, 2023:
4,261,420 shares
As of March 31, 2023:
4,261,420 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2023:
652,558 shares
As of March 31, 2023:
652,254 shares(iii) Average number of outstanding shares during the period (cumulative from the beginning of the period)
Six months ended September 30, 2023: 3,609,019 shares
Six months ended September 30, 2022: 3,609,636 shares4. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
FY2022(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable―trade, and contract assets
Electronically recorded monetary claims―operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Income taxes refund receivable
OthersTotal current assets
Non-current assets
Property, plant, and equipment
Buildings and structures, net
Machinery, equipment, and vehicles, netTools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Patent rights
Trademark rights
Sales rights
Leased assets
SoftwareTelephone subscription rights
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Retirement benefit assets
Leasehold and guarantee deposits
Deferred tax assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets– 1 –Q2 of FY2023(As of September 30, 2023)

10,529
7,516
3,738
6,468
1,277
3,010
220
675
33,436

11,321
6,873
3,968
6,893
1,564
3,422
8
625
34,677

4,786
1,636
379
4,344
170
200
11,518

4,709
1,476
383
4,344
159
1,361
12,435

15
54383
47
59
9569

1350
241
50
48
9414

1,385
496401
57
353
414
(61)
3,046
15,134
48,571

1,634
502
482
54315
414(61)
3,342
16,19350,870(Millions of yen)
FY2022(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable—trade
Electronically recorded obligations—operating
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable—other
Income taxes payable
Accrued consumption taxes
Accrued expenses
Deposits received
Refund liabilities
OthersQ2 of FY2023(As of September 30, 2023)

2,545
6,399
392
2,650
77848191
1,678
175
221
369

2,498
6,373
432
2,766
76
34
75
108
1,717
217
197
329

14,766

14,82911,950
161
457
139
915
1,645

13,567
154
470
138
915
2,246

15,27017,492

Total liabilities

30,03732,322

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

4,304
1,263
13,636
ሺ3,110)

4,304
1,263
13,485(3,111)

Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Provision for retirement benefits for directors
Net defined benefit liability
Deferred tax liabilities for land revaluation
OthersTotal non-current liabilities

Total shareholders’ equity

16,093

15,942

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans

335
2,072
(20)
35510
2,072
(4)
27

Total accumulated other comprehensive income

2,423

2,605

17–

Share acquisition rights
Total net assets

18,534

18,548

Total liabilities and net assets

48,57150,870– 2 –(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)
For the six months ended
September 30, 2022

For the six months ended
September 30, 2023

Net sales
Cost of sales

16,237
11,976

14,837
11,204Gross profit
Selling, general and administrative expenses

4,261
4,093

3,632
3,931

167(298)

0173

119
3

16

12612
1
6337
112

Operating profit (loss)
Non-operating income
Interest income
Dividend income
Rental income from non-current assets
Share of profit of entities accounted for using equitymethod
Foreign exchange gains
Dividend income of insurance
OthersTotal non-operating income

658

388

Non-operating expenses
Interest expenses
Commission expense
OthersTotal non-operating expenses

61
3773

69
3679

Ordinary profit

752

10

Extraordinary income
Gain on sales of investment securities
Gain on reversal of share acquisition rights

411
––
17411

17

Profit before income taxes

1,164

27

Income taxes—current
Income taxes—deferred

151
116

25(29)

Total income taxes

267(3)

Profit896

31––89631

Total extraordinary income

Profit attributable to non-controlling interests
Profit attributable to owners of parent– 3 –Quarterly Consolidated Statement of Comprehensive Income(Millions of yen)
For the six months ended
September 30, 2022

For the six months ended
September 30, 2023

896

31(302)
70(8)

174
15(7)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(240)

182

Comprehensive income

Total other comprehensive income

656

213

Comprehensive income attributable to:Owners of parent
Non-controlling interests

656–213–– 4 –

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
For the six months ended
September 30, 2022
Cash flows from operating activities:
Profit before income taxes
Depreciation
Increase (decrease) in refund liabilities
Increase (decrease) in provision for retirement benefits for directors
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Gain on reversal of share acquisition rights
Decrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories
Decrease (increase) in other current assets
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
OtherFor the six months ended
September 30, 2023

1,164737
(69)
(24)
8(96)
(17)
61(612)
(411)
–
1,090
(1,004)
(5)
(157)
(203)
(115)
(262)
495
84

27
715
(23)
12(1)
(93)
(21)
69(337)–(17)425(1,066)(70)
24(111)
20
138
601
158

Subtotal

660

450Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund28(59)(278)–

32(67)(44)
220

Net cash provided by (used in) operating activities

351

592

(738)
(6)
(24)
611
10(0)

(1,413)
(5)
––
1(1)

Cash flows from investing activities:
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from refund of guarantee deposits
OtherNet cash provided by (used in) investing activities(148)(1,418)Cash flows from financing activities:
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Cash dividends paid
Other

64
2,600(1,262)
(183)
(39)

40
3,100
(1,367)(182)(41)

Net cash provided by (used in) financing activities

1,178

1,548

Effect of exchange rate change on cash and cash equivalents13569

Net increase (decrease) in cash and cash equivalents

1,516

791

Cash and cash equivalents at beginning of period

11,645

10,529Cash and cash equivalents at end of period

13,161

11,321– 5 –