4. Notes(1) Changes in significant subsidiaries during the nine months ended July 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of July 31, 2020

10,800,000 shares As of October 31, 2019

10,800,000 shares

Number of treasury shares at the end of the period
As of July 31, 2020

1,333,468 shares As of October 31, 2019

1,127,181 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended July 31, 2020

9,557,890 shares Nine months ended July 31, 201929,834,957 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of October 31, 2019

As of July 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

15,972
18,07015,93815,323

Electronically recorded monetary claims - operating
Securities

6,137
–

4,828
7

Merchandise
Other

4,128
226

4,173
274

Allowance for doubtful accounts
Total current assets

(22)

(13)

44,51240,532

6,825

6,636

500
10,550435
10,6058789

9476

18,052

17,847

Non-current assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, net
Land
Leased assets, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

4–

Other

170

132

Total intangible assets

175

132

Investment securities
Long-term loans receivable

1,326
46

1,317
36

Deferred tax assets
Other,net

882
4,016

718
4,030

Allowance for doubtful accounts

(421)

(375)

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

35,8495,728

24,077

23,70868,58964,241

(Millions of yen)
As of October 31, 2019

As of July 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade23,537

19,653

Short-term borrowings
Lease obligations

105
45

105
34

Income taxes payable
Provision for bonuses

736
628

47
324

Other

996

1,197

26,04921,362

63
98

44
99

1,946
62,0156675

577

Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities

2,790

2,74328,840

24,105

Share capital
Capital surplus

2,575
3,386

2,575
3,397

Retained earnings
Treasury shares

35,467(2,270)36,582(2,953)

Total shareholders' equity

39,15839,602431

409

Foreign currency translation adjustment
Remeasurements of defined benefit plans

60
(42)

3(19)

Total accumulated other comprehensive income

449

394

140

138

39,74940,13568,58964,241

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Non-controlling interests
Total net assetsTotal liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended

Nine months ended

July 31, 2019

July 31, 2020

Net sales
Cost of sales

63,08553,212

55,38946,182Gross profit

9,872

9,206

946

914

(42)
2,740

(8)
2,702

645
348

643
322

8–

Retirement benefit expenses
Travel, transportation and communication expenses

213
240

220
187

Depreciation
Amortization of goodwill

335
4398
4

Other

1,4531,420

Total selling, general and administrative expenses

6,895

6,804

2,976

2,401

Selling, general and administrative expenses
Freight and packing costs
Provision of allowance for doubtful accounts
Salaries and bonuses
Welfare expenses
Provision for bonuses
Provision for retirement benefits for directors (and otherofficers)

Operating profit
Non-operating income
Interest income

65

Dividend income
Rental income from buildings

38
90

35
87

Purchase discounts
Foreign exchange gains

37
435–

Other93

113

Total non-operating income

269

278

Interest expenses
Depreciation

041

139

Guarantee commission
Foreign exchange losses

5–

54

Other

42

28

Total non-operating expenses

90

79

3,156

2,600

Gain on sales of non-current assets
Gain on reversal of foreign currency translation adjustment

6––47

Total extraordinary income

647

58

–

Loss on valuation of investment securities–

7

Total extraordinary losses

58

7

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

5(Millions of yen)

Profit before income taxes

Nine months ended

Nine months ended

July 31, 2019

July 31, 2020
3,104

2,640

880

647

Income taxes - deferred

88196

Total income taxes

968

844

2,135

1,795

28

8

2,107

1,787

Income taxes - current

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

July 31, 2019

July 31, 2020
2,135

1,795

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(60)
2(22)
(66)

Remeasurements of defined benefit plans, net of tax

25

23(31)(65)

Comprehensive income

Total other comprehensive income

2,104

1,730

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,070

1,732

33(1)

Comprehensive income attributable to non-controllinginterests

7