Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since
no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. Thissummary does not constitute any guarantee and will not compensate any losses and/or damage stemming from actions taken based on thesestatements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.

Consolidated Financial Reportfor the Second Quarter of Fiscal 2024 Ending March 31, 2024 (Japanese GAAP)
November 13, 2023
Company Name:Grandy House Corporation
Stock Exchange Listing: Tokyo Stock Exchange
Securities Code:
8999
URL:
https://www.grandy.co.jp
Representative:
Yasuro Hayashi, President
Inquiries:
Ryuji Umeki, Executive Officer & Administration Manager
TEL: +81-28-650-7777
Scheduled date of quarterly securities report filing:
November 13, 2023
Scheduled date of dividend payment commencement:—
Preparation of quarterly supplementary explanatory materials: Yes
Quarterly results briefing held:
Yes (for analysts)(Figures are rounded down to the nearest million yen unless otherwise stated.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2024
(April 1, 2023 to September 30, 2023)(1) Consolidated Operating Results(Percentage figures show the year-on-year increase (decrease).)Net Sales

Operating Income

Net Income Attributableto Owners of the Parent(¥ million)%

Ordinary Income(¥ million)%(¥ million)%(¥ million)%

24,726(10.5)

583(69.0)

470(73.6)

251(79.8)

27,632

2.2

1,882

(8.8)

1,785

(9.1)

1,245

(6.7)

Six months ended
September 30, 2023
Six months ended
September 30, 2022
Note: Comprehensive income

Six months ended September 30, 2023: ¥296 million (−76.4%)
Six months ended September 30, 2022: ¥1,258 million (−5.2%)(¥)

Net Income per Share(Diluted)
(¥)

8.65

8.62

42.93

42.66

Total Assets(¥ million)
73,724
72,645September 30, 2023:
March 31, 2023:

Net Assets(¥ million)
24,732
26,196¥24,704 million¥26,158 million

Net Income per ShareSix months ended
September 30, 2023
Six months ended
September 30, 2022

(2) Consolidated Financial Position

September 30, 2023
March 31, 2023
Reference: Shareholders' equity

Shareholders' Equity Ratio
%
33.5
36.0

Net Assets per Share(¥)
879.94889.12

2. Dividends
Annual Dividend per Share
1Q-EndFiscal 2023
Fiscal 2024

2Q-End(¥)——

3Q-End
(¥)
0.00
0.00

Period-End(¥)—

Fiscal 2024 (Forecast)—
Note: Revisions to the most recently announced forecast of cash dividends in the current quarter: None

Total

(¥)
32.00

(¥)
32.00

32.00

32.00

3. Consolidated Financial Forecasts for Fiscal 2024 (April 1, 2023 to March 31, 2024)(Percentage figures show the year-on-year increase (decrease).)Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Net Income per ShareOwners of the Parent(¥ million)% (¥ million)% (¥ million)% (¥ million)%(¥)
Full Fiscal Year54,000(2.2)
1,900(42.9)
1,620(47.8)
1,000(53.9)
34.95
Note: Revisions to the most recently announced financial forecasts in the current quarter: Yes
The Board of Directors of the Company resolved to repurchase the Company's own stock at its meeting held on August 17, 2023, andaccordingly, the Company acquired 1,600,000 shares of its own stock. "Net income per share" in Consolidated Financial Forecast for
Fiscal 2024 reflects the effect of the said repurchase.

* Notes(1) Significant changes to subsidiaries during the period(Changes in significant subsidiaries resulting in changes in the scope of consolidation): None
Newly included: —Excluded: —(2) Adoption of specific methods for preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and restatements
1) Changes in accounting policies due to revision to accounting standards, etc.: None
2) Changes in accounting policies other than 1):
None3) Changes in accounting estimates:
None4) Restatements:
None(4) Number of issued shares (common stock)1) Number of issued shares(including treasury shares)
2) Number of treasury shares

September 30, 2023

30,823,200 shares March 31, 2023

30,823,200 shares

September 30, 2023

2,747,945 shares March 31, 2023

1,402,345 shares

Six months ended
Six months ended
29,080,112 shares
29,010,726 shares
3) Average number of shares during the period
September 30, 2023
September 30, 2022
Note: The number of treasury shares at the end of the fiscal year includes shares in the Company held by "Grandy House Employee Stock
Holding Partnership Exclusive Trust Account" (794,300 shares on September 30, 2023, 959,300 shares on March 31, 2023). The sharesof the Company held by "Grandy House Employee Stock Holding Partnership Exclusive Trust Account" are included in treasury sharesand deducted from the calculation of the average number of shares during the period (882,500 shares for the six months ended
September 30, 2023, 1,118,914 shares for the six months ended September 30, 2022).

* This consolidated quarterly financial report is not subject to quarterly review by a certified public accountant or an
audit firm.
* Explanation concerning the appropriate use of financial forecasts and other special instructions
Results forecasts and other forward-looking statements contained in this report are based on assumptions, beliefs, anduncertainties in light of information available to the Company's management as of the publication date. Actual results may
differ materially from forecasts due to a variety of factors. Therefore, the Company does not guarantee the accuracy of
forecasts and other forward-looking statements and its ability to achieve stated targets.

Attachment Materials: Table of Contents
1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS.................................................................. 2(1) Explanation regarding Operating Results ........................................................................................................... 2(2) Explanation regarding Financial Position .......................................................................................................... 3(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts ....................................... 4
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ................................................. 5(1) Quarterly Consolidated Balance Sheets ............................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................................... 7(Quarterly Consolidated Statements of Income)(Consolidated cumulative second quarter) ..................................................................................................7(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative second quarter) ..................................................................................................8(3) Quarterly Consolidated Statements of Cash Flows ............................................................................................ 9(4) Notes to Quarterly Consolidated Financial Statements .................................................................................... 10(Notes on Going Concern Assumptions)..........................................................................................................10(Notes on Significant Changes in the Amount of Shareholders' Equity) .........................................................10(Additional Information) ..................................................................................................................................10(Segment Information) .....................................................................................................................................11― 1 ―1. QUALITATIVE INFORMATION ON FINANCIAL STATEMENTS(1) Explanation regarding Operating Results
In the cumulative first six months of the consolidated fiscal year under review, the Japanese economy
continued a moderate recovery with the economic activity returning to normal as a result of the downgrading of
COVID-19 to a Class 5 disease. On the other hand, the situation remained uncertain primarily due to the risingpossibility that the global trend of monetary tightening and the downside risk of overseas economies would
influence the Japanese economy.
In the housing sector, the number of construction starts for detached houses remained below those of the samemonth of the previous year for 11 consecutive months from November 2022 as consumer appetite for purchasing
continued to be low due to housing prices running high, also widening the range of the decline. Furthermore, inthe wake of the deterioration in Statistics on Building Construction Started, the government downgraded theeconomic outlook for the housing construction field twice in August and September.
Under those circumstances, the Grandy House Group has upheld the basic policies of "Strengthen ourbusiness foundations and expand business areas for sustainable growth in the new home sales business," "Expand
the scale of the housing stock business and maximize synergies with the new home sales business" and"Strengthen our response to sustainability (ESG) issues" in the third medium-term business plan (from the fiscal
year ended March 31, 2022 to the fiscal year ending March 31, 2024). Accordingly, the Group has made efforts tofurther improve its corporate value.
In new home sales, our core business, we reinforced property purchase and our sales system in the Tokyo
metropolitan area and pushed the effort to enhance our product appeal through measures including the expansionof ZEH houses in all business areas. On the other hand, sales struggled to grow particularly in the Northern
Kanto area as order backlogs were low as of the beginning of the fiscal year and the supply of finished properties
was delayed in some areas. As a result, the number of homes sold dipped compared to the same period of theprevious year when there was special demand related to the pandemic.
As a result, the Grandy House Group's consolidated cumulative operating results for the second quarter offiscal 2024 under review were as follows: net sales were ¥24,726 million, a decrease of 10.5% year-on-year;
operating income was ¥583 million, a decrease of 69.0% year-on-year; ordinary income was ¥470 million, adecrease of 73.6% year-on-year; and net income attributable to owners of the parent totaled ¥251 million, adecrease of 79.8% year-on-year.
Operating results by business segment are presented as follows.
a. Real Estate Sales
In new home sales, the "Sora Town" series, a housing project where all houses for sale are equipped with azero-net energy house system (ZEH), started the sale of "Sora Town Tsukuba Matsushiro II (a total of 103 lots inthe city of Tsukuba)" following the successful ongoing sales of "Sora Town Kashiwanoha Campus Liwie (a totalof 40 lots in the city of Kashiwa)," which had been put on the market in the first quarter. Additionally,"Mizunoiro Mio no sora, Nagareyama-Unga (a total of 28 lots in the city of Nagareyama)" in which all houses
are certified as long-life quality housing was put up for sale. In terms of products, in addition to expanding
supplies of ZEH houses and long-life quality housing, we promoted the installation of "Ohisama EcoCute,"
which made better use of excess electricity from solar power generation, and expanded the offerings that
addressed the need for saving on utility bills.
Through these efforts, we strove to expand business areas in the Tokyo metropolitan area (Tokyo, Saitama,
Chiba and Kanagawa), reinforce our sales system and cultivate demand in the Northern Kanto area (Tochigi,
Ibaraki and Gunma). However, both sales and profit decreased as the number of new homes sold in the
cumulative six months of the consolidated fiscal year under review decreased by 112 year-on-year to 606 mainly
due to consumer appetite for purchasing homes dampened by the continued high level of property prices andproduct shortages caused by supply delays in some areas.
The selling prices of existing home sales kept rising as well as their purchase prices were pushed up by asurge in the selling prices of new homes and a rise in costs for renovation due to a spike in material prices, whichdampened potential customers' appetite for purchasing. Additionally, stiff competition for wining orders
continued partly because we faced the challenge of new low-cost homes supplied by major home builders. Under
these circumstances, the number of homes sold in the cumulative six months of the consolidated fiscal year fell to57, a decrease of 9 year-on-year.
As a result, sales in the real estate sales segment in the consolidated cumulative second quarter of fiscal 2024
under review decreased by 9.7% year-on-year to ¥22,964 million. We had a segment profit of ¥182 million, adecrease of 87.6% year-on-year.
― 2 ―b. Construction Material Sales
In construction material sales, the conditions for receiving orders for pre-cut wood remained tough amid thenumber of new housing starts for wooden houses below the level of a year earlier for the 18 straight months tothe end of the quarter under review. Construction wood prices remained on a downward trend after the peak of
the summer of the previous year, reflecting the stagnation of housing demand.
Under these circumstances, we focused on ramping up the activity to find new business and tighten relations
with existing customers for the purpose of expanding sales in the Saitama area. Nonetheless, our sales struggled
to grow due to a stagnation in demand and intensifying competition for capturing orders.
As a result, sales of the construction material sales segment in the consolidated cumulative second quarter offiscal 2024 under review decreased by 25.0% year-on-year to ¥1,540 million, with a segment profit of ¥176
million, a decrease of 24.0% year-on-year.
c. Real Estate Leasing
Real estate leasing saw an expansion of the earnings of businesses including office leasing as the vacancy
ratio of offices for leasing generally remained below 5%, keeping the operational ratio high, despite large-scalerenovation implemented to part of leasing assets, and in house leasing, Sun Village Shonan (a total of 173 lots inthe city of Kashiwa, Chiba Prefecture), which we had acquired in the fourth quarter of the previous fiscal year,
contributed to overall financial results. The parking business exceeded the year-on-year level because 63 pay-bythe hour parking lots (in front of the railway station of Koganei, Tochigi Prefecture), which we had acquired inJune this year, started operation in addition to an upward trend in the operational ratio of pay-by-the hour parking
lots resulting from the normalization of social and economic activities.
As a result, sales in the real estate leasing segment in the consolidated cumulative second quarter of fiscal
2024 under review increased by 50.9% year-on-year to ¥221 million. We had a segment profit of ¥103 million,
an increase of 13.8% year-on-year.
(2) Explanation regarding Financial Position
a. Balance Sheet
As of the end of the second quarter of consolidated fiscal 2024 under review, consolidated total assets rose to¥73,724 million, an increase of ¥1,079 million compared to the end of the previous consolidated fiscal year. Thiswas primarily due to an increase in inventories, resulting from various factors, such as the acquisition of housing
lots associated with an expansion of the area and others for the real estate sales business and a slowdown in thepace of sales of detached houses.
Liabilities stood at ¥48,991 million, an increase of ¥2,542 million compared to the end of the previous
consolidated fiscal year. This was mainly due to an increase in loans payable resulting from a rise in inventories.
Total net assets stood at ¥24,732 million, down ¥1,463 million compared to the end of the previous
consolidated fiscal year. This was due to decreases resulting from the payment of dividends and the repurchase of
the Company's own stock despite the acquisition of net income attributable to owners of parent.
b. Cash Flows
Cash and cash equivalent (hereinafter referred to as "cash") as the end of the second quarter of consolidated
fiscal year under review was ¥8,165 million, a decrease of ¥2,660 million from the end of the previous fiscal year,
as a result of decreases in cash flows from operating activities and investing activities and an increase in cash
flows from financing activities.
The Company's cash flows during the six months ended September 30, 2023, are as follows:(Cash Flows from Operating Activities)
Net cash used in operating activities amounted to ¥3,425 million (net cash used in operating activities for thesix months ended September 30, 2022 was ¥1,697 million). This was mainly due to an increase in inventories
resulting from the acquisition of housing lots despite earning net income before income taxes.
(Cash Flows from Investing Activities)― 3 ―Net cash used in investing activities amounted to ¥208 million (net cash used in investing activities for the six
months ended September 30, 2022 was ¥154 million). This was mainly due to the acquisition of property, plantand equipment such as leasing parking lots.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥972 million (net cash provided by financing activities
for the six months ended September 30, 2022 was ¥935 million). This was mainly due to income from an increasein loans payable despite the payment of dividends and the payment for repurchasing the Company's own stock.
(3) Explanation regarding Future Prospects including Consolidated Financial Forecasts
In regard to the consolidated and non-consolidated financial forecasts for fiscal year ending March 2024,
taking into consideration performance for the cumulative six months of the consolidated fiscal year under review
and the future outlook, we adjusted both forecasts, which had been announced on May 12, 2023. For additional
details, please refer to Notice of Adjustment of Financial Full-Year Forecast (available in Japanese only), which
was announced today (November 13, 2023).

― 4 ―2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES(1) Quarterly Consolidated Balance Sheets(Thousands of Yen)
Fiscal 2023
(As of March 31, 2023)

Second Quarter of Fiscal 2024
(As of September 30, 2023)

AssetsCurrent assets
10,839,975

8,179,897

574,709503,050

11,352,157

13,716,214

17,584

24,950Real estate for sale in process

33,998,068

35,267,058

Merchandise and finished goods

376,807335,465

Raw materials and supplies

176,128

155,780

Other

989,203

1,130,824(1)(3,447)58,324,634

59,309,793

Cash and deposits
Notes and accounts receivable – trade and contract assets
Real estate for sale
Costs on uncompleted construction contracts

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

3,818,539

3,723,923

Machinery, equipment and vehicles, net

18,98016,260Tools, furniture and fixtures, net

52,58051,845

7,261,402

7,430,460

77,20260,465

Buildings and structures, net

Land
Leased assets, net

20,00020,320

11,248,706

11,303,274

Goodwill

891,319822,756

Other

65,24659,184

Total intangible assets

956,566

881,940

177,000

221,850

9,217

11,013

Construction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

618,717651,985

Other

1,227,394

1,218,177

Total investments and other assets

2,032,329

2,103,026

14,237,601

14,288,242

Bond issuance costs

83,078

126,826

Total deferred assets

83,078

126,826

72,645,313

73,724,862

Deferred tax assets

Total non-current assets
Deferred assets

Total assets― 5 ―(Thousands of Yen)
Fiscal 2023
(As of March 31, 2023)

Second Quarter of Fiscal 2024
(As of September 30, 2023)

Liabilities
Current liabilities
Accounts payable for construction contracts

3,668,472

3,520,986

Short-term loans payable

15,262,600

17,247,000

500,000

300,000

3,103,044

3,520,959

Lease obligations

34,124

29,623

Income taxes payable

367,833

280,105

Provision for warranties for completed construction

189,175

177,039

Other

1,039,922

1,015,738

Total current liabilities

24,165,172

26,091,453

Bonds payable

4,600,000

6,300,000

Long-term loans payable

16,232,236

15,077,068

50,80537,178Current portion of bonds
Current portion of long-term loans payableNon-current liabilities

Lease obligations

257,787

254,362

1,014,424

1,080,206

128,876

151,634

22,284,129

22,900,449

46,449,301

48,991,903

Capital stock

2,077,500

2,077,500

Capital surplus

2,674,902

2,683,041

Retained earnings

21,983,746

21,263,207

Treasury shares(629,596)(1,416,159)

26,106,551

24,607,589

Valuation difference on available-for-sale securities

52,00096,850Total accumulated other comprehensive income

52,00096,85037,46028,52026,196,011

24,732,959

72,645,313

73,724,862

Provision for directors' retirement benefits
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets― 6 ―(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated cumulative second quarter)(Thousands of Yen)
Six months ended
September 30, 2022
(From April 1, 2022 toSeptember 30, 2022)

Six months ended
September 30, 2023
(From April 1, 2023 to
September 30, 2023)

Net Sales

27,632,926

24,726,700

Cost of sales

22,512,810

20,882,003

Gross profit

5,120,116

3,844,696

Selling, general and administrative expenses

3,237,617

3,260,762

Operating income

1,882,498

583,934

Non-operating income
Interest income

84

65

Dividends income

2,861

2,861

Commission

16,035

14,600914

24,808–12,136

Other

25,221

31,102

Total non-operating income

45,11885,574

124,005

177,834

Insurance claim income
Reversal of provision for warranties for completed
construction

Non-operating expenses
Interest expenses
Commission for syndicate loan

8,420

3,714

Other

9,995

17,040142,421

198,589

1,785,194

470,919

Gain on sales of non-current assets

84,432–Gain on reversal of share acquisition rights

2,220

–

Total extraordinary income

86,652–

Loss on retirement of non-current assets

5,287

7,874

Total extraordinary loss

5,287

7,874

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

1,866,560

463,044

Income taxes – current

553,577

244,686

Income taxes – deferred

67,462(33,268)

Total income taxes

621,040

211,418

Net income

1,245,519

251,626

Net income attributable to owners of the parent

1,245,519

251,626

Net income before income taxes― 7 ―(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated cumulative second quarter)(Thousands of Yen)

Net income

Six months ended
September 30, 2022
(From April 1, 2022 toSeptember 30, 2022)

Six months ended
September 30, 2023
(From April 1, 2023 to
September 30, 2023)

1,245,519

251,626

13,00044,850

Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income

13,00044,8501,258,519

296,476

1,258,519

296,476––

Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests― 8 ―(3) Quarterly Consolidated Statements of Cash Flows(Thousands of Yen)

Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Interest and dividends income
Interest expenses
Gain on reversal of share acquisition rights
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable – trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Loan advances
Collection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from disposition of treasury shares due to exerciseof subscription rights to shares
Proceeds from sale of treasury shares
Purchase of treasury shares
Cash dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period― 9 ―Six months ended
September 30, 2022
(From April 1, 2022 toSeptember 30, 2022)

Six months ended
September 30, 2023
(From April 1, 2023 to
September 30, 2023)

1,866,560
139,046
68,563463,044
150,972
68,563(8,433)(3,424)(3,566)(12,136)(4,341)
48,822(2,946)124,005(2,220)(84,432)
5,287(24,787)(2,192,205)(164,333)(274,676)(509,657)
2,949(124,206)(1,066,320)(1,697,235)

3,446
65,782(2,926)
177,834––
7,874
71,659(3,578,721)(147,485)(106,595)(2,842,112)
3,159(160,392)(425,688)(3,425,033)(337,314)
203,845(22,323)
–
1,763
(109)
(154,137)(207,741)–(1,407)(2,300)504
2,943(208,001)(311,900)
4,400,000(2,654,144)
300,000–

1,984,400
3,290,000(4,027,253)
2,000,000(500,000)

26,28035,574

93,474–(900,508)(17,368)
935,832(915,540)
11,083,535
10,167,994

95,205(915,200)(971,641)(18,127)
972,956(2,660,077)
10,825,466
8,165,388

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumptions)Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
The Company repurchased its own stock of 1,600,000 shares on the basis of the resolution made at themeeting of its Board of Directors held on August 17, 2023. As a result of this repurchase, treasury shares
increased by ¥786,562 thousand during the cumulative six months of the consolidated fiscal year under review to¥1,416,159 thousand at the end of the cumulative six months of the consolidated fiscal year under review.
(Additional Information)(Transactions for Distributing the Company's Own Stock to Employees, etc. through Trusts)
The Company has adopted the "trust-type employee stock holding incentive plan (E-Ship®)" (hereinafterreferred to as "the Plan") for the purpose of providing its employees with incentives to enhance the corporate
value of the Company on a medium-to long-term basis in the fiscal year ended March 31, 2022.
(1) Overview of transactions
The Plan is an incentive plan for all employees who are members of "the Grandy House Employee Stock
Holding Partnership" (hereinafter referred to as "the Stock Partnership"). The Company has established the"Grandy House Employee Stock Holding Partnership Exclusive Trust" (hereinafter referred to as "the Trust") in atrust bank. The Trust will acquire in advance after its establishment the number of Grandy House shares to be
expected to be acquired by the Stock Partnership over a six-year period. At a later date, the Trust will sell its
holdings of Grandy House shares to the Stock Partnership on a continual basis. If an amount equivalent to thegains from sale of shares is accumulated at the end of the term of the Trust, the relevant amount equivalent to thegains from the sale of shares will be distributed as residue assets to those who satisfy the criteria of beneficiaries.
The Company warranties the repayment of loans payable for the Trust to acquire shares of the Company.
Therefore, if an amount equivalent to the loss from sale of shares accumulates due to a decline in the price ofshares of the Company, causing a debt equivalent to a loss from sale of the relevant shares remains in the Trust at
the end of the term of the Trust, the Company will assume the repayment of the relevant remaining borrowing.
(2) Grandy House's own company stock remaining in the TrustGrandy House's own company stock remaining in the Trust is recorded as treasury shares in net assets inaccordance with the book value (excluding the amount of incidental expenses) in the Trust. The book value andthe number of the relevant treasury shares are ¥553,516 thousand and 959,300 shares for the previous
consolidated fiscal year, and ¥458,311 thousand and 794,300 shares for the consolidated second quarter of fiscal
2024 under review.
(3) The book value of loans payable recorded by the application of the gross method
The previous consolidated fiscal year: ¥534,370 thousand
The consolidated second quarter of fiscal 2024 under review: ¥410,240 thousand― 10 ―

(Segment Information)
I. The cumulative six months ended September 30, 2022 (April 1, 2022 to September 30, 2022)
1. Information concerning the amounts of net sales and profit or loss by reportable segment
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

Adjustments(Note 1)Net Sales
Sales to external
25,431,837
2,054,241
146,848
27,632,926—
customers
Inter-segment sales
26,7602,421,847
40,8802,489,488(2,489,488)
or transfers
Total
25,458,597
4,476,088
187,729
30,122,415(2,489,488)
Segment profit
1,480,451
232,649
90,7691,803,870(18,675)
Notes: 1 Adjustments of segment profit (¥−18,675 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

(Thousands of Yen)
AmountRecorded on
Quarterly
Consolidated
Statements ofIncome (Note 2)

27,632,926—
27,632,926
1,785,194

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.
II. The cumulative six months ended September 30, 2023 (April 1, 2023 to September 30, 2023)
1. Information relating to the amounts of net sales and profit or loss by reportable segment
Reportable Segment
Real Estate
Sales

Construction
Material Sales

Real Estate
Leasing

Total

Adjustments(Note 1)Net Sales
Sales to external
22,964,387
1,540,780
221,532
24,726,700—
customers
Inter-segment sales
26,3402,016,461
41,8932,084,694(2,084,694)
or transfers
Total
22,990,727
3,557,242
263,425
26,811,395(2,084,694)
Segment profit
182,968
176,815
103,316
463,100
7,818
Notes: 1 Adjustments of segment profit (¥7,818 thousand) are eliminations of inter-segment transactions.
2 Segment profit has been adjusted with ordinary income described in quarterly consolidated statements of income.

(Thousands of Yen)
AmountRecorded on
Quarterly
Consolidated
Statements ofIncome (Note 2)
24,726,700—
24,726,700
470,919

2. Information concerning the impairment loss of non-current assets and goodwill by reportable segment
Not applicable.

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