Good Com Asset : Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending October 31, 2021

Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending October 31, 2021

(Six Months Ended April 30, 2021)

		[Japanese GAAP]
		June 9, 2021
Company name: Good Com Asset Co.,Ltd.	Stock Exchange Listing: TSE (1st Section)
Stock code:	3475	URL: https://www.goodcomasset.co.jp/
Representative:	Yoshikazu Nagashima, President and CEO
Contact:	Yoshihiro Kawai, Senior Executive Officer, General Manager, Corporate Planning Division
	Tel: [phone]

Scheduled date of filing of Quarterly Report:	June 11, 2021
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes (for analysts and individual investors)

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter (November 1, 2020 - April 30, 2021) of the Fiscal Year Ending October 31, 2021

(1) Consolidated results of operations				(Percentages represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Six months ended Apr. 30, 2021	19,669		146.0	2,167	232.3	2,029	252.2	1,380	255.7
Six months ended Apr. 30, 2020	7,994		(6.0)	652	2.4	576	(0.8)	388	(1.8)

Note: Comprehensive income (million yen)	Six months ended Apr. 30, 2021:	1,382	(up 258.0%)
		Six months ended Apr. 30, 2020:	386	(down 2.2%)
	Net income per share	Diluted net income per share
		Yen		Yen
Six months ended Apr. 30, 2021		93.70		93.28
Six months ended Apr. 30, 2020		26.69		25.95

Note: The Company conducted a 2-for-1 common stock split effective on November 1, 2020. Net income per share and diluted net income per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
		Million yen		Million yen	%
As of Apr. 30, 2021		20,751		8,853	42.7
As of Oct. 31, 2020		25,915		8,397	32.4
Reference: Shareholders' equity (million yen)	As of Apr. 30, 2021:	8,853	As of Oct. 31, 2020: 8,397

2. Dividends

				Dividend per share
	1Q-end	2Q-end		3Q-end		Year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended Oct. 31, 2020	-		0.00		-		68.00	68.00
Fiscal year ending Oct. 31, 2021	-		0.00
Fiscal year ending Oct. 31, 2021 (forecasts)					-		41.00	41.00

Note: Revision to the most recently announced dividend forecast: None

The Company conducted a 2-for-1 common stock split effective on November 1, 2020. Dividends per share for the fiscal year ended October 31, 2020 are the actual amounts before the stock split.

3. Consolidated Forecast for the Fiscal Year Ending October 31, 2021 (November 1, 2020 - October 31, 2021)

(Percentages represent year-on-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Net income
		owners of parent	per share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	38,000-		44.4-	3,500-	23.7-	3,300-	24.8-	2,251-	23.2-	154.94-
41,876		59.1	3,800	34.3	3,600	36.1	2,455	34.4	168.98

Notes: 1. Revision to the most recently announced consolidated forecast: None

1. Ranges for the consolidated forecast for the fiscal year ending October 31, 2021 have been announced. Please refer to
   "1. Qualitative Information on Quarterly Consolidated Financial Performance, (4) Explanation of Consolidated
   Forecast and Other Forward-looking Statements" on page 4 for forecast assumptions and notes of caution for usage.
2. The Company's Board of Directors approved a resolution on April 9, 2021 to repurchase its own shares. Net income per share forecast has been adjusted to reflect the stock repurchase.

Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Application of special accounting methods for presenting quarterly consolidated financial statem ents: Yes
3. Changes in accounting policies and accounting-based estimates, and restatements
4. 1. Changes in accounting policies due to revisions in accounting standards, others: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting-based estimates: None
   4. Restatements: None
5. Number of outstanding shares (common shares)
6. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of Apr. 30, 2021:	15,210,000 shares	As of Oct. 31, 2020:	15,198,000 shares
2) Number of treasury shares at the end of the period
As of Apr. 30, 2021:	734,526 shares	As of Oct. 31, 2020:	444,426 shares
3) Average number of shares outstanding during the period
Six months ended Apr. 30, 2021:	14,737,875 shares	Six months ended Apr. 30, 2020:	14,543,924 shares

Note: The Company conducted a 2-for-1 common stock split effective on November 1, 2020. The number of shares outstanding at the end of the period, the number of treasury shares at the end of the period an d the average number of shares outstanding during the period are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.

Explanation of appropriate use of earnings forecasts, and other special items

Cautionary statement with respect to forward-looking statements

Outlook and other forward-looking statements in these materials are based on assumption judged to be valid and information available to the Company's management at the time the materials were prepared, but are not promises by the Company regarding future performance. Actual results may differ significantly from these forecasts for a nu mber of factors. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, ( 4) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 4 for forecast assumptions and notes of caution for usage.

How to view supplementary information at the quarterly financial results meetings

The Company plans to hold online financial results meetings on Thursday, June 10, 2021. Materials distributed at this event will be disclosed at the Timely Disclosure network (TDnet) with this financial report and also be available on the Company's website.

	Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the Second Quarter of FY10/21
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Cash Flows	3
(4)	Explanation of Consolidated Forecast and Other Forward -looking Statements	4
2. Quarterly Consolidated Financial Statements and Notes	5
(1)	Quarterly Consolidated Balance Sheet	5
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	Quarterly Consolidated Statement of Income
	For the Six-month Period	6
	Quarterly Consolidated Statement of Comprehensive Income
	For the Six-month Period	7
(3)	Quarterly Consolidated Statement of Cash Flows	8
(4)	Notes to Quarterly Consolidated Financial Statements	9
	Going Concern Assumption	9
	Significant Changes in Shareholders' Equity	9
	Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements	9
	Segment and Other Information	9

1

Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the Second Quarter of FY10/21

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

During the first half of the fiscal year ending October 31, 2021, under the prolonged economic stagnation caused by the spread of the COVID-19 pandemic, the Japanese economy showed signs of gradual recovery due to government actions. However, the outlook for the Japanese economy remains unclear due to the impact of the fresh issuance of the state of emergency in response to the recurring resurgence of COVID-19 infections.

Japan's market for newly constructed condominiums is the primary business domain of the Good Com Asset Group. During the first six months ended April 2021, the percentage of new condominiums sold in the Tokyo metropolitan area within one month of going on sale was 66.9%, according to the Real Estate Economic Institute. However, this percentage was 70.2% in Tokyo's 23 wards, the Group's main business area. This is above the 70% level generally regarded as a sign of a strong condominium market. The percentage sold within one month in Tokyo's 23 wards was 11.0% higher than one year earlier mainly because of increasing demand for residences resulting from changes in life styles caused by the COVID-19 crisis.

The Good Com Asset Group continued to expand planning, development and sales activities, mainly in Tokyo's 23 wards, for the Genovia series of condominiums, which consists of the Genovia green veil, Genovia skygarden and Genovia skyrun brands. We also reinforced the customer support framework and strengthened the Genovia brand. During the first half, 644 condominium units in 24 buildings were sold. Properties acquired were 410 units in five buildings.

Net sales increased 146.0% year on year to 19,669 million yen. Operating profit increased 232.3% to 2,167 million yen, ordinary profit increased 252.2% to 2,029 million yen and profit attributable to owners of parent was up 255.7% to 1,380 million yen.

Results by business segment are as follows:

Reportable segment categories are revised from the first quarter of the current fiscal year. For more information, please see the section "2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly Consolidated Financial Statements (Segment and Other Information)."

Prior-year figures reflect the new segment categories for comparison purposes.

(a) Retail sales

This segment consists of sales of the Genovia series of one -room and family condominiums to individual investors. During the first half, 87 condominium units were sold.

Sales were 2,962 million yen, down 19.0% from one year earlier, and segment loss was 122 million yen, compared with profit of 126 million yen one year earlier.

(b) Wholesale

This segment consists of sales of the Genovia series of one-room and family condominiums to real estate management companies. During the first half, 557 condominium units were sold.

Sales were 15,861 million yen, up 313.0% from one year earlier, and segment profit increased 585.9% to 1,991 million yen.

(c) Real estate management

This segment performed well as growth in the number of managed condominium buildings and tenant -occupied condominium units was strong and the occupancy rate exceeded 99% at the end of every month of the first half.

Sales were 875 million yen, up 70.9% from one year earlier, and segment profit increased 17.4% to 332 million yen.

(d) Good Com Fund

There were no sales of small amount investment units of a real estate fund during the first half of the current fiscal year.

2

Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the Second Quarter of FY10/21

Sales were not recorded and segment loss was 43 million yen, compared with a 56 million yen loss one year earlier.

The year-on-year change in sales is not shown because there were no sales.

1. Explanation of Financial Position Assets

Total assets decreased 5,164 million yen, or 19.9%, from the end of the previous fiscal year to 20,751 million yen at the end of the second quarter of the current fiscal year.

This was mainly due to decreases in real estate for sale of 4,953 million yen and cash and deposits of 771 million yen, while there were increases in deposits paid included in other current assets of 273 million yen and advance payments-trade of 268 million yen.

Liabilities

Total liabilities decreased 5,620 million yen, or 32.1%, from the end of the previous fiscal year to 11,897 million yen.

This was mainly due to decreases in current portion of long-term borrowings of 4,022 million yen, short-term borrowings of 1,811 million yen and long-term borrowings of 333 million yen, while there were increases in accrued consumption taxes included in other current liabilities of 483 million yen and bonds payable of 139 million yen.

Net assets

Total net assets increased 456 million yen, or 5.4%, from the end of the previous fiscal year to 8,853 million yen.

The main factors include a 501 million yen decrease in retained earnings due to dividend payments and a 425 million yen increase in treasury shares, which were partially offset by a 1,380 million yen increase in retained earnings due to the booking of profit attributable to owners of parent.

Consequently, the equity ratio increased 10.3 percentage points from the end of the previous fiscal year to 42.7% at the end of the second quarter of the current fiscal year.

(3) Explanation of Cash Flows

Cash and cash equivalents (hereinafter, "net cash") at the end of the first half of the current fiscal year decreased 771 million yen, or 11.7%, from the end of the previous fiscal year to 5,806 million yen.

Cash flows by category during the first half of the current fiscal year and the main reasons for changes are as follows.

Cash flows from operating activities

Net cash provided by operating activities was 6,233 million yen (3,398 million yen used in the same period of the previous fiscal year).

This was mainly due to profit before income taxes of 2,029 million yen and a 4,901 million yen decrease in inventories, while there was income taxes paid of 699 million yen.

Cash flows from investing activities

Net cash used in investing activities was 89 million yen (547 million yen used in the same period of the previous fiscal year).

The main factors include purchase of property, plant and equipment of 37 million yen and payments for other investing activities of 49 million yen.

Cash flows from financing activities

Net cash used in financing activities was 6,915 million yen (3,185 million yen provided in the same period of the previous fiscal year).

3