GRCS : Summary of Non-Consolidated Financial Results for the Six Months Ended May 31,2022 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Non-Consolidated Financial Results

for the Six Months Ended May 31, 2022

(Based on Japanese GAAP)

					July 14, 2022
Company name:	GRCS Inc.
Stock exchange listing:	Tokyo
Stock code:	9250	URL https://www.grcs.co.jp/
Representative:	President&Representative Director	Yoshikazu Sasaki
Inquiries:	Director		Ikue Tanaka	TEL [phone]
Scheduled date to file Quarterly Securities Report:	July 14, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Non-consolidated financial results for the six months ended May 31, 2022 (from December 1, 2021 to May 31, 2022)

(1) Non-consolidated operating results (cumulative)									Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit
	Millions of yen		%		Millions of yen		%	Millions of yen		%	Millions of yen		%
Six months ended May 31, 2022	1,113			-		(9)		-		(16)		-		(12)		-
Six months ended May 31, 2021	-			-			-		-		-		-		-		-
	Earnings per share			Diluted earnings per share
					Yen				Yen
Six months ended May 31, 2022			(9.20)					-
Six months ended May 31, 2021						-				-
(2) Non-consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen			Millions of yen				%
As of May 31, 2022			1,301						741				56.9
As of November 30, 2021			1,273						751				59.0
2. Cash dividends
							Annual dividends per share
	1st quarter-end		2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen			Yen			Yen
Year ended November 30, 2021			-		0.00				-			0.00			0.00
Year ending November 30, 2022			-		0.00
Year ending November 30, 2022											-			0.00			0.00
(Forecast)

3. Forecast of non-consolidated financial results for the year ending November 30, 2022 (from December 1, 2021 to November 30, 2022) Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit		Earnings per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	2,092	19.0	190	54.5	185	85.5	130	(9.3)	99.66

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4. Notes

1. Application of special accounting methods for preparing quarterly non-consolidated financial statements: No
2. 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:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of May 31, 2022	1,309,800 shares	As of November 30, 2021	1,309,000 shares
Number of treasury shares at the end of the period
	As of May 31, 2022	-	shares	As of November 30, 2021	-	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended May 31, 2022	1,309,133	shares	Six months ended May 31, 2021	-	shares

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Quarterly non-consolidated financial statements

Non-consolidated balance sheets

			(Thousands of yen)
		As of November 30, 2021	As of May 31, 2022
Assets
Current assets
Cash and deposits	875,250	674,651
Accounts receivable - trade	224,306	368,176
Work in process	1,783	12,319
Advance payments to suppliers	32,055	46,033
Prepaid expenses	11,837	30,740
Other	5,713	457
Total current assets	1,150,945	1,132,379
Non-current assets
Property, plant and equipment
Buildings, net	9,462	10,628
Tools, furniture and fixtures, net	1,450	1,233
Construction in progress	-	17,762
Total property, plant and equipment	10,912	29,624
Intangible assets
Software	6,685	4,410
Total intangible assets	6,685	4,410
Investments and other assets
Long-term prepaid expenses	935	1,485
Deferred tax assets	86,929	91,747
Guarantee deposits	17,210	41,918
Total investments and other assets	105,075	135,151
Total non-current assets	122,673	169,186
Total assets		1,273,618	1,301,565

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			(Thousands of yen)
		As of November 30, 2021	As of May 31, 2022
Liabilities
Current liabilities
Accounts payable - trade	64,947	93,407
Short-term borrowings	37,502	12,506
Current portion of long-term borrowings	45,248	50,132
Accrued expenses	118,683	125,574
Income taxes payable	32,629	7,190
Accrued consumption taxes	40,116	30,284
Advances received	42,054	57,677
Deposits received	5,368	6,526
Total current liabilities	386,550	383,298
Non-current liabilities
Long-term borrowings	129,130	170,768
Asset retirement obligations	6,085	6,086
Total non-current liabilities	135,215	176,854
Total liabilities	521,766	560,153
Net assets
Shareholders' equity
Share capital	298,400	299,200
Capital surplus	262,869	263,669
Retained earnings	190,266	178,225
Total shareholders' equity	751,535	741,094
Share acquisition rights	317	317
Total net assets	751,852	741,412
Total liabilities and net assets		1,273,618	1,301,565

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Non-consolidated statements of income (cumulative)

		(Thousands of yen)
		Six months ended
		May 31, 2022
Net sales	1,113,915
Cost of sales	875,599
Gross profit	238,316
Selling, general and administrative expenses	248,306
Operating loss	(9,990)
Non-operating income
Interest income	3
Commission income	363
Subsidy income	1,300
Other	0
Total non-operating income	1,667
Non-operating expenses
Interest expenses	1,661
Going public expenses	1,768
Foreign exchange losses	4,756
Other	82
Total non-operating expenses	8,269
Ordinary loss	(16,592)
Loss before income taxes	(16,592)
Income taxes - current	265
Income taxes - deferred	(4,817)
Total income taxes	(4,551)
Loss		(12,040)

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