Meiho : Financial Summary of First Three Quarters of Fiscal Year Ending July 2022(Consolidated)

Financial Summary of First Three Quarters of Fiscal Year Ending July 2022

Meiho Enterprise Co., Ltd.

Financial Summary of First Three Quarters of Fiscal Year Ending July 2022 (Japanese GAAP) (Consolidated)

					June 14, 2022
Name of listed company:Meiho Enterprise Co., Ltd.	Listing	Tokyo Stock Exchange
exchange:
Code	8,927			URL http://www.meiho-est.com
Representative:	(Position) Chairman & Representative(Name) Mitsuru Yabuki
	Director
	(Position)	General	Manager,	(Name) Ayako Iwasaki	Tel: [phone]
Contact for inquiries:Management Dept.
Scheduled date for submission ofJune 14, 2022		Scheduled date for start of-
quarterly report:				dividend payment:

Creation of supplementary explanatory materials: None

Holding of accounts briefing meeting: None

(Amounts are rounded down to the nearest million yen)

1. Consolidated results for the second first three quarters of fiscal year ending July 2022 (from August 1, 2021 to April 30, 2022)

(1) Consolidated operating results (cumulative)

(% figures show the rate of increase (decrease) compared with

the same period of the previous fiscal year)

Profit attributable to

Revenues

Operating profit

Ordinary profit

owners of parent

Profit attributable to

owners of parent

First

three

quarters

of

Million yen

%

Million yen

%

Million yen

%

Million yen

%

fiscal

year

ending

July

5,958

(15.9)

365

(46.1)

244

(64.5)

164

(74.4)

2022

First

three

quarters

of

fiscal

year

ending

July

7,082

(16.7)

678

40.1

687

64.9

644

188.0

2021

(Note)

Comprehensive

First three quarters of fiscal

166 Million yen(74.4%)

First three quarters of fiscal

649 Million yen (196.0%)

income

year ending July 2022

year ending July 2021

Basic profit per share

Basic profit per share

(diluted)

First

three

quarters

of

yen sen

yen sen

fiscal

year

ending

July

6.98

-

2022

First

three

quarters

of

fiscal

year

ending

July

27.29

-

2021

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

First

three

quarters

of

Million yen

Million yen

%

fiscal

year

ending

July

13,751

5,060

36.7

2022

Fiscal

year

ended

July

11,607

5,085

43.7

2021

(Reference) Equity capital

First three quarters of fiscal year

5,047Million yen

Fiscal year ended July 2021 5,071 Million yen

ending July 2022

2. Dividends

Financial Summary of First Three Quarters of Fiscal Year Ending July 2022Meiho Enterprise Co., Ltd.

		Annual dividend
	End of first	End of second	End of third		Year-end	Total
	quarter	quarter	quarter
Fiscal year ended	yen sen	yen sen	yen sen		yen sen	yen sen
-	0.00	-		8.00	8.00
July 2021
Fiscal year ended	-	0.00	-
July 2022
Fiscal year ending July					8.00	8.00
2022 (Forecast)
(Note) Revisions to the most recent dividend forecast: None

3. Consolidated earnings forecast for fiscal year ending July 2022 (from August 1, 2021 to July 31, 2022)

(% figures show the rate of increase (decrease) compared with the same period of the previous fiscal year)

	Revenues		Operating profit	Ordinary profit	Profit attributable to	Basic profit per
		owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	yen sen
Full year	12,300		20.8	820	(16.6)	620	(35.5)	380	(54.0)	16.09

(Note) Revisions to the most recent earnings forecast: None

Financial Summary of First Three Quarters of Fiscal Year Ending July 2022Meiho Enterprise Co., Ltd.

* Explanatory notes

(1) Changes in significant subsidiaries during the period	:	None
	(Changes in specified subsidiaries resulting in change in scope of consolidation)
	Newly included: ― companies (Company name), Excluded: ― companies (Company name)
(2) Application of accounting method specific to preparation of quarterly	None
consolidated financial statements	:
(3) Changes in accounting policies, changes in accounting estimates, and restatement
1)	Changes in accounting policies with revision	of accounting	: Yes
standards	:
2)	Changes in accounting policies other than 1)	:	None
3)	Changes in accounting estimates	:	None
4)	Restatement	:	None
(4) Number of shares issued and outstanding (ordinary shares)
1)	Number of shares issued and outstanding
3Q of FY ending		24,661,000	Fiscal year ended	24,661,000
(including treasury shares) at end of the period	July 2022		shares	July 2021	shares
2)	Number of treasury shares at end of the period	3Q of FY ending		1,047,160	Fiscal year ended	1,047,160
July 2022		shares	July 2021	shares
3)	Average number of shares during the period
3Q of FY ending		23,613,840	3Q of FY ending	23,613,840
(quarterly cumulative)	July 2022		shares	July 2021	shares

• Quarterly Financial Summary is outside the scope of the quarterly review by a certified public accountant or audit firm.
• Explanation regarding appropriate use of earnings forecasts, and other notes

The earnings outlook and other forward-looking statements contained herein are based on information currently available and certain assumptions that are thought to be reasonable by the Company. Accordingly, actual business performance and other results may differ materially due to various factors. For the conditions forming the assumptions on which earnings forecasts are based and explanatory notes for use of earnings forecasts, etc., please see "Attachment

1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information" on page 2.

Financial Summary of First Three Quarters of Fiscal Year Ending July 2022

Meiho Enterprise Co., Ltd.

• Contents of Attachments

1. Qualitative Information on Quarterly Financial Results .................................................................................	1
(1)	Explanation of Operating Results ....................................................................................................................................	1
(2)	Explanation of Financial Position ....................................................................................................................................	2
(3)	Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information ..........................................	2
2. Quarterly Consolidated Financial Statements and Main Notes ......................................................................	3
(1)	Quarterly Consolidated Balance Sheet .............................................................................................................................	3
(2)	Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income..........	5
(3)	Notes to Quarterly Consolidated Financial Statements ....................................................................................................	7
	(Notes Related to Going Concern Assumption) ................................................................................................................	7
	(Notes on Substantial Changes in Amount of Shareholders' Equity) ................................................................................	7
	(Changes in Accounting Policies) ......................................................................................................................................	8
	(Additional Information) .....................................................................................................................................................	8
	(Segment Information, etc.) ...............................................................................................................................................	9

Financial Summary of First Three Quarters of Fiscal Year Ending July 2022

Meiho Enterprise Co., Ltd.

1. Qualitative Information on Quarterly Financial Results

(1) Explanation of Operating Results

During the first nine months of the current fiscal year, the Japanese economy showed signs of gradual recovery from the stagnation of economic recovery due to the impact of the COVID-19 pandemic. However the outlook remains uncertain because of the re-spread of COVID-19 since start of the year due to new mutant strains and the resulting issuance of priority measures to prevent its spread, along with the tense situation in the Ukraine, the depreciation of the yen, and soaring resource prices.

The real estate industry has been relatively unaffected by the COVID-19 pandemic, with backing from various government support programs and low interest rates, and supported by consumers' persistent willingness to buy. On the other hand, the supply of construction materials and housing equipment has been restricted due to the tense global situation, and there are concerns about the impact on real estate prices due to the further increase in construction costs.

Under these business circumstances, the Group made the following efforts in each business segment.

In the real estate sales business, the Group is proceeding to enhance its ability to procure properties by leveraging its strengths in information analysis and business planning to its fullest while strengthening its resistance to market fluctuation risks by carefully selecting locations and reducing procurement costs. Regarding the sales activities of the main brands "MIJAS" and "EL FARO," the Group has been striving to find potential customers and strengthen sales activities by holding real estate investment seminars for individual investors in the Head Office's newly opened customer service/seminar room since March. We also delivered "Mijas Shinjuku Tomihisacho" (Shinjuku-ku, Tokyo) and two other buildings, "El Faro Asagaya" (Suginami-ku, Tokyo) and two other buildings, and also delivered one building in the "ME BLD. (M.E. Build)" series, a real estate revitalization business.

In the real estate leasing business, in order to maximize profits for existing owners, in addition to area marketing, we aim to eliminate vacancies by setting the optimal rent based on the AI assessment system and contract execution examples and by proposing leasing strategies utilizing our network of brokerage firms in the Tokyo metropolitan area, thereby achieving high occupancy rates in the properties managed by the Group. We have also introduced an application for information exchange with owners and continue to share and exchange information through CS surveys and other measures. For its main brands, the MIJAS and EL FARO series, the Group offers a one-stop service, from the creation of products to their management, thereby endeavoring to maintain high quality and high occupancy rates. Consequently, the series is creating synergies within the Group, with their good recognition as highly profitable real estate investment products, triggering repeated purchases of real estate investment product series.

In the real estate brokerage business, the Group is working to increase revenues by introducing properties in line with customer needs through the use of its unique information network comprising real estate sales business and other businesses.

In the contracting business, the Group completed and delivered three buildings in the "MIJAS" and "EL FARO" series, designed and constructed one building, and renovated and remodeled other properties under management according to their characteristics in an effort to generate profits.

As a result of the above, revenues for the period under review were 5,958 million yen (down 15.9% year on year), operating income was 365 million yen (down 46.1% year on year), and ordinary income was 244 million yen (down 64.5% year on year). Net income attributable to owners of the parent was 164 million yen (down 74.4% year on year).

The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) from the beginning of the first quarter of the current fiscal year. For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)".

The performance of each segment is as follows. [Real estate sales business]

In the real estate sales business, we delivered three buildings in the MIJAS series of apartment development projects, three buildings in the EL FARO series of rental condominiums, and one building in the ME BLD. series in the real estate revitalization business. As a result, revenues were 3,999 million yen (down 24.1% year on year), and segment profit was 295 million yen (down 40.1% year on year).

[Real estate leasing business]

In the real estate leasing business, revenues were 1,533 million yen (down 4.9% year on year) and segment profit was 186

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