Seiko PMC : Summary of Consolidated Financial Results for the Six Months Ended June 30, 2022 (PDF/152KB)

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 Consolidated Financial Results for the Six Months Ended June 30, 2022 (Based on Japanese GAAP)

					August 9, 2022
Company name:	SEIKO PMC CORPORATION
Stock exchange listing:	Tokyo
Stock code:	4963	URL https://www.seikopmc.co.jp/
Representative:	Representative Director, President and CEO	Seido Kan
Inquiries:	Exective Officer, Head of Administration	Hiroharu Kawano	TEL [phone]
Division
Scheduled date to file Quarterly Securities Report:	August 10, 2022
Scheduled date to commence dividend payments:	September 6, 2022
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%		Millions of yen		%
Six months ended June 30, 2022	15,938		6.4		1,120	(25.5)		1,745		6.9			1,306		22.7
Six months ended June 30, 2021	14,984		19.5		1,503	54.9		1,632		66.0			1,063		71.6
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended June 30, 2022			43.07					-
Six months ended June 30, 2021			35.09					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of June 30, 2022		44,422					31,610				70.4
As of December 31, 2021		41,882					31,593				70.9
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 December 31, 2021		-			8.00			-				8.00			16.00
Year ending December 31, 2022		-			8.00
Year ending December 31, 2022 (Forecast)									-				8.00			16.00

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	32,840	5.8	2,040	(28.9)	2,690	(14.3)	1,970	(5.4)	64.97

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

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:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

As of June 30, 2022 30,321,283 shares As of December 31, 2021 30,321,283 shares Number of treasury shares at the end of the period

	As of June 30, 2022	104	shares	As of December 31, 2021	-	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	30,321,197	shares	Six months ended June 30, 2021	30,321,329	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	2,762,928	3,752,445
Notes and accounts receivable - trade	11,387,861	10,800,291
Electronically recorded monetary claims - operating	1,600,325	1,381,797
Merchandise and finished goods	2,726,936	2,738,737
Work in process	397,925	440,792
Raw materials and supplies	1,683,310	1,853,602
Short-term loans receivable	1,677,980	1,304,444
Other	591,892	753,421
Allowance for doubtful accounts	(13,891)	(8,186)
Total current assets	22,815,269	23,017,345
Non-current assets
Property, plant and equipment
Buildings and structures, net	3,442,073	3,418,146
Machinery, equipment and vehicles, net	3,295,801	3,157,219
Land	6,980,330	7,239,499
Construction in progress	2,625,612	4,684,839
Other, net	235,169	229,868
Total property, plant and equipment	16,578,987	18,729,574
Intangible assets	45,495	52,594
Investments and other assets
Investment securities	937,314	856,555
Retirement benefit asset	863,104	1,049,749
Other	671,668	747,017
Allowance for doubtful accounts	(29,404)	(30,000)
Total investments and other assets	2,442,683	2,623,322
Total non-current assets	19,067,166	21,405,491
Total assets		41,882,436	44,422,836

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			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	5,057,706	4,942,917
Short-term borrowings	730,000	3,328,212
Current portion of long-term borrowings	82,990	91,547
Income taxes payable	545,813	355,805
Provision for bonuses	669,165	690,131
Other provisions	-	13,800
Other	2,101,296	2,223,218
Total current liabilities	9,186,972	11,645,634
Non-current liabilities
Long-term borrowings	623,967	642,535
Provision for retirement benefits for directors (and other	7,800	7,800
officers)
Asset retirement obligations	87,216	87,473
Other	383,046	428,651
Total non-current liabilities	1,102,030	1,166,460
Total liabilities	10,289,003	12,812,094
Net assets
Shareholders' equity
Share capital	2,000,000	2,000,000
Capital surplus	1,576,265	1,149,697
Retained earnings	25,169,029	26,232,490
Treasury shares	-	(69)
Total shareholders' equity	28,745,294	29,382,118
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	299,489	238,758
Deferred gains or losses on hedges	1,199	8,295
Foreign currency translation adjustment	759,049	1,722,333
Remeasurements of defined benefit plans	(102,609)	(81,923)
Total accumulated other comprehensive income	957,128	1,887,463
Non-controlling interests	1,891,009	341,160
Total net assets	31,593,432	31,610,742
Total liabilities and net assets		41,882,436	44,422,836

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		June 30, 2021	June 30, 2022
Net sales	14,984,743	15,938,576
Cost of sales	10,680,406	11,990,948
Gross profit	4,304,336	3,947,628
Selling, general and administrative expenses	2,801,057	2,827,265
Operating profit	1,503,279	1,120,362
Non-operating income
Interest income	8,671	2,704
Dividend income	12,436	14,772
Purchase discounts	6,472	7,573
Subsidy income	24,312	75,757
Foreign exchange gains	58,002	490,676
Other	27,477	42,468
Total non-operating income	137,372	633,953
Non-operating expenses
Interest expenses	4,501	6,843
Sales discounts	2,258	-
Other	1,442	2,315
Total non-operating expenses	8,201	9,159
Ordinary profit	1,632,449	1,745,156
Extraordinary income
Subsidy income	-	18,650
Gain on sale of non-current assets	2,734	41
Total extraordinary income	2,734	18,691
Extraordinary losses
Loss on retirement of non-current assets	6,289	264
Loss on tax purpose reduction entry of non-current assets	-	18,650
Total extraordinary losses	6,289	18,914
Profit before income taxes	1,628,895	1,744,934
Income taxes - current	430,803	382,386
Income taxes - deferred	22,651	50,171
Total income taxes	453,455	432,558
Profit	1,175,439	1,312,376
Profit attributable to non-controlling interests	111,453	6,344
Profit attributable to owners of parent		1,063,985	1,306,031

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