Nippon Chemiphar : Summary of consolidated financial results for the first quarter of FY2023.

Summary of Consolidated Financial Results for the

First Quarter of Fiscal Year 2023 (Japanese GAAP)

		July 31, 2023
Company name:	Nippon Chemiphar Co., Ltd.	Listing: Tokyo Stock Exchange
Securities code:	4539	URL: https://www.chemiphar.co.jp/english/
Representative:	Kazushiro Yamaguchi, President & CEO
Contact:	Shinji Nakajima, Corporate Officer and Senior Manager of Accounts & Finance Department
	Phone: [phone]
Scheduled date of dividend payout:	-
Supplementary documents for quarterly financial results: Yes
Quarterly financial results briefing:	None

*Amounts less than one million yen are rounded down

1. Consolidated Financial Results for the First Quarter of FY2023 (from April 1, 2023 to June 30, 2023)

(1) Business Results												(Percentages represent year-on-year changes.)
																	Profit attributable to
		Net sales				Operating profit	Ordinary profit	owners of parent
Three months ended		Million yen		%		Million yen		%		Million yen		%	Million yen	%
June 30, 2023		7,537			(10.5)		(106)		-	111		(78.2)	79	(87.8)
June 30, 2022		8,425			11.2		175			-	514		-	653	-
(Note) Comprehensive income:		Three Months ended June 30, 2023: 42 million yen (down 85.5 %)
		Three Months ended June 30, 2022: 291 million yen (432.7%)
		Earnings per		Diluted earnings
		share				per share
Three months ended				Yen				Yen
June 30, 2023		22.03				-
June 30, 2022		180.91				-
(2) Financial Position
		Total assets				Net assets	Equity ratio		Net assets per share
As of				Million yen			Million yen				%		Yen
June 30, 2023		52,078					18,393					35.3		5,091.84
March 31, 2023		48,571					18,534					38.1		5,130.65
(Reference) Equity:		As of June 30, 2023:	18,376 million yen			As of March 31, 2023: 18,517 million yen
2. Dividends
						Dividend per share
									End of fiscal
		End of Q1	End of Q2		End of Q3		year		Annual
Year ended		Yen			Yen		Yen		Yen		Yen
	-			0.00		-			50.00		50.00
March 31, 2023
Year ending		-
March 31, 2024
Year ending					0.00		-			50.00		50.00
March 31, 2024 (forecast)
(Note) Revision to the forecast	for dividends	announced most recently: None

3. Forecast of Consolidated Financial Results for the FY2023 (from April 1, 2023 to March 31, 2024)

(Percentages represent year-on-year changes.)

							Profit attributable to
	Net sales		Operating profit		Ordinary profit	owners of parent	Earnings per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full-year	32,700	3.6	200	-	100	70.4	60	(82.3)	16.62
(Note) Revision to the financial results forecast announced most recently: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanied by a change in the scope of consolidation): No
2. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies and changes or restatement of accounting estimates

(i)	Changes in accounting policies accompanying amendments to accounting standards, etc.: No
(ii)	Changes in accounting policies other than (i):	No
(iii) Changes in accounting estimates:	No
(iv) Restatement:	No

1. Number of shares outstanding (common stock)
2. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of June 30, 2023:	4,261,420 shares	As of March 31, 2023:	4,261,420 shares
(ii) Number of treasury shares at the end of the period
As of June 30, 2023:	652,320 shares	As of March 31, 2023:	652,254 shares
(iii) Average number of outstanding shares during the period (cumulative from the beginning of the period)
Three months ended June 30, 2023:	3,609,112 shares	Three months ended June 30, 2022:	3,609,829 shares

4. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

			(Millions of yen)
		FY2022	Q1 of FY2023
		(As of March 31, 2023)	(As of June 30, 2023)
Assets
Current assets
Cash and deposits	10,529	12,259
Notes and accounts receivable―trade, and contract assets	7,516	6,997
Electronically recorded monetary claims―operating	3,738	3,891
Merchandise and finished goods	6,468	7,090
Work in process	1,277	1,450
Raw materials and supplies	3,010	3,111
Income taxes refund receivable	220	225
Others	675	899
Total current assets	33,436	35,926
Non-current assets
Property, plant, and equipment
Buildings and structures, net	4,786	4,691
Machinery, equipment, and vehicles, net	1,636	1,512
Tools, furniture and fixtures, net	379	375
Land	4,344	4,344
Leased assets, net	170	167
Construction in progress	200	1,356
Total property, plant and equipment	11,518	12,447
Intangible assets
Patent rights	15	14
Trademark rights	54	52
Sales rights	383	312
Leased assets	47	43
Software	59	53
Telephone subscription rights	9	9
Total intangible assets	569	486
Investments and other assets
Investment securities	1,385	1,549
Long-term prepaid expenses	496	470
Retirement benefit assets	401	435
Leasehold and guarantee deposits	57	55
Deferred tax assets	353	353
Others	414	414
Allowance for doubtful accounts	(61)	(61)
Total investments and other assets	3,046	3,218
Total non-current assets	15,134	16,151
Total assets		48,571	52,078

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					(Millions of yen)
			FY2022		Q1 of FY2023
			(As of March 31, 2023)	(As of June 30, 2023)
Liabilities
Current liabilities
Notes and accounts payable-trade	2,545	2,871
Electronically recorded obligations-operating	6,399	6,439
Short-term borrowings				392	720
Current portion of long-term borrowings	2,650	2,780
Lease obligations				77	75
Accounts payable-other		84	43
Income taxes payable				81	109
Accrued consumption taxes		91	67
Accrued expenses			1,678	1,873
Deposits received				175	202
Refund liabilities				221	201
Others				369	418
Total current liabilities			14,766	15,803
Non-current liabilities
Long-term borrowings			11,950	13,956
Lease obligations				161	154
Provision for retirement benefits for directors		457	464
Net defined benefit liability		139	143
Deferred tax liabilities for land revaluation		915	915
Others			1,645	2,246
Total non-current liabilities	15,270	17,881
Total liabilities			30,037	33,684
Net assets
Shareholders' equity
Capital stock			4,304	4,304
Capital surplus			1,263	1,263
Retained earnings			13,636	13,533
Treasury shares				3,110)	(3,111)
Total shareholders' equit	y	16,093	15,990
	ሺ
Accumulated other comprehensive income
Valuation difference on available-for-sale securities		335	450
Revaluation reserve for land	2,072	2,072
Foreign currency translation adjustment		(20)	(167)
Remeasurements of defined benefit plans		35	31
Total accumulated other comprehensive income	2,423	2,386
Share acquisition rights				17	17
Total net assets			18,534	18,393
Total liabilities and net assets		48,571	52,078

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1. Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income

			(Millions of yen)
		For the three months ended	For the three months ended
		June 30, 2022	June 30, 2023
Net sales	8,425	7,537
Cost of sales	6,200	5,686
Gross profit	2,225	1,850
Selling, general and administrative expenses	2,050	1,957
Operating profit (loss)	175	(106)
Non-operating income
Interest income	0	0
Dividend income	14	18
Rental income from non-current assets	1	1
Share of profit of entities accounted for using equity	8	10
method
Foreign exchange gains	348	217
Others	2	5
Total non-operating income	376	254
Non-operating expenses
Interest expenses	30	31
Commission expense	2	1
Others	4	2
Total non-operating expenses	37	36
Ordinary profit	514	111
Extraordinary income
Gain on sales of investment securities	411	-
Total extraordinary income	411	-
Profit before income taxes	925	111
Income taxes-current	272	80
Income taxes-deferred	(0)	(47)
Total income taxes	272	32
Profit	653	79
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		653	79

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