Sanix Incorporated : Financial Summary (327KB)

dNote: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

February 14, 2023

	Consolidated Financial Results
	for the Six Months Ended December 31, 2022
	(Under Japanese GAAP)
Company name: SANIX INCORPORATED
Listing:	Tokyo Stock Exchange / Fukuoka Stock Exchange
Securities code:	4651
URL:	https://sanix.jp/lang_en/
Representative:	Hiroshi Munemasa, President and Representative Director
Inquiries:	Hiroshi Soga, Executive officer, Deputy General manager of Corporate Division,
	General manager of Corporate Planning Division, Management & Planning Division
Telephone:	[phone]

Scheduled date to file quarterly securities report:	February 14, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for Institutional investor)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
		Net sales		Operating Income	Ordinary Income	Profit attributable to
			owners of parent
	Nine months ended	Millions of yen	%		Millions of yen		%	Millions of yen	%	Millions of yen		%
	December 31,	34,345	(5.8)		1,111		514.0	935	-	649		-
	2022
	December 31,	36,453	1.8		181		(92.4)	0	(100.0)	(306)		-
	2021
Note: Comprehensive income For the Nine months ended December 31, 2022:¥652 million	[-%]
		For the Nine months ended December 31, 2021:¥(259) million	[-%]
		Basic earnings		Diluted earnings
		per share		per share
	Nine months ended		Yen				Yen
	December 31,		13.58				-
	2022
	December 31,		(6.41)				-
	2021
(2) Consolidated financial position
		Total assets		Net assets	Equity-to-asset ratio	Net assets
			per share
	As of	Millions of yen		Millions of yen		%			Yen
	December 31,		35,053				5,379		15.3	112.10
	2022
	March 31, 2022		34,953				4,732		13.5			98.52
Reference: Equity
	As of December 31, 2022:	¥5,359 million
	As of March 31, 2022:		¥4,709 million

2. Cash dividends

				Annual dividends per share
		First quarter-end		Second quarter-		Third quarter-end		Fiscal year-end		Total
			end
		Yen		Yen		Yen		Yen		Yen
	Fiscal year ended	0.00	0.00	0.00		0.00	0.00
	March 31, 2022
	Fiscal year ending	0.00	0.00	0.00
	March 31, 2023
	Fiscal year ending
	March 31, 2023							0.00	0.00
	(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial forecasts for the fiscal year ended March 31, 2023(from April 1, 2022 to March 31, 2023)

								Profit attributable	Basic earnings
	Net sales		Operating Income	Ordinary Income	to owners of		per share
								parent
	Millions of		%	Millions of	%	Millions of	%	Millions of		%
	Yen		Yen	Yen	Yen		Yen
Full Year	46,568		(8.6)	1,528	-	1,271	-	1,065		-	22.30

Note

1.Revision from the most recently announced forecast of consolidated business results: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None

Newly included: - companies (Company name)

Excluded:

- companies (Company name)

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None

Note :For details, please see 2. Quarterly Consolidated Financial Statements and Main Notes to the Statements (3) Notes on Consolidated Financial Statements (Changes in Accounting Policies) on page 10 of the attachment.

1. Number of issued shares (common shares)
2. 1. Total number of issued shares at the end of the period (including treasury shares)

As of December 31,2022

As of March 31,2022

48,919,396 shares

48,919,396 shares

1. Number of treasury shares at the end of the period

As of December 31,2022

As of March 31,2022

1,114,983 shares

1,114,838 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Nine months ended December 31, 2022

Nine months ended December 31, 2021

47,804,447 shares

47,804,620 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

The forward-looking statements, including results forecasts, included in this material are based on the information that the Company has obtained and certain assumptions that the Company considers reasonable. Actual results may differ significantly for a range of factors. The assumptions for the results forecasts and cautions in the use of the forecasts are described in 1. Qualitative Information for the Nine months ended December 31, 2022, (3) Information on the Future Outlook, Including the Forecasts of Consolidated Business Results on page 5 of the Attachment

Index of the attachment
1. Qualitative Information for the Nine months ended December 31, 2022
		2
(1)	Information of Consolidated Business Results	2
(2)	Information of Consolidated Financial Position
		5
(3)	Information on the Future Outlook,
	Including the Forecasts of Consolidated Business Results	5
2. Quarterly Consolidated Financial Statements and the Primary Notes for the
Nine months ended December 31, 2022	6
(1)	Quarterly Consolidated Balance Sheets
		6
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income
		8
	Quarterly Consolidated Statements of Income
		8
	Quarterly Consolidated Statements of Comprehensive Income
		9
(3)	Notes regarding the Quarterly Consolidated Financial Statements
		10
	Notes on matters related to going concern assumption
		10
	Notes to Remarkable Changes in the amount of Shareholders' Equity
		10
	Changes in accounting policies
		10
	Additional information
		10
	Segment Information, etc
		11
	Significant subsequent events
		12
3. Others	13
(1)	Important matters related to going concern assumption
		13
(2)	Consolidated Net Sales by Division
		14

2

1. Qualitative Information for the Nine months ended December 31, 2022

1. Information of Consolidated Business Results

During the first nine months (April 1-December 31, 2022) of the fiscal year under review, the Japanese economy continued to face uncertainty about the future due to a steep rise in the prices of natural resources and energy caused by the prolonged war between Russia and Ukraine, an increase in prices triggered by the depreciation of the yen, and other factors despite a moderate recovery resulting from measures taken to control infectious diseases and the easing of restrictions on activities amid the lingering impact of COVID-19.

In this situation, SANIX INCORPORATED and its consolidated subsidiaries (hereinafter the "Group") continued their respective operations, while ensuring that COVID-19 preventive measures were taken and working to strengthen and expand the foundation for each business.

The Group implemented a reorganization on June 1, 2022 to ensure the growth of its businesses and facilitate growth through the pursuit of synergy between the businesses, while responding flexibly to the rapidly changing market environment with the goal of creating a comfortable environment for the next generation as stated in its corporate philosophy. Consequently, the classification of reportable segments changed in the first quarter. Details are provided in the section, (3) Notes regarding the Quarterly Consolidated Financial Statements (Segment Information, etc.), under 2. Quarterly Consolidated Financial Statements and the Primary Notes for the Nine Months Ended December 31, 2022. Accordingly, in the year-on-year comparisons below, the figures for the same period of the previous year have been restated to reflect the new segment classification in the comparative analysis. However, the year-on-year comparison of the new Solar Engineering (SE) Division, operating the business of photovoltaic power generation systems for detached houses, and the Photovoltaic (PV) Division, operating the business of photovoltaic power generation systems for corporations, is omitted due to the practical difficulty of recalculating figures from the same period of the previous year.

Regarding net sales for the first nine months of the fiscal year under review, the HS Division in particular experienced temporary restrictions on face-to-face sales activities associated with the spread of the seventh wave of COVID-19 infections, which from July 2022 saw the largest number of infections ever recorded. The Power Producer and Supplier (PPS) Division has stopped accepting new applications for power supply and demand contracts and shifted part of its retail contracts for electric power to distributor agreements to eliminate the risk of price volatility in electricity procurement. As a result, the Group's consolidated net sales for the first nine months under review came to ¥34,345 million (down 5.8% year on year).

The Group's consolidated profit included operating profit of ¥1,111 million (up 514.0% year on year), ordinary profit of ¥935 million (¥0 million in the same period of the previous year), and profit attributable to owners of parent of ¥649 million (loss attributable to owners of parent of ¥306 million in the same period of the previous year) as a result of the reduction of the risk of price volatility in market procurement despite the serious impact of increased prices on the