Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
[IFRS]
May 13, 2021
Company name: Shinwa Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange and Nagoya Stock Exchange
Code number: 3447
URL: http://www.shinwa-jp.com/en/relation/index.html
Representative: Hiroshi Yamada, President and Representative Director
Contact: Mitsuyoshi Hirasawa, Executive Officer and General Manager of Administration Headquarters
Phone: +81-584-66-4436
Scheduled date of Annual General Meeting of Shareholders: June 25, 2021
Scheduled date of filing the annual securities report: June 28, 2021
Scheduled date of commencing dividend payments: June 10, 2021
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes (for institutional investors and analysts)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||||||
Revenue | Operating profit | Profit before tax | Profit | ||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||
March 31, 2021 | 13,885 | (18.7) | 1,853 | (16.2) | 1,784 | (16.6) | 1,242 | (15.3) | |||||
March 31, 2020 | 17,081 | (2.5) | 2,210 | 12.5 | 2,139 | 12.9 | 1,467 | 10.2 | |||||
Profit attributable to | Comprehensive | ||||||||||||
owners of parent | income | ||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | |||||||||
March 31, 2021 | 1,231 | (16.0) | 1,253 | (14.4) | |||||||||
March 31, 2020 | 1,467 | 10.2 | 1,464 | 9.9 | |||||||||
Ratio of return | Ratio of profit | Ratio of | |||||||||||
Basic earnings | Diluted earnings | on equity | |||||||||||
before tax to | operating profit | ||||||||||||
per share | per share | attributable to | |||||||||||
total assets | to revenue | ||||||||||||
owners of parent | |||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | ||||||||
March 31, 2021 | 87.42 | 87.09 | 8.8 | 8.1 | 13.3 | ||||||||
March 31, 2020 | 104.85 | 104.21 | 11.0 | 10.0 | 12.9 |
Reference: Share of profit (loss) of investments accounted for using equity method:
Fiscal year ended March 31, 2021: ¥- million
Fiscal year ended March 31, 2020: ¥- million
(2) Consolidated Financial Position
Equity | Equity | Equity | |||
attributable to | |||||
Total assets | Total equity | attributable to | attributable to | ||
owners of | |||||
owners of | owners of | ||||
parent to total | |||||
parent | parent per share | ||||
assets | |||||
Million yen | Million yen | Million yen | % | Yen | |
As of March 31, 2021 | 22,236 | 14,443 | 14,379 | 64.7 | 1,019.59 |
As of March 31, 2020 | 21,620 | 13,788 | 13,740 | 63.6 | 975.26 |
(3) Consolidated Cash Flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |||||||||||
equivalents at end of | ||||||||||||||
operating activities | investing activities | financing activities | ||||||||||||
period | ||||||||||||||
Fiscal year ended | Million yen | Million yen | Million yen | Million yen | ||||||||||
March 31, 2021 | 2,892 | (181) | (1,104) | 4,738 | ||||||||||
March 31, 2020 | 3,121 | (515) | (1,227) | 3,120 | ||||||||||
2. Dividends | ||||||||||||||
Annual dividends | Dividends | |||||||||||||
Payout | to equity | |||||||||||||
1st | 2nd | 3rd | Total | attributable | ||||||||||
ratio | ||||||||||||||
quarter- | quarter- | quarter- | Year-end | Total | dividends | to owners | ||||||||
(consolidated) | ||||||||||||||
end | end | end | of parent | |||||||||||
(consolidated) | ||||||||||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | Million yen | % | % | ||||||
- | 0.00 | - | 44.00 | 44.00 | 619 | 42.0 | 4.6 | |||||||
March 31, 2020 | ||||||||||||||
Fiscal year ended | - | 0.00 | - | 35.00 | 35.00 | 493 | 40.0 | 3.5 | ||||||
March 31, 2021 | ||||||||||||||
Fiscal year ending | ||||||||||||||
March 31, 2022 | - | 0.00 | - | 32.00 | 32.00 | 40.0 | ||||||||
(Forecast) |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)
(% indicates changes from the previous corresponding period.)
Revenue | Operating profit | Profit before tax | Profit | |||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
First half | 7,182 | 12.5 | 799 | 7.2 | 763 | 7.2 | 521 | 6.2 | ||
Full year | 15,000 | 8.0 | 1,700 | (8.3) | 1,629 | (8.7) | 1,128 | (9.2) | ||
Profit attributable to | Basic earnings per share | |||||||||
owners of parent | ||||||||||
Million yen | % | Yen | ||||||||
First half | 521 | 7.7 | 36.94 | |||||||
Full year | 1,128 | (8.4) | 80.00 |
* Notes:
- Changes in significant subsidiaries during the year under review (changes in specified subsidiaries resulting in change in scope of consolidation): No
- Changes in accounting policies and changes in accounting estimates
- Changes in accounting policies required by IFRS: No
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
March 31, 2021: 14,103,000 shares
March 31, 2020: 14,089,200 shares
-
Total number of treasury shares at the end of the period: March 31, 2021: - shares
March 31, 2020: - shares - Average number of shares during the period:
Fiscal year ended March 31, 2021: 14,090,031 shares
Fiscal year ended March 31, 2020: 13,993,754 shares
*These consolidated financial results are outside the scope of audit by Certified Public Accountants or auditing
corporations.
*Explanation of the proper use of financial results forecast and other notes
Financial results forecasts were prepared based on information available at the time of the announcement of this document, and actual results may differ from the forecasts owing to a wide range of factors. For the conditions that form the assumptions for the financial results forecasts, please refer to (1) Overview of Operating Results for the Fiscal Year under Review in 1. Overview of Operating Results, etc. on page 2 and (4) Future Outlook in 1. Overview of Operating Results, etc. on page 5 of the Attachment.
Table of Contents | ||
1. Overview of Operating Results, etc. ...................................................................................................... | 2 | |
(1) | Overview of Operating Results for the Fiscal Year under Review .................................................... | 2 |
(2) | Overview of Financial Position for the Fiscal Year under Review .................................................... | 3 |
(3) | Overview of Cash Flows for the Fiscal Year under Review .............................................................. | 4 |
(4) | Future Outlook .................................................................................................................................. | 5 |
(5) | Basic Policy for Distribution of Profits and Dividends for the Fiscal Year under Review and Next | |
Fiscal Year ........................................................................................................................................ | 6 | |
2. Basic Stance Concerning Choice of Accounting Standards ................................................................... | 6 | |
3. Consolidated Financial Statements and Primary Notes.......................................................................... | 7 | |
(1) | Consolidated Statement of Financial Position ................................................................................... | 7 |
(2) | Consolidated Statements of Profit or Loss and Comprehensive Income............................................ | 9 |
(3) | Consolidated Statement of Changes in Equity................................................................................... | 11 |
(4) | Consolidated Statement of Cash Flows ............................................................................................. | 12 |
(5) Notes to Consolidated Financial Statements...................................................................................... | 13 | |
(Notes on going concern assumption)........................................................................................... | 13 | |
(Segment information) ................................................................................................................. | 13 | |
(Per share information)................................................................................................................. | 14 | |
(Significant subsequent events) .................................................................................................... | 14 |
1
1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2021, the Japanese economy faced extremely challenging conditions, with the spread of the novel coronavirus infection causing a serious slowdown across socioeconomic activity. While there are some signs of economic improvement at present, the employment situation and private consumption remain weak, and the situation continues to be unpredictable due to increasing downside risks stemming from coronavirus trends both in Japan and overseas.
In the construction industry, which is the main supply destination of products manufactured by the Company, total construction investments during the period from April 2020 to February 2021 decreased from the previous fiscal year to ¥47,600.0 billion (down 1.6% year on year), according to the "Comprehensive construction statistics" published by the Ministry of Land, Infrastructure, Transport and Tourism.
In such a business environment, aiming to improve operating efficiency while prioritizing the health of its employees and customers, the Group has strived to prevent the spread of the disease and carry out efficient business operations through measures such as promoting working from home at all its facilities and encouraging the use of web conferences. In addition, the spread of the novel coronavirus infection caused a delay in the launch of GUANGDONG NISSHINCHUANGFU ADVANCED CONSTRUCTION MATERIALS Co., Ltd., a Chinese manufacturing subsidiary established in November 2019, but the subsidiary commenced manufacturing and selling from June 2020.
In terms of profit, the Group has worked to improve profitability primarily by focusing on the manufacture and supply of safety equipment and other high value-added products, which remained in high demand despite the coronavirus crisis. In terms of costs, the Group has also endeavored to reduce costs and control expenditure through all sorts of measures such as reducing directors' compensation and other fixed costs and reviewing new investment projects. As a result, the gross profit ratio for the fiscal year ended March 31, 2021 came to 26.1% (improved by
0.8 percentage points year on year) and the operating profit ratio came to 13.3% (improved by 0.4 percentage points year on year).
As a result, revenue for the fiscal year ended March 31, 2021 amounted to ¥13,885 million (down 18.7% year on year), operating profit was ¥1,853 million (down 16.2% year on year), profit before tax came to ¥1,784 million (down 16.6% year on year), and profit attributable to owners of parent amounted to ¥1,231 million (down 16.0% year on year).
As the Group is comprised of a single business segment of the manufacturing and sales business of scaffolding equipment and logistics equipment, information by segment is not provided. The performance of each business Division is as follows.
1) Scaffolding Equipment Division
The Scaffolding Equipment Division develops two product groups: "wedge binding type scaffolding" primarily targeted at low- to mid-rise structures such as detached housing; and "next generation scaffolding" for mid- to high-rise large structures and public works.
During the fiscal year ended March 31, 2021, the overall demand in scaffolding equipment declined affected by the suspension and postponement of construction work as well as the postponement of new construction investment projects due to the spread of the novel coronavirus infection causing the declaration of a state of emergency. Meanwhile, revenue found support by focusing on the supply of safety equipment aimed at enhancing safety at construction sites, which remained in high demand.
As a result of these factors, revenue for the Scaffolding Equipment Division amounted to ¥10,818 million (down 25.6% year on year).
2
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Shinwa Co. Ltd. published this content on 13 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2021 08:13:01 UTC.