Unite and Grow : 〔Delayed〕Summary of Consolidated Financial Results for the Six Months Ended June 30, 2022 (Based on Japanese GAAP)

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 12, 2022

Company name:

Unite and Grow Inc.

Stock exchange listing:

Tokyo

Stock code:

4486

URL

http://www.ug-inc.net/

Representative:

President and CEO

Kiichiro Suda

Inquiries:

Director and General Manager of

Mieko Oka

TEL [phone]

Administration Division

Scheduled date to file Quarterly Securities Report:

August 12, 2022

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(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

1,143

16.9

182

35.5

182

35.6

134

43.5

Six months ended June 30, 2021

978

19.5

134

29.9

134

30.0

93

39.9

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended June 30, 2022

36.03

34.00

Six months ended June 30, 2021

25.49

23.67

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of June 30, 2022

2,168

1,532

70.7

As of December 31, 2021

2,109

1,379

65.4

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	-	0.00	-	12.00	12.00
Year ending December 31, 2022	-	0.00
Year ending December 31, 2022 (Forecast)			-	14.00	14.00

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	2,368	14.1	307		6.3	307		4.5	224	13.1	60.34

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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):	No
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	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	3,931,800	shares	As of December 31, 2021	3,717,200	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	26	shares	As of December 31, 2021	26	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	3,720,731	shares	Six months ended June 30, 2021	3,665,914	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	1,914,942	1,966,938
Accounts receivable - trade	14,472	9,576
Supplies	561	483
Other	16,692	19,462
Total current assets	1,946,669	1,996,461
Non-current assets
Property, plant and equipment
Buildings, net	69,577	66,902
Other, net	16,986	15,078
Total property, plant and equipment	86,564	81,981
Intangible assets
Software	11,689	9,405
Software in progress	-	22,440
Total intangible assets	11,689	31,845
Investments and other assets
Deferred tax assets	13,715	7,870
Other	50,828	50,828
Total investments and other assets	64,543	58,698
Total non-current assets	162,797	172,525
Total assets	2,109,467	2,168,986

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			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Liabilities
Current liabilities
Accounts payable - trade	7,935	7,302
Accounts payable - other	129,042	53,371
Income taxes payable	79,169	51,774
Advances received	404,308	-
Contract liabilities	-	431,739
Provision for bonuses	-	10,000
Other	89,046	62,597
Total current liabilities	709,503	616,785
Non-current liabilities
Asset retirement obligations	12,237	12,253
Other	8,246	7,097
Total non-current liabilities	20,483	19,350
Total liabilities	729,986	636,136
Net assets
Shareholders' equity
Share capital	311,662	343,617
Capital surplus	290,807	322,762
Retained earnings	777,065	866,525
Treasury shares	(55)	(55)
Total shareholders' equity	1,379,480	1,532,850
Total net assets	1,379,480	1,532,850
Total liabilities and net assets	2,109,467	2,168,986

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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	978,919	1,143,872
Cost of sales	519,813	572,798
Gross profit	459,106	571,073
Selling, general and administrative expenses	324,738	389,067
Operating profit	134,368	182,006
Non-operating income
Interest income	8	9
Gain on sale of goods	-	205
Other	44	-
Total non-operating income	52	215
Non-operating expenses
Interest expenses	93	70
Share issuance costs	32	-
Total non-operating expenses	126	70
Ordinary profit	134,294	182,150
Profit before income taxes	134,294	182,150
Income taxes - current	41,134	42,239
Income taxes - deferred	(298)	5,844
Total income taxes	40,836	48,084
Profit	93,457	134,066
Profit attributable to owners of parent	93,457	134,066

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