VALUENCE HOLDINGS INC. Note: 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. The Company assumes no responsibility for this translation or for direct, indirect, or any other forms of damages arising from this translation.
Consolidated Financial Results for the Nine Months Ended May 31, 2022 [Japanese GAAP]
July 14, 2022 | |||
Company name: Valuence Holdings Inc. | Stock exchange listing: Tokyo Stock Exchange | ||
Securities code: | 9270 | URL: https://www.valuence.inc/ | |
Representative: | (Title) Representative Director | (Name) Shinsuke Sakimoto | |
Contact: | (Title) Director and CFO | (Name) Shinichiro Sato | (TEL) +81-3-4580-9983 |
Scheduled date for filing quarterly securities report: | Scheduled date for commencing dividend payments: ― | ||
July 14, 2022 |
Preparation of supplementary quarterly financial results briefing materials:
Holding of quarterly financial results briefing:
(Amounts of less than one million yen are truncated.)
1. Consolidated financial results for the nine months ended May 31, 2022 (September 1, 2021 to May 31, 2022) | ||||||||||||||||||||||||
(1) Consolidated operating results (cumulative) | (% indicates year-over-year change) | |||||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||||||||||
owners of parent | ||||||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||||||||||
Nine months ended | 44,399 | 18.7 | 934 | 105.0 | 879 | 240.5 | 367 | (20.0) | ||||||||||||||||
May 31, 2022 | ||||||||||||||||||||||||
Nine months ended | 37,412 | 48.2 | 455 | ― | 258 | ― | 460 | ― | ||||||||||||||||
May 31, 2021 | ||||||||||||||||||||||||
Note: Comprehensive income: | Nine months ended | 471 million yen | Nine months ended | 489 million yen | ||||||||||||||||||||
May 31, 2022 | [ (3.6) %] | May 31, 2021 | [ - %] | |||||||||||||||||||||
Basic earnings | Diluted earnings per | |||||||||||||||||||||||
per share | share | |||||||||||||||||||||||
Yen | Yen | |||||||||||||||||||||||
Nine months ended | 27.97 | 27.80 | ||||||||||||||||||||||
May 31, 2022 | ||||||||||||||||||||||||
Nine months ended | 34.83 | 34.56 | ||||||||||||||||||||||
May 31, 2021 | ||||||||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||||||||
Total assets | Net assets | Equity capital ratio | ||||||||||||||||||||||
Million yen | Million yen | % | ||||||||||||||||||||||
As of May 31, 2022 | 22,479 | 7,434 | 31.7 | |||||||||||||||||||||
As of August 31, 2021 | 18,727 | 7,270 | 38.0 | |||||||||||||||||||||
(Reference only) Equity Nine months ended | 7,137 million yen | Fiscal year ended in August 2021 | 7,115 million yen | |||||||||||||||||||||
May 31, 2022 | ||||||||||||||||||||||||
2. Dividends | ||||||||||||||||||||||||
Annual dividends | ||||||||||||||||||||||||
First | Second quarter-end | Third quarter-end | Fiscal | Total | ||||||||||||||||||||
quarter-end | Year-end | |||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||||||
Fiscal year ended in | ― | 0.00 | ― | 25.00 | 25.00 | |||||||||||||||||||
August 2021 | ||||||||||||||||||||||||
Fiscal year ending in | ― | 0.00 | ― | |||||||||||||||||||||
August 2022 | ||||||||||||||||||||||||
Fiscal year ending in | 25.00 | 25.00 | ||||||||||||||||||||||
August 2022 (forecast) | ||||||||||||||||||||||||
Note: Revision to the dividend forecast announced most recently: None |
3. Consolidated financial results forecast for the fiscal year ending in August 2022 (September 1, 2021 to August 31, 2022)
(% indicates year-over-year change)
Profit attributable | Basic earnings | ||||||||||
Net sales | Operating profit | Ordinary profit | to owners of | ||||||||
per share | |||||||||||
parent | |||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 64,300 | 22.4 | 1,800 | 54.0 | 1,700 | 74.0 | 920 | 26.9 | 70.13 |
Note: Revision to the financial results forecast announced most recently: None
- Notes
- Changes in significant subsidiaries during the current period (changes in specified subsidiaries resulting in the changes in the scope of consolidation): None
- Accounting treatments adopted specially for the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and retrospective restatements
- Changes in accounting policies due to application of new or revised accounting standards: Yes
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting estimates: | None |
4) | Retrospective restatements: | None |
(Note) For details, please refer to "2. Quarterly consolidated financial statements and major notes (3) Notes on quarterly consolidated financial statements (Changes in accounting policies)" on page 9 of the attached materials.
- Number of shares of common stock issued
- Number of shares issued at the end of the period (including treasury share)
- Number of shares of treasury share at the end of the period
- Average number of shares of common stock during the period (cumulative)
As of May 31, 2022 | 13,335,620 shares | Fiscal year ended in | 13,326,170 shares |
August 2021 | |||
As of May 31, 2022 | 329,027 shares | Fiscal year ended in | 134,384 shares |
August 2021 | |||
Nine months ended | 13,155,752 shares | Nine months ended | 13,208,954 shares |
May 31, 2022 | May 31, 2021 | ||
- These quarterly financial results are not subject to quarterly review procedures to be performed by certified public accountants or an audit firm.
- Explanation on appropriate use of financial results forecasts and other matters of note
Financial results forecasts and other forward-looking statements provided in these materials are based on information available to the Company and certain other assumptions deemed reasonable as of the date of publication of this document, and do not represent any guarantee that the Company will achieve these results. Actual financial results and other aspects of business performance may differ significantly from these forecasts owing to various factors. Please refer to "1. Qualitative information on quarterly financial results (3) Explanation of consolidated financial results forecast and other forward-looking information" on page 4 of the attached materials for conditions forming the basis for financial results forecasts, notes regarding the use of financial results forecasts, and other information.
Valuence Holdings Inc. (9270)
Consolidated Financial Results for Nine Months Ended May 31, 2022
- Table of contents of the attached materials
(2) | Explanation of financial conditions ......................................................................................................... | 4 |
(3) | Explanation of consolidated financial results forecast and other forward-looking information.............. | 4 |
2. Quarterly consolidated financial statements and major notes .......................................................................... | 5 | |
(1) | Quarterly consolidated balance sheet ...................................................................................................... | 5 |
(2) | Quarterly consolidated statements of income and comprehensive income ............................................. | 7 |
(3) | Notes on quarterly consolidated financial statements.............................................................................. | 9 |
(Notes regarding going concern assumptions) ............................................................................................ | 9 | |
(Notes in the case of significant changes in the amount of shareholders' equity)....................................... | 9 | |
(Change in scope of consolidation or equity method application) .............................................................. | 9 | |
(Changes in accounting policies) ................................................................................................................ | 9 | |
(Additional information) ........................................................................................................................... | 10 | |
(Important subsequent events)................................................................................................................... | 10 |
-1-
Valuence Holdings Inc. (9270)
Consolidated Financial Results for Nine Months Ended May 31, 2022
1. Qualitative information on quarterly financial results
-
Explanation of business results
The Company Group is currently promoting efforts to achieve the VG1000 mid-term management plan for the period through the fiscal year ending in August 2025. The Company Group aims to transform itself into a recurring revenue model to achieve sustainable growth by becoming a Global Reuse Platformer, providing partners ("partner" referring hereinafter to a reuse business operator in an auction) around the world with one- stop support in the buying and selling of luxury brand items.
In the fiscal year ending in August 2022, the second year of the mid-term management plan, the Company Group will continue to make proactive investments as it did in the previous fiscal year and plans to increase expenses related to system development, operation, and maintenance in addition to advertising and personnel expenses. In terms of system development, the outsourcing and amortization costs for operation and maintenance of systems, including existing systems, are expected to increase due to the development of AI for purchasing and sales channel selection, the development of customer management infrastructure, and the development for the launch of fulfillment services.
As a result of the business activities based on the above plan, the Company Group's consolidated financial results for the nine months under review were as follows. Effective from the first quarter of the fiscal year ending in August 2022, the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc., has been applied. With regard to the application of the Accounting Standard or Revenue Recognition, etc., in accordance with the transitional treatment prescribed in the provisions of Paragraph 84 of the Accounting Standard for Revenue Recognition, the new accounting policy has not been applied retrospectively for the nine months ended May 31, 2021. For details, please refer to "2. Quarterly consolidated financial statements and major notes (3) Notes on quarterly consolidated financial statements (Changes in accounting policies)."
Net sales | 44,399 million yen | (Up 18.7% from the previous corresponding period) |
Operating profit | 934 million yen | (Up 105.0% from the previous corresponding period) |
Ordinary profit | 879 million yen | (Up 240.5% from the previous corresponding period) |
Profit attributable to | 367 million yen | (Down 20.0% from the previous corresponding period) |
owners of parent | ||
The Company Group has only one business segment-reuse business involving brand name products, antiques, works of art, and other items. Thus, information by segment is omitted.
Specific initiatives in the nine months under review were as follows.
With regard to purchases, the number of customers served and the purchase volume remained steady as the market for bullion and watches soared from February onward, recovering from the effects of inclement weather and COVID-19 in the first half of the year. In addition, the Company Group focused on expanding purchases by airing TV commercials for about a month from April 14 in all regions nationwide where it operates buying offices.
With regard to buying offices development, the Company Group opened 5 new offices in Japan and 6 new offices overseas, bringing the total number of buying offices of the Company Group as a whole as of the end of the nine months under review to 130 offices in Japan and 23 offices overseas. In addition to in-store purchases, the Company Group has strengthened its home-delivery,on-site, and online purchases, as well as purchases through alliances with other industries, in order to further expand purchases.
As a result, purchases for the third quarter of the current fiscal year totaled 14,516 million yen, reaching a record high for the third consecutive quarter.
-2-
Valuence Holdings Inc. (9270)
Consolidated Financial Results for Nine Months Ended May 31, 2022
Quarterly trends in purchases and the number of buying offices are as follows.
Purchases and Buying Offices
With respect to selling operations, sales in each channel were favorable, resulting in record-high net sales for the third quarter of the current fiscal year. In the STAR BUYERS AUCTION ("SBA"), the Company Group's own auction, the number of auctions held significantly increased from November, but participation by partners was dispersed, resulting in a temporary decline in the rates of winning bids. As a result of improvements in holding methods since January and a major renewal since March, the rates of winning bids recovered to the same level as before and sales from in-house auctions expanded. In addition, wholesale (bullion) sales more than doubled from the previous quarter due in part to the rising bullion market. On the other hand, retail sales declined from the previous quarter as a result of flexible measures such as prioritizing an increase in sales at SBAs to disperse the risk of watch market fluctuations.
Gross profit margin deteriorated due to a sharp increase in the ratio of watches and bullion in the sales mix, but measures such as a change in the method of holding SBAs were successful, and the gross profit margin for the nine months under review remained at the same level as in the same period of the previous fiscal year.
Quarterly net sales by channel (toB and toC) are as follows.
Net Sales by Channel (toB, toC)
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Valuence Holdings Inc. published this content on 14 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 July 2022 06:53:06 UTC.
