Tri Chemical Laboratories : Consolidated Financial Results for the Six Months Ended July 31, 2021

Consolidated Financial Results

for the Six Months Ended July 31, 2021

[Japanese GAAP]

August 31, 2021

Company name: Tri Chemical Laboratories Inc.

Stock exchange listing: Tokyo Stock Exchange

Code number: 4369

URL: http://www.trichemical.com

Representative: Kiyoshi Tazuke, President

Contact: Yoshihide Suzuki, Director

Phone: [phone]

Scheduled date of filing quarterly securities report: September 14, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Not available

Scheduled date of quarterly results briefing session: Scheduled (for institutional investors and analysts)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Six Months Ended July 31, 2021 (February 1, 2021 to July 31, 2021)

(1) Consolidated Operating Results (cumulative)	(% indicates changes from the previous corresponding period.)
	Net sales			Operating profit	Ordinary profit	Profit attributable to
			owners of parent
Six months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
July 31, 2021	5,367	11.5		1,457	(5.8)	2,448	6.6	1,881	4.7
July 31, 2020	4,812	15.9		1,547	34.1	2,296	29.2	1,796	30.3

(Note) Comprehensive income: Six months ended July 31, 2021: ¥2,064 million (24.5%) Six months ended July 31, 2020: ¥1,658 million (28.8%)

	Basic earnings	Diluted earnings
	per share	per share
Six months ended	Yen	Yen
July 31, 2021	58.20	-
July 31, 2020	57.49	-

(Note) The Company executed a four-for-one stock split for each common share on February 1, 2021. Accordingly, the figures for basic earnings per share have been calculated assuming that the stock split was executed at the beginning of the fiscal year ended January 31, 2021. Diluted earnings per share are not presented as there were no dilutive shares.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of July 31, 2021	25,460	19,074	74.9
As of January 31, 2021	19,867	12,601	63.4

(Reference) Equity: As of July 31, 2021: ¥19,074 million As of January 31, 2021: ¥12,601 million

2. Dividends

			Annual dividends
	1st	2nd	3rd	Year-end	Total
	quarter-end	quarter-end	quarter-end
Fiscal year ended January	Yen	Yen	Yen	Yen	Yen
-	0.00	-	68.00	68.00
31, 2021
Fiscal year ending January	-	0.00
31, 2022
Fiscal year ending January			-	17.00	17.00
31, 2022 (Forecast)

(Note) Revision of dividend forecasts from recently announced figures: None

(Note) The Company executed a four-for-one stock split for each common share on February 1, 2021. For the fiscal year ended January 31, 2021, the figures for dividends are presented in amounts of the actual dividends paid, and the figures for dividends for the fiscal year ending January 31, 2022 (forecast) are presented in amounts after the said stock split.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending January 31, 2022 (February 1, 2021 to January 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales	Operating profit	Ordinary profit	Profit attributable	Basic earnings
	to owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	11,000	12.2	2,950	9.6	4,980	15.2	3,880	14.9	119.70
(Note) Revision of	financial results forecast from recently announced figures: Yes

* Notes:

1. Changes in significant subsidiaries during the period under review: No (Changes in specific subsidiaries due to changes in the scope of consolidation)

New: - companies (company name)

, excluded: - companies (company name)

1. Application of accounting treatment specific to preparation of quarterly consolidated financial statements: No
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

As of July 31, 2021: 32,498,640 shares

As of January 31, 2021: 31,248,640 shares

1. Total number of treasury shares at the end of the period: As of July 31, 2021: 1,580 shares
   As of January 31, 2021: 1,580 shares
2. Average number of shares during the period:

Six months ended July 31, 2021: 32,331,314 shares

Six months ended July 31, 2020: 31,247,228 shares

(Note) The Company executed a four-for-one stock split for each common share on February 1, 2021. Accordingly, the total number of issued shares at the end of the period, the total number of treasury shares at the end of the period, and the average number of shares during the period have been calculated assuming that the stock split was executed at the beginning of the fiscal year ended January 31, 2021.

• These quarterly financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes

The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and certain assumptions deemed reasonable, and do not represent a commitment by the Company that they will be achieved. Actual results may differ significantly from these forecasts due to a wide range of factors.

The Company plans to hold a financial results briefing for institutional investors and analysts on September 3, 2021. Financial results materials to be used at the briefing will be available on the Company's website immediately after the session.

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

			(Thousand yen)
		As of January 31, 2021	As of July 31, 2021
Assets
Current assets
Cash and deposits	1,698,612	6,815,108
Notes and accounts receivable - trade	2,783,207	3,011,288
Electronically recorded monetary claims - operating	1,119,212	851,328
Merchandise and finished goods	13,422	105,474
Work in process	713,613	838,072
Raw materials and supplies	881,878	1,121,749
Other	374,759	223,156
Total current assets	7,584,706	12,966,179
Non-current assets
Property, plant and equipment
Buildings and structures	5,020,683	5,129,645
Accumulated depreciation	(1,233,191)	(1,364,424)
Buildings and structures, net		3,787,491	3,765,221
Machinery, equipment and vehicles	2,669,674	3,001,726
Accumulated depreciation	(1,429,693)	(1,560,979)
Machinery, equipment and vehicles, net	1,239,980	1,440,746
Tools, furniture and fixtures	2,195,213	2,469,197
Accumulated depreciation	(1,452,432)	(1,572,396)
Tools, furniture and fixtures, net	742,780	896,800
Land	714,933	714,933
Other	1,556,937	1,183,600
Accumulated depreciation	(162,616)	(201,106)
Other, net	1,394,320	982,493
Total property, plant and equipment	7,879,507	7,800,195
Intangible assets		208,508	188,366
Investments and other assets
Investment securities	4,147,328	4,408,006
Other	47,708	97,576
Total investments and other assets	4,195,036	4,505,583
Total non-current assets	12,283,053	12,494,146
Total assets		19,867,759	25,460,325

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			(Thousand yen)
		As of January 31, 2021	As of July 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	525,821	560,220
Short-term loans payable	580,000	-
Current portion of long-term loans payable	615,547	737,790
Income taxes payable	593,172	618,238
Provision for bonuses	76,084	118,208
Other	899,835	856,107
Total current liabilities	3,290,460	2,890,564
Non-current liabilities
Long-term loans payable	3,160,646	2,725,833
Net defined benefit liability	102,327	106,477
Other	712,935	662,682
Total non-current liabilities	3,975,908	3,494,993
Total liabilities	7,266,369	6,385,557
Net assets
Shareholders' equity
Capital stock	808,912	3,278,912
Capital surplus	709,912	3,179,912
Retained earnings	11,062,738	12,413,154
Treasury shares	(1,720)	(1,720)
Total shareholders' equity	12,579,843	18,870,259
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(168)	70
Foreign currency translation adjustments	38,500	219,564
Remeasurements of defined benefit plans	(16,785)	(15,127)
Total accumulated other comprehensive income	21,545	204,508
Total net assets	12,601,389	19,074,767
Total liabilities and net assets		19,867,759	25,460,325

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