Non-consolidated Financial Results for the Fiscal Year Ended...
Transcript of Non-consolidated Financial Results for the Fiscal Year Ended...
Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2019
[Japanese GAAP]
February 13, 2020
Company name: sinops Inc. Stock Exchange Listing: Tokyo Stock Exchange, Mothers Market
Code number: 4428 URL: https://www.sinops.jp
Representative: Hiroshi Minamitani, President & Representative Director
Contact: Kotaro Shimai, Director, Administration Manager Tel: +81-6-6341-1225
Scheduled date of Annual General Meeting of Shareholders: March 27, 2020
Scheduled date of dividend payment: -
Scheduled submission of Securities Report: March 30, 2020
Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting: Yes (for institutional investors and analysts)
(All amounts are rounded down to the nearest million yen)
1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2019
(from January 1, 2019 to December 31, 2019)
(1) Non-consolidated results of operations (Percentages represent year-on-year changes)
Net sales Operating profit Ordinary profit Profit
Millions of yen % Millions of yen % Millions of yen % Millions of yen %
Fiscal year ended Dec. 31, 2019 1,081 18.2 301 30.3 301 40.2 192 48.8
Fiscal year ended Dec. 31, 2018 914 9.1 231 53.9 214 42.9 129 19.7
Net income per
share Diluted net
income per share Return on equity
Ordinary profit to total assets
Operating profit to net sales
Yen Yen % % %
Fiscal year ended Dec. 31, 2019 32.16 31.07 17.1 21.4 27.9
Fiscal year ended Dec. 31, 2018 26.02 24.76 20.4 23.2 25.3
Reference: Equity in earnings of affiliates (millions of yen) Fiscal year ended Dec. 31, 2019: - Fiscal year ended Dec. 31, 2018: -
Notes: 1. sinops conducted a 200-for-1 common stock split effective on April 1, 2018 and a 5-for-1 common stock split effective on August 1, 2019. Net income per share and diluted net income per share are calculated as if these stock split had taken place at the beginning of 2018.
2. Equity in earnings of affiliates is not presented as sinops does not have an affiliate.
(2) Non-consolidated financial position
Total assets Net assets Shareholders’ equity ratio Net assets per share
Millions of yen Millions of yen % Yen
As of Dec. 31, 2019 1,568 1,308 82.7 214.92
As of Dec. 31, 2018 1,246 980 77.1 166.94
Reference: Shareholders’ equity (millions of yen) As of Dec. 31, 2019: 1,295 As of Dec. 31, 2018: 961
Note: sinops conducted a 200-for-1 common stock split effective on April 1, 2018 and a 5-for-1 common stock split effective
on August 1, 2019. Net assets per share are calculated as if these stock split had taken place at the beginning of 2018.
(3) Non-consolidated cash flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
Millions of yen Millions of yen Millions of yen Millions of yen
Fiscal year ended Dec. 31, 2019 (14) (104) 104 796
Fiscal year ended Dec. 31, 2018 147 (52) 504 810
2. Dividends
Dividend per share Total
dividends Payout ratio
Dividend on equity 1Q-end 2Q-end 3Q-end Year-end Total
Yen Yen Yen Yen Yen Millions of yen % %
Fiscal year ended Dec. 31, 2018 - 0.00 - 0.00 0.00 - - -
Fiscal year ended Dec. 31, 2019 - 0.00 - 0.00 0.00 - - -
Fiscal year ending Dec. 31, 2020 (forecasts)
- 0.00 - 0.00 0.00 -
3. Non-consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2020 (Percentages represent year-on-year changes)
Net sales Operating profit Ordinary profit Profit Net income per share
Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen
Full year 1,420 31.4 335 11.4 301 0.3 193 0.4 32.10
Note: The first-half forecast is not presented.
* Notes
(1) Changes in accounting policies and accounting estimates, and restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement: None
(2) Number of shares outstanding (common stock)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Dec. 31, 2019: 6,030,000 shares As of Dec. 31, 2018: 5,762,000 shares
2) Number of treasury shares at the end of the period
As of Dec. 31, 2019: 45 shares As of Dec. 31, 2018: - shares
3) Average number of shares outstanding during the period
Fiscal year ended Dec. 31, 2019: 5,993,610 shares Fiscal year ended Dec. 31, 2018: 4,977,342 shares
Note: sinops conducted a 200-for-1 common stock split on the effective date of April 1, 2018, and a 5-for-1 common stock split on the effective date of August 1, 2019. Number of shares outstanding (common stock) is calculated as if these stock splits had taken place at the beginning of 2018.
* The current financial report is not subject to audit by certified public accountants or auditing firms.
* Appropriate use of business forecasts; other special items
Cautionary statement with respect to forecasts
In this report, statements other than historical facts are forward-looking statements that reflect the Company’s plans and
expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results
and achievements to differ from those anticipated in these statements. Please refer to “1. Overview of Results of Operations,
etc. (4) Outlook” on page 4 for information on preconditions underlying the above outlook and other related information.
Holding of quarterly financial results meeting
sinops plans to hold a financial results meeting for institutional investors and analysts on February 19, 2020. Supplementary
materials for financial results will be posted on the Timely Disclosure Network (TDnet) on the same day and also on the
sinops’ website.
sinops Inc. (4428) Financial Results for 2019
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Contents of Appendix
1. Overview of Results of Operations, etc. 2
(1) Overview of Results of Operations 2
(2) Overview of Financial Position 3
(3) Overview of Cash Flows 3
(4) Outlook 4
2. Basic Approach to the Selection of Accounting Standards 4
3. Non-consolidated Financial Statements and Notes 5
(1) Non-consolidated Balance Sheet 5
(2) Non-consolidated Statement of Income 7
(3) Non-consolidated Statement of Changes in Equity 9
(4) Non-consolidated Statement of Cash Flows 11
(5) Notes to Non-consolidated Financial Statements 12
Going Concern Assumption 12
Reclassifications 12
Equity in Earnings of Affiliates 12
Segment Information 12
Per-share Information 13
Subsequent Events 13
sinops Inc. (4428) Financial Results for 2019
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1. Overview of Results of Operations, etc.
(1) Overview of Results of Operations
a. Operating Environment
Retail sales in Japan between January and December 2019 increased 0.1% over the prior 12-month period to
145.420 trillion yen, according to the Preliminary Report on the Current Survey of Commerce by the Ministry of
Economy, Trade and Industry. The food retailing industry is facing intensifying competition in an environment in
which the boundaries between retail sectors and formats are falling as consumers remain both strongly
savings-minded and highly motivated to protect their living standards in the face of sluggish growth in real wages.
At the same time, the business environment has also remained challenging because of rising personnel costs amid
severe labor shortages and soaring logistics costs. Moreover, the necessity to respond to the No-Foodloss Project
campaign and the adoption of Sustainable Development Goals (SDGs) is becoming an ever more urgently pressing
social issue. Consequently, the need for our automated ordering system, that can contribute to achievement of goals
both in labor saving and reduction of food waste, is increasing, and therefore further market expansion is expected in
the future.
In this environment, we have worked to strengthen sales throughout Japan, especially in the Kanto region, and also
to increase the share of “sinops” in the overall retail market. Furthermore, in addition to daily deliveries, we have
also developed an automated ordering system for new categories such as prepared food items and breads, thereby
further enhancing the efficacy of food waste reduction initiatives.
The use of “sinops” is climbing steadily. As of December 31, 2019, the number of companies using the “sinops”
product increased to 76 (up by 4 companies from the previous year) and the number of locations increased to 5,055
(up by 660 from the previous year). In 2019, net sales increased 18.2% year-on-year to 1,081 million yen, the
operating profit increased 30.3% to 301 million yen, the ordinary profit was up 40.2% to 301 million yen and the
profit rose 48.8% to 192 million yen.
b. Analysis of Operating Results
(Thousands of yen)
2018 2019 YoY change
(Amount)
YoY change
(%)
Net sales 914,499 1,081,000 +166,500 +18.2
Cost of sales 368,651 429,308 +60,657 +16.5
Gross profit 545,847 651,691 +105,843 +19.4
Selling, general and administrative expenses 314,698 350,598 +35,899 +11.4
Operating profit 231,149 301,093 +69,943 +30.3
Ordinary profit 214,783 301,082 +86,298 +40.2
Profit 129,499 192,735 +63,235 +48.8
Net sales
Package sales increased to 465 million yen (up 139 million yen, or 43.0% year-on-year), mainly due to a 60%
increase in the unit price of new projects thanks to the promotion of the “sinops series” as a set. Installation
assistance sales were 130 million yen (down 46 million yen, or 26.4% year-on-year) mainly because installation
assistance sales mainly consisted of continuing projects and pilot projects from the previous fiscal year and new
orders concentrated in the fourth quarter. Support service sales and rental sales increased steadily as the number of
new users rose and steady progress was made with further store openings for existing users. Support sales were 223
million yen (up 33 million yen or 17.7% year-on-year) and rental sales were 261 million yen (up 40 million yen or
18.0% year-on-year). As a result, net sales were 1,081 million yen (up 166 million yen or 18.2% year-on-year).
Gross profit
During 2019, the cost of sales increased 60 million yen, or 16.5% year-on-year mainly as a result of increased
recruitment, outsourcing of product testing and investment in product development. As a result, gross profit was 651
million yen (up 105 million yen or 19.4% year-on-year).
sinops Inc. (4428) Financial Results for 2019
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Operating profit / Ordinary profit
During 2019, selling, general and administrative expenses increased 35 million yen, or 11.4% year-on-year mainly
as a result of strengthening our human resources predominantly in the sales division and increasing investment in
R&D and in inhouse systems. As a result, operating profit was 301 million yen (up 69 million yen or 30.3%
year-on-year) and ordinary profit was 301 million yen (up 86 million yen or 40.2% year-on-year).
Profit
Profit was 192 million yen (up 63 million yen or 48.8% year-on-year).
No segment-related information is provided because sinops has only a single business segment, which is the
“sinops” business.
(2) Overview of Financial Position
Assets
Total assets increased 321 million yen from the end of 2018 to 1,568 million yen at the end of 2019. This was
mainly due to increases of 145 million yen in notes receivable-trade, 115 million yen in accounts receivable-trade
and 50 million yen in software in progress, while there was a decrease of 13 million yen in cash and deposits.
Liabilities
Total liabilities decreased 7 million yen from the end of 2018 to 259 million yen. This was mainly due to decreases
of 8 million yen in accounts payable-other, 20 million yen in advances received, 7 million yen in provision for
bonuses and 14 million yen in loans payable, while there was an increase of 45 million yen in income taxes payable.
Net assets
Net assets increased 328 million yen from the end of 2018 to 1,308 million yen mainly due to increases of 70
million yen each in capital stock and capital surplus, and 192 million yen in retained earnings brought forward
resulting from recording of profit, while there was a decrease of 5 million yen in share acquisition rights.
(3) Overview of Cash Flows
Cash and cash equivalents (hereinafter, “net cash”) at the end of 2019 decreased 13 million yen from the end of
2018 to 796 million yen.
Details of each cash flow category and major factors are described as follows.
Cash flows from operating activities
Net cash used in operating activities totaled 14 million yen, compared with 147 million yen provided in 2018. The
main cash inflows were profit before income taxes of 301 million yen and depreciation of 36 million yen. The main
cash outflows were an increase in notes and accounts receivable-trade of 261 million yen, a decrease in advances
received of 20 million yen, a decrease in provision for product warranties of 5 million yen and income taxes paid of
64 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 104 million yen, compared with 52 million yen used in 2018. This was
mainly due to purchase of intangible assets of 78 million yen, purchase of property, plant and equipment of 12
million yen and payments for guarantee deposits of 12 million yen.
Cash flows from financing activities
Net cash provided by financing activities totaled 104 million yen, compared with 504 million yen provided in 2018.
This was mainly due to proceeds from issuance of common shares of 107 million yen, while there were repayments
of long-term loans payable of 14 million yen.
sinops Inc. (4428) Financial Results for 2019
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(4) Outlook
In the next fiscal year, we will strive to expand the market share of “sinops” across the retail market as a whole by
developing new products and services for the bread and prepared foods category in addition to daily deliveries, and
by strengthening our business alliances with other companies and our collaborations with our sales partners.
For the fiscal year ending December 31, 2020, we forecast a 31.4% increase in net sales to 1,420 million yen, an
11.4% increase in operating profit to 335 million yen, a 0.3% increase in ordinary profit to 301 million yen and a
0.4% increase in profit to 193 million yen.
Forecasts are based on information available to “sinops” at the time of release of this report. Actual performance
may differ from these forecasts for a number of reasons.
2. Basic Approach to the Selection of Accounting Standards
Since sinops does not prepare consolidated financial statements, it was decided to only prepare financial statements
in accordance with accounting principles generally accepted in Japan. This decision was made in consideration of
the burden of establishing a system for preparing financial statements in accordance with International Financial
Reporting Standards.
sinops Inc. (4428) Financial Results for 2019
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3. Non-consolidated Financial Statements and Notes
(1) Non-consolidated Balance Sheet (Thousands of yen)
2018
(As of Dec. 31, 2018)
2019
(As of Dec. 31, 2019)
Assets
Current assets
Cash and deposits 810,529 796,570
Notes receivable-trade - 145,772
Accounts receivable-trade 225,032 340,470
Work in process 12,809 14,963
Prepaid expenses 10,722 16,346
Other 2,333 1,914
Total current assets 1,061,427 1,316,038
Non-current assets
Property, plant and equipment
Buildings 16,435 16,435
Accumulated depreciation (7,550) (8,759)
Buildings, net 8,884 7,675
Vessels 5,460 5,460
Accumulated depreciation (5,459) (5,459)
Vessels, net 0 0
Tools, furniture and fixtures 51,757 64,483
Accumulated depreciation (47,555) (53,273)
Tools, furniture and fixtures, net 4,202 11,209
Total property, plant and equipment 13,086 18,885
Intangible assets
Software 50,679 49,291
Software in progress 21,624 72,056
Other 286 286
Total intangible assets 72,590 121,633
Investments and other assets
Long-term prepaid expenses 82 41
Deferred tax assets 16,592 16,211
Other 83,106 95,227
Total investments and other assets 99,780 111,480
Total non-current assets 185,458 251,998
Total assets 1,246,885 1,568,037
sinops Inc. (4428) Financial Results for 2019
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(Thousands of yen)
2018
(As of Dec. 31, 2018)
2019
(As of Dec. 31, 2019)
Liabilities
Current liabilities
Accounts payable-trade 12,411 7,851
Current portion of long-term loans payable 14,996 5,843
Accounts payable-other 49,659 41,576
Advances received 71,005 50,106
Deposits received 13,171 11,136
Income taxes payable 46,201 91,252
Accrued consumption taxes 15,616 29,982
Provision for bonuses 7,935 -
Provision for product warranties 23,354 18,245
Provision for loss on order received 3,582 -
Total current liabilities 257,932 255,994
Non-current liabilities
Long-term loans payable 5,843 -
Provision for retirement benefits 3,043 3,307
Total non-current liabilities 8,886 3,307
Total liabilities 266,819 259,302
Net assets
Shareholders’ equity
Capital stock 334,373 405,096
Capital surplus
Legal capital surplus 294,803 365,526
Total capital surpluses 294,803 365,526
Retained earnings
Other retained earnings
Retained earnings brought forward 332,724 525,459
Total retained earnings 332,724 525,459
Treasury shares - (99)
Total shareholders’ equity 961,900 1,295,983
Share acquisition rights 18,165 12,751
Total net assets 980,065 1,308,735
Total liabilities and net assets 1,246,885 1,568,037
sinops Inc. (4428) Financial Results for 2019
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(2) Non-consolidated Statement of Income
(Thousands of yen)
2018
(Jan. 1 – Dec. 31, 2018)
2019
(Jan. 1 – Dec. 31, 2019)
Net sales 914,499 1,081,000
Cost of sales 368,651 429,308
Gross profit 545,847 651,691
Selling, general and administrative expenses 314,698 350,598
Operating profit 231,149 301,093
Non-operating income
Interest income 3 7
Commission income - 45
Subsidy income 44 -
Dividend income of insurance 60 50
Insurance fee 380 120
Gain on sales of goods 38 70
Commission for insurance office work 43 51
Other 3 2
Total non-operating income 574 346
Non-operating expenses
Interest expenses 250 89
Sales discounts 392 211
Foreign exchange losses 79 47
Going public expenses 16,208 -
Other 9 8
Total non-operating expenses 16,940 357
Ordinary profit 214,783 301,082
Extraordinary income
Gain on reversal of share acquisition rights 526 268
Total extraordinary income 526 268
Profit before income taxes 215,310 301,351
Income taxes-current 60,096 108,235
Income taxes-deferred 25,714 381
Total income taxes 85,810 108,616
Profit 129,499 192,735
sinops Inc. (4428) Financial Results for 2019
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Cost of Sales Statement
(Thousands of yen)
2018
(Jan. 1 – Dec. 31, 2018)
2019
(Jan. 1 – Dec. 31, 2019)
Item Amount % Amount %
I Labor cost 287,054 64.8 322,976 63.3
II Subcontract expenses 37,600 8.5 61,407 12.0
III Expenses Note 1 118,288 26.7 126,351 24.7
Total manufacturing costs 442,943 100.0 510,736 100.0
Beginning work in process 12,356 12,809
Total 455,300 523,545
Ending work in process 12,809 14,963
Transfer to other account Note 2 60,191 98,482
Cost of products manufactured 382,299 410,099
Cost of purchased goods 4,618 -
Amortization of software 15,093 27,900
Provision for product warranty (9,903) (5,109)
Provision for loss on order received (23,456) (3,582)
Cost of sales 368,651 429,308
Notes: 1. Major breakdown of expenses is as follows:
Item 2018
(Jan. 1 – Dec. 31, 2018)
2019
(Jan. 1 – Dec. 31, 2019)
Communication expenses 28,958 31,351
System use fee 10,827 15,887
Rent expenses on land and buildings 30,087 32,290
Depreciation 9,166 6,941
2. Breakdown of transfer to other account is as follows:
Item 2018
(Jan. 1 – Dec. 31, 2018)
2019
(Jan. 1 – Dec. 31, 2019)
Software in progress 47,739 78,851
R&D expenses 12,451 19,631
Cost accounting
sinops has adopted actual cost accounting under the job-order cost system.
sinops Inc. (4428) Financial Results for 2019
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(3) Non-consolidated Statement of Changes in Equity
2018 (Jan. 1 – Dec. 31, 2018)
(Thousands of yen)
Shareholders’ equity
Share
acquisition
rights
Total net
assets Capital
stock
Capital surplus Retained earnings
Total
shareholders’
equity
Legal
capital
surplus
Total
capital
surplus
Other
retained
earnings Total
retained
earnings
Retained
earnings
brought
forward
Balance at
beginning of
current period
70,885 31,315 31,315 203,224 203,224 305,424 13,800 319,225
Changes of items
during period
Issuance of new
shares 263,488 263,488 263,488 526,976 526,976
Profit 129,499 129,499 129,499 129,499
Net changes of
items other than
shareholders’
equity
4,365 4,365
Total changes of
items during
period
263,488 263,488 263,488 129,499 129,499 656,475 4,365 660,840
Balance at end of
current period 334,373 294,803 294,803 332,724 332,724 961,900 18,165 980,065
sinops Inc. (4428) Financial Results for 2019
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2019 (Jan. 1 – Dec. 31, 2019)
(Thousands of yen)
Shareholders’ equity
Share
acquisition
rights
Total net
assets Capital
stock
Capital surplus Retained earnings
Treasury
shares
Total
shareholders’
equity
Legal
capital
surplus
Total
capital
surplus
Other
retained
earnings Total
retained
earnings
Retained
earnings
brought
forward
Balance at
beginning of
current period
334,373 294,803 294,803 332,724 332,724 - 961,900 18,165 980,065
Changes of items
during period
Issuance of
new shares 70,723 70,723 70,723 141,447 141,447
Profit 192,735 192,735 192,735 192,735
Purchase of
treasury shares (99) (99) (99)
Net changes of
items other
than
shareholders’
equity
(5,413) (5,413)
Total changes of
items during
period
70,723 70,723 70,723 192,735 192,735 (99) 334,083 (5,413) 328,669
Balance at end of
current period 405,096 365,526 365,526 525,459 525,459 (99) 1,295,983 12,751 1,308,735
sinops Inc. (4428) Financial Results for 2019
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(4) Non-consolidated Statement of Cash Flows
(Thousands of yen)
2018
(Jan. 1 – Dec. 31, 2018)
2019
(Jan. 1 – Dec. 31, 2019)
Cash flows from operating activities
Profit before income taxes 215,310 301,351
Depreciation 25,665 36,908
Interest and dividend income (3) (7)
Interest expenses 250 89
Decrease (increase) in notes and accounts
receivable-trade (37,175) (261,210)
Decrease (increase) in inventories (452) (2,153)
Increase (decrease) in notes and accounts
payable-trade (2,560) (4,560)
Share-based compensation expenses 4,891 880
Increase (decrease) in provision for bonuses 1,427 (7,935)
Increase (decrease) in provision for product warranties (14,232) (5,109)
Increase (decrease) in provision for retirement benefits 264 264
Increase (decrease) in provision for loss on order
received (23,456) (3,582)
Going public expenses 16,208 -
Increase (decrease) in advances received 25,507 (20,898)
Increase (decrease) in accounts payable-other (2,895) 7,370
Increase (decrease) in accrued consumption taxes (498) 14,366
Increase (decrease) in income taxes payable-factor
based tax 7,806 901
Increase (decrease) in deposits received (14,683) (2,034)
Other, net (13,517) (5,219)
Subtotal 187,856 49,421
Interest and dividend income received 3 7
Interest expenses paid (250) (89)
Income taxes (paid) refund (39,917) (64,085)
Net cash provided by (used in) operating activities 147,691 (14,746)
Cash flows from investing activities
Purchase of property, plant and equipment (1,347) (12,898)
Purchase of intangible assets (47,562) (78,851)
Payments for guarantee deposits (3,183) (12,334)
Net cash provided by (used in) investing activities (52,092) (104,084)
Cash flows from financing activities
Repayments of long-term loans payable (21,996) (14,996)
Proceeds from issuance of common shares 526,221 107,068
Purchase of treasury shares - (99)
Proceeds from issuance of shares resulting from
exercise of share acquisition rights - 12,900
Net cash provided by (used in) financing activities 504,225 104,872
Net increase (decrease) in cash and cash equivalents 599,824 (13,958)
Cash and cash equivalents at beginning of period 210,704 810,529
Cash and cash equivalents at end of period 810,529 796,570
sinops Inc. (4428) Financial Results for 2019
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(5) Notes to Non-consolidated Financial Statements
Going Concern Assumption
Not applicable.
Reclassifications
Changes resulting from the application of the “Partial Amendments to Accounting Standard for Tax Effect
Accounting,” etc.
Effective from the beginning of 2019, sinops has adopted the “Partial Amendments to Accounting Standard for Tax
Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28, February 16, 2018).
As a result, “Deferred tax assets” of 15 million yen under “Current assets” in the non-consolidated balance sheet
for 2018 is included in “Deferred tax assets” of 16 million yen under “Investments and other assets.”
Non-consolidated Balance Sheet
“Guarantee deposits” and “Insurance funds,” which were separately presented in 2018, are included in “Other”
under “Investments and other assets“ in 2019 since the amount fell below 5% of total assets. To conform to this
change, the non-consolidated financial statements for 2018 are reclassified.
As a result, “Guarantee deposits” of 41 million yen and “Insurance funds” of 39 million yen reported in the
non-consolidated balance sheet for 2018 has been reclassified into “Other” under “Investments and other assets.”
Non-consolidated Statement of Income
“Commission for insurance office work,” which was included in “Other” under “Non-operating income” in 2018, is
presented separately from 2019 since the amount exceeded 10% of non-operating income. In addition, “Foreign
exchange losses,” which was included in “Other” under “Non-operating expenses” in 2018, is presented separately
from 2019 since the amount exceeded 10% of non-operating expenses. To conform to these changes, the
non-consolidated financial statements for 2018 are reclassified.
As a result, “Other” of 47 thousand yen presented under “Non-operating income” in the non-consolidated statement
of income for 2018 has been reclassified and divided into “Commission for insurance office work” of 43 thousand
yen and “Other” of 3 thousand yen. “Other” of 89 thousand yen presented under “Non-operating expenses” has been
reclassified and divided into “Foreign exchange losses” of 79 thousand yen and “Other” of 9 thousand yen.
Equity in Earnings of Affiliates
Not applicable as sinops does not have an affiliate.
Segment Information
Segment information is omitted because sinops has only a single business segment, which is the “sinops” business.
sinops Inc. (4428) Financial Results for 2019
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Per-share Information
(Yen)
2018
(Jan. 1 – Dec. 31, 2018)
2019
(Jan. 1 – Dec. 31, 2019)
Net assets per share 166.94 214.92
Net income per share 26.02 32.16
Diluted net income per share 24.76 31.07
Notes: 1. The stock of sinops was listed on the Tokyo Stock Exchange, Mothers Market on December 25, 2018. Diluted net
income per share for 2018 has been calculated by using an average stock price during the period between the time of
listing and the end of 2018.
2. sinops conducted a 200-for-1 common stock split effective on April 1, 2018 and a 5-for-1 common stock split effective
on August 1, 2019. Net assets per share, net income per share and diluted net income per share are calculated as if
these stock splits had taken place at the beginning of 2018.
3. The basis of calculating the net income per share and diluted net income per share is as follows:
2018
(Jan. 1 – Dec. 31, 2018)
2019
(Jan. 1 – Dec. 31, 2019)
Net income per share
Profit (Thousands of yen) 129,499 192,735
Amount not attributable to common shareholders
(Thousands of yen) - -
Profit applicable to common stock (Thousands of yen) 129,499 192,735
Average number of common stock outstanding
(Shares) 4,977,342 5,993,610
Diluted net income per share
Adjustment of net income (Thousands of yen) - -
Increase in common stock (Shares) 251,736 209,630
[of which share acquisition rights (Shares)] [251,736] [209,630]
Summary of potential stock not included in the calculation of
diluted net income per share since there was no dilutive
effect
Share acquisition rights No. 3
(Number of share acquisition
rights: 44 units)
Share acquisition rights No. 3
(Number of share acquisition
rights: 44 units)
Subsequent Events
Not applicable.
This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.