|
Japan
|
| |
1531
|
| |
Not Applicable
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Ying Li, Esq.
Guillaume de Sampigny, Esq. Hunter Taubman Fischer & Li LLC 48 Wall Street, Suite 1100 New York, NY 10005 212-530-2206 |
| |
Mitchell S. Nussbaum, Esq.
Tahra T. Wright, Esq. Loeb & Loeb LLP 345 Park Avenue New York, NY 10154 212-407-4000 |
|
| | |
Per ADS
|
| |
Total
Without Over-Allotment Option |
| |
Total
With Over-Allotment Option |
| |||||||||
Initial public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriters’ discounts(1)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds to our company before expenses
|
| | | $ | | | | | $ | | | | | $ | | | |
| | |
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| | | | F-1 | | |
| | |
Fiscal Year Ended
June 30, 2022 |
| |
Fiscal Year Ended
June 30, 2021 |
| ||||||||||||||||||
Type
|
| |
Land
Deliveries (Units) |
| |
Building
Deliveries (Units) |
| |
Land
Deliveries (Units) |
| |
Building
Deliveries (Units) |
| ||||||||||||
Single-family homes
|
| | | | 94 | | | | | | 81 | | | | | | 102 | | | | | | 50 | | |
Condominiums
|
| | | | 12 | | | | | | 9 | | | | | | 4 | | | | | | 4 | | |
| | |
June 30, 2022
|
| |||||||||||||||
(in thousands, except share amounts)
|
| |
Actual
|
| |
As adjusted
(Over- allotment option not exercised)(1) |
| |
As
adjusted (Over- allotment option exercised in full)(1) |
| |||||||||
| | |
$
|
| |
$
|
| |
$
|
| |||||||||
Cash and cash equivalents
|
| | | $ | 2,971 | | | | | | 14,916 | | | | | | 17,124 | | |
Short-term loans
|
| | | | 35,459 | | | | | | 35,459 | | | | | | 35,459 | | |
Long-term loans, including current portion
|
| | | | 27,869 | | | | | | 27,869 | | | | | | 27,869 | | |
Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | |
Ordinary Shares, 50,000,000 Ordinary Shares authorized, 14,485,000 Ordinary Shares issued and 12,498,900 Ordinary Shares outstanding; 16,485,000 Ordinary Shares issued and 14,498,900 Ordinary Shares outstanding, as adjusted assuming the over-allotment option is not exercised, and 16,785,000 Ordinary Shares issued and 14,798,900 Ordinary Shares outstanding, as adjusted assuming the over-allotment option is exercised in full
|
| | | $ | 2,536 | | | | | | 14,482 | | | | | | 16,690 | | |
Retained earnings
|
| | | | 14,747 | | | | | | 14,747 | | | | | | 14,747 | | |
Accumulated other comprehensive income (loss)
|
| | | | 120 | | | | | | 120 | | | | | | 120 | | |
Treasury shares, at cost
|
| | | | (1,136) | | | | | | (1,136) | | | | | | (1,136) | | |
Total Shareholders’ Equity
|
| | | | 16,267 | | | | | | 28,213 | | | | | | 30,421 | | |
Total Capitalization
|
| | | $ | 79,595 | | | | | | 91,541 | | | | | | 93,749 | | |
Over-allotment option not exercised
|
| |
Per
Ordinary Share |
| |
Per ADS
|
| ||||||
Assumed Initial public offering price per Ordinary Share
|
| | | $ | 8.00 | | | | | $ | 8.00 | | |
Net tangible book value per Ordinary Share as of June 30, 2022
|
| | | $ | 1.23 | | | | | $ | 1.23 | | |
As adjusted net tangible book value per Ordinary Share attributable to payments by new investors
|
| | | $ | 0.65 | | | | | $ | 0.65 | | |
Pro forma net tangible book value per Ordinary Share immediately after this offering
|
| | | $ | 1.88 | | | | | $ | 1.88 | | |
Amount of dilution in net tangible book value per Ordinary Share to new investors in the offering
|
| | | $ | 6.12 | | | | | $ | 6.12 | | |
Over-allotment option exercised in full
|
| |
Per
Ordinary Share |
| |
Per ADS
|
| ||||||
Assumed Initial public offering price per Ordinary Share
|
| | | $ | 8.00 | | | | | $ | 8.00 | | |
Net tangible book value per Ordinary Share as of June 30, 2022
|
| | | $ | 1.23 | | | | | $ | 1.23 | | |
As adjusted net tangible book value per Ordinary Share attributable to payments by new investors
|
| | | $ | 0.76 | | | | | $ | 0.76 | | |
Pro forma net tangible book value per Ordinary Share immediately after this offering
|
| | | $ | 1.99 | | | | | $ | 1.99 | | |
Amount of dilution in net tangible book value per Ordinary Share to new investors in the offering
|
| | | $ | 6.01 | | | | | $ | 6.01 | | |
| | |
Ordinary Shares
Purchased |
| |
Total Consideration
|
| |
Average
Price Per Ordinary Share |
| |
Average
Price Per ADS |
| ||||||||||||||||||||||||
Over-allotment option not exercised
|
| |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||||||||
Existing Shareholders
|
| | | | 12,498,900 | | | | | | 86.2% | | | | | $ | 2,536,259 | | | | | | 13.7% | | | | | $ | 0.20 | | | | | $ | 0.20 | | |
New Investors
|
| | | | 2,000,000 | | | | | | 13.8% | | | | | $ | 16,000,000 | | | | | | 86.3% | | | | | $ | 8.00 | | | | | $ | 8.00 | | |
Total
|
| | | | 14,498,900 | | | | | | 100.0% | | | | | $ | 29,536,259 | | | | | | 100.0% | | | | | $ | 1.28 | | | | | $ | 1.28 | | |
| | |
Ordinary Shares
Purchased |
| |
Total Consideration
|
| |
Average
Price Per Ordinary Share |
| |
Average
Price Per ADS |
| ||||||||||||||||||||||||
Over-allotment option exercised in full
|
| |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||||||||
Existing Shareholders
|
| | | | 12,498,900 | | | | | | 84.5% | | | | | $ | 2,536,259 | | | | | | 12.5% | | | | | $ | 0.20 | | | | | $ | 0.20 | | |
New Investors
|
| | | | 2,300,000 | | | | | | 15.5% | | | | | $ | 18,400,000 | | | | | | 87.9% | | | | | $ | 8.00 | | | | | $ | 8.00 | | |
Total
|
| | | | 14,798,900 | | | | | | 100.0% | | | | | $ | 33,586,259 | | | | | | 100.0% | | | | | $ | 1.41 | | | | | $ | 1.41 | | |
(In thousands, except change % data)
|
| |
Fiscal Years Ended June 30,
|
| |
Change (2022 vs. 2021)
|
| ||||||||||||||||||||||||||||||
| | |
2022 ($)
|
| |
2022 (¥)
|
| |
2021 (¥)
|
| |
$
|
| |
¥
|
| |
YoY %
|
| ||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate sales
|
| | | | 103,976 | | | | | | 14,108,455 | | | | | | 11,090,778 | | | | | | 22,239 | | | | | | 3,017,677 | | | | | | 27.2% | | |
Other revenue
|
| | | | 1,568 | | | | | | 212,731 | | | | | | 164,497 | | | | | | 355 | | | | | | 48,234 | | | | | | 29.3% | | |
Total revenue
|
| | |
|
105,543
|
| | | |
|
14,321,186
|
| | | |
|
11,255,275
|
| | | |
|
22,595
|
| | | |
|
3,065,911
|
| | | | | 27.2% | | |
Cost of revenue and operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – real estate
|
| | | | 87,054 | | | | | | 11,812,347 | | | | | | 9,652,072 | | | | | | 15,921 | | | | | | 2,160,275 | | | | | | 22.4% | | |
Cost of sales – other
|
| | | | 538 | | | | | | 73,037 | | | | | | 116,154 | | | | | | (318) | | | | | | (43,117) | | | | | | (37.1)% | | |
Selling, general and administrative expenses
|
| | | | 13,167 | | | | | | 1,786,614 | | | | | | 1,033,402 | | | | | | 5,551 | | | | | | 753,212 | | | | | | 72.9% | | |
Total cost of revenue and operating
expenses |
| | | | 100,759 | | | | | | 13,671,998 | | | | | | 10,801,628 | | | | | | 21,154 | | | | | | 2,870,370 | | | | | | 26.6% | | |
Operating income
|
| | | | 4,784 | | | | | | 649,188 | | | | | | 453,647 | | | | | | 1,441 | | | | | | 195,541 | | | | | | 43.1% | | |
Other income / (expense)
|
| | | | 1,371 | | | | | | 186,007 | | | | | | (9,770) | | | | | | 1,443 | | | | | | 195,777 | | | | | | (2,003.9)% | | |
Interest expense
|
| | | | (172) | | | | | | (23,333) | | | | | | (56,650) | | | | | | 246 | | | | | | 33,317 | | | | | | (58.8)% | | |
(In thousands, except change % data)
|
| |
Fiscal Years Ended June 30,
|
| |
Change (2022 vs. 2021)
|
| ||||||||||||||||||||||||||||||
| | |
2022 ($)
|
| |
2022 (¥)
|
| |
2021 (¥)
|
| |
$
|
| |
¥
|
| |
YoY %
|
| ||||||||||||||||||
Total other income (expense)
|
| | | | 1,199 | | | | | | 162,674 | | | | | | (66,420) | | | | | | 1,688 | | | | | | 229,094 | | | | | | (344.9)% | | |
Income before income taxes
|
| | | | 5,983 | | | | | | 811,862 | | | | | | 387,227 | | | | | | 3,129 | | | | | | 424,635 | | | | | | 109.7% | | |
Income taxes
|
| | | | 2,089 | | | | | | 283,479 | | | | | | 134,869 | | | | | | 1,095 | | | | | | 148,610 | | | | | | 110.2% | | |
Net income
|
| | | | 3,894 | | | | | | 528,383 | | | | | | 252,358 | | | | | | 2,034 | | | | | | 276,025 | | | | | | 109.4% | | |
Net loss attributable to the noncontrolling interests
|
| | | | (3) | | | | | | (370) | | | | | | (27,132) | | | | | | 197 | | | | | | 26,762 | | | | | | (98.6)% | | |
Net income attributable to ordinary shareholders
|
| | | | 3,897 | | | | | | 528,753 | | | | | | 279,490 | | | | | | 1,837 | | | | | | 249,263.0 | | | | | | 89.2% | | |
Foreign currency translation gain (loss)
|
| | | | 140 | | | | | | 19,056 | | | | | | (1,062) | | | | | | 148 | | | | | | 20,118 | | | | | | (1,894.4)% | | |
Total comprehensive income
|
| | | | 4,037 | | | | | | 547,809 | | | | | | 278,428 | | | | | | 1,985 | | | | | | 269,381 | | | | | | 96.8% | | |
|
Supplemental Disclosures
(In thousands, except change % data) |
| |
Fiscal Years
Ended June 30, 2022 |
| |
Fiscal Years
Ended June 30, 2021 |
| |
($)
|
| |
(¥)
|
| | | | | | | ||||||||||||
Gross margin %
|
| | | | 17.0% | | | | | | 13.2% | | | | | | | | | | | | | | | | | | 3.8% | | |
Operating Profit %
|
| | | | 4.5% | | | | | | 4.0% | | | | | | | | | | | | | | | | | | 0.5% | | |
Single-family home land deliveries – Units
|
| | | | 94 | | | | | | 102 | | | | | | | | | | | | | | | | | | (7.8)% | | |
Single-family home land deliveries – Average Sales price (¥ in Thousands)
|
| | | | 75,129 | | | | | | 77,461 | | | | | | 554 | | | | | | 571 | | | | | | (3.0)% | | |
Single-family home building deliveries – Units
|
| | | | 81 | | | | | | 50 | | | | | | | | | | | | | | | | | | 62.0% | | |
Single-family home building deliveries – Average Sales price
(¥ in Thousands) |
| | | | 23,626 | | | | | | 22,202 | | | | | | 174 | | | | | | 164 | | | | | | 6.4% | | |
Condominium land deliveries - Units
|
| | | | 12 | | | | | | 4 | | | | | | | | | | | | | | | | | | 200.0% | | |
Condominium land deliveries – Average Sales price (¥ in Thousands)
|
| | | | 322,996 | | | | | | 217,321 | | | | | | 2,380 | | | | | | 1,602 | | | | | | 48.6% | | |
Condominium building deliveries – Units
|
| | | | 9 | | | | | | 4 | | | | | | | | | | | | | | | | | | 125.0% | | |
Condominium building deliveries – Average Sales price (¥ in
Thousands) |
| | | | 147,961 | | | | | | 178,590 | | | | | | 1,090 | | | | | | 1,316 | | | | | | (17.2)% | | |
(¥ in Thousands)
|
| |
For the Fiscal Year Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | ¥ | 528,383 | | | | | ¥ | 252,358 | | |
Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 43,945 | | | | | | 37,326 | | |
Loss on disposal of assets
|
| | | | 1,106,677 | | | | | | 966 | | |
Deferred income taxes
|
| | | | (10,939) | | | | | | 6,766 | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable, net
|
| | | | 171,985 | | | | | | 244,692 | | |
Real estate inventory
|
| | | | (4,306,865) | | | | | | (591,778) | | |
Prepaid and other current assets
|
| | | | 62,130 | | | | | | (100,265) | | |
Intangible asset, net
|
| | | | (54,735) | | | | | | (48,426) | | |
Operating lease
|
| | | | 45,966 | | | | | | (804) | | |
Other assets
|
| | | | (59,201) | | | | | | 303,928 | | |
Accounts payable
|
| | | | 105,567 | | | | | | 180,822 | | |
Customer deposits
|
| | | | 61,928 | | | | | | 58,133 | | |
Accrued expenses and other current liabilities
|
| | | | (625,720) | | | | | | (588,373) | | |
Net cash used in operating activities
|
| | | | (2,930,879) | | | | | | (244,655) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (537,294) | | | | | | (170,231) | | |
Proceeds from sale of property and equipment
|
| | | | 510,091 | | | | | | — | | |
Purchase of investments
|
| | | | (3,670) | | | | | | (10,700) | | |
Proceeds from sale of investments in marketable securities
|
| | | | 11,789 | | | | | | 42,039 | | |
Other – net investing
|
| | | | — | | | | | | (21,541) | | |
Net cash used in investing activities
|
| | | | (19,084) | | | | | | (160,433) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from notes payable
|
| | | | 5,649,300 | | | | | | 8,046,791 | | |
Payments on notes payable
|
| | | | (2,811,364) | | | | | | (7,626,187) | | |
Proceeds from ordinary share issuance
|
| | | | 14,225 | | | | | | 100,000 | | |
Proceeds from sale of treasury shares
|
| | | | 1,079 | | | | | | — | | |
Other financing – net
|
| | | | (453) | | | | | | 35,000 | | |
Net cash provided by financing activities
|
| | | | 2,852,787 | | | | | | 555,604 | | |
Effect of exchange rate change on cash and cash equivalents
|
| | | | 19,962 | | | | | | 271 | | |
Net decrease in cash and cash equivalents
|
| | | | (77,214) | | | | | | 150,787 | | |
Cash and cash equivalents, beginning of year
|
| | | | 480,322 | | | | | | 329,535 | | |
Cash and cash equivalents, end of year
|
| | | ¥ | 403,108 | | | | | ¥ | 480,322 | | |
(¥ in Thousands)
|
| |
Payments Due by Period For the Year Ended June 30,
|
| |||||||||||||||||||||||||||||||||||||||
| | |
2023
|
| |
2024
|
| |
2025
|
| |
2026
|
| |
2027
|
| |
Thereafter
|
| |
Total
|
| |||||||||||||||||||||
Current portion of Long-term Debt and Short-term Borrowings
|
| | | | 6,361,415 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 6,361,415 | | |
Long-term debt
|
| | | | 0 | | | | | | 1,003,913 | | | | | | 579,433 | | | | | | 60,729 | | | | | | 52,025 | | | | | | 535,445 | | | | | | 2,231,544 | | |
Interest on long-term debt
|
| | | | 50,591 | | | | | | 46,171 | | | | | | 16,556 | | | | | | 11,726 | | | | | | 10,610 | | | | | | 37,039 | | | | | | 172,693 | | |
Operating lease obligations
|
| | | | 58,450 | | | | | | 58,504 | | | | | | 50,011 | | | | | | 37,187 | | | | | | 16,011 | | | | | | 0 | | | | | | 220,163 | | |
Total | | | | | 6,470,456 | | | | | | 1,108,588 | | | | | | 646,000 | | | | | | 109,641 | | | | | | 78,646 | | | | | | 572,484 | | | | | | 8,985,815 | | |
| | |
Fiscal Year Ended
June 30, 2022 |
| |
Fiscal Year Ended
June 30, 2021 |
| ||||||||||||||||||
Type
|
| |
Land
Deliveries (Units) |
| |
Building
Deliveries (Units) |
| |
Land
Deliveries (Units) |
| |
Building
Deliveries (Units) |
| ||||||||||||
Single-family homes
|
| | | | 94 | | | | | | 81 | | | | | | 102 | | | | | | 50 | | |
Condominiums
|
| | | | 12 | | | | | | 9 | | | | | | 4 | | | | | | 4 | | |
| | |
Revenue
(Japanese Yen in Thousands) |
| |||||||||
| | |
Fiscal Year Ended
June 30, |
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Real Estate Development and Sales
|
| | | | 14,108,455 | | | | | | 11,090,778 | | |
Other
|
| | | | 212,731 | | | | | | 164,497 | | |
Total
|
| | | | 14,321,186 | | | | | | 11,255,275 | | |
| | |
For the fiscal year ended
June 30, 2022 |
| |
For the fiscal year ended
June 30, 2021 |
|
Number of projects at the beginning of the period
|
| |
79
|
| |
55
|
|
New orders added during the period
|
| |
66
|
| |
74
|
|
Delivered projects(1) during the period
|
| |
81
|
| |
50
|
|
Number of projects at the end of the period
|
| |
64
|
| |
79
|
|
Average sales price for delivered projects during the period (including land)
|
| |
JPY98,752 thousand
|
| |
JPY99,596 thousand
|
|
|
Single-family Home Projects
(Example 1) |
| |
Single-family Home Projects
(Example 2) |
|
|
![]() |
| |
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|
|
![]() |
| |
![]() |
|
| | |
For the fiscal year ended
June 30, 2022 |
| |
For the fiscal year ended
June 30, 2021 |
|
Number of projects at the beginning of the period
|
| |
2
|
| |
1
|
|
New orders added during the period
|
| |
10
|
| |
5
|
|
Delivered projects(1) during the period
|
| |
9
|
| |
4
|
|
Number of projects at the end of the period
|
| |
3
|
| |
2
|
|
Average sales price for delivered projects during the period (including land)
|
| |
JPY470,957 thousand
|
| |
JPY395,911 thousand
|
|
|
Condominium Projects
(Example 1) |
| |
Condominium Projects
(Example 2) |
|
|
![]() |
| |
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|
|
![]() |
| |
![]() |
|
Name
|
| |
Location
|
| |
Building Type
|
| |
Opened
|
| |
Maximum
Capacity |
| |
Starting
Room Rate (Per Night) |
|
ENT TERRACE Komagome | | | Toshima City, Tokyo | | | Villa | | |
August 2019
|
| |
11
|
| |
$288
|
|
ENT TERRACE Horikiri Shobuen | | | Katsushika City, Tokyo | | | Villa | | |
March 2020
|
| |
6
|
| |
$77
|
|
ENT TERRACE Shinagawa Higashi-oi | | | Shinagawa City, Tokyo | | | Three-story apartment building | | |
October 2020
|
| |
12
|
| |
$62 per floor
|
|
ENT TERRACE Omori Sanno Kosher Hotel | | | Ota City, Tokyo | | | Detached house | | |
June 2021
|
| |
7
|
| |
$329
|
|
ENT TERRACE Asakusa | | | Taito City, Tokyo | | | Eight-story apartment building | | |
October 2022
|
| |
48
|
| |
$153 per floor
|
|
|
Hotel
(Example 1) |
| |
Hotel
(Example 2) |
|
|
![]() |
| |
![]() |
|
Function:
|
| |
Number
|
| |||
Management
|
| | | | 8 | | |
Finance
|
| | | | 4 | | |
Planning and development
|
| | | | 4 | | |
Project construction management
|
| | | | 7 | | |
Sales and marketing
|
| | | | 13 | | |
Function:
|
| |
Number
|
| |||
Property management
|
| | | | 12 | | |
Administrative and human resources
|
| | | | 2 | | |
Total
|
| | | | 50 | | |
|
Name
|
| |
Age
|
| |
Position(s)
|
|
Eiji Nagahara | | |
54
|
| | President, Chief Executive Officer, and Representative Director | |
Daisuke Takahashi | | |
46
|
| | Chief Financial Officer | |
Takashi Nihei | | |
47
|
| | Director and General Manager of Development Division | |
Hidekazu Hamagishi | | |
43
|
| | Director and General Manager of Accounting Department | |
Masahiro Maki | | |
74
|
| |
Independent Director and Audit and Supervisory Committee Member
|
|
Hiroyuki Saito | | |
55
|
| |
Independent Director and Audit and Supervisory Committee Member
|
|
Ryoma Iida | | |
36
|
| |
Independent Director and Audit and Supervisory Committee Member
|
|
| | |
Ordinary Shares
Beneficially Owned Prior to this Offering |
| |
Ordinary Shares
Beneficially Owned After this Offering (Over-allotment option not exercised) |
| |
Ordinary Shares
Beneficially Owned After this Offering (Over-allotment option fully exercised) |
| |||||||||||||||||||||||||||
| | |
Beneficially
|
| |
Percent
|
| |
Number
|
| |
Percent
|
| |
Number
|
| |
Percent
|
| ||||||||||||||||||
Directors and Executive Officers(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Eiji Nagahara
|
| | | | 12,220,837 | | | | | | 97.8% | | | | | | 12,220,837 | | | | | | 84.3% | | | | | | 12,220,837 | | | | | | 82.6% | | |
Daisuke Takahashi
|
| | | | 45,455 | | | | | | * | | | | | | 45,455 | | | | | | * | | | | | | 45,455 | | | | | | * | | |
Takashi Nihei
|
| | | | 18,182 | | | | | | * | | | | | | 18,182 | | | | | | * | | | | | | 18,182 | | | | | | * | | |
Hidekazu Hamagishi
|
| | | | 4,546 | | | | | | * | | | | | | 4,546 | | | | | | * | | | | | | 4,546 | | | | | | * | | |
Masahiro Maki
|
| | | | 27,273 | | | | | | * | | | | | | 27,273 | | | | | | * | | | | | | 27,273 | | | | | | * | | |
Hiroyuki Saito
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ryoma Iida
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors and executive officers as a group (seven individuals):
|
| | | | 12,316,293 | | | | | | 98.5% | | | | | | 12,316,293 | | | | | | 84.9% | | | | | | 12,316,293 | | | | | | 83.2% | | |
5% Shareholders:(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Eiji Nagahara
|
| | | | 12,220,837 | | | | | | 97.8% | | | | | | 12,220,837 | | | | | | 84.3% | | | | | | 12,220,837 | | | | | | 82.6% | | |
Name of Related Party
|
| |
Relationship to Us
|
|
Mr. Eiji Nagahara | | | Our president, chief executive officer, representative director, and majority shareholder | |
Persons depositing or withdrawing shares or ADS
holders must pay: |
| |
For:
|
|
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | | |
Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property
Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates
|
|
$0.05 (or less) per ADS | | | Any cash distribution to ADS holders | |
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs | | | Distribution of securities distributed to holders of deposited securities (including rights) that are distributed by the depositary to ADS holders | |
$0.05 (or less) per ADS per calendar year | | | Depositary services | |
Persons depositing or withdrawing shares or ADS
holders must pay: |
| |
For:
|
|
Registration or transfer fees | | | Transfer and registration of our Ordinary Shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw shares | |
Expenses of the depositary | | |
Cable (including SWIFT) and facsimile transmissions (when expressly provided in the deposit agreement)
Converting foreign currency to U.S. dollars
|
|
Taxes and other governmental charges the depositary or the custodian has to pay on any ADSs or shares underlying ADSs, such as stock transfer taxes, stamp duty or withholding taxes | | | As necessary | |
Any charges incurred by the depositary or its agents for servicing the deposited securities | | | As necessary | |
Underwriters
|
| |
Number of
ADSs |
|
Network 1 Financial Securities, Inc.
|
| |
|
|
| | | | |
Total
|
| | | |
| | |
Per ADS
|
| |
Total
Without Over-Allotment Option |
| |
Total
With Full Over-Allotment Option |
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discounts(1)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to us
|
| | | $ | | | | | $ | | | | | $ | | | |
|
Securities and Exchange Commission Registration Fee
|
| | | $ | 3,582 | | |
|
Nasdaq Global Market Listing Fee
|
| | | $ | 150,000 | | |
|
FINRA Filing Fee
|
| | | $ | 6,296 | | |
|
Legal Fees and Expenses
|
| | | $ | 561,307 | | |
|
Accounting Fees and Expenses
|
| | | $ | 1,703,263 | | |
|
Printing and Engraving Expenses
|
| | | $ | 200,000 | | |
|
Underwriter Out-of-Pocket Accountable Expenses
|
| | | $ | 150,000 | | |
|
Miscellaneous Expenses
|
| | | $ | 77 | | |
|
Total Expenses
|
| | | $ | 2,774,525 | | |
CONTENTS
|
| |
PAGE(S)
|
|
AUDITED CONSOLIDATED FINANCIAL STATEMENTS | | | | |
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| | |
June 30,
|
| | | |||||||||||||
ASSETS
|
| |
2022
|
| |
2021
|
| | | ||||||||||
Current assets: | | | | | | | | | | | | | | | | ||||
Cash and cash equivalents
|
| | | ¥ | 403,108 | | | | | ¥ | 480,322 | | | | | ||||
Accounts receivable, net
|
| | | | 261,068 | | | | | | 433,053 | | | | | ||||
Real estate inventory
|
| | | | 8,845,779 | | | | | | 4,538,914 | | | | | ||||
Prepaid and other current assets
|
| | | | 266,042 | | | | | | 328,172 | | | | | ||||
Total current assets
|
| | | | 9,775,997 | | | | | | 5,780,461 | | | | | ||||
Property and equipment, net
|
| | | | 2,049,056 | | | | | | 3,158,793 | | | | | ||||
Intangible assets, net
|
| | | | 115,546 | | | | | | 74,493 | | | | | ||||
Investment in marketable securities
|
| | | | 31,657 | | | | | | 43,899 | | | | | ||||
Right-of-use assets – operating lease, net
|
| | | | 155,886 | | | | | | 129,279 | | | | | ||||
Investment
|
| | | | 16,850 | | | | | | 13,180 | | | | | ||||
Other assets
|
| | | | 271,751 | | | | | | 212,550 | | | | | ||||
Total assets
|
| | | ¥ | 12,416,743 | | | | | ¥ | 9,412,655 | | | | | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | ||||
Current liabilities: | | | | | | | | | | | | | | | | ||||
Accounts payable
|
| | | ¥ | 602,435 | | | | | ¥ | 496,868 | | | | | ||||
Short-term borrowings and current portion of notes payable
|
| | | | 6,361,415 | | | | | | 4,451,075 | | | | | ||||
Customer deposits
|
| | | | 284,975 | | | | | | 223,047 | | | | | ||||
Current portion of lease liabilities
|
| | | | 58,696 | | | | | | 27,844 | | | | | ||||
Accrued expenses and other current liabilities
|
| | | | 305,354 | | | | | | 907,699 | | | | | ||||
Total current liabilities
|
| | | | 7,612,875 | | | | | | 6,106,533 | | | | | ||||
Notes payable, net of current portion
|
| | | | 2,231,544 | | | | | | 1,303,948 | | | | | ||||
Deferred tax liabilities, net
|
| | | | 66,576 | | | | | | 77,515 | | | | | ||||
Lease liabilities, net of current portion
|
| | | | 148,224 | | | | | | 106,503 | | | | | ||||
Other liabilities
|
| | | | 156,457 | | | | | | 179,832 | | | | | ||||
Total liabilities
|
| | | | 10,215,676 | | | | | | 7,774,331 | | | | | ||||
SHAREHOLDERS’ EQUITY: | | | | | | | | | | | | | | | | ||||
Ordinary shares, 50,000,000 shares authorized, 14,485,000 shares issued and 12,498,900 shares outstanding as of June 30, 2022 and 14,485,000 shares issued and 12,485,000 shares outstanding as of June 30, 2021
|
| | | | 344,145 | | | | | | 329,920 | | | | | | | | |
Retained earnings
|
| | | | 2,001,048 | | | | | | 1,472,295 | | | | | ||||
Treasury shares, at cost, 1,986,100 as of June 30, 2022 and 2,000,000 shares as of June 30, 2021
|
| | | | (154,121) | | | | | | (155,200) | | | | | ||||
Noncontrolling interest
|
| | | | (6,244) | | | | | | (5,874) | | | | | ||||
Accumulated translation gain (loss)
|
| | | | 16,239 | | | | | | (2,817) | | | | | ||||
Total equity
|
| | | | 2,201,067 | | | | | | 1,638,324 | | | | | ||||
Total liabilities and shareholders’ equity
|
| | | ¥ | 12,416,743 | | | | | ¥ | 9,412,655 | | | | |
| | |
For the Fiscal Year
Ended June 30, |
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Revenue: | | | | | | | | | | | | | |
Real estate sales
|
| | | ¥ | 14,108,455 | | | | | ¥ | 11,090,778 | | |
Other revenue
|
| | | | 212,731 | | | | | | 164,497 | | |
Total revenue
|
| | | | 14,321,186 | | | | | | 11,255,275 | | |
Expenses: | | | | | | | | | | | | | |
Cost of sales – real estate
|
| | | | 11,812,347 | | | | | | 9,652,072 | | |
Cost of sales – other
|
| | | | 73,037 | | | | | | 116,154 | | |
Selling, general and administrative
|
| | | | 1,786,614 | | | | | | 1,033,402 | | |
Total expenses
|
| | | | 13,671,998 | | | | | | 10,801,628 | | |
Operating income
|
| | | | 649,188 | | | | | | 453,647 | | |
Other income (expense): | | | | | | | | | | | | | |
Interest expense
|
| | | | (23,333) | | | | | | (56,650) | | |
Other, net
|
| | | | 186,007 | | | | | | (9,770) | | |
Total other income (expense), net
|
| | | | 162,674 | | | | | | (66,420) | | |
Income before income taxes
|
| | | | 811,862 | | | | | | 387,227 | | |
Income taxes
|
| | | | 283,479 | | | | | | 134,869 | | |
Net income
|
| | | | 528,383 | | | | | | 252,358 | | |
Net loss attributable to the noncontrolling interests
|
| | | | (370) | | | | | | (27,132) | | |
Net income attributable to ordinary shareholders
|
| | | | 528,753 | | | | | | 279,490 | | |
Foreign currency translation gain (loss)
|
| | | | 19,056 | | | | | | (1,062) | | |
Total Comprehensive income
|
| | | ¥ | 547,809 | | | | | ¥ | 278,428 | | |
Earnings per share: | | | | | | | | | | | | | |
Basic
|
| | | ¥ | 43.83 | | | | | ¥ | 22.30 | | |
Diluted
|
| | | ¥ | 43.83 | | | | | ¥ | 22.30 | | |
Weighted average shares outstanding: | | | | | | | | | | | | | |
Basic
|
| | | | 12,498,900 | | | | | | 12,485,000 | | |
Diluted
|
| | | | 12,498,900 | | | | | | 12,485,000 | | |
| | |
Ordinary Shares
|
| |
Retained
Earnings |
| |
Treasury
Shares |
| |
Non
controlling interest |
| |
Translation
gain / (loss) |
| |
Total
Equity |
| ||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
BALANCE – June 30, 2020
|
| | | | 12,360,000 | | | | | ¥ | 229,920 | | | | | ¥ | 1,192,805 | | | | | ¥ | (155,200) | | | | | ¥ | 21,258 | | | | | ¥ | (1,755) | | | | | ¥ | 1,287,028 | | |
Net income
|
| | | | — | | | | | | — | | | | | | 279,490 | | | | | | — | | | | | | (27,132) | | | | | | — | | | | | | 252,358 | | |
Issuance of shares
|
| | | | 125,000 | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 100,000 | | |
Translation loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,062) | | | | | | (1,062) | | |
BALANCE – June 30, 2021
|
| | | | 12,485,000 | | | | | ¥ | 329,920 | | | | | ¥ | 1,472,295 | | | | | ¥ | (155,200) | | | | | ¥ | (5,874) | | | | | ¥ | (2,817) | | | | | ¥ | 1,638,324 | | |
Net income
|
| | | | — | | | | | | — | | | | | | 528,753 | | | | | | — | | | | | | (370) | | | | | | — | | | | | | 528,383 | | |
Issuance of shares
|
| | | | 13,900 | | | | | | 14,225 | | | | | | — | | | | | | 1,079 | | | | | | — | | | | | | — | | | | | | 15,304 | | |
Translation gain
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,056 | | | | | | 19,056 | | |
BALANCE – June 30, 2022
|
| | | | 12,498,900 | | | | | ¥ | 344,145 | | | | | ¥ | 2,001,048 | | | | | ¥ | (154,121) | | | | | ¥ | (6,244) | | | | | ¥ | 16,239 | | | | | ¥ | 2,201,067 | | |
| | |
For the Fiscal Year Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | ¥ | 528,383 | | | | | ¥ | 252,358 | | |
Adjustments to reconcile net income to net cash used in operating activities: | | | | ||||||||||
Depreciation and amortization
|
| | | | 43,945 | | | | | | 37,326 | | |
Loss on disposal of assets
|
| | | | 1,106,677 | | | | | | 966 | | |
Deferred income taxes
|
| | | | (10,939) | | | | | | 6,766 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable, net
|
| | | | 171,985 | | | | | | 244,692 | | |
Real estate inventory
|
| | | | (4,306,865) | | | | | | (591,778) | | |
Prepaid and other current assets
|
| | | | 62,130 | | | | | | (100,265) | | |
Intangible asset, net
|
| | | | (54,735) | | | | | | (48,426) | | |
Operating lease
|
| | | | 45,966 | | | | | | (804) | | |
Other assets
|
| | | | (59,201) | | | | | | 303,928 | | |
Accounts payable
|
| | | | 105,567 | | | | | | 180,822 | | |
Customer deposits
|
| | | | 61,928 | | | | | | 58,133 | | |
Accrued expenses and other current liabilities
|
| | | | (625,720) | | | | | | (588,373) | | |
Net cash used in operating activities
|
| | | | (2,930,879) | | | | | | (244,655) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (537,294) | | | | | | (170,231) | | |
Proceeds from sale of property and equipment
|
| | | | 510,091 | | | | | | — | | |
Purchase of investments
|
| | | | (3,670) | | | | | | (10,700) | | |
Proceeds from sale of investments in marketable securities
|
| | | | 11,789 | | | | | | 42,039 | | |
Other – net investing
|
| | | | — | | | | | | (21,541) | | |
Net cash used in investing activities
|
| | | | (19,084) | | | | | | (160,433) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from notes payable
|
| | | | 5,649,300 | | | | | | 8,046,791 | | |
Payments on notes payable
|
| | | | (2,811,364) | | | | | | (7,626,187) | | |
Proceeds from ordinary share issuance
|
| | | | 14,225 | | | | | | 100,000 | | |
Proceeds from sale of treasury shares
|
| | | | 1,079 | | | | | | — | | |
Other financing – net
|
| | | | (453) | | | | | | 35,000 | | |
Net cash provided by financing activities
|
| | | | 2,852,787 | | | | | | 555,604 | | |
Effect of exchange rate change on cash and cash equivalents
|
| | | | 19,962 | | | | | | 271 | | |
Net decrease in cash and cash equivalents
|
| | | | (77,214) | | | | | | 150,787 | | |
Cash and cash equivalents, beginning of year
|
| | | | 480,322 | | | | | | 329,535 | | |
Cash and cash equivalents, end of year
|
| | | ¥ | 403,108 | | | | | ¥ | 480,322 | | |
Supplemental disclosure of cash flow information: | | | | ||||||||||
Cash paid during the year for: | | | | ||||||||||
Interest
|
| | | ¥ | 163,314 | | | | | ¥ | 193,655 | | |
Income taxes
|
| | | ¥ | 206,529 | | | | | ¥ | 51,305 | | |
Name
|
| |
Date of
Incorporation or Acquisition |
| |
Place of
Incorporation |
| |
Percentage of
direct or indirect economic ownership |
|
Subsidiaries | | | | | | | | | | |
Lead Real Estate Global Co., Ltd (“LRE
Dallas”) |
| |
September 2017
|
| |
Texas
|
| |
100% by LRE
|
|
Lead Real Estate HK Co., Limited (“LRE HK”)
|
| |
February 2014
|
| |
Hong Kong
|
| |
100% by LRE
|
|
Real Vision Co., Ltd. (“Real Vision”)
|
| |
July 2006
|
| |
Japan
|
| |
100% by LRE
|
|
Consolidated VIEs | | | | | | | | | | |
Lead Real Estate Cayman Limited (“LRE Cayman”)
|
| |
August 2019
|
| |
Cayman Islands
|
| |
100% by CEO
|
|
Sojiya Japan K.K.
|
| |
January 2020
|
| |
Japan
|
| |
50% by LRE
and 50% by CEO |
|
Unconsolidated VIEs | | | | | | | | | | |
JP Shuhan Co., Ltd. (“JP Shuhan”)
|
| |
January 2020
|
| |
Japan
|
| |
100% by CEO,
deconsolidated |
|
| | |
For the Fiscal Year Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Land sale and non-development
|
| | | ¥ | 12,147,506 | | | | | ¥ | 9,624,106 | | |
Construction development
|
| | | | 1,960,949 | | | | | | 1,466,672 | | |
Real estate sales revenue
|
| | | ¥ | 14,108,455 | | | | | ¥ | 11,090,778 | | |
| | |
For the Fiscal Year Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Lease
|
| | | | 65,391 | | | | | | 87,436 | | |
Property management
|
| | | | 30,426 | | | | | | 36,244 | | |
Other
|
| | | | 116,914 | | | | | | 40,817 | | |
Other revenue
|
| | | ¥ | 212,731 | | | | | ¥ | 164,497 | | |
| | |
As of June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Real estates, including land
|
| | | ¥ | 8,192,861 | | | | | ¥ | 4,121,807 | | |
Construction In Progress
|
| | | | 652,918 | | | | | | 417,107 | | |
Real estate inventory
|
| | | ¥ | 8,845,779 | | | | | ¥ | 4,538,914 | | |
| | |
As of June 30,
|
| ||||||||||||
| | |
Useful Life
|
| |
2022
|
| |
2021
|
| ||||||
| | |
(years)
|
| | | | | | | | | | | | |
Land
|
| |
Infinite
|
| | | ¥ | 1,006,622 | | | | | ¥ | 1,828,880 | | |
Property and Buildings
|
| |
8 – 47
|
| | | | 669,102 | | | | | | 818,480 | | |
Machinery and Equipment
|
| |
10 – 17
|
| | | | 158,104 | | | | | | 23,356 | | |
Tools, Furniture, and Fixtures
|
| |
4 – 20
|
| | | | 22,945 | | | | | | 449,388 | | |
Construction in progress
|
| | | | | | | 300,035 | | | | | | 157,844 | | |
Less: Accumulated depreciation
|
| | | | | | | (107,752) | | | | | | (119,155) | | |
Property and equipment, net
|
| | | | | | ¥ | 2,049,056 | | | | | ¥ | 3,158,793 | | |
| | |
As of June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Income taxes payable
|
| | | ¥ | 241,245 | | | | | ¥ | 138,090 | | |
Warranty reserves
|
| | | | 54,302 | | | | | | 24,009 | | |
Other deposits received
|
| | | | 4,716 | | | | | | 4,139 | | |
Accrued vacation
|
| | | | 1,561 | | | | | | 3,164 | | |
Short-term borrowings from directors
|
| | | | — | | | | | | 41,868 | | |
Other current liabilities
|
| | | | 3,530 | | | | | | 696,429 | | |
Accrued expenses and other current liabilities
|
| | | ¥ | 305,354 | | | | | ¥ | 907,699 | | |
| | |
As of June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Income taxes payable
|
| | | ¥ | 241,245 | | | | | ¥ | 138,090 | | |
Warranty reserves
|
| | | | 54,302 | | | | | | 24,009 | | |
Other deposits received
|
| | | | 4,716 | | | | | | 4,139 | | |
Accrued vacation
|
| | | | 1,561 | | | | | | 3,164 | | |
Short-term borrowings from directors
|
| | | | — | | | | | | 41,868 | | |
Other current liabilities
|
| | | | 3,530 | | | | | | 696,429 | | |
Accrued expenses and other current liabilities
|
| | | ¥ | 305,354 | | | | | ¥ | 907,699 | | |
| | |
As of June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Warranty reserve, beginning of period
|
| | | ¥ | 24,009 | | | | | ¥ | 27,500 | | |
Warranty provision
|
| | | | 47,899 | | | | | | 201 | | |
Warranty expenditures
|
| | | | (17,606) | | | | | | (3,692) | | |
Warranty reserve, end of period
|
| | | ¥ | 54,302 | | | | | ¥ | 24,009 | | |
| | |
Original Amount
Borrowed |
| |
Loan Duration
|
| |
Annual
Interest Rate |
| |
Amount
|
| ||||||
Lender 1
|
| | | ¥ | 1,988,100 | | | |
8/24/2018 – 6/5/2023
|
| |
3.45 – 3.60%
|
| | | ¥ | 1,869,100 | | |
Lender 2
|
| | | ¥ | 1,441,200 | | | |
1/15/2020 – 12/31/2029
|
| |
2.60 – 3.00%
|
| | | | 1,176,290 | | |
Lender 3
|
| | | ¥ | 340,000 | | | |
12/27/2017 – 8/25/2032
|
| |
1.65 – 2.35%
|
| | | | 569,250 | | |
Lender 4
|
| | | ¥ | 485,000 | | | |
10/30/2020 – 7/31/2024
|
| |
2.80%
|
| | | | 482,915 | | |
Lender 5
|
| | | ¥ | 480,000 | | | |
6/10/2022 – 6/17/2024
|
| |
2.50%
|
| | | | 480,000 | | |
Other lenders
|
| | | ¥ | 4,285,366 | | | |
3/23/2016 – 4/30/2052
|
| |
0.46 – 6.00%
|
| | | | 4,015,404 | | |
Aggregate outstanding principal
balances |
| | | | | | | | | | | | | | | | 8,592,959 | | |
Less: current portion and short-term borrowings
|
| | | | | | | | | | | | | | | | 6,361,415 | | |
Long-term portion of notes payable
|
| | | | | | | | | | | | | | | ¥ | 2,231,544 | | |
| | |
Original Amount
Borrowed |
| |
Loan Duration
|
| |
Annual
Interest Rate |
| |
Amount
|
| ||||||
Lender 1
|
| | | ¥ | 2,671,780 | | | |
8/24/2018 – 4/7/2022
|
| |
3.45 – 3.60%
|
| | | ¥ | 1,580,200 | | |
Lender 2
|
| | | ¥ | 2,528,500 | | | |
1/15/2020 – 12/31/2029
|
| |
3.00%
|
| | | | 472,214 | | |
Lender 3
|
| | | ¥ | 1,327,204 | | | |
12/27/2017 – 8/25/2032
|
| |
1.85 – 2.35%
|
| | | | 530,998 | | |
Lender 4
|
| | | ¥ | 73,000 | | | |
10/30/2020 – 11/1/2021
|
| |
2.80%
|
| | | | 73,000 | | |
Lender 5
|
| | | ¥ | 402,600 | | | |
11/30/2018 – 2/25/2022
|
| |
1.50 – 2.50%
|
| | | | 441,956 | | |
Other lenders
|
| | | ¥ | 30,650,068 | | | |
1/29/2016 – 4/2/2030
|
| |
0.46 – 4.50%
|
| | | | 2,656,655 | | |
Aggregate outstanding principal
balances |
| | | | | | | | | | | | | | | | 5,755,023 | | |
Less: current portion and short-term borrowings
|
| | | | | | | | | | | | | | | | 4,451,075 | | |
Long-term portion of notes payable
|
| | | | | | | | | | | | | | | ¥ | 1,303,948 | | |
| | |
Amount
|
| |||
2023
|
| | | ¥ | 6,361,415 | | |
2024
|
| | | | 1,003,913 | | |
2025
|
| | | | 579,433 | | |
2026
|
| | | | 60,729 | | |
2027
|
| | | | 52,025 | | |
Thereafter
|
| | | | 535,444 | | |
Total notes payable
|
| | | ¥ | 8,592,959 | | |
| | |
Year Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Interest incurred
|
| | | ¥ | 211,206 | | | | | ¥ | 177,232 | | |
Less: Amounts capitalized
|
| | | | (187,873) | | | | | | (120,582) | | |
Interest expense
|
| | | ¥ | 23,333 | | | | | ¥ | 56,650 | | |
| | |
For the Fiscal Year Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Current
|
| | | ¥ | 294,418 | | | | | ¥ | 128,103 | | |
Deferred
|
| | | | (10,939) | | | | | | 6,766 | | |
Total
|
| | | ¥ | 283,479 | | | | | ¥ | 134,869 | | |
| | |
For the Fiscal Year Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Statutory tax rate
|
| | | | 30.6% | | | | | | 30.6% | | |
Deductions and other adjustments
|
| | | | 5.5% | | | | | | 2.2% | | |
Effective tax rate
|
| | | | 36.1% | | | | | | 32.8% | | |
| | |
As of June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Reserves and Allowances
|
| | | ¥ | 56,349 | | | | | ¥ | 40,814 | | |
Intangibles
|
| | | | 14,393 | | | | | | 17,455 | | |
Inventories
|
| | | | 5,291 | | | | | | 5,540 | | |
Investments in Securities
|
| | | | 14,719 | | | | | | 14,526 | | |
Asset retirement obligation
|
| | | | 1,862 | | | | | | 1,727 | | |
Leases
|
| | | | 1,275 | | | | | | 1,846 | | |
Other
|
| | | | 14,039 | | | | | | 8,767 | | |
Total deferred tax assets
|
| | | | 107,928 | | | | | | 90,675 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Inventories
|
| | | | 138,445 | | | | | | 87,846 | | |
Property and equipment
|
| | | | 29,341 | | | | | | 46,698 | | |
Prepaid Expenses
|
| | | | 107 | | | | | | 2,948 | | |
Intangible assets, including software
|
| | | | 6,611 | | | | | | 7,874 | | |
Leases
|
| | | | — | | | | | | 6,518 | | |
Advances received
|
| | | | — | | | | | | 2,358 | | |
Other
|
| | | | — | | | | | | 13,948 | | |
Total deferred tax liabilities
|
| | | | 174,504 | | | | | | 168,190 | | |
Net deferred tax liabilities
|
| | | ¥ | 66,576 | | | | | ¥ | 77,515 | | |
| | |
As of June 30,
|
| |||||||||
Consolidated – LRE Cayman
|
| |
2022
|
| |
2021
|
| ||||||
Assets
|
| | | ¥ | — | | | | | ¥ | — | | |
Liabilities
|
| | | | 6,481 | | | | | | 6,151 | | |
Equity
|
| | | | (6,481) | | | | | | (6,151) | | |
Total liabilities and equity
|
| | | ¥ | — | | | | | ¥ | — | | |
| | |
As of June 30,
|
| |||||||||
Consolidated – Sojiya Japan
|
| |
2022
|
| |
2021
|
| ||||||
Assets
|
| | | ¥ | 472 | | | | | ¥ | 553 | | |
Liabilities
|
| | | | — | | | | | | — | | |
Equity
|
| | | | 472 | | | | | | 553 | | |
Total liabilities and equity
|
| | | ¥ | 472 | | | | | ¥ | 553 | | |
(Japanese yen in thousands)
Unconsolidated – JP Shuhan |
| |
As of June 30,
|
| |||||||||
|
2022
|
| |
2021
|
| ||||||||
Assets
|
| | | ¥ | 10,511 | | | | | ¥ | 9,854 | | |
Liabilities
|
| | | | 3,428 | | | | | | 1,300 | | |
Equity
|
| | | | 7,083 | | | | | | 8,554 | | |
Total liabilities and equity
|
| | | ¥ | 10,511 | | | | | ¥ | 9,854 | | |
| | |
June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Right-of-use assets – non current
|
| | | ¥ | 155,886 | | | | | ¥ | 129,279 | | |
Total operating lease assets
|
| | | ¥ | 155,886 | | | | | ¥ | 129,279 | | |
Operating lease liabilities – current
|
| | | ¥ | 58,696 | | | | | ¥ | 27,844 | | |
Operating lease liabilities – non-current
|
| | | | 148,224 | | | | | | 106,503 | | |
Total operating lease liabilities
|
| | | ¥ | 206,920 | | | | | ¥ | 134,347 | | |
Year Ending June 30,
|
| |
Operating Leases
|
| |||
2023
|
| | | ¥ | 58,450 | | |
2024
|
| | | | 58,504 | | |
2025
|
| | | | 50,011 | | |
2026
|
| | | | 37,187 | | |
2027
|
| | | | 16,011 | | |
Total
|
| | | | 220,163 | | |
Less: lease amount representing interest
|
| | | | (13,243) | | |
Present value of lease liabilities
|
| | | ¥ | 206,920 | | |
Description
|
| | | |
1.1** | | | | |
3.1** | | | | |
4.1** | | | | |
4.2** | | | | |
5.1** | | | | |
10.1** | | | | |
10.2** | | | | |
10.3** | | | | |
10.4** | | | | |
21.1** | | | | |
23.1* | | | | |
23.2** | | | | |
24.1** | | | | |
99.1** | | | | |
107** | | | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Eiji Nagahara
Name: Eiji Nagahara
|
| |
President, Chief Executive Officer, and Representative Director and Director
(Principal Executive Officer) |
| |
January 4, 2023
|
|
|
/s/ Daisuke Takahashi
Name: Daisuke Takahashi
|
| |
Chief Financial Officer
(Principal Accounting and Financial Officer) |
| |
January 4, 2023
|
|
|
*
Name: Takashi Nihei
|
| | Director | | |
January 4, 2023
|
|
|
*
Name: Hidekazu Hamagishi
|
| | Director | | |
January 4, 2023
|
|
|
*
Name: Masahiro Maki
|
| | Director | | |
January 4, 2023
|
|