Non-consolidated Financial Results for the Fiscal Year Ended …mw2pemthym.bizmw.com/.../2020/03/sinops_FD_4Q2019.pdf · 2020. 3. 5. · sinops Inc. (4428) Financial Results for 2019

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

1

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


2

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).


3

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.


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.


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.


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.


4

(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.


5

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


Vessels, net 0 0

Tools, furniture and fixtures 51,757 64,483


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


6

(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


7

(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


8

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.


9

(3) Non-consolidated Statement of Changes in Equity

2018 (Jan. 1 – Dec. 31, 2018)

(Thousands of yen)


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


10

2019 (Jan. 1 – Dec. 31, 2019)

(Thousands of yen)


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


11

(4) Non-consolidated Statement of Cash Flows

(Thousands of yen)

2018

(Jan. 1 – Dec. 31, 2018)

2019

(Jan. 1 – Dec. 31, 2019)


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)


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)


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


12

(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.


13

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.

Documents

Non-consolidated Financial Results for the Fiscal Year Ended …mw2pemthym.bizmw.com/.../2020/03/sinops_FD_4Q2019.pdf · 2020. 3. 5. · sinops Inc. (4428) Financial Results for 2019