On August 3, 2021 Kyowa Hakko Kirin reported (Press release, Kyowa Hakko Kirin, AUG 3, 2021, View Source [SID1234585586])
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1. Consolidated Financial Results for the Six Months Ended June 30, 2021
(2) Consolidated financial position
2. Dividends
3. Consolidated Earnings Forecasts for the Fiscal Year Ending December 31, 2021 (from January 1, 2021 to December 31, 2021) Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation. * Notice regarding the appropriate use of the earnings forecasts and other special comments
The forward-looking statements, including earnings forecasts, contained in these materials are based on the information currently available to the Company and on certain assumptions deemed to be reasonable by management. As such, they do not constitute guarantees by the Company of future performance. Actual results may differ materially from these projections for a wide variety of reasons.
1. Operating Results and Financial Statements
(1) Summary of Consolidated Financial Position
Assets as of June 30, 2021, were ¥819.8 billion, an increase of ¥18.5 billion compared to the end of the previous fiscal year.
Non-current assets increased by ¥8.3 billion to ¥367.1 billion, due mainly to an increase in deferred tax assets, in addition to an increase in goodwill associated with the impact of yen depreciation.
Current assets increased by ¥10.2 billion to ¥452.7 billion, due mainly to an increase in cash and cash equivalents resulting from the proceeds from sale of assets held for sale (shares of Hitachi Chemical Diagnostics Systems Co., Ltd.) as well as an increase in inventories, despite a decrease in assets held for sale.
Liabilities as of June 30, 2021, were ¥99.2 billion, a decrease of ¥3.7 billion compared to the end of the previous fiscal year, due mainly to a decrease in trade and other payables.
Equity as of June 30, 2021, was ¥720.5 billion, an increase of ¥22.1 billion compared to the end of the previous fiscal year, due mainly to an increase due to the recording of profit attributable to owners of parent as well as an increase in exchange differences on translation of foreign operations resulting from the impact of exchange rates, despite a decrease due to the payment of dividends, etc. As a result, the ratio of equity attributable to owners of parent to total assets as of the end of the second quarter was 87.9%, an increase of 0.7 percentage points compared to the end of the previous fiscal year.
(2) Summary of Consolidated Business Performance
1) Overview of results The Group now applies the International Financial Reporting Standards ("IFRS") in line with its policy of expanding business globally, and adopts "core operating profit" as a level of profit that shows the recurring profitability from operating activities. Core operating profit is calculated by deducting "selling, general and administrative expenses" and "research and development expenses" from "gross profit," and adding "share of profit (loss) of investments accounted for using equity method" to the amount. For the six months ended June 30, 2021 (January 1, 2021 to June 30, 2021), revenue was ¥165.0 billion (up 4.6% compared to the same period of the previous fiscal year), and core operating profit was ¥30.9 billion (down 10.2%). Profit attributable to owners of parent was ¥25.1 billion (down 9.8%).
The increase in revenue was the result of steady growth of global strategic products in North America and EMEA and strong sales in Asia, mainly in China, despite lower revenue in Japan. The positive effect on revenue from foreign exchange was ¥1.5 billion.
The decrease in core operating profit was the result of increases in selling, general and administrative expenses, and research and development expenses, despite an increase in gross profit due to an increase in overseas revenue. The positive effect on core operating profit from foreign exchange was ¥0.2 billion.
Profit attributable to owners of parent decreased as a result of an increase in income tax expense in addition to a decrease in core operating profit, despite a decrease in other expenses.