On November 1, 2021 Kyowa Hakko Kirin reported that (Press release, Kyowa Hakko Kirin, NOV 1, 2021, View Source [SID1234593976])
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1. Consolidated Financial Results for the Nine Months Ended September 30, 2021
(1) Consolidated operating results
(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)
1. Operating Results and Financial Statements
(1) Summary of Consolidated Financial Position Assets as of September 30, 2021, were ¥856.8 billion, an increase of ¥55.5 billion compared to the end of the previous fiscal year.
Non-current assets increased by ¥3.9 billion to ¥362.7 billion, due mainly to an increase in intangible assets associated with in-licensing of development products, despite impairment of marketing rights, a decrease from sale of investment securities, etc.
Current assets increased by ¥51.6 billion to ¥494.1 billion, due mainly to an increase in cash and cash equivalents from the proceeds from sale of assets held for sale (shares of Hitachi Chemical Diagnostics Systems Co., Ltd.) and proceeds from upfront payment received from Amgen Inc. based on an agreement for joint development and commercialization of KHK4083, as well as an increase in inventories, despite a decrease in assets held for sale.
Liabilities as of September 30, 2021, were ¥143.5 billion, an increase of ¥40.6 billion compared to the end of the previous fiscal year, due mainly to an increase in contract liabilities accompanying the conclusion of an agreement with Amgen Inc.
Equity as of September 30, 2021, was ¥713.3 billion, an increase of ¥14.9 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. The ratio of equity attributable to owners of parent to total assets as of the end of the third quarter was 83.2%, a decrease of 3.9 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 amountFor the nine months ended September 30, 2021 (January 1, 2021 to September 30, 2021), revenue was ¥254.0 billion (up 8.5% compared to the same period of the previous fiscal year), and core operating profit was ¥46.8 billion (down 7.6%). Profit attributable to owners of parent was ¥32.9 billion (down 12.2%).
The increase in revenue was the result of steady growth of global strategic products in North America and EMEA and higher revenue year on year in Asia, mainly in China, despite lower revenue in Japan. The positive effect on revenue from foreign exchange was ¥4.6 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 ¥1.1 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.