HS Holdings Co., Ltd. Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ended March 2027

Overview of Performance

HS Holdings Co., Ltd. reported consolidated second-quarter net sales in the 35.3 billion yen range and returned to operating profitability. Contributions from the banking-related and reuse segments were notable, and equity-method investment gains also contributed. The performance of overseas subsidiaries had a large impact; ordinary income was approximately 8.9 billion yen, and net income attributable to owners of parent for the interim period was approximately 6.2 billion yen, below the prior year. The dividend forecast remains TBD.

Segment Trends and Financial Position

In the banking-related segment, profitability improved, including contributions from Hahn Bank and others. The reuse segment increased sales driven by higher purchase volumes and expanded retail sales, improving segment profits despite higher selling, general and administrative expenses. Other businesses experienced declines in both revenue and profit. Equity-method investment gains were 8,689 million yen, a slight increase year-on-year. Total assets were 144,792 million yen, net assets were 108,291 million yen, and the equity ratio was 74.4%, primarily due to increases in cash and deposits and investments in affiliates' shares.