Fujita Corporation
Nonconsolidated Balance Sheet
March 31, 2025
ASSETS
Millions of
Yen
Thousands of
U.S. Dollars
(Note 1)
CURRENT ASSETS:
Cash and deposits ¥ 26,190 $ 175,164
Notes receivable – trade 1 13
Electronically recorded monetary claims – operating 801 5,357
Accounts receivable from completed construction contracts 196,952 1,317,231
Accounts receivable from development and other 2,619 17,517
Real estate for sale 109,699 733,681
Costs on construction projects in progress 5,334 35,675
Costs on development projects in progress and other 52,362 350,204
Raw materials and supplies 299 2,005
Short-term loans receivable 2,526 16,900
Accounts receivable – other 14,020 93,770
Other 2,360 15,789
Allowance for doubtful accounts (1,755 ) (11,740 )
Total current assets 411,414 2,751,566
NON-CURRENT ASSETS:
Property, plant and equipment:
Buildings and structures 4,307 28,809
Machinery, equipment and vehicles 1,333 8,922
Tools, furniture and fixtures 735 4,921
Land 11,018 73,691
Construction in progress 873 5,841
Other 109 734
Total property, plant and equipment 18,378 122,919
Intangible assets:
Software 2,644 17,685
Software in progress 274 1,839
Other 100 670
Total intangible assets 3,019 20,194
Investments and other assets:
Investment securities 16,643 111,310
Shares of subsidiaries and associated companies 16,521 110,494
Investments in other securities of subsidiaries and associated companies 26,990 180,513
Investments in capital 180 1,204
Long-term loans receivable 12,704 84,967
Long-term loans receivable from employees 27 186
Claims provable in bankruptcy, claims provable in rehabilitation and other 19 130
Deferred tax assets 8,818 58,972
Leasehold and guarantee deposits 2,349 15,716
Other 815 5,454
Allowance for doubtful accounts (9,416 ) (62,977 )
Total investments and other assets 75,652 505,968
Total non-current assets 97,050 649,081
TOTAL ¥ 508,464 $ 3,400,647
The listed amount is rounded down to less than one million yen.
LIABILITIES
Millions of
Yen
Thousands of
U.S. Dollars
(Note 1)
CURRENT LIABILITIES:
Notes payable – trade ¥ 1,188 $ 7,946
Electronically recorded obligations – operating 27,140 181,517
Accounts payable for construction contracts 79,740 533,310
Accounts payable for development and other 1,652 11,051
Short-term loans payable 36,901 246,797
Lease obligations 34 232
Accounts payable – other 3,264 21,833
Accrued expenses 832 5,569
Income taxes payable 4,840 32,375
Accrued consumption taxes 23,996 160,488
Advances received on construction projects in progress 25,348 169,534
Advances received on development projects in progress and other 7,090 47,420
Deposits received 65,202 436,076
Provision for loss on construction contracts 2,601 17,402
Provision for warranties for completed construction 2,191 14,658
Provision for bonuses 6,581 44,019
Other 252 1,688
Total current liabilities 288,859 1,931,914
LONG-TERM LIABILITIES:
Long-term loans 81,560 545,479
Long-term lease obligations 84 567
Provision for retirement benefits 16,473 110,173
Other 1,236 8,268
Total long-term liabilities 99,354 664,487
Total liabilities 388,213 2,596,401
NET ASSETS:
Equity:
Capital stock:
Authorized common stock, 545,000,000 shares in 2025
Issued common stock, 18,888,889 shares in 2025 14,002 93,648
Capital surplus: 5,213 34,865
Legal capital surplus 1,525 10,199
Other capital surplus 3,688 24,666
Retained earnings: 98,768 660,574
Legal reserve 2,026 13,555
Other retained earnings 96,742 647,019
Open Innovation promotion reserve 125 836
General reserve 4,050 27,087
Unappropriated 92,567 619,096
Total equity 117,984 789,087
Valuation and translation adjustments:
Unrealized gain (loss) on other securities 2,956 19,776
Deferred losses on hedges (46 ) (308 )
Revaluation reserve for land (644 ) (4,309 )
Total valuation and translation adjustments 2,266 15,159
Total net assets 120,250 804,246
TOTAL ¥ 508,464 $ 3,400,647
Fujita Corporation
Nonconsolidated Statement of Income
Year Ended March 31, 2025
Millions of
Yen
Thousands of
U.S. Dollars
(Note 1)
NET SALES:
Completed construction projects ¥ 441,765 $ 2,954,561
Development business and other 58,087 388,490
Total net sales 499,852 3,343,051
COST OF SALES:
Completed construction projects 403,913 2,701,399
Development business and other 38,589 258,091
Total cost of sales 442,503 2,959,491
GROSS PROFIT:
Completed construction projects 37,852 253,162
Development business and other 19,497 130,399
Total gross profit 57,349 383,560
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 38,301 256,162
Operating profit 19,048 127,398
NON-OPERATING INCOME:
Interest income 1,911 12,782
Dividend income 779 5,211
Reversal of provision for loss on guarantees 6,842 45,764
Other 56 376
Total non-operating income 9,589 64,133
NON-OPERATING EXPENSES:
Interest expenses 1,372 9,179
Construction guarantee commission 151 1,016
Foreign exchange losses 761 5,096
Provision of allowance for doubtful accounts 5,697 38,102
Other 513 3,433
Total non-operating expenses 8,496 56,826
Ordinary profit 20,141 134,705
EXTRAORDINARY INCOME:
Gain on sales of property, plant and equipment 6 45
Other 3 26
Total extraordinary income 10 72
EXTRAORDINARY LOSSES:
Provision for loss on guarantees 19 131
Other 55 370
Total extraordinary losses 74 501
INCOME BEFORE INCOME TAXES 20,076 134,276
INCOME TAXES:
Current 5,099 34,103
Prior Period 195 1,308
Deferred 326 2,182
Total income taxes 5,620 37,593
NET INCOME ¥ 14,456 $ 96,684
The listed amount is rounded down to less than one million yen.
Fujita Corporation
Nonconsolidated Statement of Changes in Net Assets
Year Ended March 31, 2025
Millions of Yen
Capital Surplus Retained Earnings Valuation and Translation Adjustments
Capital
Stock
Legal
Capital
Surplus
Other
Capital
Surplus
Legal
Reserve
Reserve
for
Reduction
Entry
Open
innovatio
n
promotion
reserve
General
Reserve Unappropriated
Total
Equity
Unrealized Gain
(loss) on Other
Securities
Deferred
Gains
(Losses) on
Hedges
Revaluation
Reserve for
Land
Total Valuation
and Translation
Adjustments
Total Net
Assets
BALANCE, MARCH 31, 2024
(APRIL 1, 2024, as previously
reported) ¥ 14,002 ¥ 1,525 ¥ 3,688 ¥ 2,026 ¥ 2,632 ¥ 125 ¥ 4,050 ¥ 79,603 ¥107,653 ¥ 3,943 - ¥ (644) ¥ 3,298 ¥110,951
Dividend of surplus (4,125 ) (4,125 ) (4,125 )
Reversal of reserve for reduction
entry (2,632 ) 2,632
Net income 14,456 14,456 14,456
Net change in the year (986 ) (46 ) (1,032 ) (1,032 )
BALANCE, MARCH 31, 2025 ¥ 14,002 ¥ 1,525 ¥ 3,688 ¥ 2,026 - ¥ 125 ¥ 4,050 ¥ 92,567 ¥117,984 ¥ 2,956 ¥ (46 ) ¥ (644) ¥ 2,266 ¥120,250
Thousands of U.S. Dollars (Note 1)
Capital Surplus Retained Earnings Valuation and Translation Adjustments
Capital
Stock
Legal
Capital
Surplus
Other
Capital
Surplus
Legal
Reserve
Reserve
for
Reduction
Entry
Open
innovatio
n
promotion
reserve
General
Reserve Unappropriated
Total
Equity
Unrealized Gain
(loss) on Other
Securities
Deferred
Gains
(Losses) on
Hedges
Revaluation
Reserve for
Land
Total Valuation
and Translation
Adjustments
Total Net
Assets
BALANCE, MARCH 31, 2024 (APRIL
1, 2024, as previously reported) $ 93,648 $ 10,199 $ 24,666 $ 13,555 $ 17,605 $ 836 $ 27,087 $ 532,396 $ 719,992 $ 26,371 - $(4,309) $ 22,062 $ 742,054
Dividend of surplus (27,589 ) (27,589 ) (27,589 )
Reversal of reserve for reduction
entry (17,605 ) 17,605
Net income 96,684 96,684 96,684
Net change in the year (6,595 ) (308 ) (6,903 ) (6,903 )
BALANCE, MARCH 31, 2025 $ 93,648 $ 10,199 $ 24,666 $ 13,555 - $ 836 $ 27,087 $ 619,096 $ 789,087 $ 19,776 $ (308 ) $(4,309) $ 15,159 $ 804,246
The Listed amount is rounded down to less than one million yen.
Fujita Corporation
Notes to Nonconsolidated Financial Statements
Year Ended March 31, 2025
BASIS OF PRESENTING NONCONSOLIDATED FINANCIAL STATEMENTS
The accompanying nonconsolidated financial statements have been prepared from the accounts
maintained by Fujita Corporation (the "Company"), in accordance with the provisions set forth in the
Companies Act of Japan and applicable regulations and in accordance with the accounting
principles generally accepted in Japan. The information provided in the notes to the nonconsolidated
financial statements is limited to that required by the Companies Act of Japan and applicable
regulations. Statements of comprehensive income and cash flows are not required as a part of the
basic financial statements under the Companies Act of Japan and applicable regulations and,
accordingly, are not presented herein.
The nonconsolidated financial statements are stated in Japanese yen, the currency of the country in
which the Company is incorporated and operates. The translations of Japanese yen amounts into
U.S. dollar amounts are included solely for the convenience of readers outside Japan and have
been made at the rate of ¥149.52 to $1, the rate of exchange on March 31, 2025. Such translations
should not be construed as representations that the Japanese yen amounts could be converted into
U.S. dollars at that or any other rate.
As permitted, amounts of less than one million yen have been omitted. As a result, the totals shown
in the accompanying Nonconsolidated Financial Statements do not necessarily agree with the sums
of the individual amounts.
1. NOTE TO SIGNIFICANT ACCOUNTING POLICIES
(a) Valuation methods of certain assets
Marketable and investment securities – Shares of subsidiaries and associated companies
and investments in other securities of subsidiaries and associated companies are stated at cost,
determined by the moving-average method.
Marketable other securities are reported at fair value, with unrealized gains and losses, net of
applicable taxes, reported in a separate component of equity.
Nonmarketable other securities are stated at cost, determined by the moving-average method.
For other-than-temporary declines in fair value, investment securities are reduced to net
realizable value by a charge to income.
Derivatives – Derivatives are recognized as either assets or liabilities and measured at fair
value, and gains or losses on derivative transactions are recognized in the nonconsolidated
statement of income.
Inventory – Real estate for sale is stated at the lower of cost, determined by the specific
identified cost method, or net selling value.
Costs on construction projects in progress are stated at the specific identified cost method.
Costs on development projects in progress and others are stated at the lower of cost,
determined by the specific identified cost method, or net selling value.
Raw materials and supplies are stated at the lower of cost, determined by the moving-average
method, or net selling value.
(b) Depreciation and amortization
Property, plant and equipment (except for leased assets) – Depreciation of property, plant
and equipment is computed by the declining-balance method, while the straight-line method is
applied to buildings acquired after April 1, 1998 and building improvements and structures
acquired after April 1, 2016.
Estimated useful lives are as follows:
Years
Buildings and structures 2 to 50
Machinery, equipment and vehicles 2 to 50
Tools, furniture and fixtures 2 to 20
Intangible assets (except for leased assets) – Amortization of intangible assets is computed
by the straight-line method. In addition, amortization of software for internal use is computed by
the straight-line method based on the estimated useful lives (five years).
Leased assets – Leased assets under finance lease contracts without ownership transfer of the
leased property to the lessee are depreciated by the straight-line method over the term of the
lease and using a residual value of zero.
(c) Accounting policies for provisions
Allowance for doubtful accounts – The allowance for doubtful accounts is stated in amounts
considered to be appropriate based on the Company's past credit loss experience and an
evaluation of potential losses in the receivables outstanding.
Provision for loss on construction contracts – Provision for losses on construction contracts
is provided with respect to construction projects for which eventual losses are reasonably
expected and estimated.
Provision for warranties for completed construction – The provision for warranty cost for
completed work is provided at an estimated amount for the fiscal year’s sales proceeds in order
to prepare the future compensation costs of defects of the completed construction projects.
Provision for bonuses – Provisions for bonuses are provided at the estimated amount of
bonuses to be paid.
Liability for employees' retirement benefits – Liability for employees' retirement benefits and
plan assets are provided for the retirement benefits payable to the employees as of the balance
sheet date based on the projected benefit obligation.
Actuarial gains or losses are charged to profit or loss as incurred.
Provision for loss on guarantees – Provision for loss on guarantees is determined based on
estimated losses by considering the financial position of the guaranteed party.
Provision for loss on business of subsidiaries and associated companies – Provision for
loss on the business of associated companies is determined based on estimated losses by
considering the financial position of associated companies.
(d) Criteria for Recording Revenues and Expenses
“Accounting Standards for Revenue Recognition” (Corporate Accounting Standard No. 29
March 31, 2020) and “Policies for Applying Accounting Standards for Revenue Recognition”
(Corporate Accounting Standard No. 30 March 26, 2021) are applied, and revenue is
recognized at the time when control of the promised goods or services is transferred to the
customer, or in the amount expected to be received in exchange for the goods or services as
they are transferred. The usual points of time at which we recognize the content and revenue of
our main performance obligations in the main service or transaction form are as follows:
(Revenue recognition related to construction contracts) –Formerly, construction revenue is
recognized by the percentage-of-completion method if the outcome of a construction contract can
be estimated reliably and if the outcome of a construction contract cannot be reliably estimated,
the completed-contract method is applied. However, if control over goods or services is
transferred to a customer over time, the method is changed to recognize revenue over time as
the performance obligation to transfer the goods or services to the customer is satisfied. The
method of estimating the degree of progress related to the satisfaction of performance obligation
is mainly input method based on the cost incurred. For construction contracts where the progress
can't be estimated, revenue is recognized by the cost recovery method. In addition, construction
work for which the period from the start of the transaction in the contract to the point when it is
expected to fully satisfy the performance obligation is very short applies the alternative treatment
stipulated in paragraph 95 of the “Policies for Applying Accounting Standards for Revenue
Recognition” , and revenue is recognized, not over time but at the point in time when performance
obligation is fully satisfied.
(Revenue recognition related to real estate sales) – In the business of selling real estate to
an operating company, the Company is obligated to deliver the property based on the real
estate sales contract with the customer. Such performance obligations are satisfied at one point
when the property is delivered, and revenue is recorded at the same time.
(e) Other significant accounting policies as the basis of preparing the nonconsolidated
financial statements.
Applicable accounting principles and procedures in cases where directly relevant accounting
standards are not available – Accounting method for joint venture of construction work. It is the
method to recognize assets, liabilities, revenues and expenses based on mainly proportion of
the members investment.
2. NOTES TO CHANGE OF ACCOUTING POLICY
Application of Accounting Standards relating to current tax.
“Accounting Standards for Current Income Tax” (Corporate Accounting Standard No. 27
October 28, 2022) has been applied since the beginning of the year ended March 31, 2025,
which never affect to the financial statements and Per-Share information.
3. NOTES IN SIGNIFICANT ACCOUNTING ESTIMATES
The amount of completed construction projects sales recorded by the revenue recognition
method of based on the recognizing revenue method of satisfying performance obligations over
time; ¥420,206 million ($2,810,371 thousand).
Information of accounting estimates – The construction revenue recognized by the method
of satisfying performance obligations over is recorded based on the degree of progress in the
satisfying performance obligation. The degree of progress is calculated based on the ratio of the
cost incurred up to the end of the fiscal year regarding the estimated total cost of the
construction. If the total cost of construction changes due to price fluctuations in construction
materials or labors, and construction delays, it may effect on calculation of construction revenue
and cost of sales of completed construction contracts.
(Additional information) Notes in trust property and beneficiary interests of self-trusts –
In a part of claim, we established self-trust beneficial interest that is regarded as trust property.
Accordance with it, the claim following trust property of ¥43,892 million ($293,559 thousand) is
recorded in Accounts receivable from completed construction contracts, and ¥43,892 million
($293,559 thousand) in corresponding debts is recorded in Deposits received.
4. NOTES TO NONCONSOLIDATED BALANCE SHEET
(a) Accumulated depreciation of property, plant and equipment
Millions of
Yen
Thousands of
U.S. Dollars
As of March
31, 2025
As of March
31, 2025
Accumulated depreciation of property, plant and
equipment ¥ 13,024 $ 87,108
(b) Assets pledged as collateral and the collateralized liabilities
(1) Assets pledged as collateral
The following assets were pledged as collateral for bank guarantees:
Millions of
Yen
Thousands of
U.S. Dollars
As of March
31, 2025
As of March
31, 2025
Short-term loans receivable ¥ 1 $ 8
Investment securities 164 1,100
Investments in capital 116 778
Long-term loans receivable 5 33
Total assets pledged as collateral ¥ 287 $ 1,920
(2) Collateralized liabilities
Not applicable.
(c) Guarantees
The Company had the following guarantees: The amount is taken away provision for loss on
guarantee from the guarantee.
Millions of
Yen
Thousands of
U.S. Dollars
As of March
31, 2025
As of March
31, 2025
Guarantees of loans; for subsidiaries and associated
companies:
Fujita (China) Construction Co., Ltd. 131 883
Fujita Corporation (Thailand) Ltd. 44 300
KOKANKYO Engineering Corporation 6 44
Guarantees for other customer:
JR Kurume station square second block urban
redevelopment association 10 71
Total guarantees ¥ 194 $ 1,298
Discounted notes receivable 857 5,734
(d) Receivables and payables due from and to associated companies
Millions of
Yen
Thousands of
U.S. Dollars
As of March
31, 2025
As of March
31, 2025
Short-term receivables from associated companies ¥ 14,559 $ 97,375
Long-term receivables from associated companies 12,406 82,978
Short-term payables to associated companies 29,302 195,980
Long-term payables to associated companies 81,560 545,479
(e) Land revaluation
Under the "Law of Land Revaluation," the Company elected a one-time revaluation of its own-use land to a value based on real estate appraisal information as of March 31, 2002. The resulting revaluation reserve for land
represents unrealized appreciation of land and is stated, net of income taxes, as a component of net assets. There was no effect on the nonconsolidated statement of income. The total market value of the re-evaluated land at the
end of the current fiscal year is less than the total book value after revaluation by ¥4 million ($33 thousand). Continuous readjustment is not permitted, unless the land value subsequently declines significantly such that the amount
of the decline in value should be removed from the revaluation reserve for land account and related deferred tax liabilities.
5. NOTES TO NONCONSOLIDATED STATEMENT OF INCOME
(a) Amount of provision for loss on construction contracts
The amount of provision for loss on construction contracts included in the costs of the completed construction contracts for the year ended March 31, 2025 was as follows:
Millions of
Yen
Thousands of
U.S. Dollars
Amount of provision for loss on construction contracts ¥ 1,301 $ 8,702
(b) Transactions with associated companies
Millions of
Yen
Thousands of
U.S. Dollars
For the year
ended March
31, 2025
For the year
ended March
31, 2025
BUSINESS TRANSACTION
Sales ¥ 23,156 $ 154,873
Purchases 49,292 329,671
Selling, general and administrative expenses 2,517 16,835
NON OPERATING TRANSACTIONS 15,735 105,243
(c) Research and development expenses
Millions of
Yen
Thousands of
U.S. Dollars
For the year
ended March
31, 2025
For the year
ended March
31, 2025
Research and development expenses ¥2,947 $ 19,715
6. NOTES TO NONCONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
(a) Number of issued shares
Number of Issued
Shares at the End of
the Year
Common stock 18,888,889
(b) Information regarding dividends
(1) Dividends paid to shareholders for the year ended March 31, 2025
Total Amount of Dividends Dividends per Share
Resolution Type of Stock
Millions
of Yen
Thousands of
U.S. Dollars Yen Dollars Record Date Effective Date
General shareholders' meeting held on
June 25, 2024
Common stock ¥4,125 $27,245 ¥218.39 $1.44 March 31, 2024 June 28, 2024
(2) Dividends whose record date was included in the year ended March 31, 2025 and whose effective date came after March 31, 2025
As a proposal for the annual shareholder’s meeting to be held on June 24, 2025, matters concerning dividends of common shares are proposed as follows.
Total Amount of Dividends Dividends per Share
Type of Stock
Millions
of Yen
Thousands of
U.S. Dollars Yen Dollars Record Date Effective Date Paid From
Common stock ¥5,192 $34,727 ¥274.89 $1.84 March 31, 2025 June 30, 2025 Retained earnings
7. NOTE TO DEFERRED INCOME TAXES
Significant components of net deferred tax assets
Millions of
Yen
Thousands of
U.S. Dollars
As of March
31, 2025
As of March
31, 2025
Deferred tax assets:
Provision for retirement benefits ¥ 5,177 $ 34,626
Retirement Benefit Trust 683 4,573
Valuation loss on unlisted stocks 3,587 23,992
Provision for bonuses 2,015 13,479
Allowance for doubtful accounts 3,514 23,504
Provision for warranties for completed construction 671 4,488
Impairment loss on property, plant and equipment 1,105 7,395
Provision for loss on construction 796 5,328
Other 4,426 29,604
Subtotal deferred tax assets 21,977 146,989
Valuation allowance (8,407 ) (56,230 )
Total deferred tax assets ¥ 13,570 $ 90,759
Deferred tax liabilities:
Adjusted assets for gains and losses ¥ 3,779 $ 25,277
Unrealized gain (loss) on other securities 973 6,510
Other 0 0
Total deferred tax liabilities ¥ 4,752 $ 31,787
Net deferred tax assets ¥ 8,817 $ 58,972
8. NOTE TO FINANCIAL INSTRUMENTS
(a) Overview
(1) Company policy for financial instruments
The Company uses financial instruments, mainly loans from the parent company and
banks. Cash surpluses, if any, are invested in low-risk financial assets. Derivatives are
used, not for speculative purposes, but to manage exposure to risks of exchange rate
fluctuation on foreign currency receivables, payables and other.
(2) Nature and extent of risks arising from financial instruments, and risk management
for financial instruments
Trade receivables, such as notes receivable – trade, electronically recorded monetary
claims – operating and accounts receivable from completed construction contracts, are
exposed to customer credit risk. The Company manages its credit risk on the basis of
internal guidelines by conducting credit research to identify and reduce default risk in the
event of non-performance at the early stage.
Investment securities, mainly equity instruments of customers and suppliers of the
Company, are exposed to the risk of market price fluctuations. The Company manages its
risk by monitoring market values and the financial position of issuers on a regular basis and
reviewing its portfolio.
The payment terms of trade payables, such as notes payable – trade, electronically
recorded obligations – operating and accounts payable for construction contracts, are
mainly less than one year.
Short-term loans payable whose maturities are less than one year after the balance sheet
date are used for procurement of working capital.
Long-term loans whose maturities are less than five years at fixed interest rates are loans from
the parent company and mainly used for investment properties.
With respect to derivative transactions, the Company enters into foreign currency forward
contracts and foreign currencies loans to hedge exchange rate risk associated with assets and
liabilities denominated in foreign currencies or investments and loans in foreign currencies. The
Company utilizes derivative transactions in accordance with internal policies that prescribe the
authority. The counterparties to those derivatives are limited to major international financial
institutions to reduce the credit risk.
Trade payables and loans are exposed to liquidity risk. The Company manages its liquidity risk
by making cash flow management plans and by other means.
(b) Fair values of financial instruments
Fair values of financial instruments are based on quoted prices in active markets. Securities without
a market price are not included in the following table.
As of March 31, 2025
Millions of Yen
Carrying
Amount Fair Value
Unrealized
Gain/Loss
Notes receivable – trade 1
Allowance for doubtful accounts (*2) (0 )
1 1 -
Electronically recorded monetary claims –
operating 801
Allowance for doubtful accounts (*2) (2 )
798 798 -
Accounts receivable from completed
construction contracts 196,952
Allowance for doubtful accounts (*2) (788 )
196,164 195,352 (812)
Investment securities (*3) 12,962 12,962 -
Total assets ¥ 209,927 ¥ 209,115 ¥ (812)
Notes payable – trade ¥ 1,188 ¥ 1,188 ¥ -
Electronically recorded obligations – operating 27,140 27,140 -
Accounts payable for construction contracts 79,740 79,740 -
Short-term loans payable 36,901 36,901 -
Deposits received 65,202 65,202 -
Long-term loans 81,560 80,364 (1,195)
Total liabilities ¥ 291,732 ¥ 290,536 ¥ (1,195)
Derivatives (*4) ¥ (46 ) ¥ (46 ) ¥ -
Thousands of U.S. Dollars
Carrying
Amount Fair Value
Unrealized
Gain/Loss
Notes receivable – trade 13
Allowance for doubtful accounts (*2) (0 )
13 13 -
Electronically recorded monetary claims –
operating 5,357
Allowance for doubtful accounts (*2) (16 )
5,341 5,341 -
Accounts receivable from completed
construction contracts 1,317,231
Allowance for doubtful accounts (*2) (5,271 )
1,311,960 1,306,529 (5,431)
Investment securities (*3) 86,695 86,695 -
Total assets $ 1,404,009 $ 1,398,578 $ (5,431)
Notes payable – trade $ 7,946 $ 7,946 $ -
Electronically recorded obligations – operating 181,517 181,517 -
Accounts payable for construction contracts 533,310 533,310 -
Short-term loans payable 246,797 246,797 -
Deposits received 436,076 436,076 -
Long-term loans 545,479 537,484 (7,995)
Total liabilities $ 1,951,125 $ 1,943,130 $ (7,995)
Derivatives (*4) $ (308 ) $ (308 ) $ -
Note (*1) For cash the notes are omitted, and for deposits because the fair values
approach the book values since they are settled in the short term, the notes are
omitted.
Note (*2) The values of notes receivable – trade, electronically recorded monetary claims –
operating and accounts receivable from completed construction contracts are
shown at net values, after deducting the allowance for doubtful accounts.
Note (*3) Securities without a market price are not included in Investment securities. The
carrying amount of such financial instruments is as described below.
Millions of
Yen
Thousands of
U.S. Dollars
As of March
31, 2025
As of March
31, 2025
Unlisted stocks ¥ 3,680 $ 24,615
Shares of subsidiaries and associated companies 16,521 110,494
Investments in other securities of subsidiaries and
associated companies 26,990 180,513
Note (*4) The value of assets and liabilities arising from derivatives is shown at net value,
and the amounts in parentheses represent a net liability position.
Notes: Methods of measuring the fair value of financial instruments
(1) Assets
(a) Notes receivable – trade and electronically recorded monetary claims – operating
The carrying values of cash and deposits, notes receivable – trade and
electronically recorded monetary claims – operating approximate fair value
because of their short maturities.
(b) Accounts receivable from completed construction contracts
The fair values of accounts receivable from completed construction contracts and
long-term loans receivable are measured using the present value of discounted
collectible principal and interest amounts estimated reflecting their collectability
based on a rate in which a credit spread is added corresponding to the remaining
term.
(c) Investment securities
The fair values of investment securities are measured at the quoted market price
of the stock exchange for the equity instruments.
(2) Liabilities
(a) Notes payable – trade, electronically recorded obligations – operating, accounts
payable for construction contracts, short-term loans payable and deposits
received
The carrying values of notes payable – trade, electronically recorded obligations –
operating, accounts payable for construction contracts and short-term loans
payable approximate fair value because of their short maturities.
(b) Long-term loans
The fair values of long-term loans are measured by discounting the total amount
of principal and interest at an interest rate applied for the introduction of similar
new debt.
(3) Derivatives
(a) The fair values of derivative transactions are measured at the quoted price
obtained from the financial institutions.
9. NOTE TO INVESTMENT PROPERTIES
The Company owns rental properties such as commercial buildings. The carrying amounts and
market prices of such properties were as follows.
As of March 31, 2025
Millions of Yen
Thousands of
U.S. Dollars
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Investment properties ¥1,975 ¥1,901 $13,213 $12,720
Notes:
1. The carrying amount recognized in the nonconsolidated balance sheet represents the
acquisition cost less accumulated depreciation and accumulated impairment losses.
2. The fair values of properties for the year ended March 31, 2025 are primarily measured by the
Company in accordance with its Real Estate Appraisal Standard, including the fair value
adjusted by indices.
10. NOTE TO RELATED-PARTY TRANSACTIONS
Percentage of
Voting Rights
Held by the Company
(Held by Others)
Amount of
Transaction
Balance at the End of
the Year
Classification Related Party Relationship Nature of Transaction
Millions of
Yen
Thousands of
U.S. Dollars Account
Millions of
Yen
Thousands of
U.S. Dollars
Parent
company
Daiwa House
Industry Co., Ltd.
(Direct 100.0%) Borrowing of funds Borrowing of short-term loans
(*1), (*2)
Borrowing of long-term financing
(*1)
Repayment of long-term
financing (*1)
Payment of interest
¥ 21,512
35,300
30,370
525
$ 143,880
236,089
203,117
3,513
Short-term loans payable
Long-term loans
¥ 14,501
81,560
$ 96,984
545,479
,
Construction as
subcontractor
Contract for construction work
(*3) (*4)
10,701 71,571 Accounts receivable from completed
construction contracts
4,547 30,411
Construction by joint
venture
Deposit of funds related to
construction costs of joint
construction properties
2,509 16,786 Deposits received 2,329 15,577
Note (*1) Borrowings of funds are from Daiwa House Group CМS, and interest rates are rationally determined in consideration of market interest rates .
Note (*2) The above transaction amount is the average balance during the year.
Note (*3) Contract for construction work was determined based on arm's length transaction.
Note (*4) The above transaction amount is exclusive of consumption taxes, while the above balance at the end of the year is inclusive of consumption taxes
Percentage of
Voting Rights
Held by the Company
(Held by Others)
Amount of
Transaction
Balance at the End of
the Year
Classification Related Party Relationship Nature of Transaction
Millions of
Yen
Thousands of
U.S. Dollars Account
Millions of
Yen
Thousands of
U.S. Dollars
Subsidiary Fujita Shoji Inc. Direct 100.0% Purchase of construction
materials
Purchase of materials (*1) (*2) ¥ 19,189 $ 128,339 Electronically recorded obligations –
operating
Accounts payable for construction
contracts
¥ 2,024
1,355
$ 13,539
9,066
Deposit of funds Deposit of surplus funds
Payment of interest
300
0
2,008
2
Deposits received 1,500 10,034
Domestic subsidiary
corporation
Receipt of dividends 135 909 - - -
Techno material
Inc.
Direct 100.0% Purchase of construction
materials
Rental and purchase of
construction materials and
equipment (*1) (*2)
13,498 90,276 Electronically recorded obligations –
operating
Accounts payable for construction
contracts
294
112
1,970
751
Deposit of funds Deposit of surplus funds
Payment of interest
795
0
5,324
3
Deposit received 2,280 15,251
F.T.C. Oita Inc. Direct 43.1%
Indirect 0.6%
Lending of funds Lending of long-term loans
receivable (*3)
Receipt of interest
50
21
334
142
Long-term loans receivable (*4) 3,354 22,433
Associate Yangon Museum
Development
Pte.Ltd.
Indirect 36.0% Guarantee Guarantee (*5) (*6) - - - -
Lending of funds Lending of long-term loans
receivable (*3)
Receipt of Interest
7,751
258
51,840
1,728
Long-term loans receivable (*7) 7,751 51,840
Note (*1) Purchase of materials was determined based on arm's length transaction.
Note (*2) The above transaction amount is exclusive of consumption taxes, while the above balance at the end of the year is inclusive of consumption taxes.
Note (*3) Loan of funds are rationally determined and take market interest rates under consideration.
Note (*4) Allowance for doubtful accounts of ¥1,837 million ($12,292 thousand) has been recorded for long-term loans receivable. In connection with this, ¥1,318 million ($8,819 thousand) is recorded on reversal of provision for
allowance for doubtful accounts in the current fiscal year.
Note (*5) The provision for loss was guaranteed by the loans from financial institutions and the balance of guarantee is the end of fiscal year.
Note (*6) As provision for loss on guarantee, ¥6,842 million ($45,764 thousand) was recorded last fiscal year. In connection with this, ¥ 6,842 million ($45,764 thousand) is recorded as Reversal of provision for loss on guarantees in
the current fiscal year.
Note (*7) Allowance for doubtful accounts of ¥7,751 million ($51,840 thousand) has been recorded for long-term loans receivable. In connection with this, ¥7,188 million ($48,075 thousand) is recorded as Provision of allowance for
doubtful accounts in the current fiscal year.
11. NOTE TO PER SHARE INFORMATION
Yen U.S. Dollars
For the year
ended March
31, 2025
For the year
ended March
31, 2025
Net assets per share ¥ 6,366.22 $ 42.58
Net profit per share 765.32 5.12
12. NOTE TO SUBSEQUENT EVENT
Not applicable (except for appropriations of retained earnings).
13. NOTE TO REVENUE RECOGNITION
Fundamental Information to understand revenue from Contracts with Customers.
It’s as described in SIGNIFICANT ACCOUNTING POLICIES (d) Criteria for Recording Revenues and Expenses ”.
Fujita Corporation
Related Supplementary Schedules
Year Ended March 31, 2025
1. DETAILS OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Millions of Yen
Account
Carrying Amount
at the Beginning
of the Year
Amount of
Increase for
the Year
Amount of
Decrease for
the Year
Depreciation/
Amortization
Carrying Amount
at the End
of the Year
Accumulated
Depreciation/
Amortization
Acquisition
Cost at the End
of the Year
Property, plant and equipment:
Buildings and structures ¥ 4,790 ¥ 250 ¥ 494 ¥ 238 ¥ 4,307 ¥ 4,645 ¥ 8,952
(2)
Machinery, equipment and vehicles 1,103 536 9 296 1,333 4,197 5,531
Tools, furniture and fixtures 744 373 2 380 735 4,009 4,745
(0 )
Land 13,692 0 2,674 - 11,018 - 11,018
Construction in progress 304 1,048 479 - 873 - 873
Other 65 80 5 30 109 171 281
Total property, plant and equipment ¥ 20,701 ¥ 2,289 ¥ 3,665 ¥ 946 ¥ 18,378 ¥ 13,024 ¥ 31,403
(3 )
Intangible assets:
Software ¥ 2,337 ¥ 1,231 ¥ - ¥ 925 ¥ 2,664
Software in progress 223 866 814 - 274
Other 100 - - - 100
Total Intangible assets ¥ 2,661 ¥2,098 ¥ 814 ¥ 925 ¥ 3,019
Thousands of U.S. Dollars
Account
Carrying Amount
at the Beginning
of the Year
Amount of
Increase for
the Year
Amount of
Decrease for
the Year
Depreciation/
Amortization
Carrying Amount
at the End
of the Year
Accumulated
Depreciation/
Amortization
Acquisition
Cost at the End
of the Year
Property, plant and equipment:
Buildings and structures $ 32,039 $ 1,676 $ 3,308 $ 1,598 $ 28,809 $ 31,068 $ 59,877
(19 )
Machinery, equipment and vehicles 7,381 3,585 65 1,980 8,922 28,075 36,997
Tools, furniture and fixtures 4,982 2,501 17 2,545 4,921 26,818 31,740
(1 )
Land 91,576 1 17,885 - 73,691 - 73,691
Construction in progress 2,035 7,011 3,205 - 5,841 5,841
Other 440 536 36 206 734 1,146 1,880
Total property, plant and equipment $ 138,454 $ 15,310 $ 24,516 $ 6,329 $ 122,919 $ 87,108 $ 210,026
(20 )
Intangible assets:
Software $ 15,636 $ 8,238 $ - $ 6,190 $ 17,685
Software in progress 1,492 5,794 5,447 - 1,839
Other 670 - - - 670
Total Intangible assets $ 17,798 $ 14,032 $ 5,447 $ 6,190 $ 20,194
Notes:
1. The listed amount is rounded down to less than one million yen.
2. Amounts in parentheses represent decrease due to impairment losses of assets recognized for the year ended March 31, 2025.
3. Amount of increase for the year in buildings and structures is mainly due to an increase in renovations of office amounting ¥163 million ($1,092 thousand) and renovation of research facility amounting ¥80
million ($ 538 thousand).
4. Amount of increase for the year in machinery, equipment and vehicles is mainly due to an increase in purchases of business machineries amounting ¥462 million ($3,093 thousand) , which is including the
reclassified amount from construction in progress amounting ¥430 million ($2,876 thousand).
5. Amount of increase for the year in tools, furniture and fixtures is mainly due to an increase in purchase of research instruments and equipment amounting ¥157 million ($1,054 thousand).
The purchase of hardware amounting ¥83 million ($558 thousand) and purchase of office equipment amounting ¥63 million ($422 thousand).
6. Amount of decrease for the year in land is mainly due to the amount reclassified to real estate for sale amounting ¥2,674 million ($17,885 thousand).
7. Amount of increase for the year in construction in progress is mainly due to constructions and renovations of office amounting ¥718 million ($4,805 thousand) .
8. Amount of decrease for the year in intangible assets is mainly due to software development costs amounting to ¥1,231 million ($8,238 thousand), which is including the reclassified amount from software in
progress amounting ¥808 million ($5,406 thousand).
2. DETAILS OF ALLOWANCES
Millions of Yen
Amount of Decrease
for the Year
Account
Balance
at the
Beginning of
the Year
Amount of
Increase for
the Year
Intended
Use Other
Balance at
the End of
the Year
Allowance for doubtful accounts ¥ 5,520 ¥ 8,038 ¥ 1 ¥ 2,385 ¥ 11,171
Provision for loss on construction
contracts 3,790 1,301 1,723 766 2,601
Provision for warranties for
completed construction 1,524 1,898 1,198 33 2,191
Provision for bonuses 5,987 6,581 5,987 - 6,581
Liability for employees' retirement
benefits 17,112 999 1,638 - 16,473
Provision for loss on guarantees 6,842 - - 6,842 -
Thousands of U.S. Dollars
Amount of Decrease
for the Year
Account
Balance
at the
Beginning of
the Year
Amount of
Increase for
the Year
Intended
Use Other
Balance at
the End of
the Year
Allowance for doubtful accounts $ 36,920 $ 53,762 $ 9 $ 15,956 $ 74,717
Provision for loss on construction
contracts 25,354 8,702 11,526 5,128 17,402
Provision for warranties for
completed construction 10,198 12,699 8,014 225 14,658
Provision for bonuses 40,044 44,019 40,044 44,019
Liability for employees' retirement
benefits 114,450 6,682 10,959 - 110,173
Provision for loss on guarantees 45,764 - - $ 45,764 -
Notes:
1. The listed amount is rounded down to less than one million yen.
2. "Other" under decrease in allowance for doubtful accounts represents reversals of the balance
at the beginning of the year calculated based on the Company's past credit loss experience and
from collections of receivables.
3. "Other" under decrease in provision for loss on construction contracts represents reversals of
the decrease in estimated loss.
4. "Other" under decrease in provision for warranties for completed construction represents
reversals of the partial amount of the balance at the beginning of the year.
5. “Other “under decrease in provision for loss on guarantees represents reversal of the partial
amount of the balance at the beginning of the year.
3. DETAILS OF SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Amount
Account
Millions of
Yen
Thousands of
U.S. Dollars
Compensation to directors and Audit & Supervisory Board
members ¥ 554 $ 3,709
Salaries 12,002 80,273
Bonuses 3,967 26,532
Retirement benefit expenses 854 5,712
Legal welfare expenses 2,090 13,981
Welfare expenses 554 3,705
Repair and maintenance 156 1,049
Stationery expenses 6,574 43,967
Correspondence and transportation expenses 2,338 15,640
Power utilities expenses 139 931
Research and development expenses 2,947 19,715
Advertising expenses 387 2,594
Provision of allowance for doubtful accounts (41 ) (279 )
Entertainment expenses 697 4,664
Contribution 191 1,284
Rents 2,163 14,472
Depreciation 274 1,834
Taxes and dues 1,489 9,962
Insurance expenses 81 544
Miscellaneous expenses 877 5,872
Total ¥ 38,301 $ 256,162
Notes:
1. The listed amount is rounded down to less than one million yen.
* * * * * *