TOKYO, July 16,
2024 /PRNewswire/ -- Yoshitsu Co., Ltd ("Yoshitsu" or
the "Company") (Nasdaq: TKLF), a retailer and wholesaler of
Japanese beauty and health products, sundry products, luxury
products, electronic products, as well as other products in
Hong Kong, Japan, North
America, and the United
Kingdom, today announced its financial results for the
fiscal year 2024 ended March 31,
2024.
Mr. Mei Kanayama, Principal
Executive Officer of Yoshitsu, commented, "I am thrilled to report
that Yoshitsu has achieved outstanding success during fiscal year
2024. Our total revenue surged by 15.3%, and our income from
operations increased by 601.3%, clear indicators of our robust
growth and strategic excellence. This remarkable increase is
primarily driven by the performance of our directly-operated
physical stores and our expanding franchise network, alongside our
dedicated wholesale customers."
"We are particularly proud of the successful introduction of
luxury products, which has significantly boosted sales in our
directly-operated physical stores, franchise stores, and among our
wholesale customers. Our strategic expansion into North America, with new stores in the United States and Canada, has also contributed to our impressive
revenue growth. Additionally, our expansion in key markets like
Japan and Hong Kong has been successful. We have further
strengthened our wholesale customer base and franchise store
network, highlighting our ability to innovate and adapt in a
dynamic market environment."
"Looking ahead, we are excited about the future. We are
continuing our efforts to explore sales opportunities, for
instance, we continue exploring new markets while enhancing our
current presence, by analyzing customer trends in different
regions, focusing on improving customer in-store experience,
further expanding our distribution network, and exploring new
partnership opportunities. Additionally, following the capital
reduction, we expect further reductions in operating expenses. We
believe the combination of increasing revenue and decreasing costs
will position us for strong future growth and development."
"In addition, we continue expanding our product offerings by
cooperating with beauty product and other product suppliers to
develop our own private label products, and investing in IT and
equipment to enhance operational efficiency and reduce costs. We
believe these initiatives can help us attract new customers and
encourage repeat visits, which will eventually support our revenue
growth and create long-term values for our shareholders."
Mr. Youichiro Haga, Principal Accounting and Financial Officer
of Yoshitsu, remarked, "I am proud to share that our financial
performance for fiscal year 2024 has shown substantial improvement.
Our net income reached $7.5 million,
a significant turnaround from a net loss of $8.0 million in the previous year. This positive
outcome is a result of our focused efforts on cost management,
strategic investments, and revenue growth."
"We have successfully reduced operating expenses by 38.5%. This
reduction highlights our commitment to operational efficiency and
cost control, ensuring that we maximize our profitability. We also
achieved a notable reduction in interest expenses by 33.5%, thanks
to our strategic debt management and favorable loan conditions.
Additionally, we saw a significant increase in other income, mainly
from the disposal of property and equipment."
"Net cash provided by operating activities surged to
$1.9 million for fiscal year 2024, a
significant improvement from net cash outflow of $25.7 million for fiscal year 2023. We belive
that this liquidity can support our ongoing operations and
strategic initiatives."
"As we move forward, we will continue to focus on enhancing our
financial performance through disciplined cost management,
strategic investments, and exploring new revenue streams. We are
confident that these efforts will drive long-term value for our
shareholders."
Fiscal Year 2024 Financial Highlights
- Total revenue was $195.7 million
for fiscal year 2024, increased by 15.3% from $169.7 million for fiscal year 2023.
- Income from operations was $5.8
million for fiscal year 2024, increased by 601.3% from
$0.8 million for fiscal year
2023.
- Net income increased to $7.5
million for fiscal year 2024, compared to net loss of
$8.0 million for fiscal year
2023.
- Net cash provided by operating activities increased to
$1.9 million for fiscal year 2024,
from net cash used in operating activities of $25.7 million for fiscal year 2023.
- Basic and diluted earnings per share was $0.20 for fiscal year 2024, compared to loss per
share of $0.22 for fiscal year
2023.
Fiscal Year 2024 Financial Results
Revenue
Revenue increased by 15.3%, to $195.7 million for fiscal year 2024, from
$169.7 million for fiscal year 2023.
The increase in the Company's revenue consists of increased revenue
from directly-operated physical stores and franchise stores and
wholesale customers, which was partially offset by the decreased
revenue from online stores and services.
|
|
For the Fiscal
Years Ended March 31,
|
|
|
2024
|
|
2023
|
($
millions)
|
|
Revenue
|
|
Cost of
Revenue
|
|
Gross
Margin
|
|
Revenue
|
|
Cost of
Revenue
|
|
Gross
Margin
|
Directly-operated
physical stores
|
|
15.0
|
|
11.9
|
|
20.3 %
|
|
11.6
|
|
8.9
|
|
23.5 %
|
Online stores and
services
|
|
10.7
|
|
7.9
|
|
26.0 %
|
|
20.7
|
|
16.2
|
|
21.6 %
|
Franchise stores and
wholesale
customers
|
|
170.0
|
|
152.5
|
|
10.3 %
|
|
137.4
|
|
115.2
|
|
16.2 %
|
Total
|
|
195.7
|
|
172.3
|
|
11.9 %
|
|
169.7
|
|
140.3
|
|
17.3 %
|
Revenue from directly-operated physical stores increased by
28.8%, to $15.0 million for fiscal
year 2024, from $11.6 million for
fiscal year 2023. The increase was mainly because during fiscal
year 2024, the Company started to offer luxury products, which
contributed a significant portion of increased directly-operated
physical store sales in fiscal year 2024. The increase in
directly-operated physical stores sales was also due to revenue
contributed from the Company's newly-opened physical stores in
the United States and Canada, which was partially offset by the
decreased revenue as a result of the transformation of the
Company's physical stores in Japan
during fiscal year 2024. The transformation of the physical stores
in Japan was because these stores
had been underperformed and the Company transformed these stores
into franchise stores to improve the Company's cash flow and
working capital. After the change, these physical stores purchased
products from the Company like other franchise stores, and hence
this portion of revenue was recorded under franchise stores and
wholesale customers.
Revenue from franchise stores and wholesale customers increased
by 23.7%, to $170.0 million for
fiscal year 2024, from $137.4 million
for fiscal year 2023. The increase was mainly due to
expansion of products offering as the Company started to offer
luxury products and electronic products that have higher unit
selling prices. Meanwhile, the increase was also due to increased
revenue generated from franchise stores which previously was
recognized under physical stores as mentioned above, as well as
increased revenue from some new wholesale customers whom the
Company entered into business relationships with during fiscal year
2024. The increase was partially offset by the decreased sales of
beauty products to wholesale customers as the demand for Japanese
beauty products declined in China
market.
Cost of Revenue
Total cost of revenue increased by 22.8%, to $172.3 million for fiscal year 2024, from
$140.3 million for fiscal year
2023.
Gross Profit and Gross Margin
Gross profit decreased by 20.6%, to $23.4
million for fiscal year 2024, from $29.4 million for fiscal year 2023.
Gross margin decreased by 5.4 percentage points, to 11.9% for
fiscal year 2024, from 17.3% for fiscal year 2023.
Operating Expenses
Operating expenses consist of selling and marketing expenses and
general and administrative expenses, which primarily include
payroll, employee benefit expenses and bonus expenses, shipping
expenses, promotion and advertising expenses, and other
facility-related costs, such as store rent, utilities, and
depreciation.
Operating expenses decreased by 38.5%, to $17.6 million for fiscal year 2024, from
$28.6 million for fiscal year 2023.
The decrease in operating expenses was primarily attributable to a
decrease in allowance for credit loss, shipping expenses, promotion
and advertising expenses, payroll, employee benefit expenses and
bonus expenses,and transaction commission, which was partially
offset by an increase in professional service fees.
Interest Expenses, net
Interest expenses, net included interest expenses calculated at
interest rate per loan agreements and loan service costs, which
were directly incremental to the loan agreements and amortized over
the loan periods. Due to our strategic debt management and
favorable loan conditions, interest expenses, net decreased by
33.5%, to $1.6 million for fiscal
year 2024, from $2.4 million for
fiscal year 2023. The decrease mainly consisted of a decrease in
amortized loan service costs in relation to the Company's
syndicated loans by $454,980, as well
as a decrease in interest expenses at interest rate by $355,542, which was mainly due to the decreased
weighted average loan balances and interest rate for fiscal year
2024 as compared to fiscal year 2023.
Other Income, net
Other income, net primarily includes tax refund, disposal gain
or loss from property and equipment, government subsidy, and other
immaterial income and expense items. Other income, net increased by
5,685.0%, to $760,435 for fiscal
year 2024, from $13,145 for fiscal
year 2023. The increase was mainly due to the increased gain from
disposal of property and equipment, which was partially offset by
decreased government subsidy received during fiscal year 2024 as
compared to fiscal year 2023.
Gain from Foreign Currency Exchange
Gain from foreign currency exchange was $3.1 million for fiscal year 2024, as compared to
a gain from foreign currency exchange of $0.7 million for fiscal year 2023. The gain from
foreign currency exchange was mainly due to the significant
fluctuations of foreign exchange rates on the Company's accounts
receivable that denominated in foreign currencies such as U.S.
dollar and Chinese Yuan during fiscal year 2024. The increase was
also due to the increased gain from foreign currency exchange by
the Company's Hong Kong
subsidiaries, which was mainly due to the significant fluctuations
of foreign exchange rate on its payables that were denominated in
Japanese Yen during fiscal year 2024.
Provision for Income Taxes
Provision for income taxes decreased by 36.1% to $0.5 million for fiscal year 2024 from
$0.7 million for fiscal year 2023.
The decrease in provision for income taxes was mainly due to the
decreased deferred income tax expenses, which was partially offset
by the increased current income tax expenses resulted from the
increased taxable income for fiscal year 2024.
Net Income (Loss)
Net income increased to $7.5
million for fiscal year 2024, compared to net loss of
$8.0 million for fiscal year
2023.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share was $0.20 for fiscal year 2024, compared to loss per
share of $0.22 for fiscal year
2023.
Financial Condition
As of March 31, 2024, the Company
had $2.5 million in cash as compared
to $1.8 million as of March 31, 2023. As of March 31, 2024, the Company also had
approximately $105.4 million of
accounts receivable balance due from third parties. Approximately
35.4% of the March 31, 2024 balance
has subsequently been collected, and the majority of the remaining
balance is expected to be collected by December 31, 2024. The collection of such
receivables made cash available for use in the Company's operations
as working capital, if necessary.
Net cash provided by operating activities was $1.9 million for fiscal year 2024, mainly derived
from a net income of $7.5 million for
the year, and net changes in the Company's operating assets and
liabilities, which mainly included a decrease in compensation
receivable for consumption tax of $11.3
million as the Company has received payments from the
debtors according to the collection plan, and an increase in
accounts payable of $13.8 million as
the Company negotiated longer payment terms with the Company's
suppliers. The Company's merchandise inventories decreased by
$2.4 million due to the Company's
strengthening inventory management to minimize inventory backlog
and improve inventory turnover rate. Meanwhile, accounts receivable
due from third parties increased by $24.7
million as a result of the Company's increased sales, and
taxes payable decreased by $7.0
million as the Company has made payments to tax authority
for the additional consumption tax as a result of the consumption
tax examination as mentioned above during fiscal year 2024.
Net cash provided by investing activities amounted to
$2.7 million for fiscal year 2024,
mainly due to proceeds from disposal of property and equipment of
$3.1 million and proceeds from
disposal of equity method investment of $0.3
million, partially offset by purchases of property and
equipment in the aggregate amount of $0.9
million and disposal of a subsidiary of $0.2 million.
Net cash used in financing activities was $1.8 million for fiscal year 2024, which
primarily consisted of repayments of long-term borrowings of
$4.2 million and repayments of
short-term borrowings of $2.1
million, partially offset by proceeds from issuance of
ordinary shares, net of issuance costs of $3.7 million and proceeds from short-term
borrowings of $1.4 million.
Conference Call Information
The Company will host an earnings conference call at
8:30 am U.S. Eastern Time
(9:30 pm Japan Standard Time) on
July 16, 2024. Dial-in details for
the conference call are as follows:
Dial-in details for
the conference call are as follows:
|
Date:
|
July 16,
2024
|
Time:
|
8:30 am U.S.
Eastern Time
|
International:
|
1-412-902-4272
|
United States Toll
Free:
|
1-888-346-8982
|
Japan Toll
Free:
|
0066-33-812830
|
Conference
ID
|
Yoshitsu Co.,
Ltd
|
Please dial in at least 15 minutes before the commencement of
the call to ensure timely participation.
For those unable to participate, an audio replay of the
conference call will be available from approximately one hour after
the end of the live call until July 23, 2024. The dial-in for
the replay is 1-877-344-7529 within the United States or
1-412-317-0088 internationally. The replay access code is
8200869.
A live and archived webcast of the conference call will also be
available at the Company's investor relations website
at https://www.ystbek.co.jp/irlibrary/.
About Yoshitsu Co., Ltd
Headquartered in Tokyo, Japan,
Yoshitsu Co., Ltd is a retailer and wholesaler of Japanese beauty
and health products, sundry products, and other products in
Hong Kong, Japan, North
America, and the United
Kingdom. The Company offers various beauty products
(including cosmetics, skincare, fragrance, and body care products),
health products (including over-the-counter drugs, nutritional
supplements, and medical supplies and devices), sundry products
(including home goods), and other products (including food and
alcoholic beverages). The Company currently sells its products
through directly-operated physical stores, through online stores,
and to franchise stores and wholesale customers. For more
information, please visit the Company's website at
https://www.ystbek.co.jp/irlibrary/.
Forward-Looking Statements
Certain statements in this press release are forward-looking
statements, within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations and projections
about future events and financial trends that the Company believes
may affect its financial condition, results of operations, business
strategy, and financial needs. Investors can identify these
forward-looking statements by words or phrases such as "may,"
"will," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "potential," "continue," "is/are likely to," or
other similar expressions. The Company undertakes no obligation to
update forward-looking statements to reflect subsequent occurring
events or circumstances, or changes in its expectations, except as
may be required by law. In addition, there is uncertainty about the
further spread of the COVID-19 virus or the occurrence of another
wave of cases and the impact it may have on the Company's
operations, the demand for the Company's products, global supply
chains, and economic activity in general. Although the Company
believes that the expectations expressed in these forward-looking
statements are reasonable, it cannot assure you that such
expectations will turn out to be correct, and the Company cautions
investors that actual results may differ materially from the
anticipated results and encourages investors to review other
factors that may affect its future results in the Company's
registration statement and in its other filings with the U.S.
Securities and Exchange Commission.
For more information, please contact:
Yoshitsu Co., Ltd
Investor Relations Department
Email: ir@ystbek.co.jp
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
YOSHITSU CO.,
LTD
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
March
31,
|
|
|
March
31,
|
|
|
|
2024
|
|
|
2023
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash
|
|
$
|
2,475,538
|
|
|
$
|
1,766,441
|
|
Accounts receivable,
net
|
|
|
105,359,841
|
|
|
|
89,447,155
|
|
Accounts receivable -
related parties, net
|
|
|
25,704
|
|
|
|
327,807
|
|
Merchandise
inventories, net
|
|
|
4,413,880
|
|
|
|
7,187,800
|
|
Due from related
parties
|
|
|
9,762
|
|
|
|
444,567
|
|
Compensation receivable
for consumption tax, current
|
|
|
7,133,470
|
|
|
|
3,912,719
|
|
Prepaid expenses and
other current assets, net
|
|
|
2,748,682
|
|
|
|
3,542,864
|
|
TOTAL CURRENT
ASSETS
|
|
|
122,166,877
|
|
|
|
106,629,353
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
9,013,827
|
|
|
|
12,938,598
|
|
Operating lease
right-of-use assets
|
|
|
3,979,727
|
|
|
|
2,709,954
|
|
Long term
investment
|
|
|
-
|
|
|
|
169,148
|
|
Compensation receivable
for consumption tax, non-current, net
|
|
|
2,721,034
|
|
|
|
19,230,370
|
|
Long-term prepaid
expenses and other non-current assets, net
|
|
|
4,115,694
|
|
|
|
4,997,857
|
|
TOTAL
ASSETS
|
|
$
|
141,997,159
|
|
|
$
|
146,675,280
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
53,234,650
|
|
|
$
|
60,636,412
|
|
Current portion of
long-term borrowings
|
|
|
1,730,796
|
|
|
|
2,783,445
|
|
Accounts
payable
|
|
|
24,392,029
|
|
|
|
12,719,160
|
|
Accounts payable - a
related party
|
|
|
299,541
|
|
|
|
-
|
|
Due to related
parties
|
|
|
42,943
|
|
|
|
297,559
|
|
Deferred
revenue
|
|
|
55,093
|
|
|
|
146,024
|
|
Taxes
payable
|
|
|
9,357,482
|
|
|
|
18,219,803
|
|
Operating lease
liabilities, current
|
|
|
1,523,222
|
|
|
|
1,323,900
|
|
Finance lease
liabilities, current
|
|
|
170,553
|
|
|
|
369,786
|
|
Warrants
liabilities
|
|
|
441,104
|
|
|
|
24,663
|
|
Other payables and
other current liabilities
|
|
|
2,167,320
|
|
|
|
1,520,756
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
93,414,733
|
|
|
|
98,041,508
|
|
|
|
|
|
|
|
|
|
|
Operating lease
liabilities, non-current
|
|
|
2,488,823
|
|
|
|
1,416,508
|
|
Finance lease
liabilities, non-current
|
|
|
263,571
|
|
|
|
622,922
|
|
Long-term
borrowings
|
|
|
5,636,960
|
|
|
|
10,326,399
|
|
Other non-current
liabilities
|
|
|
1,934,927
|
|
|
|
2,535,123
|
|
Deferred tax
liabilities, net
|
|
|
2,215,361
|
|
|
|
4,451,077
|
|
TOTAL
LIABILITIES
|
|
$
|
105,954,375
|
|
|
$
|
117,393,537
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares, no par
value,100,000,000 shares authorized; 42,220,206 shares and
36,250,054 shares issued and outstanding as of March
31, 2024 and 2023,
respectively
|
|
|
16,716,839
|
|
|
|
14,694,327
|
|
Capital
reserve
|
|
|
10,262,191
|
|
|
|
9,078,915
|
|
Retained
earnings
|
|
|
21,056,780
|
|
|
|
13,577,844
|
|
Accumulated other
comprehensive loss
|
|
|
(11,993,026)
|
|
|
|
(8,069,343)
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
|
36,042,784
|
|
|
|
29,281,743
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
141,997,159
|
|
|
$
|
146,675,280
|
|
YOSHITSU CO.,
LTD
|
CONSOLIDATED
STATEMENTS OF OPERTAIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
|
|
For the Years Ended
March 31
|
|
|
|
2024
|
|
|
2023
|
|
|
2022
(1)
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
Revenue - third
parties
|
|
$
|
189,674,322
|
|
|
$
|
168,876,360
|
|
|
$
|
234,508,821
|
|
Revenue - related
parties
|
|
|
6,006,993
|
|
|
|
847,986
|
|
|
|
243,759
|
|
Total
revenue
|
|
|
195,681,315
|
|
|
|
169,724,346
|
|
|
|
234,752,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandise
costs
|
|
|
172,306,308
|
|
|
|
140,293,419
|
|
|
|
191,040,547
|
|
Selling, general and
administrative expenses
|
|
|
17,597,125
|
|
|
|
28,607,088
|
|
|
|
36,422,772
|
|
Total
operating expenses
|
|
|
189,903,433
|
|
|
|
168,900,507
|
|
|
|
227,463,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
5,777,882
|
|
|
|
823,839
|
|
|
|
7,289,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(1,611,141)
|
|
|
|
(2,422,079)
|
|
|
|
(2,785,766)
|
|
Additional and
delinquent tax due to consumption tax correction
|
|
|
(628,876)
|
|
|
|
(6,622,486)
|
|
|
|
-
|
|
Gain from disposal of
equity method investment
|
|
|
190,571
|
|
|
|
-
|
|
|
|
-
|
|
Gain from disposal of a
subsidiary
|
|
|
341,139
|
|
|
|
-
|
|
|
|
-
|
|
Other income,
net
|
|
|
760,435
|
|
|
|
13,145
|
|
|
|
598,206
|
|
Gain from foreign
currency exchange
|
|
|
3,065,971
|
|
|
|
718,990
|
|
|
|
833,547
|
|
Change in fair value of
warrants liabilities
|
|
|
109,173
|
|
|
|
139,615
|
|
|
|
369,404
|
|
Income (loss) from
equity method investment
|
|
|
(69,444)
|
|
|
|
14,554
|
|
|
|
(145,828)
|
|
Total
other income (expenses), net
|
|
|
2,157,828
|
|
|
|
(8,158,261)
|
|
|
|
(1,130,437)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAX PROVISION
|
|
|
7,935,710
|
|
|
|
(7,334,422)
|
|
|
|
6,158,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
456,774
|
|
|
|
714,400
|
|
|
|
2,234,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
7,478,936
|
|
|
|
(8,048,822)
|
|
|
|
3,924,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation loss
|
|
|
(3,923,683)
|
|
|
|
(4,279,325)
|
|
|
|
(3,466,261)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE
INCOME (LOSS)
|
|
$
|
3,555,253
|
|
|
$
|
(12,328,147)
|
|
|
$
|
457,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
ordinary share - basic and diluted
|
|
$
|
0.2
|
|
|
$
|
(0.22)
|
|
|
$
|
0.12
|
|
Weighted average
shares - basic and diluted*
|
|
|
37,264,162
|
|
|
|
36,250,054
|
|
|
|
32,678,625
|
|
|
*
|
Retrospectively
restated for effect of a 294-for-1 forward split on August 18,
2021.
|
|
(1)
|
The financial
information presented in this report has been retrospectively
adjusted for the acquisition of Tokyo Lifestyle Limited.
|
YOSHITSU CO.,
LTD
|
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary
Shares
|
|
|
Capital
|
|
|
Retained
|
|
|
Accumulated
Other
Comprehensive
|
|
|
Total
Shareholders'
|
|
|
|
Shares*
|
|
|
Amount
|
|
|
Reserve
|
|
|
Earnings
|
|
|
Income
(Loss)
|
|
|
Equity
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31,
2021
|
|
|
27,327,594
|
|
|
$
|
2,416,635
|
|
|
$
|
501,053
|
|
|
$
|
17,702,518
|
|
|
$
|
(323,757)
|
|
|
$
|
20,296,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Capital contribution
from Grand Elec-Tech Limited
|
|
|
2,672,460
|
|
|
|
920,192
|
|
|
|
902,224
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,822,416
|
|
Issuance of ordinary
shares and additional shares under overallotment
option in initial public offerings, net of issuance
costs
|
|
|
6,250,000
|
|
|
|
11,357,500
|
|
|
|
10,060,011
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21,417,511
|
|
Capital contribution in
the form of debt exemption
|
|
|
-
|
|
|
|
-
|
|
|
|
1,111,608
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,111,608
|
|
Issuance of
representative's warrants
|
|
|
-
|
|
|
|
-
|
|
|
|
(653,831)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(653,831)
|
|
Net income for the
year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,924,148
|
|
|
|
-
|
|
|
|
3,924,148
|
|
Foreign currency
translation loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,466,261)
|
|
|
|
(3,466,261)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31,
2022
|
|
|
36,250,054
|
|
|
$
|
14,694,327
|
|
|
$
|
11,921,065
|
|
|
$
|
21,626,666
|
|
|
$
|
(3,790,018)
|
|
|
$
|
44,452,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business combinations
under common control
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,842,173)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,842,173)
|
|
Capital contribution
received by Malaysia subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
23
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23
|
|
Capital contribution in
the form of debt exemption
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Issuance of
representative's warrants
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net loss for the
year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,048,822)
|
|
|
|
-
|
|
|
|
(8,048,822)
|
|
Foreign currency
translation loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,279,325)
|
|
|
|
(4,279,325)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31,
2023
|
|
|
36,250,054
|
|
|
$
|
14,694,327
|
|
|
$
|
9,078,915
|
|
|
$
|
13,577,844
|
|
|
$
|
(8,069,343)
|
|
|
$
|
29,281,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of ordinary
shares
|
|
|
5,970,152
|
|
|
|
2,022,512
|
|
|
|
1,724,770
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,747,282
|
|
Issuance of investors'
warrants
|
|
|
-
|
|
|
|
-
|
|
|
|
(541,494)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(541,494)
|
|
Net income for the
year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,478,936
|
|
|
|
-
|
|
|
|
7,478,936
|
|
Foreign currency
translation loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,923,683)
|
|
|
|
(3,923,683)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31,
2024
|
|
|
42,220,206
|
|
|
$
|
16,716,839
|
|
|
$
|
10,262,191
|
|
|
$
|
21,056,780
|
|
|
$
|
(11,993,026)
|
|
|
$
|
36,042,784
|
|
|
*
|
Retrospectively
restated for effect of share issuances on October 22, 2020 and a
294-for-1 forward split on August 18, 2021.
|
|
(1)
|
The financial
information presented in this report has been retrospectively
adjusted for the acquisition of Tokyo Lifestyle Limited.
|
YOSHITSU CO.,
LTD
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
For the Years Ended
March 31
|
|
|
|
2024
|
|
|
2023
|
|
|
2022
(1)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
$
|
7,478,936
|
|
|
$
|
(8,048,822)
|
|
|
$
|
3,924,148
|
|
Adjustments to
reconcile net income (loss) to net cash
provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,232,611
|
|
|
|
1,226,496
|
|
|
|
1,217,455
|
|
Loss (gain) from
disposal of property and equipment
|
|
|
(712,685)
|
|
|
|
329,580
|
|
|
|
35,803
|
|
Loss (gain) from
unrealized foreign currency translation
|
|
|
(412,728)
|
|
|
|
282,131
|
|
|
|
(662,345)
|
|
Provision for (reversal
of) credit losses
|
|
|
(2,043,939)
|
|
|
|
3,471,953
|
|
|
|
(278,642)
|
|
Addition (reversal) of
merchandise inventories written
down
|
|
|
(68,361)
|
|
|
|
150,382
|
|
|
|
-
|
|
Amortization of
operating lease right-of-use assets
|
|
|
1,711,978
|
|
|
|
1,784,754
|
|
|
|
2,385,992
|
|
Deferred tax provision
(benefit)
|
|
|
(1,778,277)
|
|
|
|
4,849,771
|
|
|
|
(67,268)
|
|
Change in fair value of
warrants liabilities
|
|
|
(109,173)
|
|
|
|
(139,615)
|
|
|
|
(369,404)
|
|
Investment loss
(income) from equity method investment
|
|
|
69,444
|
|
|
|
(14,554)
|
|
|
|
145,828
|
|
Gain from disposal of
equity method investment
|
|
|
(190,571)
|
|
|
|
-
|
|
|
|
-
|
|
Accrued interest
expense
|
|
|
-
|
|
|
|
-
|
|
|
|
38,666
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(24,747,655)
|
|
|
|
(53,824,026)
|
|
|
|
7,841,569
|
|
Accounts receivable -
related parties
|
|
|
277,005
|
|
|
|
(323,212)
|
|
|
|
-
|
|
Merchandise
inventories
|
|
|
2,355,034
|
|
|
|
21,285,866
|
|
|
|
(6,054,509)
|
|
Compensation receivable
for consumption tax
|
|
|
11,284,665
|
|
|
|
(23,212,327)
|
|
|
|
-
|
|
Prepaid expenses and
other current assets
|
|
|
949,043
|
|
|
|
5,597,781
|
|
|
|
(7,028,529)
|
|
Long term prepaid
expenses and other non-current assets
|
|
|
315,809
|
|
|
|
2,183,108
|
|
|
|
(4,762,929)
|
|
Accounts
payable
|
|
|
13,816,414
|
|
|
|
5,280,797
|
|
|
|
(2,803,950)
|
|
Accounts payable -
related parties
|
|
|
299,591
|
|
|
|
(119,081)
|
|
|
|
25,813
|
|
Deferred
revenue
|
|
|
35,027
|
|
|
|
49,715
|
|
|
|
(69,862)
|
|
Taxes
payable
|
|
|
(6,977,961)
|
|
|
|
17,268,372
|
|
|
|
(1,365,092)
|
|
Other payables and
other current liabilities
|
|
|
1,078,396
|
|
|
|
(1,590,907)
|
|
|
|
1,932,901
|
|
Operating lease
liabilities
|
|
|
(1,711,398)
|
|
|
|
(1,807,376)
|
|
|
|
(2,270,868)
|
|
Other non-current
liabilities
|
|
|
(239,250)
|
|
|
|
(419,200)
|
|
|
|
1,179,459
|
|
Net cash provided by
(used in) operating activities
|
|
|
1,911,955
|
|
|
|
(25,738,414)
|
|
|
|
(7,005,764)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(929,308)
|
|
|
|
(934,960)
|
|
|
|
(3,037,813)
|
|
Proceeds from disposal
of property and equipment
|
|
|
3,104,387
|
|
|
|
2,961
|
|
|
|
61,109
|
|
Proceeds from disposal
of equity method investment
|
|
|
276,800
|
|
|
|
-
|
|
|
|
-
|
|
Proceeds from disposal
of a subsidiary
|
|
|
34,600
|
|
|
|
-
|
|
|
|
-
|
|
Disposal of a
subsidiary, net of cash
|
|
|
(171,788)
|
|
|
|
-
|
|
|
|
-
|
|
Collection of amount
due from (advances made to) related
parties
|
|
|
399,223
|
|
|
|
188,728
|
|
|
|
(128,535)
|
|
Net cash provided by
(used in) investing activities
|
|
|
2,713,914
|
|
|
|
(743,271)
|
|
|
|
(3,105,239)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
contribution
|
|
|
-
|
|
|
|
23
|
|
|
|
1,822,416
|
|
Proceeds from initial
public offerings, net of issuance costs
|
|
|
-
|
|
|
|
-
|
|
|
|
22,102,984
|
|
Proceeds from issuance
of ordinary shares, net of issuance
costs
|
|
|
3,747,282
|
|
|
|
-
|
|
|
|
-
|
|
Cash consideration paid
for business combination under
common
control
|
|
|
-
|
|
|
|
(2,842,173)
|
|
|
|
-
|
|
Proceeds from
short-term borrowings
|
|
|
1,384,000
|
|
|
|
78,831,300
|
|
|
|
282,176,915
|
|
Repayments of
short-term borrowings
|
|
|
(2,076,000)
|
|
|
|
(55,515,000)
|
|
|
|
(303,096,477)
|
|
Proceeds from long-term
borrowings
|
|
|
-
|
|
|
|
2,160,161
|
|
|
|
17,057,036
|
|
Repayments of long-term
borrowings
|
|
|
(4,186,712)
|
|
|
|
(9,798,554)
|
|
|
|
(1,608,276)
|
|
Advances received from
(payments made to) related
parties
|
|
|
(228,966)
|
|
|
|
104,482
|
|
|
|
(4,282,303)
|
|
Repayment of
obligations under finance leases
|
|
|
(420,910)
|
|
|
|
(194,421)
|
|
|
|
(408,492)
|
|
Net cash provided by
(used in) financing activities
|
|
|
(1,781,306)
|
|
|
|
12,745,818
|
|
|
|
13,763,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash
|
|
|
(2,135,466)
|
|
|
|
(2,763,692)
|
|
|
|
(2,230,388)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
709,097
|
|
|
|
(16,499,559)
|
|
|
|
1,422,412
|
|
Cash at beginning of
year
|
|
|
1,766,441
|
|
|
|
18,266,000
|
|
|
|
16,843,588
|
|
Cash at end of
year
|
|
$
|
2,475,538
|
|
|
$
|
1,766,441
|
|
|
$
|
18,266,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
880,308
|
|
|
$
|
433,899
|
|
|
$
|
3,718,637
|
|
Cash paid for
interest
|
|
$
|
798,353
|
|
|
$
|
1,108,863
|
|
|
$
|
873,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
non-cash operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and financed under long-term
payment
|
|
$
|
-
|
|
|
$
|
831,746
|
|
|
$
|
22,719
|
|
Purchase of property
and equipment financed under
finance leases
|
|
$
|
-
|
|
|
$
|
210,666
|
|
|
$
|
901,561
|
|
Right of use assets
obtained in exchange for operating
lease liabilities
|
|
$
|
3,118,676
|
|
|
$
|
542,231
|
|
|
$
|
2,856,470
|
|
Capital contribution in
the form of debt exemption
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,111,608
|
|
Deduction of right of
use assets and operating lease
liabilities in relation to lease concession
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
84,368
|
|
Reduction of
right-of-use assets and operating lease
obligations due to early termination of lease
agreement
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
27,262
|
|
Deferred IPO cost
offset with capital reserve
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
685,473
|
|
|
(1)
|
The financial
information presented in this report has been retrospectively
adjusted for the acquisition of Tokyo Lifestyle Limited.
|
View original
content:https://www.prnewswire.com/news-releases/yoshitsu-co-ltd-reports-fiscal-year-2024-financial-results-302198031.html
SOURCE Yoshitsu Co., Ltd