Aiming Quarterly Securities Report: Q2 Fiscal Year 2022

Aiming Inc. provides this quarterly securities report for the second quarter of the fiscal year ending December 31, 2022, covering the period from April 1, 2022, to June 30, 2022. The company operates within the Japanese smartphone online game industry, focusing on the development and operation of free-to-play titles. The report outlines the company’s financial performance, operational status, and adherence to new accounting standards for revenue recognition, which were adopted at the beginning of the fiscal year.

Financial results for the first half of 2022 show a year-over-year increase in net sales to 6,382 million yen, representing a 5.0% growth driven by the strong performance of the co-developed title Dragon Quest Tact. However, profitability declined significantly compared to the previous year, with operating profit falling 48.4% to 493 million yen and quarterly net profit dropping 47.4% to 404 million yen. This decline is attributed to rising development costs, including increased personnel and outsourcing expenses associated with the preparation and launch of new titles, such as the April 2022 release of Character Stories Magic Academy.

The company maintains a stable financial position with total assets of 7,607 million yen and a capital adequacy ratio of 85.9%. Cash and cash equivalents increased to 5,663 million yen by the end of the second quarter. The report confirms that there have been no significant changes to business risks or the company’s fundamental approach to research and development, which totaled 502 million yen for the period. The financial statements were subject to a quarterly review by an independent auditor, which concluded that the financial position and operating results were presented fairly in accordance with Japanese accounting standards.