Consolidated Financial Report: Q2 2020

KLab Inc. reports consolidated financial results for the first half of fiscal year 2020 (January 1–June 30, 2020). Revenue rose to ¥15.95 billion from ¥14.81 billion in the same period of FY2019, a 7.7 % increase, driven by growth in the game business and other businesses such as research & consulting. Operating income fell sharply to ¥753 million from ¥1,305 million, a 42.2 % decline, largely due to higher cost of sales and lower gross profit margin. Ordinary income dropped 52.8 % to ¥568 million, and profit attributable to owners of parent fell 98 % to ¥16 million. Net income turned negative, with a loss of ¥44 million versus a profit of ¥21 million in FY2019, reflecting significant foreign exchange losses and impairment charges. Comprehensive income also turned negative at ¥254 million compared with a positive ¥932 million in FY2019, driven by valuation losses on available‑for‑sale securities and foreign currency translation adjustments.

Total assets decreased modestly to ¥23.34 billion from ¥23.67 billion, while shareholders’ equity remained stable at ¥17.29 billion, giving an equity ratio of 66.2 %. Net assets grew slightly to ¥17.29 billion, and the company maintained a strong liquidity position with cash and deposits of ¥6.38 billion. No dividends were declared for FY2019 or FY2020, and the forecasted dividend remained unchanged. The report covers Japan only, covering KLab’s core game development and ancillary businesses, with data derived from consolidated financial statements under Japanese GAAP. The methodology follows standard accounting principles without restatements or significant policy changes during the period.