SNK Corporation Financial Statements: 21st Fiscal Period Ended July 2022

Key insights

6 takeaways

01
SNK Corporation reported a net profit of 1.79 billion yen for the fiscal year ending July 31, 2022, supported by 5.11 billion yen in total sales and 966.6 million yen in operating profit.See it on page 2
02
The company’s bottom line was significantly bolstered by 1.74 billion yen in foreign exchange gains recorded as non-operating income.See it on page 2
03
SNK maintains a strong liquidity position with 18.87 billion yen in cash and deposits out of 25.12 billion yen in total assets, against total liabilities of only 952.7 million yen.See it on page 4
04
Revenue is primarily generated through the licensing of intellectual property, including character and game assets, in accordance with the Accounting Standard for Revenue Recognition.See it on page 3
05
The company plans to relocate its headquarters to Yodogawa-ku, Osaka, in early 2023 to support workforce expansion and operational efficiency.See it on page 5
06
The upcoming headquarters relocation is projected to increase fixed assets by approximately 563.7 million yen, resulting in higher future depreciation and rental expenses.See it on page 5

Summary

The SNK Corporation Financial Statements for the 21st fiscal period, ending July 31, 2022, provide a comprehensive overview of the company’s financial health, accounting policies, and operational performance. The primary purpose of these statements is to disclose the organization's fiscal standing, including its balance sheet, profit and loss calculations, and significant accounting methodologies, to ensure transparency for stakeholders.

For the fiscal year, SNK Corporation reported total sales of 5.11 billion yen, resulting in an operating profit of 966.6 million yen. The company’s bottom line was bolstered by significant non-operating income, specifically 1.74 billion yen in foreign exchange gains, contributing to a final net profit of 1.79 billion yen. As of July 31, 2022, the company maintained a robust financial position with total assets of 25.12 billion yen, of which 18.87 billion yen consisted of cash and deposits, against total liabilities of 952.7 million yen.

The financial reporting adheres to the Accounting Standard for Revenue Recognition, with revenue streams primarily derived from licensing intellectual property, including character and game assets. The company distinguishes between licensing agreements that grant immediate usage rights and those providing access rights over a specific duration, with revenue recognized accordingly based on the fulfillment of performance obligations.

Significant subsequent events include a planned relocation of the company’s headquarters to a new facility in Yodogawa-ku, Osaka, scheduled for early 2023. This strategic investment is intended to accommodate workforce expansion, improve operational efficiency, and enhance corporate branding. The move is projected to increase fixed assets by approximately 563.7 million yen in the following fiscal year, with associated increases in depreciation and rental expenses.