53.66% and 141.14% Increase in Gross Profit and Net Income from Continuing Operations for Full Year 2023 Compared to Full Year 2022, Respectively

Rimawari-kun Members Reached 279,029 as of December 31, 2023, a 17.7% Increase from 2022

Rimawari-kun Platform Gross Merchandise Value Surpasses 5 Billion Yen as of December 31, 2023  

TOKYO, May 16, 2024 (GLOBE NEWSWIRE) -- SYLA Technologies Co., Ltd. (NASDAQ:SYT) ("SYLA" or "the Company"), operator of the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, reported its financial results for the full year ended December 31, 2023.

Full Year 2023 Operational Highlights:

Management Commentary

"This past year was a pivotal one full of advancement for SYLA across our various business sectors," said Chairman, Founder, and CEO Hiroyuki Sugimoto. "We achieved record highs in our real estate development and sales, real estate crowdfunding, asset management, solar power businesses, and we achieved significant increases in both gross profit and net income."

"Throughout the latter half of the year, the company strategically pursued acquisitions to bolster our real estate development and sales, and crowdfunding businesses. The acquisition of ietty, becoming the largest shareholder and forming a strategic business alliance with RIBERESUTE, and the supply of properties to BlackRock are all strategic moves that have positioned SYLA for significant growth in 2024 and beyond. The favorable Japanese macroeconomic environment, characterized by low interest rate policies, increased inbound investments, and population growth in the central Tokyo area are all factors that position our top-line growth."

"Looking ahead, I would like to reiterate and emphasize our growth strategy centered around M&A. The successes of the past year on this front have strengthened our confidence in maximizing the potential of ventures that have synergies with our company. We anticipate reasonable, short-term integration costs which we believe will yield substantial returns for our shareholders in the medium to long-term. With a robust balance sheet and ample cash reserves, we are well positioned to explore and execute on this initiative."

Full Year 2023 Financial Results:

Results compare the full year ended December 31, 2023, to the full year ended December 31, 2022, unless otherwise indicated. Results below are for SYLA Technologies Co., Ltd. on a consolidated basis.

*(Conversion rate: ¥140.92 = US$1.00)

Fiscal Year 2024 Guidance

SYLA is providing the following guidance for fiscal year 2024:

 Low (JPY)High (JPY)
Fiscal Year 2024 Revenue27.5 billion yen          30.0 billion yen
Fiscal Year 2024 Income from Continuing Operations            750 million yen            1.10 billion yen



About SYLA Technologies Co., Ltd.

Headquartered in Tokyo, Japan, SYLA Technologies Co., Ltd. (NASDAQ:SYT) ("SYLA" or "the Company") owns and operates the largest membership real estate crowd-funding platform in Japan, Rimawari-kun, which targets individuals, corporate and institutional investors, as well as high net worth individuals. SYLA's mission is to democratize real estate investment around the world through technology and asset management through the Rimawari-kun platform. SYLA is engaged in the overall investment condominium business, including planning, development, construction, sales, rental management, building management, repair work, and the sale of properties. Additional information about the Company's products and services is available at https://syla-tech.jp/en.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the expected gross proceeds and the closing of the offering. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission ("SEC"), including, but not limited to, the risks detailed in the Company's annual report on Form 20-F, filed with the SEC on April 18, 2023. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

Contact Information

SYLA Technologies Investor Relations Contact:

Gateway Group, Inc.

John Yi and Steven Shinmachi

SYLA@gateway-grp.com

(949) 574-3860

SYLA Technologies Company Contact

Takeshi Fuchiwaki

Director, Chief Growth Officer

irpr@syla.jp

  
SYLA TECHNOLOGIES CO., LTD. 
CONSOLIDATED BALANCE SHEETS 
(Amounts in thousands of Japanese Yen ("JPY"), except for share data) 
  
      
 As of December 31, 
 2023  2022 
      
ASSETS       
Current assets       
Cash and cash equivalents 4,017,311   2,542,795 
Restricted cash 569,469   168,630 
Term deposits 233,505   160,089 
Short-term investments 89,482   - 
Accounts receivable, net 162,690   67,776 
Inventories 16,849,935   10,517,193 
Prepaid expenses, net 357,104   647,534 
Other current assets, net 304,271   185,350 
Current assets of discontinued operations -   10,600 
Total current assets 22,583,767   14,299,967 
        
Non-current assets       
Restricted cash, non-current 25,180   76,578 
Long-term deposits 9,300   30,511 
Long-term investments, net 490,437   413,805 
Property, plant and equipment, net 11,889,701   10,231,057 
Solar power systems, net 476,778   361,422 
Intangible assets, net 133,226   194,361 
Goodwill 730,776   727,701 
Operating lease right-of-use assets 2,409,255   2,597,500 
Finance lease right-of-use assets 11,980   11,396 
Other assets, net 1,324,027   848,676 
Total non-current assets 17,500,660   15,493,007 
        
TOTAL ASSETS 40,084,427   29,792,974 
        
LIABILITIES AND EQUITY       
Current liabilities       
Accounts payable 559,420   419,058 
Accrued liabilities 277,425   159,533 
Short-term loans 1,692,599   697,179 
Current portion of long-term loans 7,243,022   1,030,850 
Current portion of long-term bonds 107,601   126,525 
Deferred revenue 165,262   228,426 
Income tax payables 466,872   431,418 
Operating lease liabilities, current 433,725   427,856 
Finance lease liabilities, current 4,158   4,821 
Other current liabilities 1,047,016   1,603,498 
Current liabilities of discontinued operations -   3,308 
Total current liabilities 11,997,100   5,132,472 
        
Non-current liabilities       
Long-term loans 14,308,136   15,257,106 
Long-term bonds 97,549   205,769 
Operating lease liabilities, non-current 1,958,689   2,175,786 
Finance lease liabilities, non-current 8,040   6,795 
Other liabilities 534,228   448,356 
Total non-current liabilities 16,906,642   18,093,812 
        
TOTAL LIABILITIES 28,903,742   23,226,284 
        
EQUITY       
Capital stock (900,000 shares authorized, 260,891 and 239,489 shares issued and outstanding as of December 31, 2023 and 2022, respectively, with no stated value) 100,000   161,580 
Capital surplus 4,988,126   2,987,795 
Treasury stock, at cost (142 and nil shares as of December 31, 2023 and 2022, respectively) (13,631)  - 
Retained earnings 3,413,644   2,767,001 
Total SYLA Technologies Co., Ltd.'s equity 8,488,139   5,916,376 
Noncontrolling interests 2,692,546   650,314 
TOTAL EQUITY 11,180,685   6,566,690 
TOTAL LIABILITIES AND EQUITY 40,084,427   29,792,974 



 
SYLA TECHNOLOGIES CO., LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Amounts in thousands of JPY, except for share and per share data)
          
  For the Years Ended December 31, 
  2023  2022  2021 
          
Revenues, net  22,743,410   22,055,785   16,665,382 
Cost of revenues  (17,205,966)  (18,451,969)  (13,516,293)
Gross profit  5,537,444   3,603,816   3,149,089 
Operating expenses            
Selling, general and administrative expenses  (4,096,346)  (2,825,104)  (2,466,731)
Total operating expenses  (4,096,346)  (2,825,104)  (2,466,731)
             
Income from continuing operations  1,441,098   778,712   682,358 
             
Other income (expenses)            
Other income  146,787   201,954   43,951 
Income (loss) from equity method investments  (1,689)  (748)  109 
Other expenses  (570,856)  (323,977)  (226,346)
Total other expenses  (425,758)  (122,771)  (182,286)
Income from continuing operations before income taxes  1,015,340   655,941   500,072 
Income tax expense  (265,979)  (345,180)  (221,384)
Net income from continuing operations  749,361   310,761   278,688 
Income (loss) from discontinued operations, net of income taxes  (6,742)  78,628   - 
Net income  742,619   389,389   278,688 
Net income from continuing operations attributable to noncontrolling interests  61,187   4,329   1,199 
Net loss from discontinued operations attributable to noncontrolling interests  -   (9,895)  - 
Less: net income (loss) attributable to noncontrolling interests  61,187   (5,566)  1,199 
Net income attributable to SYLA Technologies Co., Ltd.  681,432   394,955   277,489 
             
Net income from continuing operations per share            
- Basic  2,698.42   1,280.25   1,201.09 
- Diluted  2,263.36   1,081.45   1,022.40 
             
Income (loss) from discontinued operations per share            
- Basic  (26.44)  369.84   - 
- Diluted  (22.17)  312.41   - 
             
Net income attributable to SYLA Technologies Co., Ltd. per share            
- Basic  2,671.99   1,650.09   1,201.09 
- Diluted  2,241.19   1,393.86   1,022.40 
             
Weighted average shares used in calculating basic and diluted net income per share            
- Basic  255,028   239,353   231,031 
- Diluted  304,049   283,354   271,409 
             
Comprehensive income            
Net income  742,619   389,389   278,688 
Other comprehensive income, net of tax            
Reclassification of unrealized loss on available-for-sale debt securities to net income when realized, net of tax effect of nil, nil, and 175 for the years ended December 31, 2023, 2022 and 2021, respectively  -   -   396 
Other comprehensive income, net of tax  -   -   396 
Comprehensive income  742,619   389,389   279,084 
Comprehensive income (loss) attributable to noncontrolling interests  61,187   (5,566)  1,199 
Comprehensive income attributable to SYLA Technologies Co., Ltd.  681,432   394,955   277,885 


Primary Logo