PRESS RELEASE
March 15, 2024
Name of Company: Hokuetsu Corporation
Name of Representative: Sekio Kishimoto, President and CEO(Securities Code: 3865 (Prime Market of Tokyo Stock Exchange))
Inquiries: Tomonari Maruyama, General Manager, Corporate
Management Department
TEL: +81 3-3245-4500

Notice of Recording of Extraordinary Losses and Revision of Earnings Forecasts
In conjunction with the “Notice of Change in Consolidated Subsidiary (Partial Transfer of Shares)” announced today,
Hokuetsu Corporation has recorded extraordinary losses and has accordingly revised its consolidated earnings forecast
for the fiscal year ending March 31, 2024, announced on November 10, 2023, as follows.

1. Recording of Extraordinary Losses(1) Consolidated Financial Results
As disclosed in the “Notice of Change in Consolidated Subsidiary (Partial Transfer of Shares)” released today, it was
decided at the Board of Directors’ meeting today to transfer a portion of the shares of the Company’s consolidated
subsidiary Xing Hui Investment Holdings Co., Ltd. (hereinafter “Xing Hui Investment Holdings”). As a result, theCompany can expect to record a loss on transfer of shares of an affiliated company of approximately 4.5 billion yen
and a loss on waiver of claims on an affiliated company of approximately 2.6 billion yen as extraordinary losses in
the consolidated financial results for the fiscal year ending March 31, 2024.
In addition, the Company expects to record an extraordinary loss of approximately 2.7 billion yen as a provision ofallowance for doubtful accounts for the Company’s loan in accordance with transfer of shares of Xing Hui
Investment Holdings.
(2) Non-consolidated Financial Results
In connection with the above (1), the Company expects to record extraordinary losses comprising a loss on transfer ofshares of an affiliated company of approximately 7.4 billion yen, loss on abandonment of receivables from anaffiliated company of approximately 2.6 billion yen, and a loss of approximately 2.7 billion yen as a provision ofallowance for doubtful accounts.

1

2.

Revision of Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2024

(1) Revision of Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2024
(April 1, 2023 - March 31, 2024)
Net sales
Operating
Ordinary
Profitprofitprofitattributable toowners ofparent(millionyen)(millionyen)(millionyen)(million yen)Previous forecast (A)(Announced November 10, 2023)
310,000
13,00014,0009,000
Revised forecast (B)296,000

14,50016,0006,500

Change (B-A)-14,000

1,500

2,000

-2,500

-4.5

11.5

14.3

-27.8

301,204

17,288

11,471

8,325

Percentage change (%)(Reference) Previous FY results(FY ended March 31, 2023)

Earnings pershare(yen)

53.55
38.66

49.54

(2) Reasons for Revision
With regard to the consolidated earnings forecast for the fiscal year ending March 31, 2024, net sales are expected tofall below the previous forecast due to a decrease in paper sales volume, mainly in Japan. On the other hand, in termsof earnings, operating profit and ordinary profit are expected to exceed the previous forecast, mainly due to limited
cost increases in raw materials and fuel prices, as foreign exchange rates and crude oil prices fell below expectedlevels. Profit attributable to owners of parent is expected to fall below the previous forecast due to the extraordinary
losses resulting from the share transfer and other factors mentioned in 1. above, as well as a decrease in related
corporation taxes.
Furthermore, there is no revision to the dividend forecast accompanying this revision of the earnings forecast.
(Note) The above forecast is based on information currently available to the Company and certain assumptions deemed
reasonable. Actual results may differ significantly from the forecast values due to various factors.

2