Hokuto : Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

		Summary of Consolidated Financial Results
		for the Six Months Ended September 30, 2023
		(Based on Japanese GAAP)
		November 10, 2023
Company name:	HOKUTO CORPORATION
Stock exchange listing:	Tokyo
Stock code:	1379	URL https://www.hokto-kinoko.co.jp
Representative:	President	Masayoshi Mizuno

Inquiries:	Executive Officer, General Manager of	Kohei Nakada	TEL [phone]
Accounting Department
Scheduled date to file Quarterly Securities Report:	November 10, 2023
Scheduled date to commence dividend payments:	December 5, 2023
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)

(1) Consolidated operating results (cumulative)					Percentages indicate year-on-year changes
	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%
Six months ended September 30, 2023	34,862	10.3	(1,975)		-	(668)		-	(617)		-
Six months ended September 30, 2022	31,617	0.4	(4,397)		-	(2,769)		-	(2,208)		-

	Earnings per share	Diluted earnings per share
	Yen		Yen
Six months ended September 30, 2023	(19.49)		-
Six months ended September 30, 2022	(69.89)		-
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of September 30, 2023	105,128		50,156	47.7
As of March 31, 2023	104,897		50,955	48.6

2. Cash dividends
		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen	Yen	Yen	Yen
Year ended March 31, 2023	-	10.00	-	30.00
Year ending March 31, 2024	-	10.00
Year ending March 31, 2024 (Forecast)			-	-

Total

Yen 40.00

-

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	80,200	9.9	1,920		-	2,110		-	700		-	22.08

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2023 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2023	33,359,040	shares	As of March 31, 2023	33,359,040	shares
Number of treasury shares at the end of the period
	As of September 30, 2023	1,637,362	shares	As of March 31, 2023	1,698,816	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2023	31,690,299	shares	Six months ended September 30, 2022	31,597,031	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Assets
Current assets
Cash and deposits	16,031	13,245
Notes and accounts receivable - trade	6,250	8,323
Merchandise and finished goods	2,636	2,982
Work in process	4,308	4,965
Raw materials and supplies	1,056	1,101
Other	538	780
Allowance for doubtful accounts	(31)	(40)
Total current assets	30,790	31,358
Non-current assets
Property, plant and equipment
Buildings and structures	71,334	72,246
Accumulated depreciation	(34,848)	(36,245)
Buildings and structures, net	36,486	36,001
Machinery, equipment and vehicles	67,555	68,878
Accumulated depreciation	(55,339)	(57,861)
Machinery, equipment and vehicles, net	12,215	11,016
Land	14,506	14,581
Other	2,760	2,928
Accumulated depreciation	(1,995)	(2,056)
Other, net	765	871
Total property, plant and equipment	63,973	62,471
Intangible assets
Goodwill	9	-
Other	202	177
Total intangible assets	211	177
Investments and other assets
Investment securities	6,681	7,912
Retirement benefit asset	1,127	1,155
Other	2,254	2,203
Allowance for doubtful accounts	(142)	(150)
Total investments and other assets	9,920	11,120
Total non-current assets	74,106	73,769
Total assets	104,897	105,128

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		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	6,187	6,301
Short-term borrowings	7,088	17,094
Income taxes payable	262	226
Provision for bonuses	964	1,237
Other	23,433	11,013
Total current liabilities	37,936	35,872
Non-current liabilities
Long-term borrowings	14,072	17,071
Retirement benefit liability	358	368
Asset retirement obligations	1,030	1,048
Other	543	610
Total non-current liabilities	16,004	19,098
Total liabilities	53,941	54,971
Net assets
Shareholders' equity
Share capital	5,500	5,500
Capital surplus	5,728	5,728
Retained earnings	41,943	40,371
Treasury shares	(3,151)	(3,029)
Total shareholders' equity	50,020	48,570
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,352	2,203
Foreign currency translation adjustment	(357)	(568)
Remeasurements of defined benefit plans	(59)	(48)
Total accumulated other comprehensive income	935	1,586
Total net assets	50,955	50,156
Total liabilities and net assets	104,897	105,128

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Net sales	31,617	34,862
Cost of sales	28,476	29,139
Gross profit	3,141	5,723
Selling, general and administrative expenses	7,538	7,698
Operating loss	(4,397)	(1,975)
Non-operating income
Dividend income	88	106
Rental income from land and buildings	48	67
Foreign exchange gains	1,512	1,111
Subsidy income	9	9
Other	37	91
Total non-operating income	1,697	1,386
Non-operating expenses
Interest expenses	47	64
Other	20	15
Total non-operating expenses	68	79
Ordinary loss	(2,769)	(668)
Extraordinary income
Gain on sale of non-current assets	1	2
Total extraordinary income	1	2
Extraordinary losses
Loss on retirement of non-current assets	1	0
Other	0	-
Total extraordinary losses	1	0
Loss before income taxes	(2,769)	(666)
Income taxes - current	209	344
Income taxes - deferred	(770)	(393)
Total income taxes	(560)	(48)
Loss	(2,208)	(617)
Loss attributable to owners of parent	(2,208)	(617)

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Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Loss	(2,208)	(617)
Other comprehensive income
Valuation difference on available-for-sale securities	50	850
Foreign currency translation adjustment	(255)	(210)
Remeasurements of defined benefit plans, net of tax	14	11
Total other comprehensive income	(190)	651
Comprehensive income	(2,398)	33
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	(2,398)	33
Comprehensive income attributable to non-controlling	-	-
interests

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