Restated Quarterly Report – 3rd Quarter of the 58th Fiscal Period (2023/10/01–2023/12/31)

Nichiryoku Co., Ltd. Restated Quarterly Report – 3rd Quarter of the 58th Fiscal Period (2023/10/01–2023/12/31)

The company has identified an error in the accounting treatment related to revenue recognition during the review process for the accurate application of accounting standards for the third quarter of the 58th fiscal period (from October 1, 2023 to December 31, 2023).

As a result, the figures for net sales and operating income have been revised. Specifically, revenue was previously overstated due to a mismatch between delivery timing and revenue recognition timing in several large-scale projects.

After restatement, net sales have been downwardly revised by 3.2% compared to the previously announced figures, and operating income by 5.7%. These revisions were determined through discussions with both the company's internal audit department and external auditing firm.

To prevent recurrence, the company will review internal policies on revenue recognition and strengthen training for relevant departments. Additionally, Nichiryoku will further enhance its internal control systems to maintain transparent and reliable financial reporting.

Due to this restatement, the company will re-evaluate its full-year forecast for the 58th fiscal period and disclose updated projections. The company sincerely apologizes to investors for any inconvenience caused.