Financial Performance - Total revenue for the fiscal year 2023 was ¥24,784 million, an increase of 11.6% from ¥22,209 million in 2022[6] - The net profit attributable to shareholders for 2023 was ¥1,134 million, compared to a loss of ¥1,181 million in 2022, marking a significant turnaround[6] - The overall revenue margin for 2023 was 18.3%, slightly down from 19.5% in 2022[6] - Total revenue recorded a year-on-year increase of 11%[13] - Revenue from Japanese pachinko and pachislot operations increased by 819 million JPY or 3.9% from 21,076 million JPY in 2022 to 21,895 million JPY in 2023 due to the easing of pandemic measures and increased customer traffic[24] - Revenue from amusement park operations surged from 359 million JPY in 2022 to 1,710 million JPY in 2023, driven by the lifting of COVID-19 restrictions in Vietnam and Cambodia[28] - The total comprehensive income for the year was ¥954 million, recovering from a loss of ¥1,185 million in the previous year[198] - Operating profit rose significantly to ¥2,258 million, compared to ¥861 million in the prior year, reflecting a substantial improvement in operational efficiency[198] - The net profit for the year was ¥1,053 million, a turnaround from a loss of ¥1,187 million in the previous year, indicating a strong recovery[198] Assets and Liabilities - Current assets as of March 31, 2023, were ¥12,396 million, a decrease from ¥13,012 million in 2022[8] - The total assets for the company were ¥65,804 million, down from ¥68,300 million in the previous year[8] - Cash and cash equivalents as of March 31, 2023, totaled 10,435 million JPY, a decrease from 11,451 million JPY in the previous year[41] - Total borrowings, including bank loans and syndicated loans, amounted to 10,206 million JPY as of March 31, 2023, down from 11,641 million JPY in the previous year[42] - The company's total equity as of March 31, 2023, was 19,294 million JPY, compared to 19,021 million JPY in the previous year[38] - The debt-to-equity ratio as of March 31, 2023, was 1.5, slightly improved from 1.6 in the previous year[44] - The company reported a current ratio of 1.07, indicating a stable liquidity position[8] Operational Highlights - The company operated 49 game halls with over 28,100 machines, serving customers across ten prefectures in Japan[2] - The amusement park business in Vietnam and Cambodia achieved a significant year-on-year growth of 376%, reaching 1,710 million yen[17] - The company plans to expand its market presence and enhance customer experience through new product offerings and technology advancements[2] - The company aims to expand its market share in the core pachinko business and invest in new game halls and acquisitions[20] - A new store was opened in Cambodia, with a total of 9 stores in Vietnam and 3 in Cambodia[17] - The company is focusing on enhancing existing store profitability and developing operational structures for future growth[17] Expenses and Cost Management - The operating expenses for game hall operations were ¥18,870 million, reflecting a slight increase from ¥18,279 million in 2022[6] - Operating cash flow (before changes in working capital) for the fiscal year ending March 31, 2023, was 6,948 million JPY, an increase from 5,681 million JPY in the previous year[40] - Administrative and other operating expenses rose by 466 million JPY or 14.4% to 3,712 million JPY, driven by increased employee-related costs and advertising expenses[32] - Operating expenses for game halls increased by 591 million JPY or 3.2% to 18,870 million JPY, primarily due to rising global energy prices and small-scale renovations[31] Corporate Governance - The board consists of eight directors, including three executive directors and four independent non-executive directors, ensuring a diverse governance structure[55] - The company has adopted and complied with all applicable principles and code provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange[53] - The company plans to appoint at least one female director by the end of December 2024 as part of its board diversity policy[63] - The board retains decision-making authority on all major matters, including policies, overall strategy, and significant transactions[56] - The company emphasizes the importance of corporate governance as a shared responsibility among directors, focusing on compliance and ethical conduct[60] Risk Management - The company has established a risk management and internal control system to identify, assess, and mitigate significant risks[88] - The risk management office continuously monitors and reviews the effectiveness of the risk management and internal control systems, reporting to the audit committee[94] - The company has implemented a formal whistleblowing policy to allow employees to express concerns regarding risks and internal operations[96] - The internal audit department independently assesses the adequacy and effectiveness of the risk management and internal control systems, reviewing risk-related documents prepared by management and interviewing employees at all levels[98] Shareholder Information - The company declared a final dividend of 0.11 JPY per ordinary share for the fiscal year ending March 31, 2023, down from 0.40 JPY in the previous year[36] - The major shareholder Densho Limited holds 225,560,460 shares, representing 18.86% of the total shares[152] - The company has a public float of at least 25% of its total issued share capital, complying with listing rules[165] - Shareholders holding at least 3% of voting rights for six consecutive months can request the board to convene a general meeting[82] Audit and Compliance - The independent auditor confirmed that the consolidated financial statements reflect the group's financial position and performance in accordance with International Financial Reporting Standards[171] - The audit report indicates that there were no significant misstatements identified in the other information provided by the company[188] - The audit concluded that there were no significant uncertainties regarding the company’s ability to continue as a going concern[194] - The audit firm confirmed compliance with relevant ethical requirements regarding independence throughout the audit process[193]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不 對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何 損失承擔任何責任。 （於日本註冊成立的有限公司） （股份代號：1245） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 全年業績概要 • 總投入額為119,837百萬日圓（或7,045百萬港元#），較截至二零二二 年三月三十一日止年度增加10.9%； • 收 益 為24,784百 萬 日 圓（或1,457百 萬 港 元#），較 截 至 二 零 二 二 年 三 月三十一日止年度增加11.6%； • 除 所 得 稅 前 溢 利 為1,363百 萬 日 圓（或80百 萬 港 元#），而 截 至 二 零 二二年三月三十一日止年度則錄得除所得稅前虧損171百萬日圓； • 本公司擁有人應佔年內溢利為1,134百萬日圓（或67百萬港元#），而 截 至 二 零 二 二 年 三 月 三 十 一 日 止 年 度 則 錄 得 本 公 司 擁 有 人 應 佔 虧損1,181百萬日圓； ...

Financial Performance - For the six months ended September 30, 2022, the company's revenue was 12,363 million JPY, an increase of 1,568 million JPY compared to 10,795 million JPY for the same period in 2021[10]. - The pre-tax profit for the same period was 1,626 million JPY, remaining stable compared to 1,625 million JPY in the previous year[18]. - Net profit attributable to the company's owners decreased by 12.0% to 1,063 million JPY from 1,209 million JPY year-on-year[18]. - The overall revenue margin was 18.4%, a decrease from 19.6% in the previous year[12]. - Operating profit for the same period was ¥2,099 million, slightly down from ¥2,193 million year-on-year, representing a decrease of 4.3%[91]. - Net profit for the period was ¥1,005 million, a decrease of 16.5% from ¥1,203 million in the previous year[94]. - Total comprehensive income for the period was ¥823 million, compared to ¥1,185 million in the previous year, indicating a decrease of 30.6%[94]. - Basic earnings per share for the six months ended September 30, 2022, was 0.89 JPY, compared to 1.01 JPY for the same period last year[40]. - The company reported a foreign exchange loss of ¥178 million for the period, compared to a loss of ¥8 million in the previous year[94]. Revenue Breakdown - Japanese pachinko machine revenue increased by 5,998 million yen to 59,179 million yen for the six months ended September 30, 2022, reflecting an 11.3% growth compared to the previous period[19]. - The amusement park business revenue surged to 887 million yen, an increase of 790 million yen or 800% compared to the same period last year[20]. - Restaurant business revenue increased by 203 million yen or 176.5% to 318 million yen, driven by the full reopening of restaurants after the lifting of operating hour restrictions[36]. - Revenue from Japanese pachinko and pachislot hall operations was ¥10,893 million, up from ¥10,400 million in the previous year, reflecting a growth of approximately 4.7%[166]. - The company’s restaurant operations generated revenue of ¥318 million, significantly up from ¥115 million in the previous year, marking an increase of approximately 176.5%[166]. Expenses and Costs - The gaming hall operating expenses were 9,257 million JPY, an increase from 8,523 million JPY in the previous year[12]. - Administrative and other operating expenses decreased by 26 million JPY or 1.5% to 1,760 million JPY for the six months ended September 30, 2022, from 1,786 million JPY in the previous year, due to effective cost control measures[38]. - Operating expenses for game halls increased by 734 million JPY or 8.6% to 9,257 million JPY for the six months ended September 30, 2022, compared to 8,523 million JPY for the same period last year[37]. - The total expenses related to Japanese pachinko and pachislot machines for the six months ended September 30, 2022, were ¥3,046 million, an increase from ¥2,835 million in the previous year, representing an increase of approximately 7.4%[200]. Investments and Capital Expenditures - The total investment amount for the period was 59,179 million JPY, compared to 53,181 million JPY in the previous year, reflecting an increase of approximately 11.3%[12]. - Capital expenditures primarily included purchases for constructing buildings and maintaining gaming equipment, with detailed usage to be provided in subsequent reports[50]. - The company incurred a net cash outflow from investing activities of 70 million yen for the six months ended September 30, 2022, compared to an outflow of 370 million yen in the previous year, showing a significant reduction in investment losses[122]. Cash Flow and Liquidity - Cash and cash equivalents amounted to 11,162 million JPY as of September 30, 2022, down from 11,451 million JPY as of March 31, 2022[44]. - The group’s operating cash flow (before changes in working capital) for the six months ended September 30, 2022, was 4,314 million JPY, an increase from 3,245 million JPY in the previous year[44]. - The net cash flow from operating activities for the six months ended September 30, 2022, was 3,708 million yen, up from 2,802 million yen in the same period last year, indicating a growth of about 32.3%[122]. - The financing activities resulted in a net cash outflow of 3,874 million yen for the six months ended September 30, 2022, compared to 7,129 million yen in the same period last year, reflecting a decrease of approximately 45.5%[122]. Shareholder Information - As of September 30, 2022, the company had issued 1,195,850,460 shares, with significant shareholders including Hisanori Taniguchi holding 7.16% of the shares[65]. - Densho Limited holds 225,560,460 shares, representing an 18.86% ownership stake in the company[73]. - Jukki Limited owns 181,010,000 shares, accounting for a 15.14% ownership stake[73]. - The board declared an interim dividend of 0.17 yen per ordinary share for the six months ended September 30, 2022, compared to no dividend for the same period in 2021[77]. Strategic Initiatives - The company plans to install Smart Slots machines by the end of Q3 2022 and launch Smart Pachinko machines in April 2023 to enhance customer experience and safety[24]. - New amusement parks will be opened in collaboration with Aeon shopping centers, with one set to operate in Cambodia by the end of 2022[25]. - The company aims to expand its hotel business and is seeking new opportunities despite ongoing economic challenges[24]. - The company plans to continue expanding its operations in Southeast Asia and China, focusing on the amusement and restaurant sectors[124]. Financial Position - The current ratio of assets to liabilities was 1.54, slightly up from 1.49 in the previous year, indicating improved liquidity[12]. - The debt-to-equity ratio was 1.5 as of September 30, 2022, down from 1.6 as of March 31, 2022[49]. - Total assets as of September 30, 2022, were ¥67,170 million, a slight decrease from ¥68,300 million as of March 31, 2022[110]. - Total liabilities decreased to ¥47,804 million from ¥49,279 million, showing a reduction of 3.0%[110]. Audit and Compliance - The company's financial data for the six months ending September 30, 2022, was reviewed by the audit committee and has been prepared in accordance with international accounting standards[78]. - The interim financial data was reviewed by PwC Hong Kong, confirming compliance with international accounting standards[88].

Financial Performance - Total revenue for the fiscal year 2022 was ¥22,209 million (approximately HK$1,419 million), an increase from ¥18,541 million (HK$1,302 million) in 2021, representing a growth of 19.0%[10] - The business revenue from Japanese-style pachinko and slot machines was ¥21,076 million (HK$1,347 million) in 2022, up from ¥16,883 million (HK$1,186 million) in 2021, indicating a growth of 24.0%[10] - The net loss attributable to shareholders for 2022 was ¥1,181 million (HK$76 million), compared to a loss of ¥5,481 million (HK$385 million) in 2021, showing a significant reduction in losses[10] - The company reported a gross profit margin of 19.5% for 2022, an increase from 17.9% in 2021[10] - The revenue from the Japanese pachinko business increased by 25% compared to the previous year, reaching approximately 80% of pre-pandemic levels[20] - Revenue from Japanese pachinko and pachislot operations increased by ¥4,193 million or 24.8% to ¥21,076 million in 2022 from ¥16,883 million in 2021[34] - The group's revenue was ¥22,209 million, an increase of ¥3,668 million from ¥18,541 million in 2021, representing a growth rate of 19.8%[151] - The group's loss rate improved from 30.2% in 2021 to 5.3% in the current fiscal year, with net loss attributable to owners reduced to ¥171 million from a floating loss of ¥5,481 million in the previous year[151] Assets and Liabilities - Current assets as of March 31, 2022, were ¥13,012 million (HK$832 million), while current liabilities were ¥11,997 million (HK$767 million), resulting in a net current asset position of ¥1,015 million (HK$65 million)[13] - Total assets amounted to ¥68,300 million (HK$4,367 million) in 2022, a decrease from ¥81,158 million in 2021[13] - As of March 31, 2022, the company's cash and cash equivalents amounted to ¥11,451 million, down from ¥15,903 million in the previous year, representing a decrease of approximately 28.9%[60] - Total borrowings and lease liabilities as of March 31, 2022, were ¥42,330 million, a decrease of 15.5% from ¥50,107 million in the previous year[60] - The total equity as of March 31, 2022, was ¥19,021 million, down from ¥20,206 million in the previous year, reflecting a decrease of approximately 5.9%[60] - The debt-to-equity ratio as of March 31, 2022, was 1.6, slightly improved from 1.7 in the previous year, indicating a reduction in financial leverage[63] Operational Strategy - The company plans to expand its market presence and enhance customer experience through new product offerings and technology advancements[3] - The company aims to improve operational efficiency and reduce costs in the upcoming fiscal year to enhance profitability[3] - The company acquired two medium-sized stores as part of its strategy to expand market share and leverage existing knowledge[23] - The company plans to open two new stores in Vietnam in the next fiscal year, focusing on major shopping malls[24] - The company’s mid-term strategy focuses on ensuring revenue stability in its core pachinko business and expanding market share through new store openings and acquisitions[25] - The company aims to enhance cost efficiency through digitalization while investing in new store openings to build a stable profit structure[23] - The group aims to expand market share through the opening of new gaming halls or acquisition of existing ones as part of its main business strategy[152] Risk Management and Governance - The company has established risk management policies and procedures to identify, analyze, assess, respond to, monitor, and communicate all significant risks[118] - The board is responsible for ensuring the establishment and maintenance of a robust risk management and internal control system, which aims to manage and mitigate risks to an acceptable level[118] - The audit committee reviews the effectiveness of the risk management and internal control systems at least annually and discusses findings with management[121] - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with the standards throughout the fiscal year[111] - The company has established a clear management structure with defined responsibilities and authorities to achieve strategic objectives[125] - The company has implemented measures to monitor and manage risks that could impact group performance, including regular assessments of identified risks and action plans[125] Corporate Governance - The company has adopted and complied with all applicable principles and provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange, except for the separation of roles between the Chairman and the CEO[76] - The board consists of eight members, including three executive directors and four independent non-executive directors, ensuring a diverse governance structure[78] - The company emphasizes the importance of corporate governance as a shared responsibility of the board, including compliance with laws and regulations, and monitoring the training and development of directors and senior management[82] - The company has established a board diversity policy, considering various factors such as gender, age, cultural background, and professional experience to enhance board performance[90] - The company has confirmed the independence of all independent non-executive directors as per the listing rules[180] - The company maintains directors' liability insurance to provide appropriate protection for its directors[186] Market Conditions and Future Outlook - The company recognizes the long-term challenges of declining production and labor populations in regions like Fukushima, which impacts its core business[30] - The company anticipates that the economic growth rates in Vietnam and Cambodia will recover post-COVID-19, leading to increased market demand[24] - The company expects a steady recovery of the global economy as countries ease restrictions, preparing to seize opportunities in the post-pandemic era[154] - The overall gaming hall foot traffic has not yet returned to pre-pandemic levels, despite steady improvements in the pachinko business[152] Employee and Community Engagement - The company is committed to sustainable growth by prioritizing the interests of employees, customers, and local communities[28] - As of March 31, 2022, the company employed 1,263 staff for the Japanese pachinko and slot machine business and 367 staff for the amusement park business[160] - The company has maintained long-term relationships with major suppliers, including suppliers of Japanese pachinko and slot machines, with an average business relationship exceeding ten years[158]

NİRAKU GC HOLDİNGS ÑÎŘÅKU ĞČ HÓLDIÑĞŠ, ÍŃČ.× (Incorporated in Japan with limited liability 於日本註冊成立的有限公司) Stock Code 股份代號 : 1245 ＩＮＴＥＲＩＭ ＲＥＰ０ＲＴ 中 期 報 告 * For identification purpose only 匯供暖別 目錄 頁次 | --- | --- | |--------------------------|-------| | | | | 公司資料及投資者資訊 | | | 財務及營運摘要 | | | 管理層討論及分析 | | | 企業管治及其他資料 | | | 中期財務資料審閱報告 | | | 中期簡明綜合全面收益表 | | | 中期簡明綜合財務狀況表 | | | 中期簡明綜合權益變動表 | | | 中期簡明綜合現金流量表 | | | 簡明綜合中期財務資料附註 | | | | | 公司簡介 株式会社ニラク ▪ ジー ▪ シー ▪ ホールディングス NIRAKU GC HOLDINGS, INC. * 「 NIRAKU J 或 ｢本公司｣・香港股 ...

[Company Profile](index=3&type=section&id=Company%20Profile) NIRAKU GC HOLDINGS, INC. (HKEX: 1245) is a leading pachinko hall operator in Fukushima, Japan, with over sixty years of experience, operating 47 halls with over 28,100 machines - The company is a leading pachinko hall operator in Fukushima Prefecture, Japan, with **over sixty years of experience**[4](index=4&type=chunk) - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on **April 8, 2015**[4](index=4&type=chunk) Operating Data as of Report End | Metric | Quantity | | :--- | :--- | | Number of gaming halls | 47 halls | | Number of machines | Over 28,100 machines | | Coverage area | Ten prefectures in Japan | [Company Information and Investor Relations](index=4&type=section&id=Company%20Information%20and%20Investor%20Relations) This section provides essential company details, including board members, committee structures, key banking relationships, auditors, legal advisors, share registrars, and investor contact information - The Board of Directors includes Executive Directors (Mr Hisanori Taniguchi, Mr Akinori Oishi, Mr Masanori Watanabe), a Non-executive Director (Mr Hiroshi Bannai), and Independent Non-executive Directors (Mr Michio Minakata, Mr Yoshihiro Koizumi, Mr Kuraji Honda, Mr Akito Tanaka)[7](index=7&type=chunk) - Mr Michio Minakata chairs the Audit Committee, Mr Yoshihiro Koizumi chairs the Remuneration Committee, and Mr Hisanori Taniguchi chairs the Nomination Committee[7](index=7&type=chunk) - The company's stock code is **1245**, website is www.ngch.co.jp, and investor relations email is niraku@sprg.com.hk[7](index=7&type=chunk) [Financial and Operational Summary](index=5&type=section&id=Financial%20and%20Operational%20Summary) This section outlines the Group's financial performance and position for the fiscal year ended March 31, 2021, showing significant declines in total turnover and revenue, a shift from profit to loss, increased net current liabilities, and a higher gearing ratio FY2021 Key Financial and Operational Data (vs FY2020) | Metric | 2021 FY (million JPY) | 2020 FY (million JPY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Turnover | 94,414 | 139,053 | -32.0% | | Revenue from Pachinko and Pachislot Business | 16,883 | 25,007 | -32.5% | | Revenue | 18,541 | 28,046 | -33.9% | | (Loss)/Profit Before Income Tax | (8,502) | 581 | N/A (Turned to loss) | | (Loss)/Profit Attributable to Owners of the Company | (5,481) | 179 | N/A (Turned to loss) | | (Loss)/Earnings Per Share (JPY) | (4.58) | 0.150 | N/A (Turned to loss) | | Overall Revenue Yield | 17.9% | 18.0% | -0.1% | | Net (Loss)/Profit Margin | (30.2%) | (0.50%) | N/A (Loss widened) | FY2021 Statement of Financial Position Summary (vs FY2020) | Metric | 2021 FY (million JPY) | 2020 FY (million JPY) | | :--- | :--- | :--- | | Current Assets | 17,937 | 16,092 | | Current Liabilities | 23,805 | 11,179 | | Net Current (Liabilities)/Assets | (5,868) | 4,913 | | Total Assets | 77,491 | 81,158 | | Gearing Ratio | 1.69 | 1.30 | - Net current liabilities were **JPY5,868 million** in FY2021, compared to net current assets of **JPY4,913 million** in FY2020, with the current ratio decreasing from **1.44 to 0.75**[14](index=14&type=chunk) [Chairman's Statement](index=7&type=section&id=Chairman's%20Statement) The Chairman's Statement highlights the severe impact of the COVID-19 pandemic on the Group's pachinko and amusement businesses, detailing mitigation efforts and future strategies for sustainable growth - The COVID-19 pandemic led to a **32% decrease** in total turnover for the Japan pachinko business, with customer traffic recovering to approximately **80% of pre-pandemic levels**[19](index=19&type=chunk) - The Group closed **7 unprofitable** pachinko halls and opened one large new hall with **over 1,000 machines** to increase market share[22](index=22&type=chunk) - Southeast Asia amusement business revenue decreased by **39%** year-on-year, with **3 unprofitable branches closed** and **3 new branches opened in Vietnam** in preparation for pandemic recovery[23](index=23&type=chunk) - China restaurant business operations were suspended in **February 2020** due to COVID-19 and resumed in **2021**[24](index=24&type=chunk) - Hong Kong e-sports joint venture business was severely impacted by political changes and COVID-19, failing to host events, with plans to review and restructure its business model[24](index=24&type=chunk) - The Group's mid-term strategy focuses on increasing revenue and market share in its core pachinko business, investing in new halls and M&A, advancing digitalization, and exploring new business opportunities in Japan[27](index=27&type=chunk) - The Group adopted an Environmental, Social, and Governance (ESG) management declaration, prioritizing public interest and sustainable growth with stakeholders, focusing on profit allocation, long-term sustainable contribution, and bold new ventures[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the Group's FY2021 financial performance, primarily impacted by COVID-19, resulting in significant revenue declines across all segments and substantial impairment losses, leading to a net loss, with management implementing cost controls and capital structure adjustments - In FY2021, revenue from the pachinko and pachislot business decreased by **32.5%** year-on-year to **JPY16,883 million**, mainly due to hall closures, reduced customer traffic, and the closure of **7 unprofitable halls**[34](index=34&type=chunk) - Amusement business revenue decreased by **39%** year-on-year to **JPY1,015 million**, primarily affected by lockdowns and social distancing measures in Vietnam and Cambodia[38](index=38&type=chunk) - Other revenues (vending machines, hotels, restaurants) significantly declined due to the pandemic, with hotel occupancy at **41.7%** and restaurant business revenue down **66.4%**[39](index=39&type=chunk) - Gaming hall operating expenses decreased by **17.3%** year-on-year to **JPY17,571 million**, and administrative and other operating expenses significantly decreased by **40.0%** to **JPY3,393 million**, primarily due to cost control measures[42](index=42&type=chunk)[43](index=43&type=chunk) - Impairment losses on property, plant and equipment and right-of-use assets substantially increased to **JPY5,592 million** (FY2020: JPY676 million), mainly due to a significant decline in customer traffic caused by the pandemic[44](index=44&type=chunk) - For FY2021, the loss attributable to owners of the Company was **JPY5,481 million**, compared to a profit of **JPY179 million** in FY2020, with basic loss per share at **JPY4.58**[47](index=47&type=chunk)[50](index=50&type=chunk) - The Board of Directors resolved not to declare a final dividend[50](index=50&type=chunk) Capital Structure Summary (as of March 31) | Metric | 2021 FY (million JPY) | 2020 FY (million JPY) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 15,903 | 14,128 | | Bank Loans | 4,478 | 4,792 | | Syndicated Loans | 12,189 | 8,294 | | Lease Liabilities | 33,440 | 34,577 | | Working Capital | (5,868) | 4,913 | | Total Equity | 20,206 | 25,799 | | Gearing Ratio | 1.7 | 1.3 | - Net current liabilities were **JPY5,868 million** in FY2021, with a current ratio of **0.75**, compared to net current assets of **JPY4,913 million** and a current ratio of **1.44** in FY2020[57](index=57&type=chunk) - Total capital expenditure in FY2021 increased to **JPY4,234 million** from **JPY2,499 million** in FY2020, primarily for property, plant and equipment and right-of-use assets[62](index=62&type=chunk) - As of March 31, 2021, the carrying amount of pledged assets was **JPY10,571 million**, including property, plant and equipment, investment properties, and deposits and other receivables[65](index=65&type=chunk) - As of March 31, 2021, the Group had **1,717 employees**[69](index=69&type=chunk) [Corporate Governance Report](index=15&type=section&id=Corporate%20Governance%20Report) This report details the company's compliance with the HKEX Corporate Governance Code for FY2021, covering board structure, committee responsibilities, diversity policy, remuneration, auditor's fees, shareholder rights, and risk management, noting deviations in the Chairman/CEO role and AGM notice period

NİRAKU GC HOLDİNGS ÑIŘÅKU GČ HÓLDINGŠ, ÍŃČ.× (Incorporated in Japan with limited liability 於日本註冊成立的有限公司) Stock Code 股份代號 : 1245 2020/2021 INTERIM REPORT 中 期 報 告 * For identification purpose only 懂供藏別 目錄 頁次 公司簡介 2 | --- | --- | |--------------------------|-------| | | | | 公司資料及投資者資訊 | | | 財務及營運摘要 | | | 管理層討論及分析 | | | 企業管治及其他資料 | | | 中期財務資料審閱報告 | | | 中期簡明綜合全面收益表 | | | 中期簡明綜合財務狀況表 | | | 中期簡明綜合權益變動表 | | | 中期簡明綜合現金流量表 | | | 簡明綜合中期財務資料附註 | | | | | 公司簡介 株式会社ニラク ▪ ジー ▪ シー ▪ ホールディングス NIRAKU GC HOLDINGS, INC. * 「 NIR ...

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niraku NIRAKU GC HÓLDIÑGŠ, ÍÑČ.+ (Incorporated in Japan with limited liability 於日本註冊成立的有限公司) Stock Code 股份代號 : 1245 2019/2020 INTERIM REPORT · 中 期 報 告 * For identification purpose only 值供識別 目錄 頁次 | --- | --- | |--------------------------|-------| | | | | 公司簡介 | 2 | | 公司資料及投資者資訊 | 3 | | 財務及營運摘要 | 4 | | 管理層討論及分析 | 6 | | 企業管治及其他資料 | 14 | | 中期財務資料審閱報告 | 19 | | 簡明綜合全面收益表 | 21 | | 簡明綜合財務狀況表 | 22 | | 簡明綜合權益變動表 | 24 | | 簡明綜合現金流量表 | 25 | | 簡明綜合中期財務資料附註 | 27 | 公司簡介 株式会社ニラク ジー シー ホールディングス NIRAKU GC HOLDINGS, INC.*（「NI ...

Financial Performance - Total revenue for the fiscal year ended March 31, 2019, was ¥28,325 million (approximately HK$2,003 million), an increase from ¥26,554 million (HK$1,961 million) in 2018, representing a growth of 6.6%[14] - The company reported a net profit attributable to shareholders of ¥610 million (HK$43 million) for 2019, compared to a loss of ¥15 million (HK$1 million) in 2018, indicating a significant turnaround[14] - The overall revenue margin for 2019 was 18.3%, slightly up from 18.2% in 2018, reflecting stable operational efficiency[14] - Revenue from Japanese-style pachinko and slot machine operations increased by ¥618 million or 2.4% to ¥25,881 million in 2019, up from ¥25,263 million in 2018[44] - The revenue contribution from the amusement park business was ¥1,535 million in 2019, significantly up from ¥417 million in 2018, primarily due to the full-year impact of the acquisition of Dream Games[48] - The group reported revenue from the Japanese pachinko business of ¥25,881 million for the fiscal year ending March 31, 2019, an increase of 2.4% from ¥25,263 million in 2018, with a profit margin of 18.3%[151] Assets and Liabilities - The total assets as of March 31, 2019, amounted to ¥54,043 million (HK$3,822 million), an increase from ¥52,171 million (HK$3,853 million) in 2018[18] - The company’s asset-liability ratio improved to 70.9% in 2019 from 69.6% in 2018, indicating better financial stability[18] - The company's total liabilities as of March 31, 2019, were ¥19,502 million, compared to ¥18,875 million in 2018, resulting in a debt-to-equity ratio of 70.9%[68] - The total bank loans increased to ¥16,082 million in 2019 from ¥14,740 million in 2018, with an average interest rate ranging from 0.99% to 1.91%[61] - As of March 31, 2019, the company's cash and cash equivalents totaled ¥15,176 million, a decrease from ¥15,594 million in 2018[60] Operational Strategy - The company plans to continue expanding its network of game halls and enhancing customer experience as part of its growth strategy[5] - The company aims to expand its entertainment business across Japan and Asia, focusing on amusement parks, dining, and its main Japanese pachinko business[24] - The company is addressing challenges in the pachinko industry by implementing sales policies to ensure sustainable profit growth and cost efficiency[27] - The company plans to continue opening new amusement parks and seek acquisition opportunities to strengthen its market position[28] - The company is committed to investing in business expansion in Southeast Asia, aiming to make it a major profit pillar in the medium term[29] Corporate Governance - The company adopted and complied with all applicable principles and provisions of the corporate governance code as per the listing rules, except for the separation of roles between the chairman and CEO[81] - The board consists of five members, including one executive director and three independent non-executive directors, ensuring a diverse governance structure[87] - The audit committee held 14 meetings during the fiscal year ending March 31, 2019, reviewing the group's risk management and internal control systems[94] - The company has implemented a board diversity policy, considering various factors such as gender, age, and professional experience to enhance performance quality[88] - The company is focused on ensuring effective corporate governance practices that align with shareholder interests[81] Shareholder Information - Major shareholders include Takaguchi Ryuuou with 223,790,000 shares (18.71%) and Takaguchi Akihiro with 151,570,000 shares (12.67%) [192] - Sumitomo Mitsui Financial Group holds 229,137,500 shares (19.16%) in the company, indicating significant institutional investment [192] - The total shares held by major shareholders represent a substantial portion of the company's equity, with the top three shareholders owning over 39% combined [192] - The company has a diverse shareholder base, including family trusts and corporate entities, which may influence governance and strategic decisions [199] - The company is subject to regulatory disclosures regarding shareholder interests, ensuring transparency in ownership stakes [199] Future Outlook - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10%[137] - New product launches are expected to contribute an additional $50 million in revenue over the next year[137] - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[137] - The company is considering strategic acquisitions to enhance its product offerings and market presence[137] - A new marketing strategy is being implemented, aiming to increase brand awareness by 30%[137] Employee Information - The company has 1,846 employees as of March 31, 2019, with compensation policies determined by the remuneration committee based on performance and qualifications[77] - The group employs 1,457 staff in the pachinko and slot machine business and 389 in the amusement park sector as of March 31, 2019[159] Risk Management - The company has established risk management policies and procedures to identify, analyze, assess, respond to, monitor, and communicate significant risks[122] - The internal audit department independently evaluates the effectiveness of the risk management and internal control systems, reporting findings to the audit committee[126] - The board has reviewed the risk management and internal control systems without identifying any significant issues affecting their effectiveness during the year[131] - The group faces risks related to the ongoing decline of the pachinko industry and uncertainties regarding the profitability of new amusement parks[164]