Financial Performance - Total revenue for the first six months of fiscal year 2025 was approximately 3,188 million JPY, a slight decrease of about 3 million JPY or 0.1% from approximately 3,191 million JPY in the first six months of fiscal year 2024[11]. - Profit before tax decreased by approximately 482 million JPY or 44.1% to about 610 million JPY in the first six months of fiscal year 2025, primarily due to the absence of lease modification income recorded in the previous period[12]. - The profit attributable to the company's shareholders decreased by approximately 611 million JPY or about 54.7% to approximately 505 million JPY for the first six months of fiscal year 2025[38]. - Operating profit for the same period was ¥655 million, down 42.4% from ¥1,139 million year-over-year[88]. - The total comprehensive income for the six months ended December 31, 2024, was ¥502 million, down from ¥1,111 million in the previous period, reflecting a decline of about 54.9%[96]. - The company reported a profit of ¥505 million for the six months ended December 31, 2024, compared to a profit of ¥1,116 million for the previous period, indicating a decrease of approximately 54.7%[96]. Revenue Streams - Revenue from the Japanese-style pachinko and pachislot business accounted for approximately 92.0% of total revenue in the first six months of the 2025 fiscal year, compared to 92.4% in the same period of the previous year[22]. - The company continues to diversify its revenue streams, earning income from various sources including vending machines and rental properties in the first six months of fiscal year 2025[13]. - Revenue from vending machines slightly decreased by about 3 million yen or 6.0% to approximately 47 million yen in the first six months of the 2025 fiscal year[23]. - Property rental income increased by approximately 14 million yen or 7.3% to about 205 million yen in the first six months of the 2025 fiscal year, driven by new tenants and changes in parking revenue[23]. - The revenue from the Japanese pachinko and pachislot business was ¥2,981 million, down from ¥2,998 million year-over-year, indicating a 0.6% decrease[128]. Operational Changes - The company launched new gaming machines, including the "6.5 model slot machine" in June 2022, the "smart slot machine" in November 2022, and the "smart pachinko machine" in April 2023, contributing to a recovery in customer traffic[10]. - The introduction of the "Lucky Trigger" feature in new pachinko machines is expected to attract younger customers and increase overall usage rates in gaming halls[10]. - Customer traffic in urban areas has shown a stable recovery during the first six months of fiscal year 2025[10]. - The company plans to continue monitoring the performance of smart machines and implement appropriate marketing strategies to enhance customer attraction[18]. - The closure of the K's Plaza Ohato location in January 2024 resulted in a revenue decrease of approximately 150 million yen, which was partially offset by increased revenue from other locations[22]. Cost Management - Operating expenses for gaming halls decreased by approximately 498 million JPY, and administrative expenses decreased by about 75 million JPY, partially offsetting the profit decline[12]. - Operating expenses for Japanese pachinko and slot machines reduced to ¥1,203 million in 2024, down from ¥1,536 million in 2023, reflecting a decrease of approximately 21.7%[135]. - Total employee costs reached approximately 520 million yen in the first six months of FY2025, accounting for about 19.2% of total operating expenses, compared to 16.8% in the same period of FY2024[62]. Investment and Assets - The company completed the necessary capital investments to update its pachinko and pachislot machines to be compatible with new banknotes by June 30, 2024, ahead of the new banknote issuance in July 2024[19]. - Capital expenditures for the first six months of fiscal year 2025 were approximately 148 million JPY, significantly lower than approximately 1,259 million JPY for the same period in fiscal year 2024[52]. - Total assets as of December 31, 2024, were ¥18,210 million, a decrease from ¥18,470 million as of June 30, 2024[130]. - The group held investments totaling approximately 2,972 million JPY in investment properties and approximately 1,104 million JPY in financial assets as of December 31, 2024[54]. Financial Position - As of December 31, 2024, the total borrowings amounted to approximately 4,685 million JPY, a decrease from approximately 4,987 million JPY as of June 30, 2024[40]. - The company's cash and cash equivalents were approximately 2,956 million JPY as of December 31, 2024, down from approximately 3,049 million JPY as of June 30, 2024[44]. - The asset-liability ratio was approximately 35.6% as of December 31, 2024, down from approximately 39.3% as of June 30, 2024[49]. - The group’s equity attributable to shareholders was approximately 8,271 million JPY as of December 31, 2024, an increase from approximately 7,769 million JPY as of June 30, 2024[45]. Governance and Compliance - The company’s governance structure has been deemed effective, with the board ensuring a balance of power and responsibilities[77]. - All directors confirmed compliance with the standard code for securities trading during the first six months of fiscal year 2025[78]. - The audit committee reviewed the interim financial data and found no significant issues regarding compliance with accounting standards[85]. Future Outlook - The group’s revenue growth for the twelve months ending December 31, 2025, is projected to be -1%, with a subsequent growth of 0% until the respective cash-generating units' useful life ends[39]. - The company is exploring new opportunities to expand into other business areas to diversify its revenue sources[21]. - Management forecasts a revenue growth rate of -1% for the first year, with a range of -3% to -5% for June 30, 2024[147].

Financial Performance - Total bets for the first six months of FY2025 decreased by approximately 2.1% to about ¥16,024 million compared to ¥16,372 million in FY2024[4] - Revenue for the first six months of FY2025 fell by approximately 0.1% to about ¥3,188 million, down from ¥3,191 million in FY2024[4] - Operating profit for the first six months of FY2025 declined by approximately 42.5% to about ¥655 million, compared to ¥1,139 million in FY2024[4] - Profit before tax for the first six months of FY2025 decreased by approximately 44.1% to about ¥610 million, down from ¥1,092 million in FY2024[4] - Profit attributable to shareholders for the first six months of FY2025 dropped by approximately 54.7% to about ¥505 million, compared to ¥1,116 million in FY2024[4] - Basic and diluted earnings per share for the first six months of FY2025 were approximately ¥0.84, down from ¥1.86 in FY2024[4] - Total revenue for the six months ended December 31, 2024, was ¥3,188 million, a slight decrease from ¥3,191 million in the same period of 2023[43] - Revenue from the Japanese pachinko and pachislot business was ¥2,934 million, down from ¥2,948 million year-over-year[43] - The company reported a pre-tax profit of ¥610 million for the six months ended December 31, 2024, compared to ¥1,092 million for the same period in 2023, reflecting a significant decline[47] - Total revenue for the first six months of FY2025 was approximately ¥3,188 million, a slight decrease of ¥3 million or about 0.1% from ¥3,191 million in FY2024[116] Dividends and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the first six months of FY2025[4] - The group did not declare any interim dividends for the six months ended December 31, 2024, consistent with the previous period[63] - The board has not proposed an interim dividend for the first six months of fiscal year 2025, consistent with the previous year[179] Assets and Liabilities - Total assets as of December 31, 2024, were ¥18,210 million, a decrease from ¥18,470 million as of June 30, 2024[10] - Total liabilities as of December 31, 2024, were ¥9,939 million, down from ¥10,701 million as of June 30, 2024[11] - Total equity attributable to shareholders increased to ¥8,271 million as of December 31, 2024, compared to ¥7,769 million as of June 30, 2024[11] - The company's total liabilities remained stable with no significant changes in undiscounted cash outflows compared to year-end[38] - The total lease liabilities decreased from ¥3,093 million on June 30, 2024, to ¥2,850 million on December 31, 2024[78] - Total borrowings decreased from approximately ¥4,987 million as of June 30, 2024, to ¥4,685 million as of December 31, 2024, representing a reduction of about 6.1%[88] - The non-current portion of bank loans decreased from ¥2,870 million to ¥2,652 million, a decline of approximately 7.6%[88] - The asset-liability ratio as of December 31, 2024, is approximately 35.6%, down from 39.3% as of June 30, 2024, primarily due to loan repayments in the first half of fiscal year 2025[152] Operational Performance - The company launched new gaming machines, including the "Lucky Trigger" pachinko machine in March 2024, aimed at attracting younger customers and increasing overall usage rates[101] - The company is exploring new measures and opportunities to enhance operational performance and diversify revenue streams, including income from vending machines and property leasing[105] - The company observed a recovery in customer traffic in its gaming halls, particularly in urban areas, following the Japanese government's easing of COVID-19 restrictions in May 2023[101] - The company recorded a significant rental revision gain of approximately ¥1,027 million in the first six months of fiscal year 2024, which was not repeated in the same period of fiscal year 2025[103] - The company operates 10 gaming halls under the brands "Big Apple," "K's Plaza," and "SENKURA" across various regions in Japan[100] - The company reported a decrease in operating expenses of approximately ¥498 million and administrative expenses of about ¥75 million in the first six months of fiscal year 2025 compared to the previous year[103] - Operating expenses for game halls decreased by approximately ¥498 million or about 17.5% to ¥2,350 million in FY2025 from ¥2,848 million in FY2024[127] - The company has implemented a self-service prize redemption system to enhance customer safety and reduce staff interaction, contributing to operational efficiency[113] - The company plans to continue installing updated models of pachinko and slot machines to attract more customers and improve operational performance[114] - The company anticipates steady improvement in operational and financial performance due to completed capital investments and the absence of major future capital investment plans[114] Financial Management and Accounting Policies - The financial data for the six months ending December 31, 2024, is prepared in accordance with Hong Kong Accounting Standards and International Financial Reporting Standards[18] - The company submitted its financial statements for the year ending June 30, 2024, to the Companies Registry, with the auditor's report being unqualified[20] - The accounting policies adopted for the interim period are consistent with those used in the annual financial statements for the year ending June 30, 2024[21] - The group has adopted revised standards effective from July 1, 2024, including amendments to IAS 1 and IFRS 16, which do not have a significant impact on the accounting policies[23][24] - The company is currently assessing the impact of new and revised standards that will be effective from January 1, 2025, and beyond, with no early adoption planned[26][29] - The adoption of IFRS 18 is expected to affect the presentation and disclosure of financial performance, particularly in the income statement and management-defined performance measures[30][32] - The company anticipates that the reclassification of interest received and paid in the cash flow statement will change, with interest paid classified as financing cash flow and interest received as investing cash flow[32] - The group will apply the new standards from their mandatory effective date of January 1, 2027, with retrospective application required[33] Employee and Corporate Governance - Total employee costs for the first six months of fiscal year 2025 reached approximately 520 million yen, accounting for about 19.2% of total operating expenses[169] - The company has a total of 353 employees as of December 31, 2024, down from 381 employees a year earlier[169] - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a diverse governance structure[187] - The company is committed to high levels of corporate governance, which is crucial for its development and protecting shareholder interests[183] - The board believes that the current structure, with the same individual serving as both Chairman and CEO, will not weaken the balance of power between the board and management[183] Future Outlook and Strategic Initiatives - The revenue growth forecast for the first year is -1%, improved from a previous estimate of -3% to -5%[70] - The estimated annual revenue growth rate until the cash-generating units' useful life ends is projected to be 0%[70] - The company aims to explore alternative revenue streams to improve financial performance[107] - The company is exploring new opportunities to expand into other business areas to diversify revenue sources[114] - The company has not issued new bonds in the first six months of fiscal year 2025[150] - The company plans to continue holding its investment properties to earn long-term rental income[162] - The mid-term report for the first six months of fiscal year 2025 will be published on the company's and the stock exchange's websites at an appropriate time[186]

Financial Performance - The company reported a total revenue of 1,000 million JPY for the fiscal year ending December 31, 2023, reflecting a year-on-year increase of 10%[6]. - For the fiscal year 2024, Okura Holdings Limited recorded a pre-tax profit of approximately 1,904 million JPY, a decrease of about 1,242 million JPY or 39.5% from the previous fiscal year 2023's profit of approximately 3,146 million JPY[12]. - Total revenue for the fiscal year 2024 increased by approximately 199 million JPY or 3.2% to about 6,483 million JPY, primarily driven by increased customer traffic due to the introduction of more smart slot machines and smart pachinko machines[21]. - The annual profit attributable to shareholders decreased by approximately 1,176 million JPY or about 36.5% to approximately 2,044 million JPY for FY2024[37]. - The revenue growth forecast for the twelve months ending June 30, 2025, is estimated to be between -3% to -5%[32]. User Engagement and Market Expansion - User data indicated a growth in active users by 15% compared to the previous year, reaching a total of 500,000 active users[6]. - Market expansion plans include entering two new international markets, aiming for a 5% market share within the first year[6]. - The company aims to diversify its revenue streams from various operations, including Japanese pachinko and slot machine businesses, vending machines, and property leasing, among others[15]. Product Development and Innovation - New product launches are expected to contribute an additional 200 million JPY in revenue, with a focus on enhancing user experience[6]. - The introduction of new gaming machines, including the updated "6.5 model" slot machine in June 2022, the "smart slot machine" in November 2022, and the "smart pachinko machine" in April 2023, contributed to the recovery of customer traffic[12]. - The company has introduced new models of smart pachinko and slot machines, which accounted for approximately 46.1% and 6.8% of installed machines, respectively, as of June 30, 2024[17]. Operational Efficiency and Cost Management - The company aims to improve operational efficiency, targeting a 10% reduction in costs through process optimization[6]. - Operating expenses for game halls decreased by approximately 215 million JPY or 3.9% to about 5,292 million JPY, attributed to reduced spending on pachinko and slot machines[28]. - The company anticipates that smaller operators with limited capital resources will be eliminated from the market due to the high costs associated with updating equipment for new banknotes, allowing the company to capture more customers[17]. Corporate Governance and Management - The company has a strong management team with extensive experience in marketing and business development, including key personnel like Masashi Maeda[72]. - The board has established corporate governance procedures to ensure independent evaluation of the group's business opportunities and performance[105]. - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[131]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to reduce greenhouse gas emissions and actively manage waste as part of its environmental protection initiatives[199]. - The company has established an Environmental, Social, and Governance (ESG) committee to oversee significant ESG issues and report to the board[193]. - The company has implemented a series of procedures to set and review ESG goals and indicators throughout the fiscal year[193]. Shareholder Communication and Engagement - The company has adopted a communication policy to ensure timely and accurate disclosure of insider information to independent shareholders[180]. - The shareholder communication policy aims to provide comprehensive and easily understandable information to shareholders regarding financial performance and strategic goals[183]. - The company’s board reviews the effectiveness of the shareholder communication policy annually, confirming its effectiveness[184]. Challenges and Market Conditions - The company continues to face challenges in the Japanese pachinko business due to rising living costs and declining consumer discretionary income[58]. - The company faced a continuous contraction and intense competition in the Japanese pachinko machine industry[77]. - The largest supplier accounted for approximately 52.4% of the total procurement, while the top five suppliers collectively represented about 99.3%[80].

Financial Performance - Total bets for the fiscal year 2024 increased by approximately 6.6% to about ¥31,850 million, compared to ¥29,871 million in fiscal year 2023[1]. - Revenue for fiscal year 2024 rose by approximately 3.2% to about ¥6,483 million, up from ¥6,284 million in fiscal year 2023[1]. - Operating profit for fiscal year 2024 decreased by approximately 39.7% to about ¥1,996 million, down from ¥3,310 million in fiscal year 2023[1]. - Profit before tax for fiscal year 2024 fell by approximately 39.5% to about ¥1,904 million, compared to ¥3,146 million in fiscal year 2023[1]. - Net profit attributable to shareholders for fiscal year 2024 decreased by approximately 36.5% to about ¥2,044 million, down from ¥3,220 million in fiscal year 2023[1]. - Basic and diluted earnings per share for fiscal year 2024 were approximately ¥3.41, compared to ¥6.22 in fiscal year 2023[1]. - The company reported a net profit of ¥2,044 million for the fiscal year ending June 30, 2024, down from ¥3,220 million in the previous year, a decrease of approximately 36.4%[16]. - The pre-tax profit decreased by approximately 1,242 million JPY or about 39.5% from 3,146 million JPY in FY2023 to 1,904 million JPY in FY2024, primarily due to a reduction in lease liability income[58]. - The annual profit attributable to shareholders decreased by approximately 1,176 million JPY or about 36.5% from 3,220 million JPY in FY2023 to 2,044 million JPY in FY2024[59]. Assets and Liabilities - Total assets as of June 30, 2024, were ¥18,470 million, compared to ¥18,266 million as of June 30, 2023[4]. - Total liabilities decreased to ¥10,701 million in 2024 from ¥12,548 million in 2023[5]. - Total equity attributable to shareholders increased to ¥7,769 million in 2024 from ¥5,718 million in 2023[5]. - Total assets as of June 30, 2024, amounted to ¥18,470 million, up from ¥18,266 million in the previous year, reflecting an increase of approximately 1.1%[19]. - The proportion of borrowings due within one year increased to 18.9% (¥940 million) from 16.1% (¥785 million) in the previous year[65]. - The debt-to-equity ratio decreased to approximately 39.3% as of June 30, 2024, down from 56.6% a year earlier, primarily due to an increase in cash reserves[68]. - Total borrowings amounted to approximately 4,987 million JPY as of June 30, 2024, compared to 4,883 million JPY as of June 30, 2023, with about 74.4% being bank loans[60]. Revenue Streams - The revenue from Japanese pachinko and slot machine operations was 5,989 million JPY, up from 5,822 million JPY in the previous year, indicating a growth of about 2.9%[13]. - The company recognized revenue of 523 million JPY from contract liabilities related to unused tokens and game coins, compared to 387 million JPY in 2023, reflecting a year-over-year increase of 35.1%[14]. - Revenue from property leasing was 385 million JPY, an increase from 359 million JPY in the previous year, showing a growth of about 7.2%[13]. - The company’s revenue from vending machine operations was 96 million JPY, slightly up from 94 million JPY in 2023, indicating a growth of 2.1%[13]. - Total revenue for the fiscal year 2024 increased by approximately ¥199 million or 3.2% to about ¥6,483 million, primarily due to increased customer traffic from the introduction of more smart machines[41]. - Total payouts increased by approximately ¥1,812 million or 7.5% to about ¥25,861 million, reflecting the rise in total bets[44]. - Rental income from properties increased by approximately ¥26 million or 7.2% to about ¥385 million, driven by parking fee adjustments and property renovations[41]. - Other income rose by approximately ¥15 million or 3.4% to about ¥457 million, mainly due to increased sales of second-hand machines following the purchase of more smart machines[46]. Operational Changes - The company plans to close the K's Plaza Ohato gaming hall to concentrate resources on the more promising SENKURA Dejima gaming hall, aiming to enhance customer experience and reduce operational losses[35]. - The company is diversifying its revenue streams by expanding operations into vending machines, rental properties, and car rental services in fiscal year 2024[36]. - The company has successfully replaced all high-gambling content machines in compliance with the 2018 regulations, which has negatively impacted the attractiveness of the gaming industry[38]. - The company will closely monitor the performance of smart machines and implement appropriate marketing strategies to attract more players[38]. - The company aims to explore new measures and opportunities to enhance operational performance and diversify revenue sources[35]. - The group expects continued steady improvement in operational and financial performance due to completed capital investments for new banknote compatibility[40]. - The group has implemented a new self-service prize redemption system to enhance customer safety and reduce staff interaction[40]. Employee and Administrative Costs - The total employee cost for the fiscal year 2024 is approximately 1,032 million yen, representing about 17.0% of the group's total operating expenses[79]. - The company has 352 employees as of June 30, 2024, down from 381 employees a year earlier[79]. - Administrative and other operating expenses increased by approximately 101 million JPY or about 15.0% from 675 million JPY in FY2023 to 776 million JPY in FY2024, mainly due to increased consulting service expenses related to a potential web 3.0 business feasibility study[50]. Capital Expenditures and Investments - Capital expenditures for the fiscal year 2024 amounted to approximately ¥1,480 million, significantly higher than ¥676 million in fiscal year 2023[71]. - The company has entered into multiple agreements to extend the maturity/redemption dates of the bonds, with the latest extension set for January 25, 2024, and July 30, 2024[76]. - The company plans to continue its investment in bonds under the current terms due to the uncertain business outlook in the Japanese pachinko industry[78]. - The company has established a stock option plan to incentivize eligible participants, with a maximum of 50 million shares available for issuance[80]. Dividends and Shareholder Information - The board of directors did not recommend the payment of a final dividend for fiscal year 2024, consistent with fiscal year 2023[1]. - The company did not declare any dividends for the fiscal year ending June 30, 2024, consistent with 2023[29]. - The company completed a placement of 100,000,000 shares on April 26, 2023, representing approximately 16.67% of the total issued share capital at a price of HKD 0.20 per share[82]. - The total proceeds from the placement amounted to HKD 20.0 million, with a net amount of approximately HKD 17.0 million after deducting commissions and expenses[82]. - The company will hold its 2024 Annual General Meeting on November 22, 2024, with a notice to be published in due course[94]. - Share transfer registration will be suspended from November 19 to November 22, 2024, to determine shareholder voting rights at the AGM[95]. - The company's annual report for the fiscal year 2024 will be published and sent to shareholders at an appropriate time[96].

Financial Performance - The company's pre-tax profit increased from approximately 163 million JPY in the first six months of FY2023 to about 1,092 million JPY in the first six months of FY2024, representing a growth of approximately 569.9%[11]. - Total revenue for the first six months of fiscal year 2024 increased by approximately 85 million JPY or 2.7% to about 3,191 million JPY, compared to approximately 3,106 million JPY in the same period of fiscal year 2023[22]. - Revenue from the Japanese pachinko and pachislot business accounted for approximately 92.4% of total revenue in the first six months of fiscal year 2024, slightly down from 92.6% in the same period of fiscal year 2023[22]. - Revenue from the pachinko and pachislot business increased by about 2.5% to approximately 2,948 million JPY in the first six months of fiscal year 2024, up from approximately 2,877 million JPY in the same period of fiscal year 2023[22]. - The company's net profit attributable to shareholders for the first six months of fiscal year 2024 is approximately 1,116 million JPY, an increase of about 1,140.0% compared to the previous year[45]. - Basic and diluted earnings per share for the period were both ¥1.860, compared to ¥0.180 in the same period last year[111]. - The total comprehensive income for the period attributable to shareholders was ¥1,111 million, compared to ¥105 million in the same period last year[111]. - The company reported a net profit of ¥1,116 million for the six months ended December 31, 2023, compared to a profit of ¥90 million for the same period in the previous year, indicating a significant increase[119]. Revenue Streams - Rental revision income rose significantly from about 13 million JPY in FY2023 to approximately 1,027 million JPY in FY2024, marking an increase of about 7,800%[11]. - Revenue from vending machines increased by about 3 million JPY or 6.4% to approximately 50 million JPY in the first six months of fiscal year 2024, compared to approximately 47 million JPY in the same period of fiscal year 2023[23]. - Property rental income rose by approximately 14 million JPY or 7.9% to about 191 million JPY in the first six months of fiscal year 2024, up from approximately 177 million JPY in the same period of fiscal year 2023[23]. - The company continues to diversify its revenue streams, generating income from various operations including vending machines and rental properties in addition to its gaming business[14]. Operational Changes - The company plans to close the K's Plaza Ohato gaming hall effective January 14, 2024, to focus resources on the more promising SENKURA Dejima gaming hall[13]. - The introduction of new gaming machines has contributed to improved utilization rates and revenue in the first half of FY2024 compared to the same period in FY2023[10]. - The company is committed to exploring new measures and opportunities to enhance operational performance and diversify income sources[11]. - The management has implemented infection control measures in its gaming halls to ensure a safe environment for employees and customers[9]. Market Conditions - The Japanese government has relaxed COVID-19 restrictions, which has positively impacted consumer spending on entertainment activities[9]. - The company observed a recovery in customer traffic in its gaming halls, particularly with the popularity of smart slot machines introduced in November 2022 and smart pachinko machines launched in April 2023[10]. Financial Management - The company maintains a prudent financial management approach, ensuring a healthy liquidity position for the first six months of fiscal year 2024[49]. - The company has not utilized any risk hedging instruments during the first six months of fiscal year 2024[49]. - The company's cash and cash equivalents as of December 31, 2023, were approximately 2,056 million JPY, down from about 2,423 million JPY as of June 30, 2023[51]. - The company's equity attributable to shareholders was approximately 6,829 million JPY as of December 31, 2023, compared to about 5,718 million JPY as of June 30, 2023[52]. Capital Expenditures - The company's capital expenditure for the first six months of FY2024 was approximately ¥1,259 million, significantly higher than ¥319 million in the same period of FY2023, primarily due to the acquisition of properties[59]. - The company completed a property acquisition on November 9, 2023, for a total consideration of approximately JPY 935 million, which includes three plots of land and buildings in Japan[84]. Employee and Management Information - Total employee costs for the first six months of fiscal year 2024 reached approximately 550 million yen, representing about 16.8% of total operating expenses[73]. - The employee count as of December 31, 2023, was 381, a decrease from 390 employees as of December 31, 2022[73]. - Mr. Yamamoto serves as both Chairman and CEO, which the board believes enhances leadership and strategic focus[97]. Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests[99]. - The company has established a comprehensive corporate governance framework in accordance with applicable laws and regulations[97]. - The audit committee reviewed the unaudited condensed consolidated interim financial information for the first six months of the fiscal year 2024[101]. Debt and Liabilities - As of December 31, 2023, the total borrowings of the company amounted to approximately 5,384 million JPY, up from about 4,883 million JPY as of June 30, 2023[47]. - The debt-to-equity ratio decreased to approximately 49.2% as of December 31, 2023, down from 56.6% on June 30, 2023, mainly due to the termination of lease liabilities[56]. - The company has no significant contingent liabilities or guarantees as of December 31, 2023[61].

Financial Performance - Total bets for the first six months of FY2024 increased by approximately 12.5% to about ¥16,372 million, compared to ¥14,548 million in FY2023[4] - Revenue for the first six months of FY2024 rose by approximately 2.7% to about ¥3,191 million, up from ¥3,106 million in FY2023[4] - Operating profit for the first six months of FY2024 surged by approximately 348.4% to about ¥1,139 million, compared to ¥254 million in FY2023[4] - Profit before tax for the first six months of FY2024 increased by approximately 569.9% to about ¥1,092 million, up from ¥163 million in FY2023[4] - Profit attributable to shareholders for the first six months of FY2024 rose by approximately 1,140.0% to about ¥1,116 million, compared to ¥90 million in FY2023[4] - Basic and diluted earnings per share for the first six months of FY2024 were approximately ¥1.860, compared to ¥0.180 in FY2023[4] Dividends and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the first six months of FY2024, consistent with FY2023[4] - The company did not declare any interim dividends for the six months ended December 31, 2023[55] - The company did not declare an interim dividend for the first six months of FY2024, consistent with the previous year[178] Assets and Liabilities - Total assets as of December 31, 2023, were ¥18,129 million, a slight decrease from ¥18,266 million as of June 30, 2023[10] - Total liabilities decreased to ¥11,300 million as of December 31, 2023, from ¥12,548 million as of June 30, 2023[11] - Total equity attributable to shareholders increased to ¥6,829 million as of December 31, 2023, compared to ¥5,718 million as of June 30, 2023[10] Financial Compliance and Standards - The financial data for the six months ending December 31, 2023, is prepared in accordance with Hong Kong Accounting Standards and International Financial Reporting Standards, ensuring compliance with both frameworks[18] - The company submitted its financial statements for the year ending June 30, 2023, to the Companies Registry, with the auditor's report being unqualified and without any emphasis of matter[20] - The accounting policies adopted for the interim financial data are consistent with those used in the annual financial statements for the year ending June 30, 2023[21] - The group has not adopted new or revised standards that will be effective from January 1, 2024, and is currently assessing their potential impact[25] Financial Risks - The group faces various financial risks, including market risk, credit risk, and liquidity risk, which are detailed in the annual financial report[31] - There has been no significant change in the cash outflows of financial liabilities compared to the year-end[33] Revenue Streams and Operations - The company continues to focus on expanding its operations in Japan, with most of its non-current assets located in the country[45] - The company continues to diversify its revenue streams, generating income from various sources including game halls, vending machines, rental properties, and car rental services in the first six months of fiscal year 2024[98] - Revenue from the Japanese pachinko and pachislot business accounted for approximately 92.4% of total revenue in the first six months of fiscal year 2024, slightly down from 92.6% in the same period of fiscal year 2023[106] - The company operates 10 game halls under the brands "Big Apple," "K's Plaza," and "SENKURA" across regions in Japan, including Kyushu, Kanto, Kansai, and Chugoku[94] Capital Expenditures - Capital expenditures for the six months ended December 31, 2023, amounted to ¥1,259 million, compared to ¥319 million in the previous year, representing a substantial increase of 294.7%[38] - The company recorded capital expenditures of approximately ¥1,259 million in the first six months of fiscal year 2024, compared to approximately ¥319 million in the same period of fiscal year 2023, largely attributed to equipment and installations for its gaming halls[145] Employee and Operational Changes - The company has 381 employees as of December 31, 2023, a decrease from 390 employees as of December 31, 2022[158] - The company plans to close one of its game halls, K's Plaza Ohato, effective January 14, 2024, to focus resources on more promising locations, enhancing customer experience and reducing operational losses[97] Governance and Management - The board of directors consists of six members, including three executive directors and three independent non-executive directors[186] - The executive directors are Mr. Katsuyoshi Yamamoto, Mr. Hiroshi Kagawa, and Mr. Toshio Oe[186] - The independent non-executive directors include Mr. Kazuyuki Yoshida, Ms. Mariko Yamamoto, and Mr. Masaaki Ayres[186] - The company is led by Mr. Katsuyoshi Yamamoto, who serves as the CEO, executive director, and chairman of the board[186] - The board composition reflects a balance between executive and independent oversight[186] - The company is committed to maintaining strong governance practices through its board structure[186] Market and Product Development - The introduction of new gaming machines, such as the "6.5 model slot machine" and "smart slot machine," has contributed to an increase in customer traffic and improved utilization rates in the first half of fiscal year 2024[95] - The company aims to enhance customer flow and operational recovery by implementing new self-service prize redemption systems and introducing more new pachinko and pachislot machines[105] - The company has completed the phase-out and replacement of all high-gambling-content pachinko and pachislot machines by the end of January 2022, in response to regulatory changes[102] Financial Position and Future Outlook - The company expects revenue growth for the twelve months ending December 31, 2024, to be between 0% and 5%[129] - The company maintains a prudent financial management approach, ensuring a healthy liquidity position in the first six months of FY2024[135] - The company plans to continue holding its investment properties to earn long-term rental income[151]

智通财经APP讯，OKURA HOLDINGS(01655)发布公告，集团预期截至2023年12月31日止6个月将取得除所得税前利润不少于约10亿日圆，而于截至2022年12月31日止6个月则取得除所得税前利润约1.63亿日圆。 集团于2024财年首6个月的表现较2023财年首6个月有所改善，乃主要归因于终止租赁集团其中一间日式弹珠机游戏馆及停车位(即BA. Shunan Hall)的物业(位于Azakaisakuminami, Oazakuriya, Shunan-Shi, Yamaguchi Prefecture, Japan)而产生租赁修订收益约10.27亿日圆，原因是集团于2023年11月收购该等物业以继续经营该日式弹珠机游戏馆及停车位。 ...

Financial Performance - The company reported a total revenue of 1,000 million JPY for the fiscal year ending June 30, 2023, reflecting a year-on-year increase of 15%[10]. - For the fiscal year 2023, the company recorded a profit before tax of approximately ¥3,146 million, compared to a loss of ¥1,205 million in the fiscal year 2022[20]. - Revenue increased by approximately ¥722 million, contributing to the overall improvement in financial performance[20]. - The annual profit attributable to shareholders for fiscal year 2023 was approximately 3,220 million JPY, a significant turnaround from a loss of about 1,321 million JPY in fiscal year 2022[54]. - Total revenue increased by approximately ¥722 million or 13.0% to about ¥6,284 million in FY2023, compared to ¥5,562 million in FY2022[32]. - The company anticipates revenue growth between 0% to 11% for the twelve months ending June 30, 2024, with a post-June 30, 2024 growth forecast of 0%[49]. User Engagement and Market Expansion - User data indicates a growth in active users by 20% compared to the previous fiscal year, reaching a total of 500,000 active users[10]. - The company is expanding its market presence in Southeast Asia, aiming to increase market share by 5% within the next year[10]. - New product launches are expected to contribute an additional 200 million JPY in revenue, with a focus on enhancing user engagement[10]. - The company is enhancing its digital marketing strategies, with a budget increase of 40% to drive user acquisition and retention[10]. Operational Efficiency and Strategic Initiatives - A strategic acquisition of a local competitor is anticipated to be finalized by Q1 2024, which is expected to enhance operational efficiency[10]. - The company aims to explore new measures and opportunities to enhance operational performance and diversify revenue sources[23]. - The company has implemented new sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[10]. - The company introduced a self-service prize redemption system to enhance customer safety and reduce staff interaction, which is expected to improve operational efficiency[29]. Financial Management and Capital Structure - As of June 30, 2023, the company's total borrowings amounted to approximately 4,883 million JPY, a decrease from 5,404 million JPY as of June 30, 2022, with 72.1% being bank loans and 27.9% from government financial institutions[55]. - The equity attributable to shareholders was approximately 5,718 million JPY as of June 30, 2023, a significant increase from 2,160 million JPY as of June 30, 2022[60]. - The debt-to-equity ratio was approximately 56.6% as of June 30, 2023, down from 84.9% as of June 30, 2022, primarily due to a reduction in borrowings and an increase in equity from share placements[65]. - The company has adopted a prudent financial management policy to maintain a healthy liquidity position throughout fiscal year 2023[58]. Employee and Corporate Governance - As of June 30, 2023, the group had 381 employees, an increase from 367 employees in the previous year, with 334 employees located in Japanese arcade game halls[83]. - The company has a diverse board of directors with expertise in finance, marketing, and corporate governance[102][105]. - The board consists of six members, including three executive directors and three independent non-executive directors[197]. - The board is committed to high standards of corporate governance to protect shareholder interests[196]. Challenges and Market Outlook - The gaming industry faces ongoing challenges due to regulatory changes and rising operational costs, impacting the recovery pace[23]. - The overall business outlook remains uncertain due to long-term declines in the pachinko industry and weakened consumer purchasing power[23]. - The company has faced challenges in business recovery due to a long-term decline in the Japanese pachinko machine business and rising living costs affecting consumer disposable income[142]. Investment and Capital Expenditures - Capital expenditures for the fiscal year 2023 amounted to approximately 676 million JPY, a decrease from 1,006 million JPY in fiscal year 2022[69]. - The company has not conducted any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year[92]. - The company has no plans for significant investments or capital asset additions authorized by the board as of the report date[94]. Compliance and Risk Management - The company has not reported any significant violations of environmental laws or regulations this year[121]. - The company has a strict internal policy to manage risks associated with its suppliers, including comprehensive background checks[119]. - The company has adhered to the corporate governance code, except for the provision that the roles of chairman and CEO should be held by different individuals[192].

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的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就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的任何損失承擔任何責任。 Okura Holdings Limited （於香港註冊成立的有限公司） （股份代號：01655） 截至2023年6月30日止年度 全年業績公告 財務摘要 • 2023財年總投注增加約18.6%至約29,871百萬日圓（2022財年：約25,177百萬日圓）。 • 2023財年收入增加約13.0%至約6,284百萬日圓（2022財年：約5,562百萬日圓）。 • 2023財年的經營利潤約為3,310百萬日圓，而2022財年則為經營虧損約1,028百萬日 圓。 • 2023財年的除所得稅前利潤約為3,146百萬日圓，而2022財年則為除所得稅前虧損 約1,205百萬日圓。 • 2023財年歸屬於本公司股東的年度利潤約為3,220百萬日圓，而2022財年則為歸屬 於本公司股東的年度虧損約1,321百萬日圓。 ...

Financial Performance - For the first six months of the fiscal year 2023, the company recorded a profit before tax of approximately ¥163 million, compared to a loss of ¥362 million in the same period of the previous fiscal year[11]. - Total revenue for the first six months of FY2023 increased by approximately ¥371 million or 13.6% to about ¥3,106 million, compared to ¥2,735 million in the same period of FY2022[19]. - The profit attributable to shareholders for the first six months of FY2023 was approximately 90 million JPY, compared to a loss of approximately 333 million JPY in the same period of FY2022, reflecting the factors mentioned in the profit before tax section[41]. - Operating profit for the same period was ¥254 million, a significant recovery from an operating loss of ¥279 million in the previous year[103]. - The total comprehensive income for the period was ¥105 million, which includes a profit of ¥90 million and other comprehensive income of ¥15 million[111]. - The company reported a net profit of ¥90 million for the six months ended December 31, 2022, compared to a net loss of ¥333 million in the same period of 2021, marking a substantial improvement[140]. Revenue Streams - Revenue increased by approximately ¥371 million, while operating expenses decreased by about ¥273 million and administrative expenses reduced by approximately ¥90 million[11]. - The company continues to diversify its revenue streams, earning income from vending machines, rental properties, and services such as horse management[12]. - Revenue from the Japanese pachinko and slot machine business accounted for approximately 92.6% of total revenue in the first six months of FY2023, up from about 90.5% in the same period of FY2022[19]. - Revenue from vending machines increased by approximately ¥3 million or 6.8% to about ¥47 million in the first six months of FY2023, compared to ¥44 million in the same period of FY2022[19]. - The revenue from Japanese pachinko and pachislot gaming hall operations was ¥2,877 million, compared to ¥2,474 million in the previous year, reflecting an increase of approximately 16.3%[137]. Operational Efficiency - The company observed a recovery in customer traffic at its game halls following the launch of an updated version of its Japanese slot machines in June 2022, which included more gambling elements[11]. - The self-service prize redemption system was launched to enhance customer safety and reduce staff interaction, contributing to operational efficiency[18]. - Operating expenses for game halls decreased by approximately 273 million JPY, or about 9.2%, from 2,965 million JPY in the first six months of FY2022 to 2,692 million JPY in FY2023, attributed to the improved market conditions in the Japanese pachinko industry and the absence of impairment losses[29]. - Administrative and other operating expenses decreased by approximately 90 million JPY, or about 22.4%, from 401 million JPY in the first six months of FY2022 to 311 million JPY in FY2023, mainly due to reduced director remuneration and a decrease in the number of administrative staff[30]. Challenges and Market Conditions - The Japanese pachinko industry faces ongoing challenges due to inflation and reduced consumer purchasing power, impacting the recovery pace of the business[10]. - The company remains optimistic about the gradual reduction of COVID-19's impact on the Japanese pachinko industry and expects steady business performance moving forward[11]. Financial Position - As of December 31, 2022, the total borrowings of the company were approximately 5,134 million JPY, a decrease from 5,404 million JPY as of June 30, 2022, with 72.4% being bank loans and 27.6% from government financial institutions[42]. - The company's total assets were approximately ¥18,389 million as of December 31, 2022, compared to ¥18,602 million as of June 30, 2022[47]. - The company's equity attributable to shareholders was approximately ¥2,265 million as of December 31, 2022, an increase from ¥2,160 million as of June 30, 2022[47]. - The debt-to-equity ratio remained stable at approximately 84.2% as of December 31, 2022, compared to 84.9% as of June 30, 2022[54]. - The company maintained a prudent financial management policy, ensuring a healthy liquidity position during the first six months of the fiscal year 2023[45]. Capital Expenditures - Capital expenditures for the first six months of the fiscal year 2023 amounted to approximately ¥319 million, an increase of ¥91 million from ¥228 million in the same period of the previous fiscal year[58]. - Capital expenditures for property, plant, and equipment were approximately 304 million yen for the six months ended December 31, 2022, up from 228 million yen in the same period of 2021[155]. Compliance and Governance - The company has complied with the corporate governance code during the first six months of the fiscal year 2023, with a noted deviation regarding the roles of the chairman and CEO[88]. - The audit committee reviewed the unaudited condensed consolidated interim financial information for the first six months of the fiscal year 2023[92]. Future Outlook - The company is focused on expanding its operations into different business areas to establish alternative revenue streams[12]. - The company plans to continue holding investment properties to earn long-term rental income[64].