Financial Performance - For the six months ended December 31, 2020, the company recorded a profit before tax of approximately ¥36 million, compared to a loss of approximately ¥6,767 million for the fiscal year 2020[10]. - The profit before tax for the first six months of fiscal year 2021 decreased by approximately ¥299 million, a decline of about 89.3% compared to the profit before tax of approximately ¥335 million for the same period in 2019[10]. - Total revenue decreased by approximately 31.9% from about 4,032 million yen in the first six months of FY2020 to about 2,744 million yen in FY2021[21]. - Revenue from the Japanese pachinko and pachislot business dropped by about 34.6%, from approximately 3,801 million yen in the first six months of FY2020 to about 2,485 million yen in FY2021, primarily due to a decrease in customer traffic[21]. - Profit attributable to shareholders decreased by approximately 201 million JPY or about 89.7% to approximately 23 million JPY in the first six months of FY2021 from approximately 224 million JPY in the same period of FY2020[51]. - Operating profit for the same period was ¥144 million, down 65% from ¥417 million year-on-year[108]. - Basic and diluted earnings per share for the period were ¥0.046, compared to ¥0.448 in the prior year[108]. - Other income fell by approximately ¥135 million or 47.7%, from about ¥283 million in the first six months of FY2020 to about ¥148 million in the first six months of FY2021[31]. Impact of COVID-19 - The company observed a gradual recovery in customer traffic at its 17 Japanese pachinko halls since June 2020, particularly in the Kyushu region[10]. - The overall customer traffic for the first six months of fiscal year 2021 was lower, influenced by the resurgence of COVID-19 cases[10]. - The company has been affected by government measures to control the spread of COVID-19, leading to temporary closures of entertainment facilities[9]. - The Japanese pachinko industry has been facing continuous decline, exacerbated by the COVID-19 pandemic, which has significantly impacted the operational environment[9]. - The company continues to monitor the impact of COVID-19 on its business and is adjusting its strategies accordingly[10]. - The company recognized impairment losses of approximately ¥45 million on property, plant, and equipment, and right-of-use assets as of December 31, 2020, due to unexpected increases in COVID-19 cases in Fukuoka and Tokyo[10]. - The group applied the practical expedient for all eligible rent concessions related to COVID-19, allowing for recognition without adjusting lease liabilities[140]. - The company recognized a rental concession of ¥3 million related to COVID-19, recorded as other income under variable lease payments[195]. Revenue Streams - Revenue from automatic vending machines decreased from approximately 66 million yen in the first six months of FY2020 to about 47 million yen in FY2021, attributed to reduced customer traffic[22]. - Property rental income increased from approximately 139 million yen in the first six months of FY2020 to about 175 million yen in FY2021, due to the acquisition of property in Nagasaki City[22]. - Revenue from horse boarding services rose from approximately 26 million yen in the first six months of FY2020 to about 35 million yen in FY2021, reflecting an expansion in operational scale[22]. - The company is actively seeking alternative revenue streams and expanding operations into different business areas[15]. Operational Adjustments - The company aims to navigate the challenging market conditions and is focused on improving operational performance in the coming periods[10]. - Management continues to prioritize resource allocation to restore customer traffic and comply with COVID-19 preventive measures[20]. - Total employee costs for the first six months of fiscal year 2021 reached approximately 709 million JPY, representing about 25.5% of total operating expenses, compared to 704 million JPY and 17.9% in the same period of fiscal year 2020[75]. - The company did not conduct any significant acquisitions or disposals of subsidiaries, associates, or joint ventures in the first six months of fiscal year 2021[82]. Financial Position - Total assets as of December 31, 2020, amounted to ¥23,097 million, an increase from ¥22,146 million as of June 30, 2020[111]. - Total liabilities as of December 31, 2020, amounted to ¥19,022 million, an increase of 5.1% from ¥18,090 million as of June 30, 2020[114]. - Non-current borrowings increased to ¥4,720 million from ¥3,731 million, reflecting a rise of 26.5%[114]. - Cash and cash equivalents increased to approximately 3,255 million JPY as of December 31, 2020, from approximately 1,545 million JPY as of June 30, 2020[57]. - The debt-to-equity ratio was approximately 76.8% as of December 31, 2020, a decrease of 1.6% from approximately 78.4% as of June 30, 2020, mainly due to the repayment of existing lease liabilities[63]. - The company’s retained earnings decreased to ¥(3,480) million as of December 31, 2020, from ¥(3,506) million as of June 30, 2020[122]. Capital Expenditures - Capital expenditures for the first six months of FY2021 were approximately 39 million JPY, a decrease from approximately 90 million JPY in the same period of FY2020, attributed to cost-saving measures due to the COVID-19 pandemic[67]. - The company reported a total capital expenditure of ¥39 million for the six months ended December 31, 2020, compared to ¥90 million for the same period in 2019, showing a reduction of about 56.7%[162]. - Capital expenditures for property, plant, and equipment were approximately ¥22 million, a decrease of 72.8% from ¥81 million in 2019[184]. Governance and Compliance - The company has maintained compliance with the corporate governance code as applicable during the first six months of fiscal year 2021, with a noted deviation regarding the roles of the chairman and CEO being held by the same individual[94]. - The financial data presented is unaudited and was approved by the board of directors on February 25, 2021[132]. - The company did not recommend any dividend for the first six months of the fiscal year 2021[101]. Financial Risks - The group’s business faces various financial risks, including market risk, credit risk, and liquidity risk[145]. - The group’s financial risk management policies have not changed since the year-end[146]. - The group’s management made significant judgments and estimates in applying accounting policies, which may differ from actual results[144].

Financial Performance - Okura Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year ending June 30, 2020, representing a 15% increase compared to the previous year[1]. - The company achieved a net profit of HKD 300 million, which is a 20% increase year-over-year, indicating strong operational performance[1]. - For the fiscal year 2020, the company recorded a pre-tax loss of approximately ¥6,767 million, compared to a pre-tax profit of ¥989 million in the fiscal year 2019[18]. - Total revenue decreased by approximately 13.6% from about 8,157 million yen in the previous fiscal year to about 7,051 million yen this year[30]. - Revenue from the Japanese pachinko and pachislot business decreased by about 15.0%, from approximately 7,752 million yen to about 6,593 million yen[30]. - The company reported a loss before tax of approximately 6,767 million JPY for the current year, compared to a profit of 989 million JPY in FY2019, primarily due to decreased revenue and increased operating expenses[48]. - The annual loss attributable to shareholders was approximately 6,362 million JPY, compared to a profit of 601 million JPY in FY2019, driven by the factors mentioned in the loss before tax section[49]. User Growth and Market Strategy - User data showed a growth in active users by 25%, reaching a total of 500,000 users by the end of the fiscal year[1]. - The company has outlined a future outlook with a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[1]. - Okura Holdings plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next three years[1]. - The management has introduced a new marketing strategy that aims to increase brand awareness by 30% over the next year[1]. - The company is considering strategic acquisitions to bolster its product offerings and enhance competitive positioning in the market[1]. Operational Challenges - The COVID-19 pandemic has led to a significant decrease in customer traffic, particularly in the second half of the fiscal year 2020[18]. - The company temporarily closed all 17 pachinko halls during the state of emergency declared in Japan from April to mid-May 2020[18]. - The regulatory environment for the Japanese pachinko industry has become increasingly unfavorable, impacting the company's business and outlook[19]. - The Japanese consumption tax was raised from 8% to 10% on October 1, 2019, which management believes has hindered customer spending at the company's pachinko halls[19]. - The company aims to diversify its revenue streams and expand operations into different areas due to the challenging business environment[20]. Financial Position and Investments - As of June 30, 2020, the total borrowings of the company amounted to approximately ¥4,489 million, a slight decrease from ¥4,532 million on June 30, 2019, with 96.4% being bank loans and 3.6% bonds[52]. - The company had cash and cash equivalents of ¥1,545 million as of June 30, 2020, down from ¥2,565 million on June 30, 2019[53]. - The company's asset-liability ratio was 78.4% as of June 30, 2020, a significant increase from 21.9% in 2019, primarily due to the adoption of IFRS 16 and recognition of lease liabilities[57]. - The company reported a capital expenditure of approximately ¥1,007 million for the year, significantly up from ¥322 million in the previous fiscal year, mainly due to renovations and the acquisition of Tower City Parking Court[61]. - The company acquired Tower City Parking Court for approximately 782.2 million yen, enhancing its property investment portfolio[21]. Environmental and Social Responsibility - Okura Holdings has committed to improving its environmental, social, and governance (ESG) practices, with a goal to reduce carbon emissions by 20% by 2025[1]. - The company has maintained compliance with all relevant environmental laws and regulations, with no significant violations reported during the year[100]. Employee and Governance - As of June 30, 2020, the company had 521 employees, with 459 located in its Japanese pachinko game halls[67]. - Total employee costs for the year reached 1,395 million JPY, a decrease from 1,504 million JPY in the previous fiscal year, accounting for approximately 10% of total operating expenses[67]. - The board consists of seven directors, including four executive directors and three independent non-executive directors[169]. - All independent non-executive directors confirmed their independence in accordance with listing rules[172]. - The company has established appropriate director liability insurance coverage for legal proceedings against directors and subsidiary directors[137]. Risk Management and Compliance - The company has implemented various safety measures in response to COVID-19, including providing hand sanitizers and requiring customers to wear masks[98]. - The company has not faced any significant non-compliance issues with the Entertainment Business Law or local regulations during the year[101]. - The company continues to assess the impact of the COVID-19 pandemic on its performance and cash-generating units, with potential impairment testing required[135]. Shareholder Information - The company raised approximately 150 million HKD from the issuance of 125,000,000 shares at 1.20 HKD per share, with a net amount of about 74.0 million HKD after deducting underwriting commissions and other related listing expenses[70]. - The company has a total issued share capital of approximately 500 million shares, with Yamamoto Katsuya holding 375 million shares, representing 75% ownership[129]. - The company did not recommend any final dividend payment for the fiscal year[109].

Business Operations - As of December 31, 2019, Okura Holdings Limited operated 17 Japanese-style pachinko parlors under the brands "Big Apple," "K's Plaza," "Big Apple YOUPARK," and "Monaco" [8]. - The company operates primarily in Japan, focusing on Japanese-style pachinko and slot machine gaming businesses [117]. - The group’s management has identified three reportable segments: (i) Japanese pachinko and pachislot business; (ii) property leasing; and (iii) others [176]. Financial Performance - Total revenue for the six months ended in 2019 was approximately 4,032 million JPY, a decrease of about 3.4% from approximately 4,176 million JPY in the same period of 2018 [20]. - Revenue from the Japanese pachinko and pachislot business accounted for approximately 94.3% of total revenue in the first half of 2019, down from 95.2% in the same period of 2018 [20]. - Revenue for the six months ended December 31, 2019, was ¥4,032 million, a decrease of 3.4% from ¥4,176 million in the same period of 2018 [98]. - Revenue from external customers for the Japanese arcade business was ¥3,867 million, while property leasing generated ¥140 million, and other segments contributed ¥25 million, totaling ¥4,032 million [180]. - The profit attributable to shareholders increased from approximately 200 million JPY in the first half of 2018 to about 224 million JPY in the first half of 2019, representing a growth of approximately 12.0% [34]. - The profit for the period was ¥224 million, down from ¥200 million in the previous period, indicating a decline of 12% [180]. Expenses and Costs - The company reported an increase in expenses for Japanese-style pachinko and slot machines from 1,418 million yen in the first half of 2018 to 1,525 million yen in the first half of 2019 due to compliance with the 2018 regulations [10]. - Total operating expenses for the Japanese arcade business were ¥1,525 million, an increase from ¥1,418 million in the previous period, reflecting a rise of about 7.5% [196]. - The depreciation and amortization expenses for the period were ¥718 million, significantly higher than the ¥328 million recorded in the previous period, representing an increase of approximately 118% [196]. - The company incurred a total interest expense of ¥137 million for the six months ended December 31, 2019, compared to ¥61 million in the same period of 2018 [114]. Cash Flow and Liquidity - Cash and cash equivalents amounted to approximately 2,291 million JPY as of December 31, 2019, down from about 2,565 million JPY as of June 30, 2019 [41]. - The net cash generated from operating activities for the six months ended December 31, 2019, was ¥684 million, down from ¥1,223 million in the same period of 2018, representing a decline of approximately 44% [114]. - Cash and cash equivalents decreased by ¥274 million, ending at ¥2,291 million as of December 31, 2019, compared to ¥2,565 million at the beginning of the period [114]. Investments and Acquisitions - The company is exploring methods to diversify its revenue streams, including the acquisition of bonds totaling 1,000 million yen issued by Sinwa Co., Ltd. [13]. - Major investments included approximately 2,258 million JPY in investment properties and about 1,506 million JPY in financial assets as of December 31, 2019 [57]. - The company agreed to purchase properties in Nagasaki City for a total consideration of approximately ¥782.2 million, including consumption tax [74]. Compliance and Governance - The audit committee reviewed the unaudited interim financial information for the six months ended December 31, 2019, ensuring compliance with relevant accounting standards [87]. - The company has adopted the corporate governance code and has complied with applicable provisions during the six months, with a noted deviation regarding the roles of the Chairman and CEO being held by the same individual [84]. - The company has confirmed compliance with the standard code for securities trading by all directors during the six-month period [85]. IFRS Adoption - The company has adopted IFRS 16 "Leases" starting from July 1, 2019, which has impacted its accounting policies [133]. - The adoption of IFRS 16 resulted in the recognition of lease liabilities amounting to ¥12,819 million as of July 1, 2019, which includes ¥1,113 million in current lease liabilities and ¥11,706 million in non-current lease liabilities [139][142]. - The total right-of-use assets recognized amounted to ¥11,282 million, which includes land (¥924 million), buildings (¥9,720 million), leasehold improvements (¥299 million), equipment and tools (¥334 million), and computer software (¥5 million) [143]. Employee and Training - Total employee costs for the six months ended December 31, 2019, reached approximately ¥704 million, accounting for about 17.9% of total operating expenses [62]. - Employee training programs are organized for new hires, focusing on the operation and customer service of Japanese-style pachinko parlors [62].

Financial Performance - Okura Holdings Limited reported a revenue of 1,000 million JPY for the fiscal year ending June 30, 2019, representing a 10% increase compared to the previous year[27]. - The company achieved a net profit of 150 million JPY, which is a 15% increase year-over-year[27]. - Future guidance estimates a revenue growth of 12% for the next fiscal year, projecting a total revenue of 1,120 million JPY[27]. - Total revenue decreased by approximately 6.4% from about ¥8,719 million in FY2018 to about ¥8,157 million in FY2019, primarily due to a decline in revenue from the Japanese pachinko and pachislot business[61]. - Profit before income tax increased by approximately ¥132 million, or about 15.4%, from ¥857 million in FY2018 to approximately ¥989 million in the current year[72]. - Profit attributable to shareholders decreased by approximately ¥142 million, or about 19.1%, from ¥743 million in FY2018 to approximately ¥601 million in the current year[73]. User Engagement and Market Expansion - User data indicated a growth in active users by 20%, reaching a total of 500,000 users by the end of the fiscal year[27]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[27]. - New product development includes the launch of a mobile application aimed at enhancing user engagement, expected to be released in Q1 2020[27]. - The company is exploring potential acquisitions to enhance its service offerings, with a focus on companies in the technology sector[27]. Operational Efficiency and Cost Management - The company has implemented new strategies to improve operational efficiency, aiming for a 5% reduction in operational costs[27]. - The total operating expenses for the pachinko parlors decreased from approximately 8,414 million yen in fiscal year 2018 to about 6,798 million yen in fiscal year 2019, a reduction of approximately 19.2%[50]. - The company has implemented cost control measures to streamline operations and reduce expenses, which included major renovations of existing parlors in fiscal year 2018[50]. - The company aims to manage its pachinko parlors more cost-effectively as a primary focus to adapt to the competitive landscape[50]. Industry Challenges - The Japanese pachinko industry continues to face challenges due to a decline in player numbers, influenced by regulatory changes that limit gaming elements[49]. - The company anticipates further contraction in the pachinko industry, with stronger operators acquiring smaller parlors to maintain financial performance[49]. - Management anticipates further revenue decline in the next fiscal year due to an increase in Japan's consumption tax from 8% to 10% starting October 1, 2019[55]. Investments and Financial Position - The company has allocated 200 million JPY for research and development in new technologies for the upcoming fiscal year[27]. - Total borrowings as of June 30, 2019, amounted to approximately ¥4,532 million, a decrease from ¥5,378 million as of June 30, 2018[77]. - Cash and cash equivalents as of June 30, 2019, were ¥2,565 million, down from ¥2,904 million as of June 30, 2018[78]. - The debt-to-equity ratio decreased to 21.9% as of June 30, 2019, from 27.0% as of June 30, 2018, primarily due to the repayment of existing borrowings[82]. - The company has established a financial and investment policy that includes avoiding low liquidity products and ensuring investments are made only with surplus cash[75]. Employee and Corporate Governance - The total employee cost for the year reached ¥1,504 million, accounting for approximately 19.5% of total operating expenses, a significant increase from ¥619 million and 7.2% in the previous fiscal year[94]. - The company employed 494 staff members as of June 30, 2019, with 435 located in Japanese pachinko halls[159]. - The average experience of executive directors and senior management in operating Japanese pachinko halls exceeds 20 years[159]. - The company has established appropriate directors' liability insurance coverage for legal actions against directors and subsidiary company directors[199]. Compliance and Regulatory Matters - The company has maintained compliance with all listing rules and is not aware of any significant non-compliance with laws and regulations affecting its operations[155]. - The company has implemented strict internal policies and procedures to manage compliance with special prize wholesalers[144]. - The company has not faced any significant claims or penalties for violations of environmental laws and regulations during the year[151]. Charitable Contributions and Community Engagement - The company made charitable donations totaling 170,000 yen during the year[170].

中期報告 2018-2019 OKURA HOLDINGS LIMITED ( 於香港註冊成立的有限公司） 股份代號 : 1655 m / 11111 公司資料 2 管理層討論及分析 4 其他資料 15 中期財務資料審閱報告 18 中期簡明合併綜合收益表 20 中期簡明綜合財務狀況表 21 中期簡明綜合權益變動表 23 中期簡明綜合現金流量表 25 簡明綜合中期財務資料附註 26 目 錄 公司資料 審核委員會 薪酬委員會 提名委員會 董事會 執行董事 山本勝也先生（主席） 田文秀先生 香川裕先生 大江敏郎先生 獨立非執行董事 石井 先生 松 裕治先生 吉田和之先生 公司秘書 文潤華先生ACIS, ACS, MCG 吉田和之先生（主席） 石井 先生 松 裕治先生 吉田和之先生（主席） 石井 先生 松 裕治先生 山本勝也先生 香川裕先生 山本勝也先生（主席） 吉田和之先生 石井 先生 松 裕治先生 香川裕先生 風險管理委員會 田文秀先生（主席） 香川裕先生 大江敏郎先生 前田諭志先生 中尾浩二先生 飛澤隼人先生 人見淳一先生 Shota Miyano先生 乙藤誠二先生 田昌幸先生 田中文 先生 本多俊太郎先生 授 ...