Financial Performance - Total bets for the fiscal year ending March 31, 2025, were ¥552,641 million, a decrease of 1.7% from ¥562,029 million in the previous year[10] - Total payouts for the same period were ¥433,672 million, down 0.9% from ¥437,549 million[14] - Revenue from the Japanese-style pachinko business was ¥118,969 million, a decline of 4.4% compared to ¥124,480 million in the prior year[14] - Revenue from the aircraft leasing business increased by 20.8% to ¥7,107 million, up from ¥5,883 million[14] - Operating profit for the fiscal year was ¥10,972 million, an increase from ¥8,983 million in the previous year[10] - Net profit for the year was ¥4,019 million, compared to ¥3,385 million in the prior year, reflecting a growth of 18.7%[10] - Basic earnings per share for the fiscal year were ¥5.8, up from ¥4.8 in the previous year[10] - The company reported an EBITDA of ¥65,996 million, an increase from ¥64,779 million in the previous year[10] - The consolidated revenue for the fiscal year ending March 31, 2025, was 126,076 million JPY (approximately 6,560 million HKD), representing a decrease of 3.3% compared to the previous year[17] - The consolidated operating profit increased to 10,972 million JPY (approximately 570 million HKD), which is an increase of 22.1% year-over-year[17] - The consolidated net profit for the year was 4,019 million JPY (approximately 208 million HKD), reflecting an increase of 18.7% from the previous year[17] Cash Flow and Financial Position - Net cash from operating activities was 52,725 million JPY (approximately 2,743 million HKD) for the year ending March 31, 2025[41] - Net cash used in investing activities was 40,709 million JPY (approximately 2,118 million HKD) for the year ending March 31, 2025[42] - Net cash used in financing activities was 26,119 million JPY (approximately 1,359 million HKD) for the year ending March 31, 2025[43] - Current liabilities net value was 3,919 million JPY (approximately 204 million HKD) with a current assets to current liabilities ratio of 0.9 as of March 31, 2025[47] - Cash and cash equivalents decreased by 14,085 million JPY (approximately 733 million HKD) for the year ending March 31, 2025[38] - The debt-to-asset ratio decreased from 27.4% as of March 31, 2024, to 24.9% as of March 31, 2025, primarily due to a reduction in total borrowings[48] - The company’s distributable reserves as of March 31, 2025, were 21,760 million JPY, an increase from 20,345 million JPY in 2024[197] Operational Highlights - The company operates 427 Japanese-style pachinko parlors as of March 31, 2025, making it the largest chain in Japan[101] - The company has two business names for its 392 parlors: DYNAM (high-stakes) and DYNAM Yuyukan (low-stakes)[102] - The company plans to reduce the number of Japanese-style pachinko machines in 115 game halls and increase the number of Japanese-style slot machines, aiming to enhance competitiveness and customer support[84] - The company introduced 2,000 private brand gaming machines in November 2024, featuring full-screen LCD panels, which are expected to lower costs and environmental impact[85] - The company currently owns 10 aircraft and manages 8 aircraft, with plans to expand its aircraft leasing and management services to Japanese investors[85] - The average age of the company's owned aircraft is 2.9 years, with an average remaining lease term of 5.2 years, maintaining a high-quality asset portfolio[123][125] Expenses and Cost Management - The operating expenses for the Japanese pachinko business decreased by 4,396 million JPY (approximately 229 million HKD) or 3.7% to 114,277 million JPY (approximately 5,947 million HKD)[25] - Aircraft leasing expenses increased by 941 million JPY (approximately 49 million HKD) or 29.0% to 4,191 million JPY (approximately 218 million HKD) for the year ending March 31, 2025[29] - General and administrative expenses decreased by 234 million JPY (approximately 12 million HKD) or 5.6% to 3,942 million JPY (approximately 205 million HKD) for the year ending March 31, 2025[30] - Approximately 60% of the operating expenses for game halls are related to game machines and labor costs, which the company aims to reduce through the use of second-hand machines and ICT systems[118] Risk Management and Governance - The company has implemented a credit risk management policy to ensure sales are made to customers with appropriate credit records, significantly reducing credit risk[78] - The company maintains a policy of regularly monitoring its liquidity needs and ensuring sufficient cash reserves and financing commitments from major financial institutions[79] - The company faces various financial risks, including market, credit, liquidity, and foreign currency risks, and has established risk management plans to mitigate potential adverse impacts[74][75][79] - The company has implemented a risk management and internal control system, which has been reviewed and deemed effective during the reporting period[155] - The company is committed to compliance with legal and regulatory requirements, regularly reviewing its governance policies[134] Corporate Governance - The board of directors is responsible for managing and operating the company, overseeing the implementation of business strategies and policies[134] - The company has established three committees: the audit committee, remuneration committee, and nomination committee, each with specific oversight responsibilities[137] - The audit committee is chaired by an independent non-executive director and includes two other independent non-executive directors[138] - The company has established a nomination committee consisting of two independent non-executive directors and one executive director, with responsibilities including reviewing board structure and nominating policies[147] - The company aims to increase the proportion of women on the board and among all employees to at least 20% by 2030, currently having a gender ratio of approximately 14:1 among employees[149] Shareholder Communication and Dividends - The company emphasizes effective communication with shareholders to enhance understanding of its business and performance[166] - The company has established multiple communication channels for shareholders, including annual reports and financial performance briefings held in May and November[168] - The company allows shareholders holding at least 3% of total voting rights for six months to request a general meeting[163] - The company has a policy that allows shareholders holding at least 1% of total voting rights to propose agenda items for general meetings[165] - The company plans to distribute dividends amounting to no less than 35% of its annual consolidated net income[172] - The company proposed a final dividend of 2.5 JPY per ordinary share, amounting to approximately 1,741 million JPY (about 94 million HKD) based on 696,443,096 shares outstanding as of June 4, 2025[191] Strategic Initiatives and Future Outlook - The company aims to reshape pachinko into an easily accessible daily entertainment option, focusing on customer spending at acceptable levels[105] - The company is exploring new business opportunities through innovative ideas that meet customer and community needs[100] - The company is committed to enhancing social and economic value through environmental, social, and governance (ESG) activities[92] - The company plans to publish its 2024/2025 ESG report alongside its annual report[98] - The Japanese economy is expected to continue its moderate recovery, with positive signs such as record wage increases, although uncertainties remain due to global political instability and inflation[84]

Financial Performance - Total revenue for the year ended March 31, 2025, was 126,076 million JPY, a decrease of 3.3% compared to the previous year[4]. - Profit before tax was 6,067 million JPY, an increase of 11.6% compared to the previous year[4]. - Net profit attributable to owners for the period was 4,009 million JPY, an increase of 18.5% compared to the previous year[4]. - Basic earnings per share were 5.8 JPY[4]. - Total revenue for the fiscal year ending March 31, 2025, was 126,076 million JPY (approximately 6,560 million HKD), representing a 96.7% increase from the previous year[28]. - Consolidated operating profit for the same period was 10,972 million JPY (approximately 570 million HKD), reflecting a 122.1% increase year-over-year[28]. - Consolidated net profit reached 4,019 million JPY (approximately 208 million HKD), marking an increase of 118.7% compared to the previous fiscal year[28]. - Total revenue for the fiscal year ending March 31, 2025, is projected to be ¥126,076 million, compared to ¥130,363 million for the previous year[53]. - Net profit for the fiscal year ending March 31, 2025, is expected to be ¥4,019 million, up from ¥3,385 million in the previous year, indicating a growth of approximately 18.7%[54]. - Basic earnings per share for the fiscal year ending March 31, 2025, is projected at ¥5.8, compared to ¥4.8 for the previous year, reflecting a 20.8% increase[53]. Gaming Operations - The company operated 427 gaming halls as of March 31, 2025, down from 433 gaming halls the previous year[4]. - The company aims to standardize gaming hall types to control initial operating costs and focus on densely populated areas for new openings[13][14]. - The strategy includes acquiring other gaming hall operators to expand the network under the group[17]. - The company plans to develop new standard gaming halls in small commercial areas with populations between 30,000 and 50,000[14]. - The company emphasizes low-cost operations and multi-hall development to achieve economies of scale in purchasing gaming machines and prizes[11]. - Total betting amount decreased by 1.7% to 552,641 million JPY (approximately 28,754 million HKD) from 562,029 million JPY (approximately 29,060 million HKD) in the previous year[33]. - High-stakes gaming venues saw a slight decrease in total betting amount by 0.2% to 293,460 million JPY (approximately 15,269 million HKD) from 294,033 million JPY (approximately 15,203 million HKD)[34]. - Low-stakes gaming venues experienced a 3.3% decline in total betting amount, dropping to 259,181 million JPY (approximately 13,485 million HKD) from 267,996 million JPY (approximately 13,857 million HKD)[34]. - The company plans to renovate and reduce the number of traditional gaming machines by 115 while increasing the number of slot machines to enhance competitiveness[31]. - The introduction of new popular games, including smart slot machines launched in November 2022, continues to receive customer support, leading to an increase in installation rates[30]. Aircraft Leasing Business - The company acquired a total of 10 owned aircraft, 8 managed aircraft, and 2 ordered aircraft as of March 31, 2025[24]. - The total operating assets of owned aircraft amount to ¥77,232 million, with an average aircraft age of 2.9 years and an average remaining lease term of 5.2 years[24]. - The operating lease yield for owned aircraft is 8.8%, maintaining a high-quality asset portfolio[24][26]. - The company is focused on sustainable growth through its aircraft leasing business, capitalizing on the strong demand for air travel post-COVID-19[22]. - Aircraft leasing business revenue increased by ¥1,224 million (approximately HK$64 million) or 20.8% to ¥7,107 million (approximately HK$370 million) for the fiscal year ending March 31, 2025[43]. - Aircraft leasing expenses increased by ¥941 million (approximately HK$49 million) or 29.0% to ¥4,191 million (approximately HK$218 million) for the fiscal year ending March 31, 2025[45]. Financial Position - Total assets as of March 31, 2025, amounted to ¥366,045 million, an increase from ¥349,386 million in the previous year[55]. - Current assets were reported at ¥60,978 million, up from ¥48,042 million year-over-year[55]. - Total liabilities decreased to ¥305,734 million from ¥297,425 million, indicating a reduction in financial obligations[56]. - The net asset value remained stable at ¥131,336 million compared to ¥131,488 million in the previous year[56]. - The company reported a decrease in cash and cash equivalents to ¥50,109 million from ¥36,024 million, reflecting a significant increase in liquidity[55]. - The company’s non-current assets totaled ¥305,067 million, slightly up from ¥301,344 million[55]. - The company’s total equity attributable to shareholders was ¥131,323 million, a slight decrease from ¥131,485 million[56]. - The company’s current liabilities increased to ¥60,311 million from ¥51,961 million, indicating a rise in short-term financial obligations[56]. - The company’s long-term debt increased to ¥21,083 million from ¥18,425 million, reflecting a strategy to leverage for growth[56]. - The company’s retained earnings were reported at ¥107,343 million, up from ¥106,816 million, indicating a positive trend in profitability[56]. Market Outlook and Strategy - The outlook for the Japanese economy indicates a moderate recovery, although global political instability and inflation may impact future performance[29]. - The company plans to adopt a group tax allocation system starting from the fiscal year ending March 31, 2026, which may impact future tax expenses[80]. - The company has indicated plans for market expansion and new product development, although specific details were not disclosed in the conference call[53]. - The company plans to expand its market presence in Japan and Ireland, focusing on operational growth in these regions[76]. - Future guidance indicates a focus on increasing revenue streams and improving operational efficiency[76]. Corporate Governance - The company adheres to corporate governance principles aimed at enhancing shareholder value through prudent management practices[90]. - The board believes that the company has applied the principles and complied with all applicable governance rules during the reporting period, with some exceptions noted[91]. - The audit committee consists of three independent non-executive directors, responsible for reviewing financial statements and overseeing financial reporting procedures[94]. - The company has established an audit committee in accordance with listing rules to ensure proper governance and oversight[94]. - The board consists of a majority of independent non-executive directors, ensuring a balance of power and authority[92]. - The company has adopted standard rules to prevent insider trading, ensuring compliance by all directors during the reporting period[93]. Miscellaneous - The company has not engaged in any aircraft acquisitions, sales, or disposals during the reporting period[24]. - The company has not recognized or disclosed deferred tax assets and liabilities related to the GloBE rules as per the new international accounting standards[62]. - There are no significant post-reporting date events to disclose[88]. - The company operates under a tax regime that applies global minimum tax rules in certain European and Asian countries, with expected minimal impact[82]. - The company is a wholly-owned subsidiary of Yume Corporation, which is registered in Japan[100].

Business Operations - As of September 30, 2024, the company operates the largest network of Japanese-style pachinko parlors with a total of 429 locations[25] - The core business of the company is managing the largest chain of Japanese-style pachinko parlors in Japan, directly holding 100% of the issued share capital of 8 subsidiaries[24] - The company acquired Yume Corporation in November 2015, which operates 30 parlors under the "Yumeya" brand[16] - The gaming machines offered include Japanese-style pachinko and slot machines, with betting amounts typically ranging from 0.5 to 4 yen per ball for pachinko and 5 to 20 yen per coin for slot machines[26] - The company is exploring new business opportunities in the growing Asian market through its subsidiary, DYNAM Hong Kong[16] - The company has established 16 distribution centers across Japan to manage logistics for 20 to 30 game halls each, optimizing costs through the use of second-hand gaming machines[70] - The company has acquired multiple Japanese-style pachinko game halls through absorption-type company splits, expanding its network of game halls[62][63] - The company plans to continue expanding its game hall network by opening new standard game halls and acquiring existing operators[68] Financial Performance - Total revenue for the six months ended September 30, 2024, was ¥63,753 million (approximately HK$3,469 million), a slight decrease from ¥64,375 million (HK$3,371 million) in the same period last year[37] - Revenue from aircraft leasing business increased to ¥3,576 million (HK$195 million), up from ¥2,188 million (HK$115 million) year-on-year, representing a growth of 63.5%[37] - EBITDA for the current fiscal year was reported at ¥34,037 million (HK$1,852 million), compared to ¥32,278 million (HK$1,690 million) in the previous year[37][38] - The company reported a net profit of ¥2,190 million (HK$119 million) for the six months ended September 30, 2024, an increase from ¥1,874 million (HK$98 million) in the same period last year, reflecting a growth of 16.9%[37] - Total revenue for the six months ended September 30, 2024, was 63,753 million JPY (approximately 3,469 million HKD), representing 99.0% of the revenue from the same period last year[90] - The consolidated operating profit increased to 6,044 million JPY (approximately 329 million HKD), which is 137.4% of the previous year's figure[90] Operational Efficiency - The company is focusing on optimizing its structure to enhance profitability while increasing the installation rate of smart Japanese-style pachinko machines and slot machines[48] - The company is committed to reducing operational expenses, including public facility and advertising costs, to improve overall profitability[48] - The company focuses on multi-venue development and low-cost operations as key profit sources, emphasizing low-stakes gaming to enhance customer experience[51] - The company aims to standardize game hall specifications to reduce initial investment costs and construction time, targeting small commercial areas with populations between 30,000 and 50,000[64][65] - The company leverages economies of scale to control operational expenses, utilizing ICT systems to enhance productivity and reduce labor costs[71] Community and Social Responsibility - The company emphasizes customer-centric principles and transparent management practices[10] - The company is committed to contributing to local communities and enhancing stakeholder lives[11] - The company has established a dedicated subsidiary for employing individuals with disabilities, contributing to social responsibility[16] Financial Stability - Total liabilities decreased to ¥52,568 million (HK$2,861 million) from ¥60,311 million (HK$3,118 million) year-on-year, indicating improved financial stability[41] - Non-current assets totaled ¥303,003 million (HK$16,486 million) as of September 30, 2024, slightly down from ¥305,067 million (HK$15,774 million) at the end of March 2024[41] - The current ratio as of September 30, 2024, was 1.0, indicating a balanced position between current assets and current liabilities[141] - The company had no significant contingent liabilities as of September 30, 2024[144] Shareholder Information - The total number of issued shares at the end of the reporting period was 696,443,096[178] - The company holds a total of 410,951,936 shares, representing approximately 59.007% of the total equity[164] - The largest shareholder, SAC, holds 187,522,560 shares, accounting for approximately 40.683% of the company's equity[175] - Sato Yoji controls 283,332,560 shares, which is part of the total equity held by the Sato family[169] - Sato Kohei holds 51,639,680 shares, representing a small percentage of the total equity[164] Governance and Compliance - The company has complied with all applicable corporate governance code provisions during the reporting period, with the exception of the chairman and CEO roles being held by the same individual, which the board believes provides strong leadership[185] - The company has adopted a standard code of conduct for directors regarding securities trading, ensuring compliance with insider trading regulations[187] - The board believes that having a majority of independent non-executive directors ensures a balance of power and authority within the board[185] - The company’s interim financial results are prepared in accordance with International Accounting Standards, with no significant issues identified during the review[199] - The company has established foreign currency hedging policies to manage foreign currency risks associated with transactions and assets denominated in HKD, USD, and EUR[157] Dividend Information - The company declared an interim dividend of 2.5 JPY per ordinary share, with an expected total payout of approximately 1,741 million JPY (about 95 million HKD) based on 696,443,096 shares issued[190] - The interim dividend is scheduled to be paid on January 10, 2025, to shareholders listed as of December 12, 2024[190]

Financial Performance - Total revenue for the six months ended September 30, 2024, was ¥63,753 million, a decrease of 1.0% compared to the same period in 2023[2]. - Profit before income tax for the same period was ¥3,576 million, an increase of 22.3% year-on-year[2]. - Net profit attributable to owners for the period was ¥2,190 million, reflecting a 16.9% increase compared to the previous year[2]. - Basic earnings per share for the period were ¥3.1[2]. - The total revenue for the group as of September 30, 2024, was 63,753 million JPY, approximately 3,469 million HKD, representing 99.0% of the same period last year[43]. - The consolidated operating profit for the same period was 6,044 million JPY, approximately 329 million HKD, which is 137.4% of the previous year's figure[43]. - The net profit for the period was 2,190 million JPY, approximately 119 million HKD, which is 116.9% of the same period last year[43]. - Total revenue for the six months ended September 30, 2024, was 63,753 million JPY, compared to 64,375 million JPY for the same period in 2023[73]. - Operating profit for the six months ended September 30, 2024, was 6,044 million JPY, compared to 4,400 million JPY for the same period in 2023[73]. - Net profit for the six months ended September 30, 2024, was 2,190 million JPY, compared to 1,874 million JPY for the same period in 2023[75]. - Total comprehensive income for the six months ended September 30, 2024, was a loss of 1,459 million JPY, compared to a gain of 6,483 million JPY for the same period in 2023[79]. Gaming Operations - The company operated 429 gaming halls as of September 30, 2024, down from 434 gaming halls in the previous year[2]. - The market for Japanese-style pachinko machines remains stable, driven by the introduction of smart pachinko machines, particularly among younger customers[7]. - The group aims to optimize its structure to enhance profitability and increase the installation rate of smart pachinko and slot machines[10]. - The company will focus on advancing renovations of gaming halls and related work to improve operational efficiency[10]. - The company aims to reshape Japanese pachinko gaming as an easily accessible daily entertainment option, targeting a broad customer base[17]. - The gaming machines have a betting range of 0.5 to 4 JPY for pachinko and 5 to 20 JPY for slot machines[18]. - The focus on low betting amounts aims to make pachinko gaming a regular entertainment option for customers[18]. - The company is implementing a chain store management strategy to stabilize long-term profits through multi-store development[19]. - New gaming halls will be standardized and concentrated in densely populated areas to control initial operating costs[22]. - The company plans to open new gaming halls in small business districts with a residential population of 30,000 to 50,000[23]. - The company has acquired multiple pachinko halls through share exchanges and corporate splits, expanding its network[26]. - The company has successfully integrated several pachinko halls into its operations, including five halls acquired in July 2023[27]. - The company utilizes second-hand gaming machines and efficient distribution centers to maintain low operational costs[29]. Aircraft Leasing - The aircraft leasing business aims for steady growth and sustainable development, with a focus on building strong relationships with global airlines and financial institutions[32][35]. - As of September 30, 2024, the group owned 10 aircraft and managed 7 aircraft, with a total operating asset value of 75,259 million JPY and an average aircraft age of 2.4 years[36]. - The average remaining lease term for owned aircraft is 5.7 years, with a 100% narrow-body aircraft ratio and 90% equipped with next-generation engines[37]. - Aircraft leasing revenue increased by 63.4% to 3,576 million yen for the six months ending September 30, 2024, compared to 2,188 million yen for the same period in 2023[59]. - Aircraft leasing expenses rose by 54.5% to 2,042 million yen for the six months ending September 30, 2024, from 1,322 million yen for the same period in 2023[61]. - The company entered into a new purchase and lease agreement for two aircraft with Wizz Air Fleet Management Ltd, expected to be executed by March 31, 2026[143]. Economic Environment - The Japanese economy has shown signs of moderate recovery, although risks remain due to external economic downturns and rising material and energy prices[6]. Financial Position - Total assets decreased from ¥366,045 million to ¥353,095 million, a decline of approximately 3.9%[83]. - Current liabilities decreased from ¥60,311 million to ¥52,568 million, a reduction of about 12.9%[83]. - Cash and cash equivalents decreased from ¥50,109 million to ¥38,916 million, a drop of approximately 22.3%[83]. - Trade and other payables decreased from ¥14,904 million to ¥11,673 million, a decrease of about 21.0%[83]. - Borrowings decreased from ¥21,083 million to ¥17,823 million, a decline of approximately 15.0%[83]. - Non-current liabilities related to borrowings decreased from ¥79,241 million to ¥74,577 million, a reduction of about 5.0%[89]. - The company's net assets decreased from ¥131,488 million to ¥128,288 million, a decline of approximately 2.7%[90]. - The company has maintained its capital stock at ¥15,000 million, with retained earnings slightly increasing from ¥106,816 million to ¥107,265 million[92]. - The company’s total liabilities as of September 30, 2024, were 224,807 million JPY, compared to 234,557 million JPY as of March 31, 2024, showing a decrease of approximately 4.00%[123]. Revenue Breakdown - Revenue from the Japanese-style pachinko business decreased by 3.2% to 60,177 million yen for the six months ending September 30, 2024, compared to 62,187 million yen for the same period in 2023[50]. - High-stakes gaming halls saw total bets increase by 0.9% to 146,376 million yen for the six months ending September 30, 2024, from 145,059 million yen for the same period in 2023[46]. - Low-stakes gaming halls experienced a 2.5% decrease in total bets to 130,485 million yen for the six months ending September 30, 2024, down from 133,763 million yen for the same period in 2023[46]. - Total bets for the six months ending September 30, 2024, were 276,861 million yen, a decrease of 0.5% from 278,822 million yen for the same period in 2023[45]. - Total payouts for the six months ending September 30, 2024, were 216,684 million yen, slightly increasing from 216,635 million yen for the same period in 2023[48]. Expenses and Income - General and administrative expenses decreased by 221 million JPY (approximately 12 million HKD) or 10.3% to 1,923 million JPY (approximately 105 million HKD) for the six months ended September 30, 2024[63]. - Other income increased by 1,075 million JPY (approximately 58 million HKD) or 27.1% to 5,038 million JPY (approximately 274 million HKD) for the six months ended September 30, 2024[65]. - Other operating expenses decreased by 178 million JPY (approximately 10 million HKD) or 14.1% to 1,086 million JPY (approximately 60 million HKD) for the six months ended September 30, 2024[67]. - Financing income decreased by 219 million JPY (approximately 12 million HKD) or 52.3% to 200 million JPY (approximately 11 million HKD) for the six months ended September 30, 2024[69]. - Financing expenses increased by 773 million JPY (approximately 42 million HKD) or 40.8% to 2,668 million JPY (approximately 145 million HKD) for the six months ended September 30, 2024[70]. Shareholder Returns - The board declared an interim dividend of ¥2.5 per ordinary share[2]. - The company declared an interim dividend of 2.50 JPY per share, totaling 1,741 million JPY for the nine months ended September 30, 2024, compared to 1,783 million JPY for the same period in 2023, a decrease of approximately 2.4%[140]. - Basic earnings per share for the nine months ended September 30, 2024, were 3.1 JPY, up from 2.6 JPY in the same period of 2023, representing an increase of about 19.2%[142].

Financial Performance - Total bets for the fiscal year ending March 31, 2024, reached ¥562,029 million, an increase from ¥507,852 million in the previous year, representing a growth of 10.6%[29] - The company reported a net profit of ¥3,385 million for the fiscal year, compared to ¥1,798 million in the previous year, marking an increase of 88.3%[29] - EBITDA for the fiscal year was ¥53,205 million, up from ¥43,729 million in the previous year, reflecting a growth of 21.3%[29] - Total revenue for the fiscal year ending March 31, 2024, was 130,363 million JPY (approximately 6,740 million HKD), representing an increase of 11.2% from the previous year[33] - The operating profit for the year was 8,983 million JPY (approximately 464 million HKD), up 132.8% from the previous year[33] - The basic earnings per share for the fiscal year was ¥4.8, compared to ¥2.5 in the previous year, reflecting an increase of 92%[29] - The total comprehensive income for the year reached ¥8,082 million, compared to ¥2,107 million, reflecting a growth of 284.5%[189] Revenue Sources - The revenue from the Japanese pachinko business was ¥124,480 million, an increase of 8.5% from ¥114,331 million in the previous year[29] - Aircraft leasing business revenue surged by 104.6% to 5,883 million JPY (approximately 304 million HKD) from 2,875 million JPY (approximately 169 million HKD) in the previous year[32] - High-stakes gaming halls saw total bets rise by 7.2% to 294,033 million JPY (approximately 15,203 million HKD) from 274,204 million JPY (approximately 16,120 million HKD) in the previous year[32] - Low-stakes gaming halls experienced a 14.7% increase in total bets, reaching 267,996 million JPY (approximately 13,857 million HKD) from 233,648 million JPY (approximately 13,736 million HKD) in the previous year[32] Expenses and Liabilities - Non-current liabilities increased to ¥174,246 million from ¥143,341 million, representing a rise of 21.5%[30] - The company incurred financing expenses of ¥4,355 million, compared to ¥3,277 million, indicating an increase of 32.8%[188] - The company’s expenses related to the Japanese pachinko business were ¥118,673 million, an increase from ¥110,484 million, which is a rise of 7.4%[188] - General and administrative expenses decreased by 133 million yen to 4,176 million yen (approximately 216 million HKD), a decline of 3.1%[39] Cash Flow and Investments - Operating cash flow for the year ended March 31, 2024, was 64,877 million JPY (approximately 3,356 million HKD), an increase from 54,660 million JPY (approximately 3,212 million HKD) in the previous year[46] - Net cash used in investing activities for the year ended March 31, 2024, was 83,628 million JPY (approximately 4,323 million HKD), up from 64,994 million JPY (approximately 3,821 million HKD) in the previous year[48] - The company raised 47,233 million JPY (approximately 2,442 million HKD) through bank loans during the financing activities for the year ended March 31, 2024[48] Market Strategy and Expansion - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[28] - Future guidance indicates a focus on increasing revenue streams from both the pachinko and aircraft leasing businesses[28] - The company plans to renovate old high-stakes gaming halls to enhance profitability and competitiveness[33] - The company is focused on risk management, addressing credit risk, market risk, and liquidity risk to minimize potential adverse impacts on financial performance[61] Corporate Governance - The company adheres to corporate governance principles, ensuring long-term shareholder value through prudent management practices[95][96] - The board of directors has maintained compliance with the corporate governance code, with a majority of independent non-executive directors ensuring a balance of power[96][98] - The company has established a risk management and internal control system, with the audit committee overseeing its effectiveness[107] - The company has implemented effective risk management and internal control systems, which were reviewed and deemed sufficient during the reporting period[117] Sustainability and Social Responsibility - The company is committed to sustainable growth by integrating environmental, social, and governance (ESG) concepts into its operations[64] - The company aims to enhance corporate value and become an indispensable part of the local community[64] - The company is committed to sustainability initiatives, with a goal to reduce carbon emissions by 40% over the next five years[140] Shareholder Information - The company plans to distribute dividends amounting to at least 35% of its annual consolidated net income[127] - The total fees paid to the external auditor PricewaterhouseCoopers Japan LLC for audit services were ¥107 million (approximately HK$5.5 million) and for non-audit services were ¥3 million (approximately HK$0.2 million), totaling ¥110 million (approximately HK$5.7 million)[121] - The company has established a shareholder communication policy to ensure effective dialogue with shareholders and potential investors[124]

Financial Performance - Total revenue amounted to ¥130,363 million (or HK$6,740 million), reflecting an 11.2% increase year-over-year[2] - Profit before income tax was ¥5,435 million (or HK$281 million), up 38.0% from the previous year[2] - Net profit attributable to owners of the company was ¥3,384 million (or HK$175 million), representing an 87.4% increase year-over-year[2] - Consolidated operating profit reached 8,983 million JPY, up 32.8% year-over-year[22] - Consolidated net profit for the year was 3,385 million JPY, reflecting a significant increase of 88.3% from the prior year[22] - Total revenue for the fiscal year ending March 31, 2024, was 130,363 million JPY, an increase of 11.5% from 117,206 million JPY in the previous year[38] - Operating profit for the year was JPY 8,983 million, compared to JPY 6,764 million in the previous year, reflecting a growth of 32.5%[38] - Net income for the year reached JPY 3,385 million, a substantial increase from JPY 1,798 million, resulting in a basic and diluted earnings per share of JPY 4.8, up from JPY 2.5[38] - Total comprehensive income for the year was JPY 8,082 million, compared to JPY 2,107 million in the previous year, indicating a significant improvement[39] Investment and Expansion - Total investment reached ¥562,029 million (or HK$29,060 million), an increase of 10.7% compared to the previous fiscal year[2] - The company aims to leverage its position as a leader in the Japanese pachinko industry through multi-hall development and low-cost operations[6] - The company plans to continue expanding its network of gaming halls by opening new standard gaming halls and acquiring existing operators[9] - The company has acquired multiple Japanese pachinko parlors through share exchange and absorption-type company splits, expanding its network significantly[10][11] - The company targets small business areas with a residential population of 30,000 to 50,000 for new parlor openings, focusing on suburban development strategies[10] - The company is focusing on expanding its market presence by developing new gaming halls in larger market segments, rather than solely relying on opening new locations[63] Gaming Operations - As of March 31, 2024, the company operated 433 gaming halls, up from 429 gaming halls as of the previous year[2] - The company has standardized the layout and number of gaming machines in its parlors, which helps reduce initial investment costs and shorten construction time[10] - Approximately 60% of the operating costs for the parlors are related to the use of second-hand gaming machines and the establishment of distribution centers[13] - The company has set up 16 distribution centers across Japan to manage logistics and share gaming machines among parlors efficiently[14] - The company is renovating multiple gaming halls to increase the number of Japanese-style slot machines, aiming to enhance profitability and competitiveness[23] Revenue Breakdown - Revenue from gaming machine operations was JPY 124,480 million, up from JPY 114,331 million, while revenue from aircraft leasing operations increased significantly to JPY 5,883 million from JPY 2,875 million[38] - Revenue for the Japanese pachinko business increased by 10,149 million yen (approximately 524 million HKD) or 8.9% to 124,480 million yen (approximately 6,436 million HKD) for the fiscal year ending March 31, 2024[27] - High-stakes gaming hall revenue rose by 2,473 million yen (approximately 127 million HKD) or 4.4% to 58,466 million yen (approximately 3,023 million HKD) for the fiscal year ending March 31, 2024, with a revenue rate decrease of 0.5 percentage points to 19.9%[28] - Low-stakes gaming hall revenue increased by 7,676 million yen (approximately 397 million HKD) or 13.2% to 66,014 million yen (approximately 3,413 million HKD) for the fiscal year ending March 31, 2024, with a revenue rate decrease of 0.4 percentage points to 24.6%[28] Expenses and Liabilities - The total expenses for the Japanese pachinko business increased by 8,189 million yen (approximately 423 million HKD) or 7.4% to 118,673 million yen (approximately 6,136 million HKD) for the fiscal year ending March 31, 2024[29] - Aircraft leasing expenses increased by 1,416 million yen (approximately 73 million HKD) or 77.2% to 3,250 million yen (approximately 168 million HKD) for the fiscal year ending March 31, 2024[32] - General and administrative expenses decreased by 133 million yen (approximately 7 million HKD) or 3.1% to 4,176 million yen (approximately 216 million HKD) for the fiscal year ending March 31, 2024[33] - The total liabilities for the company as of March 31, 2024, were 234,557 million JPY, compared to 197,181 million JPY in the previous year, indicating an increase of approximately 19%[57] Taxation and Financial Position - The company reported a total income tax expense of 2,050 million JPY for the fiscal year ending March 31, 2024, compared to 2,139 million JPY in 2023[76] - The effective statutory tax rate for the group is approximately 31% for the fiscal years ending March 31, 2023, and March 31, 2024[76] - The company has recognized a goodwill primarily attributed to the expected excess earning capacity of the acquired pachinko business[65] - The company plans to start paying business tax from the fiscal year beginning April 1, 2026, following tax reform approval[77] Shareholder Information - Basic earnings per share were ¥4.8 (or HK$0.2)[2] - The board declared a final dividend of ¥2.5 per share[2] - The total dividend declared for the fiscal year 2024 is 3,503 million JPY, slightly down from 3,574 million JPY in 2023[79] - The company proposed a final dividend of 2.5 JPY per share, expecting a total payout of approximately 1,741 million JPY based on 696,443,096 shares issued as of June 6, 2024[90] Corporate Structure and Governance - DYNAM JAPAN HOLDINGS Co., Ltd was established on September 20, 2011, and is listed on the Hong Kong Stock Exchange since August 6, 2012[44] - The consolidated financial statements as of March 31, 2024, include the company and its subsidiaries, with two reportable segments: "Japanese-style Pachinko Business" and "Aircraft Leasing Business"[44] - The current executive director is Akira Hosaka, with several non-executive directors listed.[95]

Business Operations - As of September 2023, the company operates the largest network of Japanese-style pachinko halls with a total of 434 locations[15] - The core business of the company is managing the largest chain of Japanese-style pachinko halls in Japan, directly holding 100% of the issued share capital of 8 subsidiaries[15] - The company has introduced various new products and seasonal prize events to enhance customer service, including special prizes during holidays[15] - The gaming machines offered include Japanese-style pachinko and slot machines, with betting amounts typically ranging from 0.5 to 4 yen per ball for pachinko and 5 to 20 yen per coin for slot machines[15] - The company is committed to community contributions and aims to be closely related to local communities[8] - The company has a significant presence in the Asian market through its subsidiary, DYNAM Hong Kong, which focuses on investment and development of overseas businesses[10] - The company aims to manage approximately 30 aircraft in the medium term to support sustainable growth in the aircraft leasing sector[17] - The company plans to increase the number of game halls through various methods to enhance profitability in the Japanese pachinko business[23] - The company has successfully acquired multiple Japanese pachinko game hall operators to expand its network, including the integration of Yume Corporation[30] - The strategy includes opening new game halls in small commercial areas with populations between 30,000 and 50,000, focusing on suburban expansion[26] Financial Performance - Total revenue for the six months ended September 30, 2023, was ¥64,375 million (approximately HK$3,371 million), an increase from ¥56,195 million (approximately HK$3,048 million) in the same period of 2022, representing a growth of 14.0%[19] - Revenue from aircraft leasing business reached ¥2,188 million (approximately HK$115 million), up from ¥1,045 million (approximately HK$57 million) in the previous year, marking a significant increase of 109.0%[19] - EBITDA for the six months ended September 30, 2023, was ¥26,763 million (approximately HK$1,401 million), compared to ¥19,939 million (approximately HK$1,081 million) in the same period of 2022, reflecting a growth of 34.4%[19] - The company recorded a net profit of ¥1,874 million (approximately HK$98 million) for the six months ended September 30, 2023, compared to ¥1,183 million (approximately HK$64 million) in the same period of 2022, representing a growth of 58.5%[19] - The comprehensive profit for the same period was 4,400 million JPY (approximately 231 million HKD), which is 13.4% higher than the previous year[42] - The total betting amount across high and low betting game halls reached 278,822 million JPY, an increase of 13.4% from 245,981 million JPY in the previous year[39] - Revenue from the Japanese pachinko business totaled 62,187 million JPY, marking a 12.8% increase from 55,150 million JPY year-on-year[39] - Operating profit for the period was ¥4,400 million, representing an increase of 13.4% from ¥3,881 million in the previous year[97] - The net profit for the period was ¥1,874 million, a significant increase of 58.5% compared to ¥1,183 million in the same period last year[97] Operational Costs and Expenses - Operating expenses for the Japanese pachinko business rose by 13.3% to ¥59,208 million (approximately HK$3,099 million) for the six months ended September 30, 2023, from ¥52,246 million (approximately HK$2,833 million) in the previous year[47] - Aircraft leasing expenses increased by 97.6% to ¥1,322 million (approximately HK$69 million) for the six months ended September 30, 2023, from ¥669 million (approximately HK$37 million) in the prior year[49] - General and administrative expenses rose by 4.7% to ¥2,144 million (approximately HK$112 million) for the six months ended September 30, 2023, compared to ¥2,048 million (approximately HK$111 million) in the previous year[50] - Other income decreased by 19.9% to ¥3,963 million (approximately HK$207 million) for the six months ended September 30, 2023, down from ¥4,950 million (approximately HK$268 million) in the same period of 2022[51] - Financing expenses rose by 9.2% to ¥1,895 million (approximately HK$100 million) for the six months ended September 30, 2023, compared to ¥1,736 million (approximately HK$93 million) in the same period of 2022[54] Assets and Liabilities - Non-current assets as of September 30, 2023, totaled ¥300,170 million (approximately HK$15,716 million), an increase from ¥256,442 million (approximately HK$15,076 million) as of March 31, 2023[20] - The net current liabilities were ¥(4,447) million (approximately HK$(233) million) as of September 30, 2023, compared to a net current asset of ¥15,326 million (approximately HK$901 million) as of March 31, 2023[20] - Total current assets as of September 30, 2023, amounted to 53,947 million JPY (approximately 2,824 million HKD), while total current liabilities were 58,394 million JPY (approximately 3,057 million HKD), resulting in a negative net working capital of (4,447) million JPY (approximately (233) million HKD)[61] - The company's total assets as of September 30, 2023, amounted to ¥354,117 million, compared to ¥325,608 million as of March 31, 2023, reflecting a growth of 8.7%[101] - The company's total liabilities as of September 30, 2023, were ¥221,465 million, with ¥107,106 million attributed to the pachinko business and ¥74,429 million to the aircraft leasing business[120] Shareholder Information - The company’s equity interest held by directors and key executives amounted to 421,287,936 shares, representing approximately 59.628% of the company[78] - The company has a total of 706,528,896 shares issued as of the reporting period end[84] - The company declared an interim dividend of ¥2.5 per share, with an expected total payout of approximately ¥1,762 million (around HK$92 million) based on 704,887,696 shares issued[90] - The company repurchased a total of 7,688,600 shares during the reporting period, with a total cost of approximately HK$37,134,374[91] - Basic earnings per share for the period were ¥2.6, up from ¥1.6 in the previous year, indicating a growth of 62.5%[97] Governance and Compliance - The company has complied with all applicable corporate governance codes during the reporting period, except for the dual role of the chairman and CEO[85] - The interim financial statements were reviewed by PricewaterhouseCoopers Aarata LLC, ensuring compliance with international standards[88] - The company has adopted a "prevent insider trading rules" to regulate securities trading by directors and employees[87] Future Outlook - The company aims to enhance future performance by acquiring existing businesses in the new game hall sector rather than opening new locations[155] - The estimated revenue growth rate for the pachinko business is projected to be between 5.5% and 8.4% as it recovers to pre-COVID-19 levels[136] - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[98]

Financial Performance - Total revenue was ¥64,375 million (or HK$3,371 million), up 14.6% from the six months ended September 30, 2022[2]. - Profit before income tax was ¥2,924 million (or HK$153 million), reflecting a 26.1% increase compared to the same period last year[2]. - Net profit attributable to owners for the period was ¥1,873 million (or HK$98 million), representing a 57.8% increase year-on-year[2]. - Basic earnings per share were ¥2.6 (or HK$0.1)[2]. - The company reported a total comprehensive income of JPY 6,483 million for the six months ended September 30, 2023, compared to JPY 4,486 million in the same period last year, indicating a growth of 44.5%[40]. - Net profit for the six months ended September 30, 2023, was JPY 1,874 million, compared to JPY 1,183 million in the previous year, representing a year-on-year increase of 58.5%[40]. - Operating profit for the same period was JPY 4,400 million, up from JPY 3,881 million, reflecting a growth of 13.4%[39]. - The company reported a total segment profit of ¥3,313 million for the six months ended September 30, 2023, with a net profit of ¥1,874 million[51]. Investment and Expansion - Total investment reached ¥278,822 million (or HK$14,598 million), an increase of 13.4% compared to the six months ended September 30, 2022[2]. - The company plans to increase the number of gaming halls through various methods to enhance profitability[5]. - The company has acquired multiple Japanese arcade businesses, expanding its network significantly, with recent acquisitions including five arcades as of July 31, 2023[14]. - The company aims to enhance future performance by developing new game halls in larger market segments[67]. - The acquisition of Keiai Co., Ltd. was completed on July 31, 2023, with a cash purchase price of 4,066 million JPY[68]. Revenue Streams - Revenue from the daily gaming machine business increased by 12.8% to 62,187 million JPY from 55,150 million JPY year-over-year[29]. - Revenue from aircraft leasing business surged by 109.4% to 2,188 million JPY from 1,045 million JPY in the previous year[24]. - Revenue from external customers for the arcade business was ¥62,187 million, while the aircraft leasing business generated ¥2,188 million, totaling ¥64,375 million for the six months ended September 30, 2023[51]. - Revenue from high-stakes gaming halls' Japanese pachinko business increased by ¥2,187 million (approximately HK$115 million) or 8.1% to ¥29,246 million (approximately HK$1,531 million) for the six months ended September 30, 2023[30]. - Revenue from low-stakes gaming halls' Japanese pachinko business rose by ¥4,850 million (approximately HK$254 million) or 17.3% to ¥32,941 million (approximately HK$1,725 million) for the six months ended September 30, 2023[30]. Operational Efficiency - The group emphasizes low-cost operations and multi-store development, leveraging economies of scale in purchasing gaming machines and prizes[10]. - The implementation of an ICT system enhances productivity and reduces labor costs by automating the tracking of gaming machine outputs[19]. - The company operates 16 distribution centers across Japan to manage logistics and share gaming machines among 20 to 30 arcades, reducing costs[18]. Dividends and Shareholder Returns - The board declared an interim dividend of ¥2.5 per ordinary share[2]. - The total dividend declared for the six months ending September 30, 2023, was 1,783 million JPY, with a dividend per share of 2.60 JPY[64]. - During the reporting period, the company repurchased a total of 7,688,600 shares at an average price of 5.41 HKD, totaling 37,134,374 HKD[78]. Market Conditions and Future Outlook - The business environment is gradually recovering as COVID-19 impacts diminish, although geopolitical risks and global economic downturns remain concerns[5]. - The company anticipates global air passenger demand to recover to 4.35 billion in 2023, reaching 96% of pre-COVID-19 levels[20]. - The company plans to continue expanding its operations in the gaming and aircraft leasing sectors, focusing on new product development and market expansion strategies[43]. Corporate Governance and Compliance - The company has adhered to corporate governance rules, with a noted exception regarding the dual role of the Chairman and CEO until June 23, 2023[73]. - The company has adopted standard rules and regulations to prevent insider trading, confirmed by all directors during the reporting period[74]. - The company’s interim financial statements were reviewed by PricewaterhouseCoopers Aarata LLC according to international auditing standards[75].

Financial Performance - Total revenue for the fiscal year ending March 31, 2023, was ¥117,206 million, an increase from ¥105,141 million in the previous year, representing a growth of 10.4%[37] - Operating profit for the same period was ¥6,764 million, down from ¥10,654 million, indicating a decrease of 36.5%[37] - Net profit attributable to owners for the year was ¥1,798 million, a significant decline from ¥4,977 million, reflecting a drop of 63.8%[37] - EBITDA for the fiscal year was ¥43,729 million, compared to ¥32,383 million in the previous year, showing an increase of 35.2%[37] - The company reported a basic earnings per share of ¥2.5, down from ¥6.8 in the previous year, a decrease of 63.2%[37] - The consolidated net profit for the fiscal year was 1,798 million JPY (approximately 106 million HKD), reflecting a decrease of 36.1% compared to the previous year[43] - Total payout for the fiscal year was 393,521 million JPY (approximately 23,135 million HKD), a decrease of 2.4% from 403,361 million JPY (approximately 25,790 million HKD) in the previous year[42] Assets and Liabilities - Non-current assets totaled ¥256,442 million, an increase from ¥225,934 million in the previous year, representing a growth of 13.5%[38] - Current assets were reported at ¥69,166 million, slightly up from ¥67,487 million, indicating a growth of 2.5%[38] - Total liabilities decreased to ¥197,181 million from ¥196,409 million, reflecting a slight reduction of 0.4%[38] - Current liabilities rose to 53,840 million JPY (approximately 3,165 million HKD) from 47,324 million JPY (approximately 3,026 million HKD) in the previous year, resulting in a decrease in net current assets from 20,163 million JPY (approximately 1,289 million HKD) to 15,326 million JPY (approximately 901 million HKD)[62] - The debt-to-asset ratio increased from 14.7% as of March 31, 2022, to 22.2% as of March 31, 2023, primarily due to an increase in total borrowings[63] Business Strategy and Future Outlook - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[37] - Future guidance indicates a focus on improving profitability and exploring potential mergers and acquisitions to drive growth[37] - The company plans to introduce smart pachinko machines starting April 2023 to enhance profitability[43] - The economic outlook remains uncertain due to ongoing geopolitical tensions and rising material and energy costs[43] - The company aims to create higher value by making pachinko parlors an essential part of the community[76] - The company is committed to low-cost operations and closing unprofitable parlors to improve profitability[77] - The company aims to reshape pachinko gaming into an easily accessible form of daily entertainment, establishing it as a community infrastructure[94] Operational Performance - Total bets for high-stakes gaming halls decreased by 3.3% to 274,204 million JPY (approximately 16,120 million HKD) from 283,647 million JPY (approximately 18,136 million HKD) in the previous year[43] - Total bets for low-stakes gaming halls increased by 4.6% to 233,648 million JPY (approximately 13,736 million HKD) from 223,302 million JPY (approximately 14,278 million HKD) in the previous year[43] - Revenue from the Japanese pachinko business increased by 10.4% to 114,331 million JPY (approximately 6,721 million HKD) from 103,588 million JPY (approximately 6,624 million HKD) in the previous year[42] - Aircraft leasing business revenue surged by 85.1% to 2,875 million JPY (approximately 169 million HKD) from 1,553 million JPY[42] Expenses and Cash Flow - Japanese pachinko business expenses increased by 16,534 million yen (approximately 972 million HKD) or 17.6% to 110,484 million yen (approximately 6,494 million HKD) for the year ended March 31, 2023[47] - General and administrative expenses increased by 30 million yen (approximately 2 million HKD) or 0.7% to 4,309 million yen (approximately 253 million HKD) for the year ended March 31, 2023[51] - Financing expenses increased by 706 million yen (approximately 42 million HKD) or 27.5% to 3,277 million yen (approximately 193 million HKD) for the year ended March 31, 2023[55] - Operating cash flow for the year ended March 31, 2023, was 54,660 million JPY (approximately 3,212 million HKD), an increase from 32,719 million JPY (approximately 2,093 million HKD) in the previous year[58] Corporate Governance - The board of directors is committed to prudent corporate governance principles, which are believed to enhance shareholder value in the long term[106] - The company has adopted a standard code and rules to prevent insider trading, ensuring compliance among all directors and executives[108] - The board has held 13 meetings and one annual general meeting during the reporting period, demonstrating active governance[113] - The Audit Committee conducted 15 meetings, with all members present, ensuring thorough oversight of financial reporting and risk management[117] - The company has established a risk management committee and an internal control committee to oversee risk management and internal control systems, which are regularly reviewed for effectiveness[127] Shareholder Information - The company plans to distribute dividends amounting to no less than 35% of its annual consolidated net income[140] - The company declared a final dividend of JPY 2.5 per ordinary share, amounting to approximately JPY 1,783 million (around HKD 105 million) based on 713,486,296 shares issued as of June 5, 2023[160] - The company repurchased a total of 9,079,200 shares during the reporting period, with a total expenditure of HKD 56,672,262[165] - The total number of issued shares as of the report date was 713,486,296[165] Risk Management - The company has identified significant risks that could impact its financial condition and operational performance, including potential declines in customer numbers for pachinko operations due to demographic changes and negative perceptions[72] - The company actively monitors and manages risks associated with gaming addiction to ensure long-term business growth[87] - The company has implemented anti-money laundering measures, including training for staff to identify unusual customer activities, particularly involving large cash transactions[128] Compliance and Audit - The financial statements were prepared in accordance with International Financial Reporting Standards and audited by PricewaterhouseCoopers Aarata LLC[192] - The independent auditor confirmed their independence and adherence to professional ethical standards throughout the audit process[197] - The audit opinion confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2023, in accordance with International Financial Reporting Standards[196]

Financial Performance - Total revenue was ¥117,206 million (or HK$6,890 million), representing an increase of 11.5% year-over-year[2] - Profit before tax decreased by 53.7% to ¥3,937 million (or HK$231 million) compared to the previous fiscal year[2] - Net profit attributable to shareholders was ¥1,806 million (or HK$106 million), a decrease of 63.9% year-over-year[2] - The consolidated revenue for the fiscal year ending March 31, 2023, was 117,206 million JPY, representing an increase of 111.5% compared to the previous year[19] - The consolidated operating profit was 6,764 million JPY, reflecting a growth of 63.5% year-over-year[19] - The consolidated net profit for the year was 1,798 million JPY, which is a decrease of 36.1% compared to the previous year[19] - The net profit for the fiscal year ending March 31, 2023, was ¥1,798 million, a decrease of 64.2% compared to ¥4,977 million in the previous year[35] - Total comprehensive income for the year was ¥2,107 million, down 61.5% from ¥5,458 million in the previous year[35] - The company reported a net profit of 1,798 million JPY for the year, with significant investments in non-current assets totaling 56,765 million JPY[49] - Operating profit decreased to 6,764 million yen from 10,654 million yen year-over-year[34] Revenue Breakdown - Total revenue from the Japanese pachinko business increased by 10.4% to 114,331 million yen[17] - The aircraft leasing business revenue surged by 85.1% to 2,875 million yen[17] - Revenue from the arcade business was 114,331 million JPY, an increase from 103,588 million JPY in the previous year, representing a growth of approximately 10.3%[45] - Revenue from the aircraft leasing business was 2,875 million JPY, up from 1,553 million JPY, indicating a growth of about 85.2%[45] Investment and Assets - Total investment reached ¥507,852 million (or HK$29,856 million), an increase of 0.2% compared to the previous fiscal year[2] - The total assets as of March 31, 2023, amounted to ¥325,608 million, an increase from ¥293,421 million in the previous year[38] - Non-current assets, including property, plant, and equipment, increased to ¥146,876 million from ¥118,648 million year-over-year, representing a growth of 23.8%[37] - The company’s total assets included significant non-current assets, primarily consisting of property, plant, and equipment, as well as intangible assets[47] Expenses and Liabilities - The total business expenses for the Japanese pachinko machine segment for the fiscal year ending March 31, 2023, were 110,484 million yen, an increase of 16,534 million yen or 17.6% compared to the previous fiscal year[24] - High-stakes gaming hall expenses increased by 7,877 million yen or 18.6% to 50,298 million yen for the fiscal year ending March 31, 2023[24] - Low-stakes gaming hall expenses rose by 8,657 million yen or 16.8% to 60,186 million yen for the fiscal year ending March 31, 2023[25] - Current liabilities rose to ¥53,840 million, up from ¥47,324 million, indicating an increase of 13.3%[36] - The company’s total liabilities as of March 31, 2023, were not specified, but the segment liabilities for the year indicate a diversified customer base with no single customer accounting for more than 10% of total revenue[55] Shareholder Information - Basic earnings per share were ¥2.5 (or HK$0.1)[2] - The board declared a final dividend of ¥2.5 per share[2] - The total dividend declared for 2023 was ¥3,574 million, slightly lower than ¥3,634 million in 2022[61] - The company plans to pay the final dividend of ¥2.50 per share on June 23, 2023[61] - The average number of ordinary shares for calculating basic earnings per share was 718,357,825 in 2023, down from 737,594,048 in 2022[63] Strategic Initiatives - The company aims to enhance its position as a leader in the Japanese pachinko industry through multi-hall development and low-cost operations[6] - The strategy includes opening new standard gaming halls and acquiring other pachinko hall operators[7] - The group targets new game halls in small business areas with a residential population between 30,000 to 50,000, focusing on suburban development strategies[9] - The group has standardized game hall specifications to reduce initial investment costs and shorten construction time[9] - The group operates 16 distribution centers across Japan to manage logistics and share gaming machines efficiently[12] - The group aims to expand its network by acquiring other Japanese pachinko operators through share exchange plans[10] Operational Metrics - Total bets increased by 903 million JPY (0.2%) to 507,852 million JPY for the fiscal year ending March 31, 2023[21] - High-stakes gaming halls saw total bets decrease by 9,443 million JPY (3.3%) to 274,204 million JPY[21] - Low-stakes gaming halls experienced an increase in total bets by 10,346 million JPY (4.6%) to 233,648 million JPY[21] - Total payouts decreased by 9,840 million JPY (2.4%) to 393,521 million JPY for the fiscal year ending March 31, 2023[22] - High-stakes gaming halls' total payouts decreased by 14,143 million JPY (6.1%) to 218,211 million JPY[22] - Low-stakes gaming halls' total payouts increased by 4,303 million JPY (2.5%) to 175,310 million JPY[22] Corporate Structure - Yume Corporation is a wholly-owned subsidiary of DYNAM JAPAN HOLDINGS Co., Ltd.[75] - The chairman of DYNAM JAPAN HOLDINGS Co., Ltd. is Mr. Makoto Sakamoto[75] - The executive directors of Yume Corporation include Mr. Makoto Sakamoto, while non-executive directors include Mr. Hiroshi Sato, Mr. Kohei Sato, and Mr. Akira Hoshizaki[75] - The independent non-executive directors of Yume Corporation consist of Mr. Mitsuyoshi Kato, Mr. Shinji Hara, Mr. Akira Murayama, Mr. Masato Kamida, and Mr. Koji Kato[75] Miscellaneous - There were no significant events after the reporting period[66] - The company proposed a final dividend of 2.5 JPY per share, expecting a total payout of approximately 1,783 million JPY based on 713,486,296 shares issued as of June 5, 2023[71] - The company repurchased a total of 9,079,200 shares during the reporting period, with a total expenditure of 56,672,262 HKD[72] - As of March 31, 2023, the number of issued shares was 714,275,096, which decreased to 713,486,296 after the share repurchase[73] - The reporting period for Yume Corporation is from April 1, 2022, to March 31, 2023[75]