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]

Business Operations - As of September 30, 2022, DYNAM JAPAN HOLDINGS operates the largest network of Japanese-style pachinko parlors with a total of 433 locations[18]. - The core business of DYNAM JAPAN HOLDINGS is managing the largest chain of Japanese-style pachinko parlors in Japan, which is a popular form of entertainment[18]. - The company aims to leverage strong cash flow from its pachinko business to drive stable growth in its newly established aircraft leasing business, Dynam Aviation[19]. - DYNAM JAPAN HOLDINGS directly controls 8 subsidiaries, including the largest operator of Japanese-style pachinko parlors, Dynam[13]. - The company has established 16 distribution centers across Japan to manage logistics for 20 to 30 game halls, optimizing the use of second-hand gaming machines[29]. Financial Performance - Total revenue for the six months ended September 30, 2022, was ¥56,195 million (approximately HK$3,048 million), an increase from ¥50,897 million (approximately HK$3,540 million) in the previous year, representing a growth of 10.5%[20]. - Operating profit decreased to ¥3,881 million (approximately HK$210 million) from ¥6,714 million (approximately HK$467 million) in the previous year, reflecting a decline of 42.5%[20]. - The company reported a net profit of ¥1,183 million (approximately HK$64 million) for the period, down from ¥3,416 million (approximately HK$238 million) in the same period last year, a decrease of 65.4%[20]. - The EBITDA for the six months was ¥7,896 million (approximately HK$428 million), compared to ¥11,187 million (approximately HK$778 million) in the previous year, indicating a decline of 29.5%[20]. - Revenue from the Japanese pachinko business increased by 10.0% to 55,150 million yen (approximately 2,991 million HKD) from 50,139 million yen (approximately 3,487 million HKD) in the previous year[35]. Cash Flow and Liquidity - Net cash generated from operating activities was 26,755 million yen (approximately 1,450 million HKD) for the six months ended September 30, 2022, compared to 10,519 million yen (approximately 732 million HKD) in the previous year[50]. - Cash and cash equivalents increased by 419 million yen (approximately 23 million HKD) to 56,927 million yen (approximately 3,087 million HKD) as of September 30, 2022, from 56,508 million yen (approximately 3,064 million HKD) at the beginning of the period[51]. - Operating cash flow for the six months ended September 30, 2022, was 26,755 million JPY (approximately 1,450 million HKD), a significant increase from 10,519 million JPY (732 million HKD) in the same period of 2021[54]. - The company's current assets as of September 30, 2022, totaled 66,028 million JPY (approximately 3,581 million HKD), while current liabilities were 49,555 million JPY (approximately 2,688 million HKD), resulting in a net current asset value of 16,473 million JPY (approximately 893 million HKD)[57]. Investments and Expenditures - Capital expenditures for new Japanese-style pachinko and slot machines amounted to 14,339 million JPY (approximately 778 million HKD) for the six months ended September 30, 2022, compared to 25,332 million JPY (approximately 1,762 million HKD) in the same period of 2021[59]. - The company has committed to purchasing 2 new aircraft for a total amount of 17,088 million yen[33]. - The company plans to launch smart slot machines in November 2022 and smart pachinko machines in spring 2023 to enhance profitability[24]. Shareholder Information - As of the reporting period, the total number of issued shares was 717,477,696, with significant ownership by key executives, including Mr. Sato Yoji holding 61.996% of the company's shares[74][75]. - The major shareholder SAC holds 273,632,560 shares, representing 38.138% of the company's equity[79]. - The interim dividend declared is 2.5 JPY per ordinary share, amounting to approximately 1,792 million JPY (about 97 million HKD) based on 716,601,696 shares issued[85]. Corporate Governance - The company has complied with all applicable corporate governance code provisions, except for the chairman and CEO being held by the same individual[81]. - The audit committee reviewed the unaudited interim consolidated financial statements during the reporting period[84]. - The company has adopted a standard code for preventing insider trading, which has been confirmed by all directors to be followed during the reporting period[83]. Risk Management - The group has established foreign currency hedging policies to manage foreign currency risks associated with transactions, assets, and liabilities denominated in HKD, USD, and EUR[68]. - Credit risk arises from the possibility of customers failing to meet their payment obligations, with the group implementing policies to ensure sales are made to customers with appropriate credit records[70]. - The group regularly monitors its current and expected liquidity needs to maintain sufficient cash reserves and liquid securities to meet short-term and long-term liquidity requirements[71]. Market Outlook - The operating environment remains uncertain due to concerns over inflation and the impact of new COVID-19 variants, despite a gradual return to normalcy in social and economic activities[24]. - The estimated revenue growth rate post-COVID-19 is projected to be between 7.5% and 8.4%[125]. - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge in the industry[98].

Financial Performance - Total revenue for the fiscal year ending March 31, 2022, was ¥105,141 million, an increase from ¥98,602 million in the previous year, representing a growth of 6.2%[8] - Operating profit for the same period was ¥10,654 million, up from ¥6,728 million, marking a significant increase of 58.5%[8] - Net profit for the year was ¥4,977 million, compared to ¥2,351 million in the previous year, reflecting a growth of 111.5%[8] - EBITDA for the fiscal year was reported at ¥19,709 million, an increase from ¥16,781 million, indicating a growth of 17.3%[8] - The company reported a basic earnings per share of ¥6.8, up from ¥3.1 in the previous year, representing a growth of 119.4%[8] - Total revenue for the fiscal year ending March 31, 2022, was 105,141 million JPY (approximately 6,723 million HKD), representing a 6.6% increase from the previous year[13] - The consolidated operating profit for the fiscal year was 10,654 million JPY (approximately 681 million HKD), which is an increase of 158.4% compared to the previous year[13] - The consolidated net profit for the fiscal year was 4,977 million JPY (approximately 318 million HKD), reflecting a significant increase of 211.7% from the previous year[13] - The total comprehensive income for the year was ¥5,458 million, up from ¥3,253 million, marking a growth of 67.6%[164] Assets and Liabilities - Non-current assets totaled ¥225,934 million, while current assets were ¥67,487 million, leading to a total asset value of ¥246,097 million[9] - Total liabilities were reported at ¥162,439 million, resulting in total equity of ¥130,982 million[9] - Current assets decreased from 91,790 million JPY (approximately 6,446 million HKD) as of March 31, 2021, to 67,487 million JPY (approximately 4,315 million HKD) as of March 31, 2022[33] - Current liabilities decreased from 59,812 million JPY (approximately 4,200 million HKD) as of March 31, 2021, to 47,324 million JPY (approximately 3,026 million HKD) as of March 31, 2022[33] - The company's liquidity position, measured by current assets minus current liabilities, was 20,163 million JPY (approximately 1,289 million HKD) as of March 31, 2022, down from 31,978 million JPY (approximately 2,246 million HKD) in the previous year[33] - The debt-to-asset ratio increased from 11.3% as of March 31, 2021, to 14.7% as of March 31, 2022, primarily due to an increase in total borrowings[34] Market and Business Strategy - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[8] - The board of directors has approved a strategy to explore potential mergers and acquisitions to drive growth[8] - Future guidance indicates a focus on increasing revenue through new product launches and market expansion initiatives[8] - The company plans to continue reviewing its cost structure to pursue higher profitability[15] - The company remains cautious about future business conditions due to ongoing concerns regarding new variants of COVID-19[14] - The company plans to enhance competitiveness through capital expenditures focused on building new game halls and entering the aircraft business[35] - The company aims to transform pachinko into an easily accessible form of daily entertainment, enhancing its value within the community[40] - The company aims to enhance its corporate value and become an indispensable part of the local community, focusing on sustainable growth through environmental, social, and governance (ESG) initiatives[42] Operational Insights - Total bets for high-stakes game halls reached 283,647 million JPY (approximately 18,136 million HKD), marking a 7.7% increase from the previous year[14] - Total bets for low-stakes game halls amounted to 223,302 million JPY (approximately 14,278 million HKD), which is a 5.4% increase from the previous year[14] - Total payout for high-stakes game halls was 232,354 million JPY (approximately 14,856 million HKD), reflecting a 7.7% increase from the previous year[14] - Total payout for low-stakes game halls reached 171,007 million JPY (approximately 10,934 million HKD), which is a 5.3% increase from the previous year[14] - The total payout for the fiscal year was 403,361 million JPY (approximately 25,790 million HKD), representing a 6.7% increase from the previous year[14] - Japanese pachinko business revenue rose by 6.6% to 103.588 billion yen (approximately 6.624 billion HKD) for the year ended March 31, 2022, compared to 97.141 billion yen (approximately 1.62 billion HKD) in the previous year[16] Governance and Compliance - The board of directors is responsible for managing the company and overseeing the implementation of basic business strategies and policies[75] - The board consists of nine members, including one executive director, three non-executive directors, and five independent non-executive directors[75] - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with specific oversight responsibilities[77] - The company has revised its corporate governance policies, including the shareholder communication policy and the board diversity policy[75] - The company has a diversity policy aimed at enhancing board effectiveness and sustainable development, with a current board comprising nine directors, five of whom are independent non-executive directors[84] Risk Management - The company faces various market risks, including credit risk and liquidity risk, and has a comprehensive risk management plan in place[39] - The company has identified significant risks that could impact its financial performance, including potential changes in government regulations affecting the pachinko industry[38] - The company has maintained a strong credit risk profile due to its dealings with high-rated banks and regular assessments of customer credit quality[39] - The company recognizes the risks associated with gaming addiction and actively monitors and manages these risks to enhance stakeholder value[50] Cash Flow and Investments - Operating cash flow for the year ended March 31, 2022, was 32,719 million JPY (approximately 2,093 million HKD), an increase from 29,441 million JPY (approximately 2,067 million HKD) in the previous year[30] - Net cash used in investing activities for the year ended March 31, 2022, was 43,010 million JPY (approximately 2,750 million HKD), significantly higher than 1,188 million JPY (approximately 83 million HKD) in the previous year[32] - Net cash used in financing activities for the year ended March 31, 2022, was 8,565 million JPY (approximately 549 million HKD), compared to cash inflow of 4,457 million JPY (approximately 313 million HKD) in the previous year[32] - The company's cash and cash equivalents decreased by 18,153 million JPY (approximately 1,161 million HKD) for the year ended March 31, 2022, compared to an increase of 32,851 million JPY (approximately 2,307 million HKD) in the previous year[32] Shareholder Information - The company plans to distribute dividends amounting to no less than 35% of its annual consolidated net income[97] - The company proposed a final dividend of 2.6 JPY per ordinary share, amounting to approximately 1,878 million JPY (around 120 million HKD) based on 722,565,496 shares issued as of June 6, 2022[117] - The company repurchased a total of 30,135,800 shares during the reporting period, with a total cost of 221,209,270 HKD[122] - The company has maintained a public float of approximately 20.9%, which is below the required 25% as per the listing rules[123] Audit and Financial Reporting - The financial statements were audited in accordance with International Financial Reporting Standards, providing a true and fair view of the group's financial position as of March 31, 2022[153] - Key audit matters included the assessment of impairment for property, plant, and equipment, which required significant management judgment regarding future cash flow assumptions[155] - The external auditor, PricewaterhouseCoopers Aarata LLC, was paid a total of 101 million JPY (approximately 6.5 million HKD) for audit and non-audit services during the reporting period[91]

Business Operations - As of September 30, 2021, the group operates the largest network of Japanese-style pachinko parlors with a total of 438 locations[19]. - The core business of the company is managing the largest chain of Japanese-style pachinko parlors in Japan, which generates strong cash flow[18]. - The company aims to leverage the strong cash flow from its pachinko business to drive stable growth in its newly established aircraft leasing business, Dynam Aviation[24]. - Dynam Aviation focuses on operating leases for narrow-body aircraft, targeting a market with good growth potential[25]. - The company offers approximately 1,000 different types of prizes in its parlors, continuously introducing new products and popular items to enhance customer service[22]. - The company has a diversified business structure, directly controlling eight subsidiaries, including major operators in the pachinko industry[14]. - The company aims to standardize game hall types and open new locations in densely populated areas to control initial operating costs and benefit from economies of scale[33][37]. - The strategy includes acquiring other Japanese-style pachinko hall operators to expand the network, leveraging the company's public status for share exchange acquisitions[41]. - The company has established 16 distribution centers across Japan to manage logistics and share gaming machines efficiently[43]. Financial Performance - Total revenue for the six months ended September 30, 2021, was ¥50,897 million (HK$3,540 million), an increase of 10.0% compared to ¥45,992 million (HK$3,369 million) for the same period in 2020[27]. - Operating profit for the six months ended September 30, 2021, was ¥6,714 million (HK$467 million), significantly up from ¥2,781 million (HK$203 million) in the previous year, representing a growth of 141.5%[27]. - Net profit for the period was ¥3,416 million (HK$238 million), compared to ¥689 million (HK$49 million) in the same period last year, marking a substantial increase of 394.1%[27]. - The company reported EBITDA of ¥11,187 million (HK$778 million), up from ¥7,854 million (HK$575 million) in the previous year, reflecting a growth of 42.5%[27]. - Total betting for the six months ended September 30, 2021, was ¥255,403 million, an increase of 16.3% from ¥219,663 million in the same period of 2020[51]. - Total payout for the same period was ¥205,264 million, up 17.7% from ¥174,408 million in 2020[62]. - The company's total revenue for the six months ended September 30, 2021, was ¥50,897 million, representing a 10.7% increase from ¥45,992 million in the previous year[55]. - The operating profit for the same period was ¥6,714 million, a significant increase of 241.4% compared to the previous year's ¥2,784 million[55]. - The net profit for the six months ended September 30, 2021, was ¥3,416 million, which is 495.8% higher than the ¥577 million reported in the same period of 2020[55]. Asset Management - Non-current assets as of September 30, 2021, totaled ¥224,751 million (HK$15,629 million), an increase from ¥209,283 million (HK$14,697 million) as of March 31, 2021[28]. - Current assets as of September 30, 2021, totaled 62,120 million yen (approximately 4,320 million HKD), while current liabilities were 50,813 million yen (approximately 3,534 million HKD), resulting in a net current asset value of 11,307 million yen (approximately 786 million HKD)[94]. - The total assets as of September 30, 2021, amounted to ¥286,871 million, a decrease from ¥301,073 million as of March 31, 2021[149]. - The total liabilities as of September 30, 2021, were ¥155,548 million, down from ¥169,101 million as of March 31, 2021[185]. - The company’s total equity as of September 30, 2021, was ¥131,323 million, slightly down from ¥131,972 million as of March 31, 2021[149]. Cash Flow and Investments - The operating cash flow for the six months ended September 30, 2021, was 10,519 million yen (approximately 732 million HKD), a decrease from 13,363 million yen (approximately 979 million HKD) in the same period of the previous year[88]. - The net cash used in investing activities for the six months ended September 30, 2021, was 23,115 million yen (approximately 1,607 million HKD), primarily due to the acquisition of properties, plants, and equipment[90]. - The net cash used in financing activities for the same period was 10,865 million yen (approximately 755 million HKD), with significant cash outflows from bank loan repayments of 6,770 million yen (approximately 470 million HKD) and share buybacks of 2,241 million yen (approximately 156 million HKD)[92]. - The company incurred capital expenditures of ¥23,672 million for property, plant, and equipment, a substantial increase from ¥1,311 million in the previous year[157]. - The company paid dividends amounting to ¥1,505 million during the reporting period, compared to ¥2,298 million in the same period of the previous year[157]. Risk Management - The group faces various market risks, including foreign currency risk, credit risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[110]. - The group has no foreign currency hedging policy in place and will monitor foreign currency risks closely, considering hedging when necessary[111]. - Credit risk is managed by ensuring sales are made to customers with appropriate credit records, and the management regularly reviews the recoverability of trade receivables[115]. - The group maintains sufficient cash reserves and liquid securities to meet both short-term and long-term liquidity needs[116]. - The group has implemented policies to monitor and manage its financial risks effectively, ensuring compliance with loan covenants and maintaining good relationships with banks[116]. Corporate Governance - The company complied with all applicable provisions of the corporate governance code, except for the deviation regarding the roles of the Chairman and CEO being held by the same individual[128]. - The company has adopted a standard code and rules to prevent insider trading for its directors and employees[130]. - The company’s audit committee reviewed the unaudited interim consolidated financial statements during the reporting period[131]. - The company’s interim report was reviewed by external auditors PricewaterhouseCoopers Aarata LLC[131]. - The company’s annual general meeting was held on June 24, 2021, with the notice sent out on June 2, 2021, which was less than the required 20 business days[129]. Shareholder Information - As of September 30, 2021, the total issued shares amounted to 731,505,896, with major shareholders holding significant stakes[124]. - Major shareholders include SAC with a 37.407% stake, Rich-O with 13.098%, and Eurasia Foundation with 10.936%[125]. - The company declared an interim dividend of 2.40 JPY per share, amounting to approximately 1,756 million JPY (around 122 million HKD) based on 731,505,896 shares issued[133]. - A total of 21,195,400 shares were repurchased during the reporting period, with a total cost of 157,862,578 HKD[135]. Accounting Policies - The company has not adopted new accounting standards that may impact its financial performance, which are still under evaluation[168]. - The impact of COVID-19 on the financial results for the six months ended September 30, 2021, has not significantly changed[172]. - The company continues to assess the implications of new and revised international financial reporting standards on its financial statements[168]. - The useful life of Japanese pachinko machines and slot machines is now set at 2 years[164]. - The company recorded additional property, plant, and equipment of ¥25,332 million due to a new accounting policy for Japanese pachinko and slot machines[199].

Financial Performance - Total bets for the fiscal year ended March 31, 2021, amounted to ¥475,163 million, a decrease of 35.2% from ¥732,862 million in the previous year[9] - Revenue for the fiscal year was ¥98,602 million, down 30.8% from ¥142,483 million in the previous year[9] - Operating profit for the year was ¥6,728 million, a significant decline from ¥21,514 million in the previous year, representing a decrease of 68.8%[9] - Net profit for the year was ¥2,351 million, compared to ¥12,747 million in the previous year, reflecting a decrease of 81.5%[9] - Basic earnings per share for the year were ¥3.1, down from ¥16.6 in the previous year[9] - The company reported an EBITDA of ¥16,781 million, down from ¥31,151 million in the previous year, a decline of 46.1%[9] - Total comprehensive income for the year was ¥3,253 million, down from ¥11,567 million, a decrease of 71.9%[177] - The company reported financing expenses of ¥2,672 million, an increase from ¥2,469 million in the previous year[176] - The company recognized a fair value gain of ¥526 million on financial assets, compared to a loss of ¥921 million in the previous year[177] Assets and Liabilities - Non-current assets totaled ¥209,283 million, a decrease from ¥221,441 million in the previous year[10] - Current assets increased to ¥91,790 million from ¥55,798 million in the previous year, showing a growth of 64.4%[10] - Total liabilities decreased to ¥169,101 million from ¥182,467 million in the previous year, indicating a reduction of 7.3%[10] - Total assets increased to ¥301,073 million in 2021 from ¥277,239 million in 2020, representing an increase of 8.6%[178] - Total liabilities increased to ¥169,101 million in 2021 from ¥142,507 million in 2020, an increase of 18.7%[179] - Shareholders' equity decreased to ¥131,972 million in 2021 from ¥134,732 million in 2020, a decline of 2.0%[179] Cash Flow and Investments - Net cash generated from operating activities was 29,441 million JPY (approximately 2,067 million HKD) for the year ended March 31, 2021, compared to 30,071 million JPY (approximately 2,143 million HKD) for the previous year[30] - Net cash used in investing activities was (1,188) million JPY (approximately (83) million HKD) for the year ended March 31, 2021, a significant decrease from (25,951) million JPY (approximately (1,850) million HKD) in the previous year[30] - Cash and cash equivalents increased to ¥74,661 million in 2021, compared to ¥41,810 million in 2020, reflecting an increase of 78.5%[178] - The company raised bank loans amounting to ¥33,484 million, a substantial increase from ¥14,633 million in the previous year, indicating a growth of 128.5%[182] Business Operations and Market Conditions - Approximately 97% of gaming halls were forced to close due to COVID-19, impacting overall business operations[16] - The company anticipates a moderate recovery in the Japanese pachinko business post-June 2021, but does not expect to return to pre-pandemic levels[16] - Customer visits have recovered to approximately 70% of pre-COVID-19 levels, with a slower return due to the demographic of the customer base being primarily elderly[48] - The company continues to reform Japanese pachinko machines to make them easily accessible as everyday entertainment, aiming to create higher value[47] Corporate Governance - The company has adopted corporate governance principles to enhance shareholder value and has complied with the relevant codes and regulations[79] - The board consists of nine directors, including one executive director, three non-executive directors, and five independent non-executive directors[88] - The audit committee held 16 meetings during the reporting period, with all members attending all meetings[92] - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with specific oversight responsibilities[90] Risk Management - The company faces various market risks, including foreign currency risk, credit risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[41] - The company has implemented policies to ensure sales are made to customers with appropriate credit records, significantly reducing credit risk[44] - The company regularly monitors its current and expected liquidity needs to maintain sufficient cash reserves and access to committed financing from major financial institutions[45] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable growth by integrating environmental, social, and governance (ESG) concepts into its operations[51] - The company recognizes the potential positive impact of its business activities on local communities, particularly in preventing cognitive decline through participation in pachinko games[59] - The company plans to publish its 2020 ESG report within three months after the annual report[62] Shareholder Information - The company declared a final dividend of 2 JPY per ordinary share, amounting to approximately 1,505 million JPY (about 106 million HKD) based on 752,701,296 shares issued as of June 7, 2021[134] - The company maintained a public float of approximately 20.9%, which is below the required 25% as per the listing rules[138] - The company’s major shareholders include Sato Yoji with a total of 444,805,120 shares, representing 59.09% of the total shares[140] Strategic Plans - The company aims to leverage its position as a leading player in the pachinko industry by focusing on multi-store development and low-cost operations to ensure long-term profitability[67] - The strategy includes opening new standard game halls and acquiring other pachinko operators to increase the number of game halls[71] - The company plans to standardize game hall layouts and the number of gaming machines to reduce initial investment costs and construction time[72]

Business Operations - As of September 30, 2020, Dynam Japan Holdings operates the largest network of Japanese-style pachinko parlors with a total of 445 locations[21]. - The company offers approximately 1,000 different types of prizes in its parlors, including everyday items and special prizes[21]. - Dynam Aviation was established to enter the aircraft leasing business, focusing on operating leases for narrow-body aircraft, leveraging strong cash flow from the pachinko business[22]. - The gaming machines in the parlors include Japanese-style pachinko and slot machines, with betting amounts ranging from 0.5 to 4 yen per pachinko and 5 to 20 yen per slot machine[21]. - The company aims to enhance its service by continuously introducing new products and popular items[21]. - The company operated a total of 445 game halls as of September 30, 2020, with 176 high-stakes game halls and 269 low-stakes game halls, where low-stakes halls accounted for 60% of the total[30]. - The average proportion of low-stakes Japanese pachinko machines in the industry was 46.0%, while the company's ratio was 72.2%, significantly exceeding the industry average[32]. - The company has shifted its focus towards low-stakes games, aiming to reshape Japanese pachinko into a truly popular entertainment option for all[32]. - The company has established 16 distribution centers across Japan to manage logistics and facilitate the sharing of game machines among its halls[44]. Financial Performance - Total revenue for the six months ended September 30, 2020, was ¥45,992 million (approximately HK$3,369 million), a decrease from ¥74,052 million (approximately HK$5,378 million) in the same period of 2019, representing a decline of 37.8%[23]. - The company reported an operating profit of ¥2,781 million (approximately HK$203 million) for the six months ended September 30, 2020, compared to ¥14,042 million (approximately HK$1,020 million) in the previous year, reflecting a decrease of 80.2%[23]. - Net profit for the period was ¥689 million (approximately HK$49 million), down from ¥8,696 million (approximately HK$631 million) in the same period of 2019, a decline of 92.1%[23]. - EBITDA for the six months ended September 30, 2020, was ¥7,854 million (approximately HK$575 million), down from ¥19,638 million (approximately HK$1,426 million) in the previous year, a decrease of 60.0%[23]. - Total bets for the six months ended September 30, 2020, decreased by 42.1% to 219,663 million yen compared to 379,269 million yen in the same period last year[50]. - Revenue from the Japanese pachinko business decreased by 38.8% to 45,255 million yen (approximately 3,315 million HKD) for the six months ended September 30, 2020, down from 73,970 million yen (approximately 5,372 million HKD) in the prior period[59]. - Operating expenses for the Japanese pachinko business were 46,396 million yen (approximately 3,399 million HKD), a reduction of 24.1% from 61,134 million yen (approximately 4,516 million HKD) in the previous period[60]. - The company reported a consolidated operating profit of 2,781 million yen, which is 19.8% of the previous year's figure[53]. - The total payout for the six months ended September 30, 2020, was 174,408 million yen (approximately 12,777 million HKD), a decrease of 44.4% from 305,299 million yen (approximately 22,171 million HKD) for the same period in 2019[58]. Assets and Liabilities - Non-current assets amounted to ¥216,127 million (approximately HK$15,833 million) as of September 30, 2020, a slight decrease from ¥221,441 million (approximately HK$15,783 million) as of March 31, 2020[25]. - Current assets increased to ¥80,257 million (approximately HK$5,880 million) from ¥55,798 million (approximately HK$3,977 million) as of March 31, 2020, indicating a growth of 43.8%[25]. - The company’s total liabilities amounted to ¥164,156 million, with ¥126,382 million attributed to the total segment liabilities[151]. - Current liabilities as of September 30, 2020, were 62,683 million JPY (approximately 4,592 million HKD), compared to 44,028 million JPY (approximately 3,138 million HKD) as of March 31, 2020[76]. - The net current asset value increased to 17,574 million JPY (approximately 1,288 million HKD) as of September 30, 2020, from 11,770 million JPY (approximately 839 million HKD) as of March 31, 2020[77]. - The company’s equity attributable to owners as of September 30, 2020, was 132,228 million yen, a slight decrease from 132,357 million yen as of April 1, 2019[121]. Human Resources and Governance - The company emphasizes customer-centric management and transparency in its operations[6]. - The company has a strong focus on human resource training to foster teamwork and effective problem-solving[6]. - The management team includes both executive and independent non-executive directors, ensuring a diverse governance structure[18][19]. - The company operates under a corporate philosophy that emphasizes trust and sustainable growth[5]. - The company’s board of directors underwent significant changes, including the resignation of Kohei Sato as chairman and CEO on April 27, 2020, and the appointment of Tatsuji Fujimoto as chairman[105]. - The company has complied with all applicable provisions of the corporate governance code, with some deviations noted[101]. COVID-19 Impact and Response - Following the COVID-19 pandemic, 436 pachinko halls were temporarily closed, representing approximately 97% of the total[38]. - Operating revenue recovery for the closed pachinko halls remained between 70% to 80% of the previous fiscal year's revenue starting from July 2020[38]. - The company plans to continue reducing costs, including game machine costs and labor costs, to adapt to the decline in operating revenue[38]. - The company plans to continue implementing comprehensive preventive measures in game halls to recover business performance post-COVID-19[55]. - The company expects the performance to be negatively impacted by the COVID-19 outbreak, leading to a 10% reduction in directors' salaries from May 2020 to March 2021, with a 30% cut in June 2020 salaries[105]. Shareholder Information - As of the reporting period, key executives held a total of 444,805,120 shares, representing approximately 58.575% of the company's equity[93]. - The company has a total of 759,373,296 shares issued as of the reporting period end[100]. - The total equity held by the Sato family members amounts to 444,805,120 shares, representing 58.575% of the company's equity[98]. - The company declared an interim dividend of 6 JPY per ordinary share, amounting to approximately 2,277 million JPY (about 167 million HKD) based on 759,003,496 shares issued as of December 14, 2020[107]. - During the reporting period, the company repurchased a total of 6,951,600 shares, with the highest price per share at 9.01 HKD and the lowest at 5.50 HKD, totaling 54,022,850 HKD in costs[108]. Financial Risk Management - The company’s financial risk management focuses on minimizing potential adverse impacts on financial performance due to market unpredictability, including foreign currency, price, and interest rate risks[87][88]. - The company has implemented policies to ensure sales are made to customers with appropriate credit records, significantly reducing credit risk[89]. - The company’s policy includes regular monitoring of cash reserves and compliance with loan agreements to meet liquidity needs[90].

Financial Performance - For the fiscal year ending March 31, 2020, the company recorded an operating profit of ¥21,514 million, an increase of ¥2,172 million, representing a year-on-year growth of 11.2%[10] - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[62] - Total revenue for the year ended March 31, 2020, was ¥141,919 million (HK$10,115 million), a decrease of 3.0% from ¥146,371 million (HK$10,352 million) in 2019[105] - Net profit for the year was ¥12,747 million (HK$908 million), up from ¥12,591 million (HK$891 million) in 2019, representing a growth of 1.2%[105] - EBITDA for the year was ¥33,151 million (HK$2,363 million), an increase from ¥31,136 million (HK$2,202 million) in 2019, marking a growth of 6.5%[105] - The company reported a 5% increase in gross margin, reaching 40% for the fiscal year[63] - Total comprehensive income for the year was ¥11,567 million, down from ¥13,477 million, reflecting a decrease of 14.2%[147] Impact of COVID-19 - The number of customers visiting the Japanese-style pachinko halls has declined since the end of the reporting period due to the impact of COVID-19, leading to temporary closures and reduced operating hours in some areas[10] - The company reported a significant impact on its financial status due to the COVID-19 pandemic, with 436 out of 448 game halls temporarily closed as of May 6, 2020[77] - The company anticipates ongoing adverse effects on financial performance and cash flow due to the pandemic, with uncertainty regarding future operational results[100] - The company plans to implement cost-cutting measures, including labor cost reductions, to mitigate the financial impact of the pandemic[77] Corporate Governance - The board of directors is committed to prudent corporate governance principles to enhance shareholder value in the long term[34] - The company has complied with all applicable corporate governance code provisions during the reporting period, with some deviations noted[35] - The board consists of nine members, including four non-executive directors and five independent non-executive directors, ensuring a balance of power[37] - The company emphasizes the importance of maintaining trust with stakeholders and has adopted new internal control systems to improve operations and prevent misconduct[17] Strategic Initiatives - The company aims to enhance its corporate value and become an indispensable part of the local community, integrating sustainable growth concepts into its environmental, social, and governance practices[13] - The management team has changed as of April 27, 2020, with a new CEO taking over operations amid a challenging business environment[12] - The company aims to reshape Japanese-style pachinko gaming into an easily accessible daily entertainment option[24] - The company is committed to monitoring and managing risks associated with gaming addiction while promoting positive community impacts[20] Market and Operational Strategies - The strategy focuses on multi-hall development and low-cost operations to stabilize long-term profits[24] - New standard game halls are being opened in densely populated areas, targeting small commercial districts with populations between 30,000 and 50,000[26] - The company benefits from economies of scale in purchasing game machines and prizes through multi-hall development[24] - The focus on low-stakes games is a key aspect of the company's management policy[25] Shareholder Returns - The company plans to share profits with shareholders, targeting a total dividend amount of no less than 35% of the annual consolidated net income[58] - The board proposed a final dividend of 3 yen per ordinary share, amounting to approximately 2,298 million yen (around 164 million HKD) based on 765,985,896 shares issued as of June 8, 2020[78] Risk Management - The company has established a whistleblowing system to prevent significant internal control deficiencies and conducts regular internal audits[50] - The board is responsible for reviewing the effectiveness of the risk management and internal control systems, which are deemed effective and fully operational during the reporting period[52] - The company faces various market risks, including foreign currency risk, credit risk, and liquidity risk, and has no current foreign currency hedging policy[130] Acquisitions and Investments - The company has acquired Yume Corporation to expand its network of game halls[27] - The company plans to invest up to ¥90 billion in acquiring up to 20 narrow-body aircraft, including Airbus A320 and Boeing 737, over the first three years[33] - A recent acquisition of a tech startup is anticipated to enhance the company's product offerings and drive future growth[67] Environmental and Social Responsibility - The company is committed to creating value for stakeholders through environmental, social, and governance activities, addressing global environmental issues and local community matters[19] - The management team emphasized a commitment to sustainability, aiming for a 20% reduction in carbon emissions by 2025[66] - The company has been actively seeking to improve environmental measures, such as installing LED lighting in game halls to reduce electricity consumption[76] Financial Position - Non-current assets increased to ¥221,441 million (HK$15,783 million) from ¥125,457 million (HK$8,873 million) in 2019, showing a significant rise[102] - Current liabilities rose to ¥44,028 million (HK$3,138 million) from ¥36,452 million (HK$2,578 million) in the previous year, indicating a 20.5% increase[102] - Total equity decreased to ¥134,732 million (HK$9,604 million) from ¥141,800 million (HK$10,028 million) in 2019, reflecting a decline of 5.0%[102] Employee Compensation and Management - Employee compensation for the year ended March 31, 2020, totaled 55,103 million JPY (approximately 3,928 million HKD)[128] - The company’s remuneration policy is based on employee performance, qualifications, and operational results[94] - The company has arranged liability insurance for directors and senior management against damages from failure to perform their duties[95]

Business Operations - The company operates the largest network of Japanese-style pachinko parlors, with a total of 449 locations as of September 2019[13]. - The core business includes two types of gaming machines: Japanese-style pachinko and Japanese-style slot machines, with betting amounts typically ranging from 0.5 to 4 yen per pachinko ball and 5 to 20 yen per gaming coin[13]. - The company offers approximately 1,000 different types of prizes, including everyday items and special prizes, and continuously introduces new products to enhance customer service[14]. - As of September 30, 2019, the company operated a total of 449 gaming halls, with 177 high-stakes and 272 low-stakes halls, where low-stakes halls accounted for 60% of the total[27]. - The proportion of low-stakes gaming machines in the company's total gaming machines increased from 47.4% to 72.4% as of June 30, 2019, indicating a strategic shift towards low-stakes gaming[31]. - The company plans to continue expanding low-stakes gaming to reshape Japanese pachinko into a truly popular entertainment option for the masses[31]. Financial Performance - The EBITDA for the six months ended September 30, 2019, was 19,638 million JPY (1,426 million HKD), compared to 18,049 million JPY (1,242 million HKD) for the same period in the previous year, reflecting a year-on-year increase[21]. - The net profit for the six months ended September 30, 2019, was 8,696 million JPY (631 million HKD), an increase from 8,325 million JPY (573 million HKD) in the previous year[21]. - Total revenue for the group reached ¥73,970 million, reflecting a slight increase of 0.5% year-over-year[43]. - Operating profit for the same period was ¥14,042 million, up 14.4% from ¥12,268 million year-on-year[94]. - The company reported revenue of ¥73,970 million for the six months ended September 30, 2019, an increase of 0.5% compared to ¥73,583 million for the same period in 2018[94]. - Basic earnings per share for the period was ¥11.35, compared to ¥10.89 for the same period last year, reflecting a 4.2% increase[94]. Aircraft Leasing Segment - The company aims to leverage strong cash flow from its Japanese pachinko business to drive stable growth in its aircraft leasing segment[16]. - The company has registered a subsidiary, Dynam Aviation Ireland Limited, in December 2018 to engage in aircraft leasing activities, benefiting from favorable political measures in Ireland[17][18]. - According to Boeing's Current Market Outlook, the global fleet size is expected to double from 25,830 aircraft to 50,660 by 2038, indicating a promising outlook for the aircraft leasing business over the next 20 years[16]. - The company acquired an aircraft valued at ¥4,632 million (approximately HK$336 million) to expand its aircraft leasing business during the six months ended September 30, 2019[65]. Cash Flow and Liquidity - Operating cash flow for the six months ended September 30, 2019, was ¥17,458 million (approximately HK$1,267 million), an increase from ¥15,856 million (approximately HK$1,091 million) for the same period in 2018[58]. - Net cash used in investing activities for the six months ended September 30, 2019, was ¥8,430 million (approximately HK$612 million), compared to ¥3,461 million (approximately HK$238 million) in 2018[59]. - The company’s cash and cash equivalents increased by ¥603 million (approximately HK$44 million) during the six months ended September 30, 2019, resulting in a total of ¥48,140 million (approximately HK$3,496 million) at the end of the period[56]. - Current assets as of September 30, 2019, totaled ¥61,441 million (approximately HK$4,462 million), while current liabilities were ¥46,837 million (approximately HK$3,401 million), resulting in a net current asset value of ¥14,604 million (approximately HK$1,061 million)[62]. - The current ratio as of September 30, 2019, was 1.3, down from 1.6 as of March 31, 2019[63]. Operational Efficiency - The group aims to standardize the layout and number of gaming machines in new pachinko halls to reduce initial investment costs and construction time[38]. - The implementation of a centralized management system for gaming machines through 16 distribution centers across Japan helps streamline operations and reduce costs[40]. - The group focuses on low-cost operations, with approximately 60% of operating expenses attributed to gaming machines and labor costs[39]. - The company is focusing on enhancing its operational efficiency and exploring potential mergers and acquisitions[99]. Financial Risk Management - The company’s financial risk management focuses on minimizing potential adverse impacts on financial performance due to market unpredictability, including foreign currency, price, and interest rate risks[70][71]. - The company has implemented policies to ensure sales are made to customers with appropriate credit records, significantly reducing credit risk[72]. - The company’s liquidity policy includes regular monitoring of current and expected cash flow needs to maintain sufficient cash reserves and access to committed financing[73]. Corporate Governance - The company has complied with all applicable corporate governance code provisions, except for the dual role of Sato Kohei as both Chairman and CEO[81]. - The company plans to hold its Annual General Meeting by June 30, 2019, in compliance with corporate law[83]. - The company requires additional time to finalize the annual report to be sent along with the AGM notice[83]. Accounting Policies - The company adopted IFRS 16 "Leases," which introduces a single lease accounting model for lessees, requiring recognition of right-of-use assets and lease liabilities for all leases longer than 12 months, unless not significant[105]. - The transition to IFRS 16 was applied retrospectively, treating the new regulations as if they had always been in effect[108]. - The company evaluated the impairment of right-of-use assets as of the initial application date, ensuring compliance with IAS 36 "Impairment of Assets"[108]. Employee Information - As of September 30, 2019, the group employed 17,779 staff, contributing to the creation of approximately 250,000 jobs in the Japanese pachinko industry[33]. - As of September 30, 2019, the company had approximately 17,779 employees, a slight decrease from 18,023 employees as of March 31, 2019[65]. - The total employee compensation for the six months ended September 30, 2019, was ¥26,138 million (approximately HK$1,898 million)[65].

Financial Performance - Operating profit for the fiscal year ending March 31, 2019, was recorded at ¥19,342 million, an increase of ¥1,666 million or 15.2% year-on-year, despite a decrease in revenue reflecting a challenging operating environment [8]. - Total revenue for the fiscal year ended March 31, 2019, was ¥146,371 million, a decrease of 3.8% from ¥152,092 million in the previous year [155]. - Net profit for the year reached ¥12,591 million (HK$891 million), compared to ¥10,925 million (HK$807 million) in 2018, reflecting a growth of 15.2% [119]. - Basic earnings per share rose to ¥16.4 for the year, compared to ¥14.2 in 2018 [119]. - The total comprehensive income for the year was ¥13,477 million, up from ¥9,827 million year-over-year [156]. - The company reported a decrease in gaming hall operating expenses to ¥128,024 million from ¥136,727 million, reflecting a cost reduction strategy [155]. Business Strategy and Development - The company established a subsidiary to enter the aircraft leasing business, which is expected to generate relatively stable profits [8]. - The company aims to enhance customer numbers and review store opening strategies while controlling costs through the development of a new system [9]. - The company aims to reshape Japanese pachinko gaming as an easily accessible daily entertainment, targeting areas with a population of 30,000 to 50,000 for new game hall openings [27]. - The company is implementing a multi-hall development strategy by opening new standard game halls and acquiring other operators to increase the number of game halls [26]. - The company is focused on sustainable growth by integrating environmental, social, and governance concepts into its operations [12]. Corporate Governance - The company is committed to corporate governance principles to enhance shareholder value in the long run [33]. - The board consists of nine members, including one executive director, three non-executive directors, and five independent non-executive directors, with all directors attending 14 board meetings and 2 general meetings during the reporting period [38]. - The audit committee held 15 meetings during the reporting period, reviewing the audited consolidated financial statements for the year ended March 31, 2018, and the unaudited interim financial statements for the six months ended September 30, 2018 [41]. - The company has adopted a code of conduct for directors regarding securities trading and insider trading prevention rules, with all directors confirming compliance during the reporting period [36]. - The company has established a Nomination Committee consisting of two independent non-executive directors and one executive director, with a total of 4 meetings held during the reporting period [45]. Risk Management - The company is actively monitoring and managing risks associated with gaming addiction to safeguard long-term business growth [20]. - The group faces various financial risks, including market risk, credit risk, and liquidity risk, and has a risk management plan to mitigate potential adverse impacts on financial performance [141]. - The group faces significant credit risk due to the possibility of customers failing to meet their payment obligations, with cash and bank balances, secured bank deposits, and trade receivables representing the highest credit risk exposure [143]. - The company has implemented policies to ensure sales are made to customers with appropriate credit records, significantly reducing credit risk [143]. Environmental and Social Responsibility - The company emphasizes environmental protection and has installed LED lighting in gaming halls to reduce electricity consumption [83]. - The group is committed to proper disposal of gaming machines and recycling usable parts through industry organizations [83]. - The company recognizes the importance of relationships with employees, customers, and suppliers for sustainable development [84]. - The company has a strong focus on environmental, social, and governance (ESG) matters, with detailed measures to be disclosed in a forthcoming report [84]. Shareholder Relations - The company has a dividend policy to share profits with shareholders, aiming for a total amount of no less than 35% of the annual consolidated net income [60]. - Shareholders holding at least 3% of total voting rights for six months can request a board meeting to discuss specific agenda items [54]. - The company has maintained a consistent approach to managing investor relations through timely responses to inquiries [57]. - The company has a commitment to transparency and governance, as evidenced by the appointment of independent non-executive directors [70]. Financial Position and Assets - Total assets increased to ¥185,332 million in 2019 from ¥184,971 million in 2018, representing a growth of 0.2% [157]. - Non-current assets decreased to ¥125,457 million in 2019, down from ¥131,826 million in 2018, a decline of 4.2% [157]. - Current assets rose to ¥59,875 million in 2019, compared to ¥53,145 million in 2018, an increase of 12.9% [157]. - Cash and cash equivalents increased significantly to ¥47,537 million in 2019 from ¥40,533 million in 2018, a growth of 17.4% [157]. Compliance and Regulations - The company has complied with relevant laws and regulations without any significant violations during the reporting period [83]. - The company has complied with the corporate governance code during the reporting period, with some deviations noted [115]. - The financial statements were audited by PricewaterhouseCoopers Aarata LLC, which is eligible for reappointment [116]. Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth [119]. - The company plans to hold its next annual general meeting on June 20, 2019, with the notice to be sent on May 29, 2019, again not meeting the 20 business days notice requirement [34].