Revenue and Profit Performance - Revenue for the fiscal year ending March 31, 2023, reached 29,494,999 thousand yen, a slight increase from the previous year's 28,971,099 thousand yen[17] - Gross profit margin for 2023 was 50.8%, down from 54.1% in 2022[17] - Operating profit for 2023 was 3,856,557 thousand yen, a decrease from 5,456,791 thousand yen in 2022[17] - Net profit attributable to the company's owners for 2023 was 3,255,488 thousand yen, compared to 6,191,197 thousand yen in 2022[17] - Revenue increased by 1.8% to 29,495.0 million yen (equivalent to 218.8 million USD) for the fiscal year ending March 31, 2023[107] - Pre-tax profit for the fiscal year ending March 31, 2023, was 4,092.9 million yen[126] - Pre-tax profit decreased by 45.9% to 4,092.9 million yen (equivalent to 30.4 million USD) compared to 7,560.3 million yen in the previous year[131] Regional Revenue Performance - Japan, the company's largest market, contributed 9,841.4 million yen in revenue, a 15.8% year-on-year increase[23] - Revenue from Korea and China increased by 3.8% and 2.0% respectively, despite challenges from COVID-19[23] - North America revenue grew by 3.2% year-on-year, driven by a strategic focus on high-quality customer segments[23] - Revenue from Japan, Korea, China, and North America grew by 15.6%, 3.8%, 2.0%, and 3.2% respectively, benefiting from strong consumer demand rebound and successful marketing activities[31] - North America revenue increased by 3.2% to 1,024.2 million JPY for the fiscal year ending March 31, 2023, but decreased by 11.0% on a constant currency basis[32] - Revenue growth was recorded in Japan (15.6%), Korea (3.8%), China (2.0%), and North America (3.2%) despite COVID-19 impacts[128] - Revenue from Japan and South Korea increased by 15.6% and 3.8% respectively, while China's growth rate was 2.0% due to COVID-19 disruptions, and Europe saw a sales decline of 68.2% due to a shift to an indirect distribution model[129] Product Sales Performance - Golf club sales increased by 3.3% for the fiscal year ending March 31, 2023, driven by the launch of BERES AIZU and TW757 products targeting the ultra-premium and high-performance consumer markets[25] - Apparel sales grew by 1.6% year-over-year, supported by increased investment in professional and fashion sport sub-lines[25] - Golf club revenue grew by 3.2%, while apparel revenue increased by 1.5%, but golf ball sales declined by 1.1% due to raw material supply challenges[108] Financial Position and Cash Flow - Total assets as of March 31, 2023, were 40,367,360 thousand yen, slightly down from 41,427,472 thousand yen in 2022[19] - Net current assets stood at 20,024,291 thousand yen, up from 19,763,221 thousand yen in 2022[19] - The company maintained strong operating cash flow, with net cash inflow of 3,682.9 million yen for the fiscal year[22] - Operating cash flow remained positive at 3,675.9 million yen (equivalent to 27.3 million USD) for the fiscal year ending March 31, 2023[110] - The company held cash and cash equivalents of JPY 14,084.8 million as of March 31, 2023, primarily in RMB, JPY, and USD, consisting mainly of cash on hand and demand deposits[196] Expenses and Costs - Gross profit decreased by 4.4% to 14,988.3 million JPY, with gross margin declining from 54.1% to 50.8%[38] - Apparel gross profit dropped by 44.8% to 802.9 million JPY, with gross margin falling from 49.1% to 26.7%, primarily due to supply chain disruptions in Japan and Korea[40] - Gross margin decreased by 3.3 percentage points to 50.8% due to rising raw material costs, currency pressures, and tighter inventory provisions[109] - Administrative expenses remained stable at 1,381.1 million yen for the fiscal year ending March 31, 2023[123] - Financing costs increased by 88.2% to 125.0 million yen due to higher Japanese borrowing rates[124] - Financing income rose by 25.0% to 13.5 million yen due to increased average bank deposit balances[125] Capital Expenditures and Investments - Capital expenditures for the fiscal year ending March 31, 2023, amounted to 663.5 million JPY, primarily allocated to purchasing factory machinery, office equipment, and leasehold improvements[55] - Potential strategic acquisitions accounted for 29.4% of the intended use of proceeds, with JPY 4,939 million utilized as of March 31, 2023[59] - Sales and marketing activities in North America, Europe, Japan, South Korea, and China (including Hong Kong and Macau) accounted for 15.1% of the intended use of proceeds, with JPY 2,536 million utilized[59] - Capital expenditures accounted for 13.0% of the intended use of proceeds, with JPY 2,184 million utilized[59] - Repayment of interest-bearing bank loans accounted for 17.3% of the intended use of proceeds, with JPY 2,906 million utilized and 0.2% remaining unused[59] - The unused balance of global offering proceeds as of March 31, 2023, was approximately JPY 4,942.2 million, held in reputable banks[61] - The company did not undertake any significant investments, acquisitions, or disposals during the fiscal year ending March 31, 2023, but continues to seek new business development opportunities[86] Debt and Financial Obligations - The company's interest-bearing bank loans as of March 31, 2023, amounted to JPY 7,290.0 million, with interest rates ranging from 0.17% to 3.08%[75] - The company's debt-to-equity ratio as of March 31, 2023, was 36.3%, down from 38.1% on March 31, 2022[76] - The company has fully repaid the interest-bearing bank loans intended to be repaid using the proceeds from the global offering, with the remaining unused balance of 0.2% to be evaluated for appropriate use based on business needs[89] Dividend and Shareholder Returns - The company proposed a final dividend of 1.5 yen per share for the fiscal year ending March 31, 2023, totaling approximately 908.5 million yen, representing 27.9% of the distributable profit for the year[90] - The company's dividend for the fiscal year ending March 31, 2023, is 3.0 yen per share, totaling 1,817.0 million yen, representing approximately 55.8% of the distributable profit[174] - The company's distributable reserves as of March 31, 2023, amounted to 10,006 million yen, down from 11,524 million yen the previous year[154] - The company will evaluate its dividend policy and distributions from time to time, with details provided in the "Corporate Governance Report - Dividend Policy" section of the annual report[200] Tax and Regulatory Compliance - Income tax expenses decreased by 38.8% from 1,369.1 million yen in the fiscal year ending March 31, 2022, to 837.3 million yen in the fiscal year ending March 31, 2023[94] - The company's effective tax rate increased from 18.1% in the fiscal year ending March 31, 2022, to 20.5% in the fiscal year ending March 31, 2023[94] - The company has not experienced any significant legal or regulatory violations in Japan, China, or South Korea during the fiscal year[161] Operational and Strategic Initiatives - The company typically launches new golf clubs, balls, and accessories every 24 months, with additional promotion of older generation products for 12 months[77] - The company plans to strengthen its leadership in the ultra-premium segment and expand into the high-performance consumer segment in Asia[113] - The company plans to focus on high-quality customer segments in North America and Europe, and leverage its R&D capabilities to develop products aligned with market trends[133] - The company's growth strategy focuses on expanding non-club businesses, such as golf balls, bags, gloves, and apparel[166] - The company closed 615 sales points in Europe, reducing the total number of sales points to 35, while opening 8 new sales points in North America, forming a network of 345 sales points[173] - The company aims to reduce emissions and waste through energy-efficient machinery, water-saving equipment, and promoting energy-saving awareness among employees[160] Supply Chain and Inventory Management - The company relies on strategic suppliers in Japan, Taiwan, China, Hong Kong, and the US, with OEM partnerships exceeding five years[135] - The company's inventory aging analysis is based on product launch dates rather than capitalization dates, with some inventory aged 2-3 years reflecting products launched 2-3 years prior to the fiscal year-end[195] - Trade receivables and bills turnover days decreased by 14 days from 68 days in FY2022 to 54 days in FY2023, primarily due to enhanced collection efforts in certain markets[187] - Trade payables and bills turnover days decreased by 11 days from 58 days in FY2022 to 47 days in FY2023, mainly due to reduced procurement caused by high inventory levels throughout the year[187] Corporate Governance and Social Responsibility - The company operates the largest number of self-operated stores among major golf product companies, equipped with golf simulators and specialized fitting centers[135] - The company donated products worth 1.96 million yen during the fiscal year ending March 31, 2023[179] - The company's restricted stock unit plan, effective for 10 years from October 20, 2015, has approximately 2 years and 7 months remaining as of March 31, 2023[183] - The company's pledged deposits increased by 8.89% from 4.75 million yen to 5.17 million yen due to exchange rate fluctuations[178]
本间高尔夫(06858) - 2023 - 年度财报