Revenue Performance - Revenue from North America decreased by 40.7% to ¥335.0 million for the six months ended September 30, 2023, primarily due to ongoing adverse effects from last year's distribution network adjustments [3]. - Total revenue for the six months ended September 30, 2023, was ¥4,485,975 million, representing 100% of total revenue, compared to ¥4,874,327 million in the same period last year [11]. - The company's revenue from the Japanese market was 4,172,787 thousand yen for the six months ended September 30, 2023, up from 3,951,625 thousand yen in the same period of 2022, reflecting an increase of about 5.6% [44]. - The group's revenue decreased by 11.6% to ¥13,194.8 million (approximately $93.9 million) for the six months ended September 30, 2023, compared to the same period last year [181]. - Revenue from Japan and Hong Kong increased by 5.6%, while revenue from China (including Hong Kong and Macau) decreased by 12.4% due to a significant slowdown in the overall economy and retail market [181]. - Revenue from golf clubs declined by 12.5%, primarily due to a 26.3% drop in sales in China, while revenue from Japanese golf clubs increased by 20.1% [181]. Profitability and Financial Performance - The pre-tax profit for the six months ended September 30, 2023, was ¥3,635.8 million [16]. - The company reported a profit of 3,329,503 thousand yen for the six months ended September 30, 2023, compared to 3,087,382 thousand yen for the same period in 2022, representing an increase of approximately 7.9% [36]. - The total comprehensive income for the six months ended September 30, 2023, was 2,813,588 thousand yen, compared to 2,159,003 thousand yen for the same period in 2022, indicating an increase of approximately 30.3% [63]. - The total operating profit before tax for the six months ended September 30, 2023, was ¥3,635,760,000, slightly down from ¥3,728,600,000 in the same period of 2022, reflecting a decrease of about 2.5% [66]. - The income tax expense for the six months ended September 30, 2023, was ¥306,257 thousand, compared to ¥641,218 thousand for the same period in 2022, showing a decrease of approximately 52.3% [163]. Assets and Liabilities - The company's inventory as of September 30, 2023, totaled ¥11,196,735 million, compared to ¥12,297,331 million as of March 31, 2023 [24]. - Non-current liabilities totaled 2,094,826 thousand yen as of September 30, 2023, down from 2,201,905 thousand yen as of March 31, 2023, indicating a decrease of about 4.9% [37]. - The company's net asset value increased to 27,936,052 thousand yen as of September 30, 2023, compared to 26,030,928 thousand yen as of the same date in 2022, reflecting a growth of approximately 7.3% [37]. - The company's cash and cash equivalents increased to 16,659,964 thousand JPY as of September 30, 2023, compared to 14,084,777 thousand JPY as of March 31, 2023 [136]. - Trade receivables amounted to 3,431,403 thousand JPY as of September 30, 2023, down from 3,513,495 thousand JPY as of March 31, 2023 [136]. Investments and Capital Expenditures - The company did not undertake any significant investments, acquisitions, or disposals during the six months ended September 30, 2023, but will continue to seek new business development opportunities [29]. - Capital expenditures for the six months ended September 30, 2023, amounted to 251.3 million yen, primarily for the purchase of machinery and equipment [56]. - The company plans to use the remaining unutilized proceeds for general corporate purposes, with no significant plans for major capital asset investments or acquisitions [31]. Employee and Operational Metrics - The total employee benefits expense for the six months ended September 30, 2023, was ¥29,278,000, down from ¥32,933,000 in the same period of 2022, indicating a decrease of approximately 11.5% [96]. - The company's employee-defined benefit liabilities decreased to 145,845 thousand yen as of September 30, 2023, from 349,300 thousand yen as of March 31, 2023, showing a reduction of approximately 58.3% [37]. - The average duration of defined benefit obligations was 4.8 years as of September 30, 2023, down from 5.4 years as of March 31, 2023 [106]. Market Strategy and Brand Positioning - The company has invested significantly in retail distribution networks and digital capabilities in Japan and China to enhance consumer experience [178]. - The company is focusing on the ultra-high-end and super-performance consumer segments, updating its product strategy to include technologically advanced TOUR WORLD golf clubs [184]. - The company has restructured its global brand positioning and communication to appeal to younger golfers, resulting in increased digital engagement metrics [185]. - HONMA is restructuring its growth strategy in North America and Europe, focusing on smaller, high-quality customer segments to enhance financial conditions in these markets [188]. - The company aims to strengthen its market penetration by modernizing and refining its product offerings to attract today's golfers [184]. Customer Engagement and Marketing - HONMA hosted a total of 1,757 customer engagement events across major markets, primarily at golf courses, to improve brand and product awareness [190]. - The company recorded a continuous increase in website traffic, reflecting strong brand equity and consumer interest in the North American market [189]. - HONMA's digital marketing efforts, including social media remarketing and search engine marketing, have led to double-digit monthly growth in natural traffic and conversion rates [198]. Financial Health and Debt Management - The debt-to-equity ratio as of September 30, 2023, was 31.5%, down from 36.3% as of March 31, 2023 [27]. - The company's interest-bearing bank loans stood at 6,540.0 million yen as of September 30, 2023, with an effective interest rate ranging from 0.62% to 3.08% [55]. - The interest expense on bank loans rose to ¥78,048,000 for the six months ended September 30, 2023, compared to ¥40,055,000 in the previous year, marking an increase of approximately 94.6% [93].
本间高尔夫(06858) - 2024 - 中期业绩