NIRAKU(01245) - 2021 - 年度财报

Company Profile NIRAKU GC HOLDINGS, INC. (HKEX: 1245) is a leading pachinko hall operator in Fukushima, Japan, with over sixty years of experience, operating 47 halls with over 28,100 machines - The company is a leading pachinko hall operator in Fukushima Prefecture, Japan, with over sixty years of experience[4] - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on April 8, 2015[4] Operating Data as of Report End | Metric | Quantity | | :--- | :--- | | Number of gaming halls | 47 halls | | Number of machines | Over 28,100 machines | | Coverage area | Ten prefectures in Japan | Company Information and Investor Relations This section provides essential company details, including board members, committee structures, key banking relationships, auditors, legal advisors, share registrars, and investor contact information - The Board of Directors includes Executive Directors (Mr Hisanori Taniguchi, Mr Akinori Oishi, Mr Masanori Watanabe), a Non-executive Director (Mr Hiroshi Bannai), and Independent Non-executive Directors (Mr Michio Minakata, Mr Yoshihiro Koizumi, Mr Kuraji Honda, Mr Akito Tanaka)[7] - Mr Michio Minakata chairs the Audit Committee, Mr Yoshihiro Koizumi chairs the Remuneration Committee, and Mr Hisanori Taniguchi chairs the Nomination Committee[7] - The company's stock code is 1245, website is www.ngch.co.jp, and investor relations email is niraku@sprg.com.hk[7] Financial and Operational Summary This section outlines the Group's financial performance and position for the fiscal year ended March 31, 2021, showing significant declines in total turnover and revenue, a shift from profit to loss, increased net current liabilities, and a higher gearing ratio FY2021 Key Financial and Operational Data (vs FY2020) | Metric | 2021 FY (million JPY) | 2020 FY (million JPY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Turnover | 94,414 | 139,053 | -32.0% | | Revenue from Pachinko and Pachislot Business | 16,883 | 25,007 | -32.5% | | Revenue | 18,541 | 28,046 | -33.9% | | (Loss)/Profit Before Income Tax | (8,502) | 581 | N/A (Turned to loss) | | (Loss)/Profit Attributable to Owners of the Company | (5,481) | 179 | N/A (Turned to loss) | | (Loss)/Earnings Per Share (JPY) | (4.58) | 0.150 | N/A (Turned to loss) | | Overall Revenue Yield | 17.9% | 18.0% | -0.1% | | Net (Loss)/Profit Margin | (30.2%) | (0.50%) | N/A (Loss widened) | FY2021 Statement of Financial Position Summary (vs FY2020) | Metric | 2021 FY (million JPY) | 2020 FY (million JPY) | | :--- | :--- | :--- | | Current Assets | 17,937 | 16,092 | | Current Liabilities | 23,805 | 11,179 | | Net Current (Liabilities)/Assets | (5,868) | 4,913 | | Total Assets | 77,491 | 81,158 | | Gearing Ratio | 1.69 | 1.30 | - Net current liabilities were JPY5,868 million in FY2021, compared to net current assets of JPY4,913 million in FY2020, with the current ratio decreasing from 1.44 to 0.75[14] Chairman's Statement The Chairman's Statement highlights the severe impact of the COVID-19 pandemic on the Group's pachinko and amusement businesses, detailing mitigation efforts and future strategies for sustainable growth - The COVID-19 pandemic led to a 32% decrease in total turnover for the Japan pachinko business, with customer traffic recovering to approximately 80% of pre-pandemic levels[19] - The Group closed 7 unprofitable pachinko halls and opened one large new hall with over 1,000 machines to increase market share[22] - Southeast Asia amusement business revenue decreased by 39% year-on-year, with 3 unprofitable branches closed and 3 new branches opened in Vietnam in preparation for pandemic recovery[23] - China restaurant business operations were suspended in February 2020 due to COVID-19 and resumed in 2021[24] - Hong Kong e-sports joint venture business was severely impacted by political changes and COVID-19, failing to host events, with plans to review and restructure its business model[24] - The Group's mid-term strategy focuses on increasing revenue and market share in its core pachinko business, investing in new halls and M&A, advancing digitalization, and exploring new business opportunities in Japan[27] - The Group adopted an Environmental, Social, and Governance (ESG) management declaration, prioritizing public interest and sustainable growth with stakeholders, focusing on profit allocation, long-term sustainable contribution, and bold new ventures[27][28][29] Management Discussion and Analysis This section analyzes the Group's FY2021 financial performance, primarily impacted by COVID-19, resulting in significant revenue declines across all segments and substantial impairment losses, leading to a net loss, with management implementing cost controls and capital structure adjustments - In FY2021, revenue from the pachinko and pachislot business decreased by 32.5% year-on-year to JPY16,883 million, mainly due to hall closures, reduced customer traffic, and the closure of 7 unprofitable halls[34] - Amusement business revenue decreased by 39% year-on-year to JPY1,015 million, primarily affected by lockdowns and social distancing measures in Vietnam and Cambodia[38] - Other revenues (vending machines, hotels, restaurants) significantly declined due to the pandemic, with hotel occupancy at 41.7% and restaurant business revenue down 66.4%[39] - Gaming hall operating expenses decreased by 17.3% year-on-year to JPY17,571 million, and administrative and other operating expenses significantly decreased by 40.0% to JPY3,393 million, primarily due to cost control measures[42][43] - Impairment losses on property, plant and equipment and right-of-use assets substantially increased to JPY5,592 million (FY2020: JPY676 million), mainly due to a significant decline in customer traffic caused by the pandemic[44] - For FY2021, the loss attributable to owners of the Company was JPY5,481 million, compared to a profit of JPY179 million in FY2020, with basic loss per share at JPY4.58[47][50] - The Board of Directors resolved not to declare a final dividend[50] Capital Structure Summary (as of March 31) | Metric | 2021 FY (million JPY) | 2020 FY (million JPY) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 15,903 | 14,128 | | Bank Loans | 4,478 | 4,792 | | Syndicated Loans | 12,189 | 8,294 | | Lease Liabilities | 33,440 | 34,577 | | Working Capital | (5,868) | 4,913 | | Total Equity | 20,206 | 25,799 | | Gearing Ratio | 1.7 | 1.3 | - Net current liabilities were JPY5,868 million in FY2021, with a current ratio of 0.75, compared to net current assets of JPY4,913 million and a current ratio of 1.44 in FY2020[57] - Total capital expenditure in FY2021 increased to JPY4,234 million from JPY2,499 million in FY2020, primarily for property, plant and equipment and right-of-use assets[62] - As of March 31, 2021, the carrying amount of pledged assets was JPY10,571 million, including property, plant and equipment, investment properties, and deposits and other receivables[65] - As of March 31, 2021, the Group had 1,717 employees[69] Corporate Governance Report This report details the company's compliance with the HKEX Corporate Governance Code for FY2021, covering board structure, committee responsibilities, diversity policy, remuneration, auditor's fees, shareholder rights, and risk management, noting deviations in the Chairman/CEO role and AGM notice period