Financial Performance - Okura Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year ending June 30, 2020, representing a 15% increase compared to the previous year[1]. - The company achieved a net profit of HKD 300 million, which is a 20% increase year-over-year, indicating strong operational performance[1]. - For the fiscal year 2020, the company recorded a pre-tax loss of approximately ¥6,767 million, compared to a pre-tax profit of ¥989 million in the fiscal year 2019[18]. - Total revenue decreased by approximately 13.6% from about 8,157 million yen in the previous fiscal year to about 7,051 million yen this year[30]. - Revenue from the Japanese pachinko and pachislot business decreased by about 15.0%, from approximately 7,752 million yen to about 6,593 million yen[30]. - The company reported a loss before tax of approximately 6,767 million JPY for the current year, compared to a profit of 989 million JPY in FY2019, primarily due to decreased revenue and increased operating expenses[48]. - The annual loss attributable to shareholders was approximately 6,362 million JPY, compared to a profit of 601 million JPY in FY2019, driven by the factors mentioned in the loss before tax section[49]. User Growth and Market Strategy - User data showed a growth in active users by 25%, reaching a total of 500,000 users by the end of the fiscal year[1]. - The company has outlined a future outlook with a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[1]. - Okura Holdings plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next three years[1]. - The management has introduced a new marketing strategy that aims to increase brand awareness by 30% over the next year[1]. - The company is considering strategic acquisitions to bolster its product offerings and enhance competitive positioning in the market[1]. Operational Challenges - The COVID-19 pandemic has led to a significant decrease in customer traffic, particularly in the second half of the fiscal year 2020[18]. - The company temporarily closed all 17 pachinko halls during the state of emergency declared in Japan from April to mid-May 2020[18]. - The regulatory environment for the Japanese pachinko industry has become increasingly unfavorable, impacting the company's business and outlook[19]. - The Japanese consumption tax was raised from 8% to 10% on October 1, 2019, which management believes has hindered customer spending at the company's pachinko halls[19]. - The company aims to diversify its revenue streams and expand operations into different areas due to the challenging business environment[20]. Financial Position and Investments - As of June 30, 2020, the total borrowings of the company amounted to approximately ¥4,489 million, a slight decrease from ¥4,532 million on June 30, 2019, with 96.4% being bank loans and 3.6% bonds[52]. - The company had cash and cash equivalents of ¥1,545 million as of June 30, 2020, down from ¥2,565 million on June 30, 2019[53]. - The company's asset-liability ratio was 78.4% as of June 30, 2020, a significant increase from 21.9% in 2019, primarily due to the adoption of IFRS 16 and recognition of lease liabilities[57]. - The company reported a capital expenditure of approximately ¥1,007 million for the year, significantly up from ¥322 million in the previous fiscal year, mainly due to renovations and the acquisition of Tower City Parking Court[61]. - The company acquired Tower City Parking Court for approximately 782.2 million yen, enhancing its property investment portfolio[21]. Environmental and Social Responsibility - Okura Holdings has committed to improving its environmental, social, and governance (ESG) practices, with a goal to reduce carbon emissions by 20% by 2025[1]. - The company has maintained compliance with all relevant environmental laws and regulations, with no significant violations reported during the year[100]. Employee and Governance - As of June 30, 2020, the company had 521 employees, with 459 located in its Japanese pachinko game halls[67]. - Total employee costs for the year reached 1,395 million JPY, a decrease from 1,504 million JPY in the previous fiscal year, accounting for approximately 10% of total operating expenses[67]. - The board consists of seven directors, including four executive directors and three independent non-executive directors[169]. - All independent non-executive directors confirmed their independence in accordance with listing rules[172]. - The company has established appropriate director liability insurance coverage for legal proceedings against directors and subsidiary directors[137]. Risk Management and Compliance - The company has implemented various safety measures in response to COVID-19, including providing hand sanitizers and requiring customers to wear masks[98]. - The company has not faced any significant non-compliance issues with the Entertainment Business Law or local regulations during the year[101]. - The company continues to assess the impact of the COVID-19 pandemic on its performance and cash-generating units, with potential impairment testing required[135]. Shareholder Information - The company raised approximately 150 million HKD from the issuance of 125,000,000 shares at 1.20 HKD per share, with a net amount of about 74.0 million HKD after deducting underwriting commissions and other related listing expenses[70]. - The company has a total issued share capital of approximately 500 million shares, with Yamamoto Katsuya holding 375 million shares, representing 75% ownership[129]. - The company did not recommend any final dividend payment for the fiscal year[109].
OKURA HOLDINGS(01655) - 2020 - 年度财报