Financial Performance - For the six months ended September 30, 2019, HONMA's net sales decreased by 7.9% compared to the same period in 2018, with a fixed exchange rate basis showing a decrease of 7.0%[6]. - Total revenue decreased by 7.9% from ¥11,503.2 million to ¥10,590.973 million for the six months ending September 30, 2019[34]. - Golf club revenue fell by 13.8% from ¥9,369.5 million to ¥8,077.2 million, with a fixed exchange rate decline of 13.0%[37]. - The revenue from the Be Zeal product family decreased by 77.9% due to the company's focus on the BERES and TOUR WORLD series[37]. - TOUR WORLD family sales increased by 73.1% on a fixed exchange rate basis, confirming the company's strategy to focus on high-end performance segments[37]. - Gross profit margin decreased from 59.1% to 49.7%, reflecting an increase in cost of sales from ¥4,707.1 million to ¥5,330.1 million[32]. - Operating loss was ¥28.5 million compared to an operating profit of ¥2,036.5 million in the previous period[32]. - Net loss attributable to equity holders was ¥51.2 million, a significant decline from a profit of ¥2,134.5 million[32]. - Adjusted SG&A expenses increased by 11.0% to ¥5,320.6 million, compared to ¥4,793.1 million in the previous period[32]. - Other income and gains decreased significantly from ¥762.6 million to ¥36.7 million, a drop of 95.2%[32]. - The company reported a financing cost increase of 425.2%, rising from ¥5.4 million to ¥28.5 million[32]. - The company reported a loss before tax of ¥(510,733) thousand, compared to a profit of ¥2,764,942 thousand in the same period last year[104]. - Net loss for the period was ¥(51,238) thousand, a significant decline from a profit of ¥2,134,478 thousand in 2018[105]. - Total comprehensive income for the period was ¥(39,352) thousand, compared to ¥2,226,211 thousand in the previous year[106]. Sales and Market Performance - Sales in South Korea and Europe led growth rates, increasing by 51.4% and 9.4% respectively on a fixed exchange rate basis[6]. - Japan, HONMA's largest market, saw a decline of 21.7% on a fixed exchange rate basis, primarily due to a 101.6% year-on-year decrease in Be ZEAL revenue[6]. - Sales in China grew by 9.4% on a fixed exchange rate basis, attributed to the relaunch of product lines[6]. - Japan, South Korea, and China combined accounted for 84.0% of total sales[6]. - HONMA's golf clubs accounted for 76.3% of total sales, indicating a strong focus on core product offerings[11]. - Golf ball revenue rose by 53.5% (at constant exchange rates), with significant growth in Japan (68.6%) and South Korea (47.4%) markets[11]. - The apparel segment saw a 53.1% increase in sales, primarily driven by the 2019 spring/summer collection[11]. - The company hosted nearly 2,500 customer events across major markets, enhancing brand and product visibility[12]. Brand Strategy and Marketing - HONMA has restructured its brand to appeal to younger golfers, launching a new global website and enhancing social media presence[8]. - The company has begun establishing or restructuring customer relationship management systems and adding e-commerce functionalities in key markets[8]. - HONMA signed a long-term partnership with global brand ambassador Justin Rose, significantly increasing brand exposure in the US and Europe[8]. - The company decided to focus on high-end performance consumer segments and will not renew the Be ZEAL product family[6]. - HONMA aims to enhance its brand positioning and communication globally to attract high-end golfers[8]. - HONMA's brand awareness in North America increased to 63%, with nearly half of surveyed consumers linking the brand to increased exposure in local events[9]. - HONMA plans to enhance brand value and customer loyalty through various marketing strategies, including signing Justin Rose as a global brand ambassador to strengthen brand image in mature markets like North America, Europe, and Japan[24]. - The company aims to increase market share in its home markets (Japan, Korea, and China) by expanding the TOUR WORLD product family and enhancing exposure in international events due to Justin Rose's involvement[25]. Retail Expansion and Distribution - The company opened 101 new sales points in Europe while closing only 6, resulting in a total of 613 sales points as of September 30, 2019[10]. - HONMA plans to open approximately 30 high-end retail stores and 30 to 50 retail hubs within golf courses in North America over the next 18 to 24 months[9]. - The group increased its sales points to approximately 3,898, representing an increase of 283 sales points compared to the previous year[17]. - The company is continuously evaluating existing channels and exploring new ones to improve its sales and distribution network[18]. Financial Position and Capital Management - Cash and cash equivalents as of September 30, 2019, totaled ¥10,222.1 billion, primarily held in USD, JPY, and CNY[66]. - The group had a total of 74 self-operated HONMA brand stores, with 39 located in China (including Hong Kong and Macau) and 30 in Japan[16]. - The company plans to fund its expansion and operations through internal resources, bank loans, and proceeds from global offerings[66]. - The company has no currency risk as most of its operations and transactions are conducted in JPY, with no derivative contracts used for hedging[66]. - As of September 30, 2019, the group's interest-bearing borrowings amounted to ¥5,600.0 million, with an actual interest rate ranging from 0.30% to 0.55%[67]. - The debt-to-equity ratio as of September 30, 2019, was 34.2%, a significant increase from 13.0% as of March 31, 2019[68]. - Capital expenditures for the six months ended September 30, 2019, totaled ¥896.1 million, primarily for purchasing machinery and office equipment[69]. - The company has adopted a prudent financing and treasury policy to maintain optimal financial conditions and minimize financial risks[70]. Employee and Governance Matters - Employee benefits expenditure for the six months ended September 30, 2019, amounted to ¥2,610.6 million[21]. - The company has complied with all applicable corporate governance code provisions except for the separation of the roles of chairman and CEO[97]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended September 30, 2019[99]. - The company has extended the service agreements of its executive directors for an additional three years starting from September 18, 2019[99]. - The salary of the executive director, Mr. Ito Yasuki, has been adjusted to JPY 16,366,366 annually, with a performance bonus of JPY 5,767,650[99]. Shareholder Information - The interim dividend declared for the six months ended September 30, 2019, was ¥1.64 per share, totaling approximately ¥1,000 million, representing about 7.0% of the distributable reserves[76]. - The company has adopted a dividend policy that allows the board to decide on the distribution and amount based on operational performance, cash flow, and financial condition[95]. - The company declared dividends totaling ¥6,129,187,000 during the period, reflecting ongoing shareholder returns despite the reported losses[110].
本间高尔夫(06858) - 2020 - 中期财报