Revenue Performance - HONMA's revenue decreased by 14.1% for the six months ended June 30, 2020, compared to the same period in 2019, based on constant exchange rates[6]. - Total revenue decreased by 14.5% from ¥10,590.973 million to ¥9,052.973 million for the six months ended September 30, 2020[35]. - Revenue from Japan decreased by 59.6% to ¥1,855.759 million, down from ¥4,594.454 million in the previous year, primarily due to the negative impact of COVID-19[42]. - Revenue from South Korea increased by 16.9% to ¥3,115.910 million, compared to ¥2,665.441 million in the prior year, marking the seventh consecutive year of double-digit growth[42]. - Revenue from China (including Hong Kong and Macau) rose by 48.5% to ¥2,353.412 million, up from ¥1,584.299 million, with a 52.3% increase on a constant currency basis[43]. - Revenue from North America and Europe decreased by 37.8% and 16.3%, respectively, with North America at ¥305.182 million and Europe at ¥409.994 million[43]. - Revenue from self-operated stores slightly decreased by 0.7% to ¥2,611.905 million, while revenue from third-party retailers and wholesalers fell by 19.1% to ¥6,441.068 million[44]. Market Trends - Revenue growth rates for China and South Korea were 52.3% and 16.9% respectively, driven by a quicker recovery from the pandemic and successful product launches[7]. - The golf industry has shown signs of recovery since May 2020, with an increase in participation and total rounds played across major markets[7]. - The golf industry is expected to face challenges due to GDP growth slowdowns and ongoing COVID-19 impacts, which have caused market volatility and economic instability[30]. - Sales in China, Korea, Southeast Asia, and Taiwan showed strong growth as the golf industry began to recover, with expectations of a gradual return to a new normal starting July 2020[31]. Product Development and Strategy - HONMA is launching two new products targeting the premium and high-performance segments[6]. - The company aims to create a comprehensive digital ecosystem around its redefined brand and premium product offerings[9]. - The introduction of the new XP series golf clubs targets enthusiastic golfers with handicaps between 8 and 20, showcasing HONMA's commitment to innovation[10]. - The company plans to enhance its TOUR WORLD product line by introducing a performance-enhancing series named XP, targeting the high-end performance consumer segment[17]. - HONMA's new retail strategy includes the integration of a 360-degree brand experience, with new store openings in Japan, China, and Korea[14]. Financial Performance - Operating loss increased significantly to ¥548.856 million from ¥28.458 million, reflecting a year-on-year change of 1,828.7%[34]. - Net loss attributable to shareholders rose to ¥803.525 million from ¥51.238 million, marking a year-on-year increase of 1,468.2%[34]. - Adjusted SG&A expenses decreased by 3.2% to ¥5,152.231 million from ¥5,320.608 million[34]. - Financing income dropped by 86.4% from ¥59.680 million to ¥8.109 million, indicating a significant decline in financial performance[34]. - The company anticipates continued challenges in the market due to ongoing impacts from COVID-19, affecting future revenue projections[39]. Brand and Marketing Initiatives - The company has focused on enhancing its brand positioning and communication to appeal to younger golfers through a revamped global website and social media platforms[9]. - HONMA continues to sponsor TEAM HONMA golfers, including 12 professional players, to enhance brand visibility and drive sales growth, particularly in China[15]. - The company has invested in e-commerce and social media marketing to drive traffic and attract potential customers, indicating a strategic shift towards digital channels[13]. - HONMA hosted approximately 1,400 customer events across major markets, enhancing brand awareness and consumer engagement[15]. Distribution and Sales Network - HONMA opened 23 new sales points in Europe, bringing the total to 563 as of September 30, 2020, while maintaining a focus on expanding its distribution network[13]. - The company has approximately 4,077 sales points as of September 30, 2020, an increase of 158 sales points compared to March 31, 2020[20]. - As of September 30, 2020, HONMA's golf clubs accounted for 77.8% of total sales, demonstrating a strong focus on high-end performance segments[11]. Employee and Operational Insights - Employee benefits expenditure for the six months ending September 30, 2020, amounted to 2,352.0 million yen[24]. - The company employs approximately 787 employees globally, with most based in Japan[24]. - The company has established 6 fitting centers equipped with high-speed cameras and precision software to capture swing data, enhancing customer experience[19]. Financial Position and Liquidity - Cash and cash equivalents amounted to ¥11,202.6 million as of September 30, 2020, primarily held in USD, JPY, and CNY, indicating a strong liquidity position[69]. - Interest-bearing bank loans totaled ¥8,624.5 million as of September 30, 2020, with an effective interest rate ranging from 0.33% to 1.00%[70]. - Debt-to-equity ratio increased to 53.9% as of September 30, 2020, compared to 50.1% as of March 31, 2020, indicating a rise in financial leverage[71]. Shareholder Information - The board declared an interim dividend of ¥1.5 per share, totaling approximately ¥908.5 million, representing about 7.0% of the distributable profits as of September 30, 2020[81]. - The percentage of shares held by the largest shareholder, Mr. Liu Jianguo, is 38.72% as of September 30, 2020[85]. - Kouunn Holdings Limited holds 233,560,525 shares, representing 38.56% of the issued share capital[89].
本间高尔夫(06858) - 2021 - 中期财报