Financial Performance - Total revenue for the fiscal year ended March 31, 2021, decreased by 4.4% to ¥22,735.1 million from ¥23,787.2 million in the previous year[20]. - Gross profit for the fiscal year was ¥11,445.2 million, with a gross margin of 50.3%[20]. - Operating profit increased significantly to ¥1,232.8 million from ¥405.1 million in the previous year[20]. - The company reported a net profit attributable to owners of ¥1,859.0 million, a recovery from a loss of ¥732.4 million in the previous year[20]. - Overall revenue decreased by 4.9% year-over-year due to the impact of COVID-19, with most self-operated stores closed during the fiscal year[31]. - Revenue growth in China and South Korea was 98.2% and 14.2% respectively, while Japan, North America, and Europe saw declines of 39.7%, 25.8%, and 25.0% respectively, with Japan, South Korea, and China accounting for 81.1% of total revenue[32]. - Revenue from golf balls increased by 20.6% to ¥2,659.2 million, while apparel revenue rose by 36.7% to ¥1,727.0 million, driven by strong market penetration in Japan, Korea, and China[63]. - The company's gross margin remained stable at 50.3%, compared to 50.9% in the previous year[130]. - The company reported a pre-tax profit of ¥2,420.3 million (approximately $22.2 million), a significant improvement from a loss of ¥357.7 million in the previous year[130]. Market Performance - Revenue from China (including Hong Kong and Macau) surged by 100.4% to ¥5,512.0 million, driven by a faster recovery from the pandemic[23]. - Revenue from South Korea rose by 14.2% to ¥6,383.4 million, marking the eighth consecutive year of double-digit growth[23]. - Revenue from third-party retailers and wholesalers decreased by 9.4% to ¥16,762.5 million for the year ended March 31, 2021, compared to ¥18,505.0 million for the previous year[69]. - The average order value in North America rose to over $1,000, reflecting strong consumer interest and brand building efforts[27]. - E-commerce sales increased by 262% due to the successful direct-to-consumer strategy, with flagship stores on Tmall and JD.com experiencing over three-digit growth[24]. Strategic Initiatives - The company emphasized the importance of targeted marketing and promotional activities in driving brand growth in recovering markets[22]. - The company aims to enhance brand influence by engaging with high-end consumer segments and introducing new marketing strategies[28]. - The company continues to focus on high-end and high-performance consumer segments, enhancing its product offerings with technological advancements[31]. - The company has established a strategic partnership with Itochu Corporation to develop apparel and accessories, launching four clothing lines aimed at consumers in Japan, China, and Korea[53]. - The company plans to enhance brand value and customer loyalty by implementing various branding and marketing strategies, including the opening of brand experience stores in major markets such as Japan, China, and the U.S.[50]. Product Development - The company launched the GS series of golf clubs in January 2021, targeting enthusiastic golfers with a handicap of 8 to 20[35]. - The introduction of the XP performance-enhanced series under the TOUR WORLD product line aims to capture growth potential in the high-performance consumer segment[42]. - HONMA offers three main product families: BERES, TOUR WORLD, and Be ZEAL, targeting specific consumer segments based on performance and design preferences[41]. - The company has been actively expanding its product development team, with Dr. Suwa having extensive experience in various leadership roles since joining in 1978[120]. Operational Efficiency - The company has strengthened its e-commerce capabilities, leading to double-digit monthly growth in natural traffic and conversion rates since the relaunch of its website in January 2019[46]. - The company has implemented a rigorous apprenticeship program in its Sakata facility to retain and cultivate craftsmanship[48]. - The company has taken additional steps to reduce emissions and waste, such as using energy-efficient machinery and promoting a paperless environment[137]. - The company has implemented several measures to enhance its global brand positioning and digital engagement, resulting in monthly growth in natural traffic and conversion rates[142]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency in its operations[114]. - The board of directors confirmed compliance with the standards for securities trading throughout the fiscal year[200]. - The independent non-executive directors have confirmed their independence according to the relevant listing rules for the year ending March 31, 2021[172]. - The company has appropriate insurance coverage for directors against potential legal liabilities[191]. Human Resources - The company emphasizes attracting and retaining skilled employees through performance-based incentives, crucial for long-term success[135]. - The compensation policy aims to attract and retain skilled personnel, with a combination of salary, allowances, and performance-related bonuses[186]. - The management team is well-equipped with advanced degrees and professional qualifications, enhancing the company's operational capabilities[115][117][119]. Financial Position - Total assets decreased to ¥36,493.5 million from ¥38,897.3 million in the previous year[21]. - Total equity increased slightly to ¥21,321.1 million from ¥21,263.8 million[21]. - Cash and cash equivalents as of March 31, 2021, totaled 10,771.9 million yen, primarily held in USD, JPY, and CNY[93]. - The debt-to-equity ratio as of March 31, 2021, was 49.4%, a decrease from 50.1% on March 31, 2020[95]. Shareholder Information - The proposed final dividend for the year ended March 31, 2021, is ¥1.7 per share, totaling approximately ¥1,029.6 million, representing about 8.2% of the distributable profits[105]. - The total dividend for the fiscal year ending March 31, 2021, will be ¥3.2 per share, amounting to ¥1,938.1 million, representing approximately 14.5% of the distributable profit[144]. - As of March 31, 2021, the company's distributable reserves amounted to approximately ¥12,488 million, down from ¥14,165 million as of March 31, 2020[146].
本间高尔夫(06858) - 2021 - 年度财报