Financial Performance - Operating profit for the fiscal year ending March 31, 2019, was recorded at ¥19,342 million, an increase of ¥1,666 million or 15.2% year-on-year, despite a decrease in revenue reflecting a challenging operating environment [8]. - Total revenue for the fiscal year ended March 31, 2019, was ¥146,371 million, a decrease of 3.8% from ¥152,092 million in the previous year [155]. - Net profit for the year reached ¥12,591 million (HK$891 million), compared to ¥10,925 million (HK$807 million) in 2018, reflecting a growth of 15.2% [119]. - Basic earnings per share rose to ¥16.4 for the year, compared to ¥14.2 in 2018 [119]. - The total comprehensive income for the year was ¥13,477 million, up from ¥9,827 million year-over-year [156]. - The company reported a decrease in gaming hall operating expenses to ¥128,024 million from ¥136,727 million, reflecting a cost reduction strategy [155]. Business Strategy and Development - The company established a subsidiary to enter the aircraft leasing business, which is expected to generate relatively stable profits [8]. - The company aims to enhance customer numbers and review store opening strategies while controlling costs through the development of a new system [9]. - The company aims to reshape Japanese pachinko gaming as an easily accessible daily entertainment, targeting areas with a population of 30,000 to 50,000 for new game hall openings [27]. - The company is implementing a multi-hall development strategy by opening new standard game halls and acquiring other operators to increase the number of game halls [26]. - The company is focused on sustainable growth by integrating environmental, social, and governance concepts into its operations [12]. Corporate Governance - The company is committed to corporate governance principles to enhance shareholder value in the long run [33]. - The board consists of nine members, including one executive director, three non-executive directors, and five independent non-executive directors, with all directors attending 14 board meetings and 2 general meetings during the reporting period [38]. - The audit committee held 15 meetings during the reporting period, reviewing the audited consolidated financial statements for the year ended March 31, 2018, and the unaudited interim financial statements for the six months ended September 30, 2018 [41]. - The company has adopted a code of conduct for directors regarding securities trading and insider trading prevention rules, with all directors confirming compliance during the reporting period [36]. - The company has established a Nomination Committee consisting of two independent non-executive directors and one executive director, with a total of 4 meetings held during the reporting period [45]. Risk Management - The company is actively monitoring and managing risks associated with gaming addiction to safeguard long-term business growth [20]. - The group faces various financial risks, including market risk, credit risk, and liquidity risk, and has a risk management plan to mitigate potential adverse impacts on financial performance [141]. - The group faces significant credit risk due to the possibility of customers failing to meet their payment obligations, with cash and bank balances, secured bank deposits, and trade receivables representing the highest credit risk exposure [143]. - The company has implemented policies to ensure sales are made to customers with appropriate credit records, significantly reducing credit risk [143]. Environmental and Social Responsibility - The company emphasizes environmental protection and has installed LED lighting in gaming halls to reduce electricity consumption [83]. - The group is committed to proper disposal of gaming machines and recycling usable parts through industry organizations [83]. - The company recognizes the importance of relationships with employees, customers, and suppliers for sustainable development [84]. - The company has a strong focus on environmental, social, and governance (ESG) matters, with detailed measures to be disclosed in a forthcoming report [84]. Shareholder Relations - The company has a dividend policy to share profits with shareholders, aiming for a total amount of no less than 35% of the annual consolidated net income [60]. - Shareholders holding at least 3% of total voting rights for six months can request a board meeting to discuss specific agenda items [54]. - The company has maintained a consistent approach to managing investor relations through timely responses to inquiries [57]. - The company has a commitment to transparency and governance, as evidenced by the appointment of independent non-executive directors [70]. Financial Position and Assets - Total assets increased to ¥185,332 million in 2019 from ¥184,971 million in 2018, representing a growth of 0.2% [157]. - Non-current assets decreased to ¥125,457 million in 2019, down from ¥131,826 million in 2018, a decline of 4.2% [157]. - Current assets rose to ¥59,875 million in 2019, compared to ¥53,145 million in 2018, an increase of 12.9% [157]. - Cash and cash equivalents increased significantly to ¥47,537 million in 2019 from ¥40,533 million in 2018, a growth of 17.4% [157]. Compliance and Regulations - The company has complied with relevant laws and regulations without any significant violations during the reporting period [83]. - The company has complied with the corporate governance code during the reporting period, with some deviations noted [115]. - The financial statements were audited by PricewaterhouseCoopers Aarata LLC, which is eligible for reappointment [116]. Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth [119]. - The company plans to hold its next annual general meeting on June 20, 2019, with the notice to be sent on May 29, 2019, again not meeting the 20 business days notice requirement [34].
DYNAM JAPAN(06889) - 2019 - 年度财报