Financial Performance - For the fiscal year ending March 31, 2020, the company recorded an operating profit of ¥21,514 million, an increase of ¥2,172 million, representing a year-on-year growth of 11.2%[10] - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[62] - Total revenue for the year ended March 31, 2020, was ¥141,919 million (HK$10,115 million), a decrease of 3.0% from ¥146,371 million (HK$10,352 million) in 2019[105] - Net profit for the year was ¥12,747 million (HK$908 million), up from ¥12,591 million (HK$891 million) in 2019, representing a growth of 1.2%[105] - EBITDA for the year was ¥33,151 million (HK$2,363 million), an increase from ¥31,136 million (HK$2,202 million) in 2019, marking a growth of 6.5%[105] - The company reported a 5% increase in gross margin, reaching 40% for the fiscal year[63] - Total comprehensive income for the year was ¥11,567 million, down from ¥13,477 million, reflecting a decrease of 14.2%[147] Impact of COVID-19 - The number of customers visiting the Japanese-style pachinko halls has declined since the end of the reporting period due to the impact of COVID-19, leading to temporary closures and reduced operating hours in some areas[10] - The company reported a significant impact on its financial status due to the COVID-19 pandemic, with 436 out of 448 game halls temporarily closed as of May 6, 2020[77] - The company anticipates ongoing adverse effects on financial performance and cash flow due to the pandemic, with uncertainty regarding future operational results[100] - The company plans to implement cost-cutting measures, including labor cost reductions, to mitigate the financial impact of the pandemic[77] Corporate Governance - The board of directors is committed to prudent corporate governance principles to enhance shareholder value in the long term[34] - The company has complied with all applicable corporate governance code provisions during the reporting period, with some deviations noted[35] - The board consists of nine members, including four non-executive directors and five independent non-executive directors, ensuring a balance of power[37] - The company emphasizes the importance of maintaining trust with stakeholders and has adopted new internal control systems to improve operations and prevent misconduct[17] Strategic Initiatives - The company aims to enhance its corporate value and become an indispensable part of the local community, integrating sustainable growth concepts into its environmental, social, and governance practices[13] - The management team has changed as of April 27, 2020, with a new CEO taking over operations amid a challenging business environment[12] - The company aims to reshape Japanese-style pachinko gaming into an easily accessible daily entertainment option[24] - The company is committed to monitoring and managing risks associated with gaming addiction while promoting positive community impacts[20] Market and Operational Strategies - The strategy focuses on multi-hall development and low-cost operations to stabilize long-term profits[24] - New standard game halls are being opened in densely populated areas, targeting small commercial districts with populations between 30,000 and 50,000[26] - The company benefits from economies of scale in purchasing game machines and prizes through multi-hall development[24] - The focus on low-stakes games is a key aspect of the company's management policy[25] Shareholder Returns - The company plans to share profits with shareholders, targeting a total dividend amount of no less than 35% of the annual consolidated net income[58] - The board proposed a final dividend of 3 yen per ordinary share, amounting to approximately 2,298 million yen (around 164 million HKD) based on 765,985,896 shares issued as of June 8, 2020[78] Risk Management - The company has established a whistleblowing system to prevent significant internal control deficiencies and conducts regular internal audits[50] - The board is responsible for reviewing the effectiveness of the risk management and internal control systems, which are deemed effective and fully operational during the reporting period[52] - The company faces various market risks, including foreign currency risk, credit risk, and liquidity risk, and has no current foreign currency hedging policy[130] Acquisitions and Investments - The company has acquired Yume Corporation to expand its network of game halls[27] - The company plans to invest up to ¥90 billion in acquiring up to 20 narrow-body aircraft, including Airbus A320 and Boeing 737, over the first three years[33] - A recent acquisition of a tech startup is anticipated to enhance the company's product offerings and drive future growth[67] Environmental and Social Responsibility - The company is committed to creating value for stakeholders through environmental, social, and governance activities, addressing global environmental issues and local community matters[19] - The management team emphasized a commitment to sustainability, aiming for a 20% reduction in carbon emissions by 2025[66] - The company has been actively seeking to improve environmental measures, such as installing LED lighting in game halls to reduce electricity consumption[76] Financial Position - Non-current assets increased to ¥221,441 million (HK$15,783 million) from ¥125,457 million (HK$8,873 million) in 2019, showing a significant rise[102] - Current liabilities rose to ¥44,028 million (HK$3,138 million) from ¥36,452 million (HK$2,578 million) in the previous year, indicating a 20.5% increase[102] - Total equity decreased to ¥134,732 million (HK$9,604 million) from ¥141,800 million (HK$10,028 million) in 2019, reflecting a decline of 5.0%[102] Employee Compensation and Management - Employee compensation for the year ended March 31, 2020, totaled 55,103 million JPY (approximately 3,928 million HKD)[128] - The company’s remuneration policy is based on employee performance, qualifications, and operational results[94] - The company has arranged liability insurance for directors and senior management against damages from failure to perform their duties[95]
DYNAM JAPAN(06889) - 2020 - 年度财报