Financial Performance - The company reported a total revenue of 1,000 million JPY for the fiscal year ending December 31, 2023, reflecting a year-on-year increase of 10%[6]. - For the fiscal year 2024, Okura Holdings Limited recorded a pre-tax profit of approximately 1,904 million JPY, a decrease of about 1,242 million JPY or 39.5% from the previous fiscal year 2023's profit of approximately 3,146 million JPY[12]. - Total revenue for the fiscal year 2024 increased by approximately 199 million JPY or 3.2% to about 6,483 million JPY, primarily driven by increased customer traffic due to the introduction of more smart slot machines and smart pachinko machines[21]. - The annual profit attributable to shareholders decreased by approximately 1,176 million JPY or about 36.5% to approximately 2,044 million JPY for FY2024[37]. - The revenue growth forecast for the twelve months ending June 30, 2025, is estimated to be between -3% to -5%[32]. User Engagement and Market Expansion - User data indicated a growth in active users by 15% compared to the previous year, reaching a total of 500,000 active users[6]. - Market expansion plans include entering two new international markets, aiming for a 5% market share within the first year[6]. - The company aims to diversify its revenue streams from various operations, including Japanese pachinko and slot machine businesses, vending machines, and property leasing, among others[15]. Product Development and Innovation - New product launches are expected to contribute an additional 200 million JPY in revenue, with a focus on enhancing user experience[6]. - The introduction of new gaming machines, including the updated "6.5 model" slot machine in June 2022, the "smart slot machine" in November 2022, and the "smart pachinko machine" in April 2023, contributed to the recovery of customer traffic[12]. - The company has introduced new models of smart pachinko and slot machines, which accounted for approximately 46.1% and 6.8% of installed machines, respectively, as of June 30, 2024[17]. Operational Efficiency and Cost Management - The company aims to improve operational efficiency, targeting a 10% reduction in costs through process optimization[6]. - Operating expenses for game halls decreased by approximately 215 million JPY or 3.9% to about 5,292 million JPY, attributed to reduced spending on pachinko and slot machines[28]. - The company anticipates that smaller operators with limited capital resources will be eliminated from the market due to the high costs associated with updating equipment for new banknotes, allowing the company to capture more customers[17]. Corporate Governance and Management - The company has a strong management team with extensive experience in marketing and business development, including key personnel like Masashi Maeda[72]. - The board has established corporate governance procedures to ensure independent evaluation of the group's business opportunities and performance[105]. - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[131]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to reduce greenhouse gas emissions and actively manage waste as part of its environmental protection initiatives[199]. - The company has established an Environmental, Social, and Governance (ESG) committee to oversee significant ESG issues and report to the board[193]. - The company has implemented a series of procedures to set and review ESG goals and indicators throughout the fiscal year[193]. Shareholder Communication and Engagement - The company has adopted a communication policy to ensure timely and accurate disclosure of insider information to independent shareholders[180]. - The shareholder communication policy aims to provide comprehensive and easily understandable information to shareholders regarding financial performance and strategic goals[183]. - The company’s board reviews the effectiveness of the shareholder communication policy annually, confirming its effectiveness[184]. Challenges and Market Conditions - The company continues to face challenges in the Japanese pachinko business due to rising living costs and declining consumer discretionary income[58]. - The company faced a continuous contraction and intense competition in the Japanese pachinko machine industry[77]. - The largest supplier accounted for approximately 52.4% of the total procurement, while the top five suppliers collectively represented about 99.3%[80].
OKURA HOLDINGS(01655) - 2024 - 年度财报