Financial Performance - The group's revenue decreased by 25.6% to ¥9,814.5 million (approximately $64.8 million) for the six months ending September 30, 2024, due to a continued downturn in the global economic outlook and weakened consumer confidence [2]. - Total revenue decreased by 25.6% from 13,194.8 million JPY for the six months ended September 30, 2023, to 9,814.5 million JPY for the six months ending September 30, 2024 [43]. - Total revenue decreased by 28.4% for the six months ending September 30, 2024, compared to the same period in 2023, amounting to ¥9,814.5 million [44]. - Revenue from golf clubs dropped by 33.3%, primarily due to declines in sales in Korea and China (including Hong Kong and Macau) [2]. - Revenue from golf balls decreased by 17.1% to ¥910.0 million, with a 21.2% decline in sales volume in Japan [49]. - Revenue from apparel increased by 6.1% to ¥1,340.6 million, despite weak consumer confidence in China [49]. - Revenue from accessories and other related products rose by 8.4% to ¥890.1 million, attributed to an improved product mix starting in Spring 2024 [50]. - Revenue from Japan slightly decreased by 0.4% to ¥4,156.8 million, with wholesale revenue down 7.6% [54]. - Revenue from South Korea plummeted by 82.6% to ¥686.8 million due to a reevaluation of the distribution network [54]. - Revenue from China (including Hong Kong and Macau) decreased by 11.5% to ¥3,122.9 million, impacted by ongoing economic pressures [54]. - Revenue from North America increased by 23.5% to ¥413.8 million, driven by improved distribution networks and new product launches [55]. - Revenue from Europe surged by 92.4% to ¥261.4 million, confirming the effectiveness of the shift to an indirect distribution model [55]. - Revenue from self-operated stores increased by 6.5% to ¥5,507.6 million for the six months ended September 30, 2024, compared to ¥5,170.6 million for the same period in 2023 [58]. - Revenue from third-party retailers and wholesalers decreased by 46.3% to ¥4,306.9 million for the six months ended September 30, 2024, down from ¥8,024.3 million in the previous year [58]. Profitability and Loss - The company recorded a pre-tax loss of ¥1,611.9 million (approximately $10.6 million), a decrease from ¥3,635.8 million in the same period last year [4]. - The net loss for the six months ended September 30, 2024, was 845.6 million yen, with a net loss margin of 8.6% [77]. - Operating loss for the six months ended September 30, 2024, was 351.5 million yen, compared to an operating profit of 1,690.0 million yen in the previous period [80]. - The gross profit margin increased by 0.9 percentage points to 53.0% for the six months ending September 30, 2024, attributed to improved price management and sustained growth in retail revenue [4]. - The gross profit decreased by 24.4% to ¥5,199.3 million for the six months ended September 30, 2024, compared to ¥6,877.0 million for the same period in 2023 [61]. - The gross margin improved to 53.0% for the six months ended September 30, 2024, up from 52.1% in the previous year despite a decrease in gross profit [61]. - Selling and distribution expenses increased to ¥4,643.4 million for the six months ended September 30, 2024, from ¥4,486.0 million in the previous year, with the percentage of revenue rising from 34.0% to 47.3% [68]. - Administrative expenses increased by 21.0% to ¥823.3 million for the six months ended September 30, 2024, compared to ¥680.4 million for the same period in 2023 [69]. Cash Flow and Financial Position - Operating cash flow remained positive at ¥4,024.4 million (approximately $26.6 million), compared to ¥3,251.3 million in the same period last year [4]. - The company had cash and cash equivalents of ¥18,054.6 million, primarily held in RMB, JPY, and USD [89]. - The total cash and cash equivalents at the end of the period were 18,054,555 thousand yen, up from 16,659,964 thousand yen, marking an increase of approximately 8.4% [128]. - The company’s interest-bearing bank loans amounted to ¥6,240.0 million, with actual interest rates ranging from 0.17% to 3.08% [90]. - The debt-to-equity ratio as of September 30, 2024, was 32.0%, a decrease from 34.1% on March 31, 2024 [92]. - The company has adopted a conservative financing and treasury policy to maintain optimal financial conditions and minimize financial risks [95]. - The company reported a net cash flow from investing activities of (386,159) thousand yen, compared to (196,923) thousand yen in the previous year, indicating a decline of approximately 96.1% [128]. - The financing activities resulted in a net cash outflow of (1,533,944) thousand yen, slightly higher than the outflow of (1,449,364) thousand yen in the prior year, reflecting an increase of about 5.8% [128]. Strategic Initiatives - The company is focusing on brand repositioning and enhancing communication with target consumers to attract younger golfers [11]. - Significant investments are being made in retail distribution networks and digital capabilities in Japan and China to provide a consistent consumer experience [8]. - The company aims to streamline its product strategy to enhance penetration in the ultra-high-end and ultra-performance consumer segments [9]. - The group is implementing a customer relationship management system and advanced e-commerce features to strengthen direct communication with consumers and boost sales [11]. - The company is focusing on the high-end and super-performance segments of the golf market, targeting affluent consumers willing to pay premium prices for unique golf clubs [18]. - The company is adjusting its growth strategy in North America and Europe, focusing on smaller, high-quality customer segments to strengthen its market presence [14]. - The company aims to recruit young golfers with significant social media presence to enhance brand image and attract a younger demographic [16]. - The company plans to launch new golf balls with proprietary patents to align with its brand positioning and consumer preferences [12]. - The company is developing a non-club product line to provide a comprehensive golf lifestyle experience, particularly in China [37]. Market and Operational Challenges - The group continues to face operational challenges and business uncertainties due to economic factors and geopolitical tensions [31]. - The company anticipates that the golf industry will face challenges due to oversupply, labor shortages, and rising material costs, but remains confident in its ability to navigate these issues [38]. - The company is leveraging advanced technology and traditional Japanese craftsmanship to design and manufacture aesthetically pleasing and high-performance golf clubs [18]. - The company has no significant contingent liabilities as of September 30, 2024 [94]. - The company has not reported any supplier financing arrangements, indicating no impact from recent accounting standard revisions on its financial statements [137]. Research and Development - Research and development expenses for the six months ended September 30, 2024, were 150.7 million JPY, up from 110.6 million JPY in the previous period, indicating a focus on product innovation [37]. - The company’s research and development costs for the six months ended September 30, 2024, were ¥150,745 thousand, compared to ¥110,637 thousand in the previous year [149]. Corporate Governance - The company has complied with all applicable corporate governance code provisions except for C.2.1, which states that the roles of the chairman and CEO should be separate [196]. - The audit committee, consisting of three independent non-executive directors, has reviewed the group's interim results for the six months ending September 30, 2024 [199]. - The interim results announcement will be published on the Hong Kong Stock Exchange and the company's website [200].
本间高尔夫(06858) - 2025 - 中期业绩