Financial Performance - Total bets for the first six months of FY2025 decreased by approximately 2.1% to about ¥16,024 million compared to ¥16,372 million in FY2024[4] - Revenue for the first six months of FY2025 fell by approximately 0.1% to about ¥3,188 million, down from ¥3,191 million in FY2024[4] - Operating profit for the first six months of FY2025 declined by approximately 42.5% to about ¥655 million, compared to ¥1,139 million in FY2024[4] - Profit before tax for the first six months of FY2025 decreased by approximately 44.1% to about ¥610 million, down from ¥1,092 million in FY2024[4] - Profit attributable to shareholders for the first six months of FY2025 dropped by approximately 54.7% to about ¥505 million, compared to ¥1,116 million in FY2024[4] - Basic and diluted earnings per share for the first six months of FY2025 were approximately ¥0.84, down from ¥1.86 in FY2024[4] - Total revenue for the six months ended December 31, 2024, was ¥3,188 million, a slight decrease from ¥3,191 million in the same period of 2023[43] - Revenue from the Japanese pachinko and pachislot business was ¥2,934 million, down from ¥2,948 million year-over-year[43] - The company reported a pre-tax profit of ¥610 million for the six months ended December 31, 2024, compared to ¥1,092 million for the same period in 2023, reflecting a significant decline[47] - Total revenue for the first six months of FY2025 was approximately ¥3,188 million, a slight decrease of ¥3 million or about 0.1% from ¥3,191 million in FY2024[116] Dividends and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the first six months of FY2025[4] - The group did not declare any interim dividends for the six months ended December 31, 2024, consistent with the previous period[63] - The board has not proposed an interim dividend for the first six months of fiscal year 2025, consistent with the previous year[179] Assets and Liabilities - Total assets as of December 31, 2024, were ¥18,210 million, a decrease from ¥18,470 million as of June 30, 2024[10] - Total liabilities as of December 31, 2024, were ¥9,939 million, down from ¥10,701 million as of June 30, 2024[11] - Total equity attributable to shareholders increased to ¥8,271 million as of December 31, 2024, compared to ¥7,769 million as of June 30, 2024[11] - The company's total liabilities remained stable with no significant changes in undiscounted cash outflows compared to year-end[38] - The total lease liabilities decreased from ¥3,093 million on June 30, 2024, to ¥2,850 million on December 31, 2024[78] - Total borrowings decreased from approximately ¥4,987 million as of June 30, 2024, to ¥4,685 million as of December 31, 2024, representing a reduction of about 6.1%[88] - The non-current portion of bank loans decreased from ¥2,870 million to ¥2,652 million, a decline of approximately 7.6%[88] - The asset-liability ratio as of December 31, 2024, is approximately 35.6%, down from 39.3% as of June 30, 2024, primarily due to loan repayments in the first half of fiscal year 2025[152] Operational Performance - The company launched new gaming machines, including the "Lucky Trigger" pachinko machine in March 2024, aimed at attracting younger customers and increasing overall usage rates[101] - The company is exploring new measures and opportunities to enhance operational performance and diversify revenue streams, including income from vending machines and property leasing[105] - The company observed a recovery in customer traffic in its gaming halls, particularly in urban areas, following the Japanese government's easing of COVID-19 restrictions in May 2023[101] - The company recorded a significant rental revision gain of approximately ¥1,027 million in the first six months of fiscal year 2024, which was not repeated in the same period of fiscal year 2025[103] - The company operates 10 gaming halls under the brands "Big Apple," "K's Plaza," and "SENKURA" across various regions in Japan[100] - The company reported a decrease in operating expenses of approximately ¥498 million and administrative expenses of about ¥75 million in the first six months of fiscal year 2025 compared to the previous year[103] - Operating expenses for game halls decreased by approximately ¥498 million or about 17.5% to ¥2,350 million in FY2025 from ¥2,848 million in FY2024[127] - The company has implemented a self-service prize redemption system to enhance customer safety and reduce staff interaction, contributing to operational efficiency[113] - The company plans to continue installing updated models of pachinko and slot machines to attract more customers and improve operational performance[114] - The company anticipates steady improvement in operational and financial performance due to completed capital investments and the absence of major future capital investment plans[114] Financial Management and Accounting Policies - The financial data for the six months ending December 31, 2024, is prepared in accordance with Hong Kong Accounting Standards and International Financial Reporting Standards[18] - The company submitted its financial statements for the year ending June 30, 2024, to the Companies Registry, with the auditor's report being unqualified[20] - The accounting policies adopted for the interim period are consistent with those used in the annual financial statements for the year ending June 30, 2024[21] - The group has adopted revised standards effective from July 1, 2024, including amendments to IAS 1 and IFRS 16, which do not have a significant impact on the accounting policies[23][24] - The company is currently assessing the impact of new and revised standards that will be effective from January 1, 2025, and beyond, with no early adoption planned[26][29] - The adoption of IFRS 18 is expected to affect the presentation and disclosure of financial performance, particularly in the income statement and management-defined performance measures[30][32] - The company anticipates that the reclassification of interest received and paid in the cash flow statement will change, with interest paid classified as financing cash flow and interest received as investing cash flow[32] - The group will apply the new standards from their mandatory effective date of January 1, 2027, with retrospective application required[33] Employee and Corporate Governance - Total employee costs for the first six months of fiscal year 2025 reached approximately 520 million yen, accounting for about 19.2% of total operating expenses[169] - The company has a total of 353 employees as of December 31, 2024, down from 381 employees a year earlier[169] - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a diverse governance structure[187] - The company is committed to high levels of corporate governance, which is crucial for its development and protecting shareholder interests[183] - The board believes that the current structure, with the same individual serving as both Chairman and CEO, will not weaken the balance of power between the board and management[183] Future Outlook and Strategic Initiatives - The revenue growth forecast for the first year is -1%, improved from a previous estimate of -3% to -5%[70] - The estimated annual revenue growth rate until the cash-generating units' useful life ends is projected to be 0%[70] - The company aims to explore alternative revenue streams to improve financial performance[107] - The company is exploring new opportunities to expand into other business areas to diversify revenue sources[114] - The company has not issued new bonds in the first six months of fiscal year 2025[150] - The company plans to continue holding its investment properties to earn long-term rental income[162] - The mid-term report for the first six months of fiscal year 2025 will be published on the company's and the stock exchange's websites at an appropriate time[186]
OKURA HOLDINGS(01655) - 2025 - 中期业绩