Financial Performance - Total bets for the fiscal year ending March 31, 2025, were ¥552,641 million, a decrease of 1.7% from ¥562,029 million in the previous year[10] - Total payouts for the same period were ¥433,672 million, down 0.9% from ¥437,549 million[14] - Revenue from the Japanese-style pachinko business was ¥118,969 million, a decline of 4.4% compared to ¥124,480 million in the prior year[14] - Revenue from the aircraft leasing business increased by 20.8% to ¥7,107 million, up from ¥5,883 million[14] - Operating profit for the fiscal year was ¥10,972 million, an increase from ¥8,983 million in the previous year[10] - Net profit for the year was ¥4,019 million, compared to ¥3,385 million in the prior year, reflecting a growth of 18.7%[10] - Basic earnings per share for the fiscal year were ¥5.8, up from ¥4.8 in the previous year[10] - The company reported an EBITDA of ¥65,996 million, an increase from ¥64,779 million in the previous year[10] - The consolidated revenue for the fiscal year ending March 31, 2025, was 126,076 million JPY (approximately 6,560 million HKD), representing a decrease of 3.3% compared to the previous year[17] - The consolidated operating profit increased to 10,972 million JPY (approximately 570 million HKD), which is an increase of 22.1% year-over-year[17] - The consolidated net profit for the year was 4,019 million JPY (approximately 208 million HKD), reflecting an increase of 18.7% from the previous year[17] Cash Flow and Financial Position - Net cash from operating activities was 52,725 million JPY (approximately 2,743 million HKD) for the year ending March 31, 2025[41] - Net cash used in investing activities was 40,709 million JPY (approximately 2,118 million HKD) for the year ending March 31, 2025[42] - Net cash used in financing activities was 26,119 million JPY (approximately 1,359 million HKD) for the year ending March 31, 2025[43] - Current liabilities net value was 3,919 million JPY (approximately 204 million HKD) with a current assets to current liabilities ratio of 0.9 as of March 31, 2025[47] - Cash and cash equivalents decreased by 14,085 million JPY (approximately 733 million HKD) for the year ending March 31, 2025[38] - The debt-to-asset ratio decreased from 27.4% as of March 31, 2024, to 24.9% as of March 31, 2025, primarily due to a reduction in total borrowings[48] - The company’s distributable reserves as of March 31, 2025, were 21,760 million JPY, an increase from 20,345 million JPY in 2024[197] Operational Highlights - The company operates 427 Japanese-style pachinko parlors as of March 31, 2025, making it the largest chain in Japan[101] - The company has two business names for its 392 parlors: DYNAM (high-stakes) and DYNAM Yuyukan (low-stakes)[102] - The company plans to reduce the number of Japanese-style pachinko machines in 115 game halls and increase the number of Japanese-style slot machines, aiming to enhance competitiveness and customer support[84] - The company introduced 2,000 private brand gaming machines in November 2024, featuring full-screen LCD panels, which are expected to lower costs and environmental impact[85] - The company currently owns 10 aircraft and manages 8 aircraft, with plans to expand its aircraft leasing and management services to Japanese investors[85] - The average age of the company's owned aircraft is 2.9 years, with an average remaining lease term of 5.2 years, maintaining a high-quality asset portfolio[123][125] Expenses and Cost Management - The operating expenses for the Japanese pachinko business decreased by 4,396 million JPY (approximately 229 million HKD) or 3.7% to 114,277 million JPY (approximately 5,947 million HKD)[25] - Aircraft leasing expenses increased by 941 million JPY (approximately 49 million HKD) or 29.0% to 4,191 million JPY (approximately 218 million HKD) for the year ending March 31, 2025[29] - General and administrative expenses decreased by 234 million JPY (approximately 12 million HKD) or 5.6% to 3,942 million JPY (approximately 205 million HKD) for the year ending March 31, 2025[30] - Approximately 60% of the operating expenses for game halls are related to game machines and labor costs, which the company aims to reduce through the use of second-hand machines and ICT systems[118] Risk Management and Governance - The company has implemented a credit risk management policy to ensure sales are made to customers with appropriate credit records, significantly reducing credit risk[78] - The company maintains a policy of regularly monitoring its liquidity needs and ensuring sufficient cash reserves and financing commitments from major financial institutions[79] - The company faces various financial risks, including market, credit, liquidity, and foreign currency risks, and has established risk management plans to mitigate potential adverse impacts[74][75][79] - The company has implemented a risk management and internal control system, which has been reviewed and deemed effective during the reporting period[155] - The company is committed to compliance with legal and regulatory requirements, regularly reviewing its governance policies[134] Corporate Governance - The board of directors is responsible for managing and operating the company, overseeing the implementation of business strategies and policies[134] - The company has established three committees: the audit committee, remuneration committee, and nomination committee, each with specific oversight responsibilities[137] - The audit committee is chaired by an independent non-executive director and includes two other independent non-executive directors[138] - The company has established a nomination committee consisting of two independent non-executive directors and one executive director, with responsibilities including reviewing board structure and nominating policies[147] - The company aims to increase the proportion of women on the board and among all employees to at least 20% by 2030, currently having a gender ratio of approximately 14:1 among employees[149] Shareholder Communication and Dividends - The company emphasizes effective communication with shareholders to enhance understanding of its business and performance[166] - The company has established multiple communication channels for shareholders, including annual reports and financial performance briefings held in May and November[168] - The company allows shareholders holding at least 3% of total voting rights for six months to request a general meeting[163] - The company has a policy that allows shareholders holding at least 1% of total voting rights to propose agenda items for general meetings[165] - The company plans to distribute dividends amounting to no less than 35% of its annual consolidated net income[172] - The company proposed a final dividend of 2.5 JPY per ordinary share, amounting to approximately 1,741 million JPY (about 94 million HKD) based on 696,443,096 shares outstanding as of June 4, 2025[191] Strategic Initiatives and Future Outlook - The company aims to reshape pachinko into an easily accessible daily entertainment option, focusing on customer spending at acceptable levels[105] - The company is exploring new business opportunities through innovative ideas that meet customer and community needs[100] - The company is committed to enhancing social and economic value through environmental, social, and governance (ESG) activities[92] - The company plans to publish its 2024/2025 ESG report alongside its annual report[98] - The Japanese economy is expected to continue its moderate recovery, with positive signs such as record wage increases, although uncertainties remain due to global political instability and inflation[84]
DYNAM JAPAN(06889) - 2025 - 年度财报