Financial Performance - For the fiscal year ending March 31, 2025, the company reported total revenue of ¥21,672,142 thousand, a decrease of 17.5% from ¥26,222,857 thousand in the previous year[7] - The company experienced a net loss of ¥264,174 thousand, compared to a profit of ¥4,828,128 thousand in the previous year, indicating a significant decline in profitability[7] - Total revenue decreased by 17.4% from ¥26,222.9 million for the year ended March 31, 2024, to ¥21,672.1 million for the year ended March 31, 2025[41] - The net loss attributable to equity holders of the parent was ¥264.2 million, a significant decline from a profit of ¥4,828.1 million in the previous year[40] - Operating profit decreased by 93.2% from ¥2,706.2 million in the previous year to ¥185.3 million in the current year[40] - The company anticipates a challenging golf industry landscape through March 31, 2026, due to oversupply, labor shortages, and rising raw material costs[39] Revenue Breakdown - Golf clubs contributed 69.5% of total revenue for the fiscal year ending March 31, 2025[18] - Revenue from golf clubs decreased by 17.5% to ¥15,066.9 million for the year ending March 31, 2025, primarily due to a 60.4% drop in sales in South Korea and a 24.8% drop in China[45] - Revenue from golf balls fell by 31.2% to ¥2,021.3 million, with a 37.2% decrease in Japan's sales, attributed to intense market competition and previous retail price increases due to yen depreciation[45] - Revenue from apparel slightly declined by 0.7% to ¥3,136.3 million, despite a 6.4% growth in sales in China[46] - Revenue from accessories and other related products decreased by 22.7% to ¥1,447.6 million, with Japan experiencing a 50.2% drop, while South Korea and China saw increases of 32.0% and 14.7%, respectively[46] Market Performance - The company achieved a 6.4% year-over-year revenue growth in apparel sales in China, indicating strong market performance[10] - Accessory revenue in Korea and China grew by 32.0% and 14.7%, respectively, showcasing successful market penetration strategies[10] - The company continues to focus on enhancing market penetration in Asia, particularly in Japan, Korea, and China, to meet evolving consumer needs[9] - The company is focusing on a smaller, high-quality customer base in North America and Europe to strengthen its market position[18] Strategic Initiatives - The overall strategy emphasizes a multi-category approach under a single brand, aiming to provide a comprehensive golf lifestyle experience[9] - The company is focused on optimizing high-profit self-operated channels while gradually reducing loss-making wholesale channels[11] - The company aims to enhance its digital ecosystem and customer relationship management systems to improve consumer engagement and sales[17] - The company is committed to applying innovative technologies and traditional Japanese craftsmanship in its high-end golf products[17] - The company is focused on continuous product innovation to meet the latest market trends[118] Store and Distribution Network - Self-operated store revenue increased by 2.8% year-on-year, with gross margin up by 7.9 percentage points[11] - The company opened 26 new sales points in North America, increasing the total to 370[18] - In Europe, the company opened 7 new sales points, resulting in a network of 136 locations[18] - The company operates 94 self-owned stores, all located in Asia, with plans for continuous updates to store design and consumer experience[27] Management and Governance - The company has a strong management team with extensive experience in business management and operations, including executives with nearly 29 years of experience[94] - The company emphasizes the importance of strategic partnerships and collaborations to drive growth and innovation in its operations[99] - The board includes independent directors who bring valuable insights and oversight to the company's governance practices[101] - The company has established a compensation committee to review and recommend the remuneration policy for directors and senior management[170] Financial Position - The company had cash and cash equivalents of ¥17,350.0 million as of March 31, 2025, primarily held in RMB, JPY, and USD[75] - Interest-bearing bank loans amounted to ¥6,518.8 million as of March 31, 2025, with actual interest rates ranging from 0.17% to 3.08%[76] - As of March 31, 2025, the debt-to-equity ratio of the group is 31.9%, a decrease from 34.1% as of March 31, 2024[77] - The group has no significant contingent liabilities as of March 31, 2025[80] Corporate Social Responsibility - The group donated cash products valued at 107,574,799 million yen for the fiscal year ending March 31, 2025[139] - The company is committed to maintaining positive operating cash flow despite the challenging market conditions[112] Future Outlook - The company is optimistic about future business development and plans to continue focusing on consumer needs and social responsibility[12] - The company aims to strengthen its position in the ultra-high-end market and expand into the fast-growing super-performance segment[118] - Plans to achieve sustainable growth in North America and Europe through updated product and distribution strategies[118]
本间高尔夫(06858) - 2025 - 年度财报