Financial Performance - The company reported a total revenue of 1,000 million JPY for the fiscal year ending June 30, 2025, reflecting a year-over-year increase of 10%[11] - Total revenue for the fiscal year 2025 decreased slightly by approximately 87 million JPY or about 1.3% to approximately 6,396 million JPY from 6,483 million JPY in fiscal year 2024[19] - Profit before tax decreased by approximately 618 million JPY or about 32.5% to approximately 1,286 million JPY in fiscal year 2025, primarily due to the absence of lease liability gains recorded in fiscal year 2025[19] - The annual profit attributable to the company's shareholders decreased from approximately ¥2,044 million in FY2024 to about ¥1,342 million in FY2025, a reduction of approximately ¥702 million or 34.3%[49] - Revenue from the Japanese pachinko and slot machine business decreased by approximately 1.8% to about 5,880 million JPY in fiscal year 2025, down from 5,989 million JPY in fiscal year 2024[30] - Other income decreased by approximately ¥176 million or about 38.5%, from approximately ¥457 million in FY2024 to about ¥281 million in FY2025, mainly due to a reduction in sales of second-hand machines[35] User Engagement and Market Expansion - User data indicated a growth in active users by 15%, reaching a total of 500,000 users by the end of the fiscal year[11] - The company is expanding its market presence in Southeast Asia, aiming for a 20% market share by 2026[11] - The company is exploring partnerships with technology firms to enhance digital capabilities and improve customer engagement[11] - The company anticipates stable customer traffic in its gaming halls for fiscal year 2025, supported by the introduction of new gaming machines[18] - The company observed a steady increase in customer traffic in its pachinko and slot machine halls due to the popularity of smart machines, which are more convenient for customers[24] Product Development and Innovation - New product launches are expected to contribute an additional 200 million JPY in revenue, with a focus on eco-friendly technology[11] - The company launched several new gaming machines, including the "6.5 model slot machine" in June 2022, the "smart slot machine" in November 2022, and the "smart pachinko machine" in April 2023, which are expected to maintain customer traffic[18] - The company plans to introduce new pachinko machines with "Lucky Trigger" and "Lucky Trigger 3.0+" features, and new slot machines with "Bonus Trigger" functionality in March 2024, July 2025, and June 2025, aiming to increase overall usage rates[18] - The Lucky Trigger 3.0+ machine has been well received by customers, outperforming the previous Lucky Trigger model[24] Financial Management and Investments - The company has established agreements to subscribe to two series of bonds totaling 1,000 million JPY, extending the maturity dates and increasing interest rates to secure stable income streams[21] - The company has completed necessary capital investments to update its machines to be compatible with new banknotes by the end of fiscal year 2024[27] - The company expects that investments in bonds will provide a stable source of cash flow and income due to extended maturity dates and potential interest rate changes[71] - The company has maintained a prudent financial management policy, ensuring a stable liquidity position throughout FY2025[53] Operational Efficiency and Cost Management - Operating expenses for gaming halls decreased by approximately 740 million JPY in fiscal year 2025 compared to fiscal year 2024[19] - Administrative and other operating expenses decreased by approximately ¥67 million or about 8.6%, from approximately ¥776 million in FY2024 to about ¥709 million in FY2025[39] - The introduction of the self-service point system in several game halls aims to reduce staff-customer interaction and improve operational efficiency[26] - The company is committed to exploring new measures and opportunities to enhance operational performance and diversify income sources[19] Corporate Governance and Compliance - The company has established corporate governance procedures to ensure independent assessment and review of business opportunities and performance[138] - The board of directors includes three independent non-executive directors, whose opinions are crucial for decision-making[138] - The company has maintained compliance with all listing rules and is not aware of any significant legal or regulatory non-compliance issues[102] - The company has obtained all necessary licenses, approvals, and permits from regulatory authorities for its pachinko game halls this year[101] Employee and Director Information - The company has 357 employees as of June 30, 2025, an increase from 352 employees in the previous year[73] - Total employee costs for FY2025 are approximately 1,003 million JPY, accounting for about 19.1% of the total operating expenses, compared to 17.0% in FY2024[73] - Masaaki AYRES resigned as an independent non-executive director effective June 9, 2025[127] - Hiroshi Matsuzaki appointed as an independent non-executive director effective June 9, 2025[127] Shareholder and Dividend Information - The board has approved a dividend payout of 50 million JPY, representing a 5% increase from the previous year[11] - The company does not recommend any final dividend payment for the current fiscal year[108] - There are no shareholders who have waived or agreed to waive any proposed dividend distribution for the current fiscal year as of June 30, 2025[109] - The company has no distributable reserves or profits available for distribution as of June 30, 2025[113] Risk Management and Internal Controls - The Risk Management Committee conducted 12 meetings this year, assessing the effectiveness of the group's risk management and internal control systems[190] - The company’s internal control and risk management details can be found in the report section on risk management, internal control, and anti-money laundering[190] - The independent non-executive directors have reviewed the compliance of the controlling shareholder with the non-competition agreement during the year[160]
OKURA HOLDINGS(01655) - 2025 - 年度财报