Business Operations - As of September 30, 2025, the company operates the largest network of Japanese-style pachinko halls with a total of 423 locations[15]. - The company aims to manage approximately 30 aircraft in its aviation leasing business to contribute to sustainable growth[21]. - The aviation leasing segment is expected to provide stable revenue due to the increasing demand for passenger aircraft in the long term[21]. - The company has acquired Yume Corporation, which operates 29 game halls under the Yumeya brand, enhancing its market presence[9]. - The gaming business includes both Japanese-style pachinko and slot machines, with betting amounts ranging from 0.5 to 4 yen per pachinko and 5 to 20 yen per slot machine[17]. - The company has renovated 78 game halls to increase the number of Japanese-style slot machines, aiming to enhance player engagement[27]. - The company plans to acquire other Japanese-style pachinko operators to expand its network and market presence[36]. - The company is focusing on low-cost operations and multi-hall development to enhance profitability and maintain competitive pricing for customers[30]. - The strategy includes standardizing game hall specifications to reduce initial investment costs and construction time[34]. - The introduction of smart Japanese pachinko machines is expected to enhance user experience by eliminating the need to touch the balls, which could reduce fraud and prevent the spread of diseases[198]. - The smart Japanese slot machines will also store payout information electronically, aiming to alleviate the burden on staff and customers by not requiring physical tokens[198]. Financial Performance - Total revenue for the six months ended September 30, 2025, was ¥61,718 million (HK$3,226 million), a decrease from ¥63,753 million (HK$3,469 million) in the same period of 2024, representing a decline of approximately 3.2%[23]. - Net profit for the period was ¥3,071 million (HK$161 million), an increase of 40.3% compared to ¥2,190 million (HK$119 million) in the previous year[23]. - EBITDA for the six months ended September 30, 2025, was ¥32,073 million (HK$1,677 million), down from ¥34,160 million (HK$1,859 million) in the same period of 2024, reflecting a decrease of about 6.1%[23]. - Operating profit for the same period was 6,913 million JPY (approximately 361 million HKD), which is 114.4% of the previous year's operating profit[50]. - Total revenue for the six months ended September 30, 2025, was 61,718 million JPY (approximately 3,226 million HKD), representing 96.8% of the previous year's figure[50]. - Total bets for the six months ended September 30, 2025, were 277,452 million JPY (approximately 14,504 million HKD), a 0.2% increase from 276,861 million JPY (approximately 15,062 million HKD) in the previous year[47][53]. - Total payouts for the same period were 219,179 million JPY (approximately 11,458 million HKD), reflecting a 1.2% increase from 216,684 million JPY (approximately 11,788 million HKD) in the previous year[47]. - Revenue from the Japanese pachinko business for high-stakes venues was 27,095 million JPY (approximately 1,416 million HKD), a decrease of 2.6% from the previous year[47]. - Revenue from the Japanese pachinko business for low-stakes venues was 31,178 million JPY (approximately 1,630 million HKD), a decrease of 3.7% from the previous year[47]. - The company reported a total comprehensive income of ¥1,757 million for the period, compared to a loss of ¥1,459 million in the previous year[122]. - The company reported a net profit of ¥3,072 million, compared to ¥2,190 million for the same period in 2024, representing an increase of 40.4%[127]. - The company incurred capital expenditures of ¥19,013 million for property, plant, and equipment, a decrease from ¥22,341 million in the previous year, indicating a reduction of 14.3%[131]. Assets and Liabilities - Non-current assets as of September 30, 2025, were ¥305,843 million (HK$15,987 million), an increase from ¥301,344 million (HK$15,679 million) as of March 31, 2025[24]. - Total equity as of September 30, 2025, was ¥131,352 million (HK$6,866 million), slightly up from ¥131,336 million (HK$6,833 million) as of March 31, 2025[24]. - Total assets as of September 30, 2025, amounted to ¥359,283 million, an increase from ¥349,386 million as of March 31, 2025[124]. - The total liabilities as of September 30, 2025, were ¥227,931 million, with ¥110,619 million from the Japanese pachinko segment and ¥73,834 million from aircraft leasing[150]. - The current liabilities as of September 30, 2025, were ¥56,209 million (approximately HK$2,938 million), up from ¥51,961 million (approximately HK$2,703 million) as of March 31, 2025, representing an increase of 8.6%[79]. - The net current liabilities decreased to ¥2,769 million (approximately HK$144 million) as of September 30, 2025, from ¥3,919 million (approximately HK$204 million) as of March 31, 2025, indicating an improvement of 29.3%[80]. - The company’s total liabilities decreased to ¥3,012 million as of September 30, 2025, down from ¥3,200 million in the previous period, indicating a reduction of 5.9%[127]. Cash Flow and Financing - For the six months ended September 30, 2025, net cash generated from operating activities was ¥28,659 million (approximately HK$1,498 million), an increase from ¥24,335 million (approximately HK$1,325 million) in the same period of 2024, representing a growth of 17.5%[75]. - The net cash used in investing activities for the six months ended September 30, 2025, was ¥19,026 million (approximately HK$994 million), a decrease from ¥22,355 million (approximately HK$1,217 million) in the previous year, indicating a reduction of 14.5%[76]. - The net cash used in financing activities for the six months ended September 30, 2025, was ¥3,992 million (approximately HK$209 million), significantly lower than ¥12,940 million (approximately HK$704 million) in the same period of 2024, reflecting a decrease of 69.0%[78]. - The primary sources of funding for the company include cash generated from operations, various short-term and long-term bank borrowings, and credit facilities[89]. - As of September 30, 2025, the company's outstanding short-term and long-term borrowings amounted to ¥20,492 million (approximately HK$1,071 million) and ¥70,870 million (approximately HK$3,705 million) respectively[90]. - The total available bank financing and installment financing as of September 30, 2025, was approximately ¥36,000 million (approximately HK$1,882 million), with about ¥32,441 million (approximately HK$1,696 million) remaining undrawn[91]. - The company has signed new commitment loan agreements to address funding concerns related to potential earthquake disasters, allowing for rapid access to funds even in such events, with a revolving loan facility of up to ¥15,000 million (approximately HK$784 million)[92]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance code provisions, except for the deviation regarding the roles of Chairman and CEO being held by the same individual[106]. - The interim financial statements were reviewed by PricewaterhouseCoopers Japan LLC, confirming compliance with International Accounting Standards[111]. - The company has adopted a standard code for securities trading by directors and has confirmed compliance during the reporting period[108]. - The board believes that having the same person serve as both Chairman and CEO provides strong leadership for the company's development[107]. - As of the reporting period, there were no changes in director information that required disclosure under listing rules[112]. Shareholder Information - As of the reporting period, the company had issued a total of 696,443,096 shares[102]. - The company’s major shareholders include Mr. Sato Yoji, who holds a total of 393,572,360 shares, representing 56.51% of the company[100]. - Major shareholders include SAC with a 40.68% stake, Rich-O with 13.76%, and Eurasia Foundation with 11.49%[104]. - The company declared an interim dividend of 2.5 JPY per ordinary share, amounting to approximately 1,741 million JPY (about 87 million HKD) based on 696,443,096 shares issued[113]. Risk Management - The company has implemented policies to ensure sales are made to customers with appropriate credit records, significantly reducing credit risk[98]. - The company’s financial risk management plan focuses on minimizing potential adverse impacts on financial performance due to market unpredictability[93]. - The company faces foreign currency risk due to transactions, assets, and liabilities denominated in HKD, USD, and EUR, and has established foreign currency hedging policies[94]. - The company’s interest rate risk primarily arises from bank deposits and borrowings, which are subject to floating interest rates based on market conditions[96]. - The company has a policy to regularly monitor its current and expected liquidity needs to ensure sufficient cash reserves and access to committed financing[99]. Accounting and Reporting - The company has not adopted new or revised International Financial Reporting Standards that were issued but not yet effective as of the reporting date, which may impact future financial statements[137]. - The company continues to evaluate the impact of new accounting standards on its financial reporting, particularly those related to financial instruments and performance reporting[139]. - The company’s financial director is responsible for the fair value measurement of assets and liabilities, reporting directly to the board[190].
DYNAM JAPAN(06889) - 2026 - 中期财报