Financial Performance - Total revenue for the fiscal year 2022 was ¥22,209 million (approximately HK1,302 million) in 2021, representing a growth of 19.0%[10] - The business revenue from Japanese-style pachinko and slot machines was ¥21,076 million (HK1,186 million) in 2021, indicating a growth of 24.0%[10] - The net loss attributable to shareholders for 2022 was ¥1,181 million (HK385 million) in 2021, showing a significant reduction in losses[10] - The company reported a gross profit margin of 19.5% for 2022, an increase from 17.9% in 2021[10] - The revenue from the Japanese pachinko business increased by 25% compared to the previous year, reaching approximately 80% of pre-pandemic levels[20] - Revenue from Japanese pachinko and pachislot operations increased by ¥4,193 million or 24.8% to ¥21,076 million in 2022 from ¥16,883 million in 2021[34] - The group's revenue was ¥22,209 million, an increase of ¥3,668 million from ¥18,541 million in 2021, representing a growth rate of 19.8%[151] - The group's loss rate improved from 30.2% in 2021 to 5.3% in the current fiscal year, with net loss attributable to owners reduced to ¥171 million from a floating loss of ¥5,481 million in the previous year[151] Assets and Liabilities - Current assets as of March 31, 2022, were ¥13,012 million (HK767 million), resulting in a net current asset position of ¥1,015 million (HK4,367 million) in 2022, a decrease from ¥81,158 million in 2021[13] - As of March 31, 2022, the company's cash and cash equivalents amounted to ¥11,451 million, down from ¥15,903 million in the previous year, representing a decrease of approximately 28.9%[60] - Total borrowings and lease liabilities as of March 31, 2022, were ¥42,330 million, a decrease of 15.5% from ¥50,107 million in the previous year[60] - The total equity as of March 31, 2022, was ¥19,021 million, down from ¥20,206 million in the previous year, reflecting a decrease of approximately 5.9%[60] - The debt-to-equity ratio as of March 31, 2022, was 1.6, slightly improved from 1.7 in the previous year, indicating a reduction in financial leverage[63] Operational Strategy - The company plans to expand its market presence and enhance customer experience through new product offerings and technology advancements[3] - The company aims to improve operational efficiency and reduce costs in the upcoming fiscal year to enhance profitability[3] - The company acquired two medium-sized stores as part of its strategy to expand market share and leverage existing knowledge[23] - The company plans to open two new stores in Vietnam in the next fiscal year, focusing on major shopping malls[24] - The company’s mid-term strategy focuses on ensuring revenue stability in its core pachinko business and expanding market share through new store openings and acquisitions[25] - The company aims to enhance cost efficiency through digitalization while investing in new store openings to build a stable profit structure[23] - The group aims to expand market share through the opening of new gaming halls or acquisition of existing ones as part of its main business strategy[152] Risk Management and Governance - The company has established risk management policies and procedures to identify, analyze, assess, respond to, monitor, and communicate all significant risks[118] - The board is responsible for ensuring the establishment and maintenance of a robust risk management and internal control system, which aims to manage and mitigate risks to an acceptable level[118] - The audit committee reviews the effectiveness of the risk management and internal control systems at least annually and discusses findings with management[121] - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with the standards throughout the fiscal year[111] - The company has established a clear management structure with defined responsibilities and authorities to achieve strategic objectives[125] - The company has implemented measures to monitor and manage risks that could impact group performance, including regular assessments of identified risks and action plans[125] Corporate Governance - The company has adopted and complied with all applicable principles and provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange, except for the separation of roles between the Chairman and the CEO[76] - The board consists of eight members, including three executive directors and four independent non-executive directors, ensuring a diverse governance structure[78] - The company emphasizes the importance of corporate governance as a shared responsibility of the board, including compliance with laws and regulations, and monitoring the training and development of directors and senior management[82] - The company has established a board diversity policy, considering various factors such as gender, age, cultural background, and professional experience to enhance board performance[90] - The company has confirmed the independence of all independent non-executive directors as per the listing rules[180] - The company maintains directors' liability insurance to provide appropriate protection for its directors[186] Market Conditions and Future Outlook - The company recognizes the long-term challenges of declining production and labor populations in regions like Fukushima, which impacts its core business[30] - The company anticipates that the economic growth rates in Vietnam and Cambodia will recover post-COVID-19, leading to increased market demand[24] - The company expects a steady recovery of the global economy as countries ease restrictions, preparing to seize opportunities in the post-pandemic era[154] - The overall gaming hall foot traffic has not yet returned to pre-pandemic levels, despite steady improvements in the pachinko business[152] Employee and Community Engagement - The company is committed to sustainable growth by prioritizing the interests of employees, customers, and local communities[28] - As of March 31, 2022, the company employed 1,263 staff for the Japanese pachinko and slot machine business and 367 staff for the amusement park business[160] - The company has maintained long-term relationships with major suppliers, including suppliers of Japanese pachinko and slot machines, with an average business relationship exceeding ten years[158]
NIRAKU(01245) - 2022 - 年度财报