Financial Performance - Total revenue for the fiscal year 2023 was ¥24,784 million, an increase of 11.6% from ¥22,209 million in 2022[6] - The net profit attributable to shareholders for 2023 was ¥1,134 million, compared to a loss of ¥1,181 million in 2022, marking a significant turnaround[6] - The overall revenue margin for 2023 was 18.3%, slightly down from 19.5% in 2022[6] - Total revenue recorded a year-on-year increase of 11%[13] - Revenue from Japanese pachinko and pachislot operations increased by 819 million JPY or 3.9% from 21,076 million JPY in 2022 to 21,895 million JPY in 2023 due to the easing of pandemic measures and increased customer traffic[24] - Revenue from amusement park operations surged from 359 million JPY in 2022 to 1,710 million JPY in 2023, driven by the lifting of COVID-19 restrictions in Vietnam and Cambodia[28] - The total comprehensive income for the year was ¥954 million, recovering from a loss of ¥1,185 million in the previous year[198] - Operating profit rose significantly to ¥2,258 million, compared to ¥861 million in the prior year, reflecting a substantial improvement in operational efficiency[198] - The net profit for the year was ¥1,053 million, a turnaround from a loss of ¥1,187 million in the previous year, indicating a strong recovery[198] Assets and Liabilities - Current assets as of March 31, 2023, were ¥12,396 million, a decrease from ¥13,012 million in 2022[8] - The total assets for the company were ¥65,804 million, down from ¥68,300 million in the previous year[8] - Cash and cash equivalents as of March 31, 2023, totaled 10,435 million JPY, a decrease from 11,451 million JPY in the previous year[41] - Total borrowings, including bank loans and syndicated loans, amounted to 10,206 million JPY as of March 31, 2023, down from 11,641 million JPY in the previous year[42] - The company's total equity as of March 31, 2023, was 19,294 million JPY, compared to 19,021 million JPY in the previous year[38] - The debt-to-equity ratio as of March 31, 2023, was 1.5, slightly improved from 1.6 in the previous year[44] - The company reported a current ratio of 1.07, indicating a stable liquidity position[8] Operational Highlights - The company operated 49 game halls with over 28,100 machines, serving customers across ten prefectures in Japan[2] - The amusement park business in Vietnam and Cambodia achieved a significant year-on-year growth of 376%, reaching 1,710 million yen[17] - The company plans to expand its market presence and enhance customer experience through new product offerings and technology advancements[2] - The company aims to expand its market share in the core pachinko business and invest in new game halls and acquisitions[20] - A new store was opened in Cambodia, with a total of 9 stores in Vietnam and 3 in Cambodia[17] - The company is focusing on enhancing existing store profitability and developing operational structures for future growth[17] Expenses and Cost Management - The operating expenses for game hall operations were ¥18,870 million, reflecting a slight increase from ¥18,279 million in 2022[6] - Operating cash flow (before changes in working capital) for the fiscal year ending March 31, 2023, was 6,948 million JPY, an increase from 5,681 million JPY in the previous year[40] - Administrative and other operating expenses rose by 466 million JPY or 14.4% to 3,712 million JPY, driven by increased employee-related costs and advertising expenses[32] - Operating expenses for game halls increased by 591 million JPY or 3.2% to 18,870 million JPY, primarily due to rising global energy prices and small-scale renovations[31] Corporate Governance - The board consists of eight directors, including three executive directors and four independent non-executive directors, ensuring a diverse governance structure[55] - The company has adopted and complied with all applicable principles and code provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange[53] - The company plans to appoint at least one female director by the end of December 2024 as part of its board diversity policy[63] - The board retains decision-making authority on all major matters, including policies, overall strategy, and significant transactions[56] - The company emphasizes the importance of corporate governance as a shared responsibility among directors, focusing on compliance and ethical conduct[60] Risk Management - The company has established a risk management and internal control system to identify, assess, and mitigate significant risks[88] - The risk management office continuously monitors and reviews the effectiveness of the risk management and internal control systems, reporting to the audit committee[94] - The company has implemented a formal whistleblowing policy to allow employees to express concerns regarding risks and internal operations[96] - The internal audit department independently assesses the adequacy and effectiveness of the risk management and internal control systems, reviewing risk-related documents prepared by management and interviewing employees at all levels[98] Shareholder Information - The company declared a final dividend of 0.11 JPY per ordinary share for the fiscal year ending March 31, 2023, down from 0.40 JPY in the previous year[36] - The major shareholder Densho Limited holds 225,560,460 shares, representing 18.86% of the total shares[152] - The company has a public float of at least 25% of its total issued share capital, complying with listing rules[165] - Shareholders holding at least 3% of voting rights for six consecutive months can request the board to convene a general meeting[82] Audit and Compliance - The independent auditor confirmed that the consolidated financial statements reflect the group's financial position and performance in accordance with International Financial Reporting Standards[171] - The audit report indicates that there were no significant misstatements identified in the other information provided by the company[188] - The audit concluded that there were no significant uncertainties regarding the company’s ability to continue as a going concern[194] - The audit firm confirmed compliance with relevant ethical requirements regarding independence throughout the audit process[193]
NIRAKU(01245) - 2023 - 年度财报