Financial Performance - For the first six months of the fiscal year 2023, the company recorded a profit before tax of approximately ¥163 million, compared to a loss of ¥362 million in the same period of the previous fiscal year[11]. - Total revenue for the first six months of FY2023 increased by approximately ¥371 million or 13.6% to about ¥3,106 million, compared to ¥2,735 million in the same period of FY2022[19]. - The profit attributable to shareholders for the first six months of FY2023 was approximately 90 million JPY, compared to a loss of approximately 333 million JPY in the same period of FY2022, reflecting the factors mentioned in the profit before tax section[41]. - Operating profit for the same period was ¥254 million, a significant recovery from an operating loss of ¥279 million in the previous year[103]. - The total comprehensive income for the period was ¥105 million, which includes a profit of ¥90 million and other comprehensive income of ¥15 million[111]. - The company reported a net profit of ¥90 million for the six months ended December 31, 2022, compared to a net loss of ¥333 million in the same period of 2021, marking a substantial improvement[140]. Revenue Streams - Revenue increased by approximately ¥371 million, while operating expenses decreased by about ¥273 million and administrative expenses reduced by approximately ¥90 million[11]. - The company continues to diversify its revenue streams, earning income from vending machines, rental properties, and services such as horse management[12]. - Revenue from the Japanese pachinko and slot machine business accounted for approximately 92.6% of total revenue in the first six months of FY2023, up from about 90.5% in the same period of FY2022[19]. - Revenue from vending machines increased by approximately ¥3 million or 6.8% to about ¥47 million in the first six months of FY2023, compared to ¥44 million in the same period of FY2022[19]. - The revenue from Japanese pachinko and pachislot gaming hall operations was ¥2,877 million, compared to ¥2,474 million in the previous year, reflecting an increase of approximately 16.3%[137]. Operational Efficiency - The company observed a recovery in customer traffic at its game halls following the launch of an updated version of its Japanese slot machines in June 2022, which included more gambling elements[11]. - The self-service prize redemption system was launched to enhance customer safety and reduce staff interaction, contributing to operational efficiency[18]. - Operating expenses for game halls decreased by approximately 273 million JPY, or about 9.2%, from 2,965 million JPY in the first six months of FY2022 to 2,692 million JPY in FY2023, attributed to the improved market conditions in the Japanese pachinko industry and the absence of impairment losses[29]. - Administrative and other operating expenses decreased by approximately 90 million JPY, or about 22.4%, from 401 million JPY in the first six months of FY2022 to 311 million JPY in FY2023, mainly due to reduced director remuneration and a decrease in the number of administrative staff[30]. Challenges and Market Conditions - The Japanese pachinko industry faces ongoing challenges due to inflation and reduced consumer purchasing power, impacting the recovery pace of the business[10]. - The company remains optimistic about the gradual reduction of COVID-19's impact on the Japanese pachinko industry and expects steady business performance moving forward[11]. Financial Position - As of December 31, 2022, the total borrowings of the company were approximately 5,134 million JPY, a decrease from 5,404 million JPY as of June 30, 2022, with 72.4% being bank loans and 27.6% from government financial institutions[42]. - The company's total assets were approximately ¥18,389 million as of December 31, 2022, compared to ¥18,602 million as of June 30, 2022[47]. - The company's equity attributable to shareholders was approximately ¥2,265 million as of December 31, 2022, an increase from ¥2,160 million as of June 30, 2022[47]. - The debt-to-equity ratio remained stable at approximately 84.2% as of December 31, 2022, compared to 84.9% as of June 30, 2022[54]. - The company maintained a prudent financial management policy, ensuring a healthy liquidity position during the first six months of the fiscal year 2023[45]. Capital Expenditures - Capital expenditures for the first six months of the fiscal year 2023 amounted to approximately ¥319 million, an increase of ¥91 million from ¥228 million in the same period of the previous fiscal year[58]. - Capital expenditures for property, plant, and equipment were approximately 304 million yen for the six months ended December 31, 2022, up from 228 million yen in the same period of 2021[155]. Compliance and Governance - The company has complied with the corporate governance code during the first six months of the fiscal year 2023, with a noted deviation regarding the roles of the chairman and CEO[88]. - The audit committee reviewed the unaudited condensed consolidated interim financial information for the first six months of the fiscal year 2023[92]. Future Outlook - The company is focused on expanding its operations into different business areas to establish alternative revenue streams[12]. - The company plans to continue holding investment properties to earn long-term rental income[64].
OKURA HOLDINGS(01655) - 2023 - 中期财报