Financial Performance - The company reported a total revenue of 1,000 million JPY for the fiscal year ending June 30, 2023, reflecting a year-on-year increase of 15%[10]. - For the fiscal year 2023, the company recorded a profit before tax of approximately ¥3,146 million, compared to a loss of ¥1,205 million in the fiscal year 2022[20]. - Revenue increased by approximately ¥722 million, contributing to the overall improvement in financial performance[20]. - The annual profit attributable to shareholders for fiscal year 2023 was approximately 3,220 million JPY, a significant turnaround from a loss of about 1,321 million JPY in fiscal year 2022[54]. - Total revenue increased by approximately ¥722 million or 13.0% to about ¥6,284 million in FY2023, compared to ¥5,562 million in FY2022[32]. - The company anticipates revenue growth between 0% to 11% for the twelve months ending June 30, 2024, with a post-June 30, 2024 growth forecast of 0%[49]. User Engagement and Market Expansion - User data indicates a growth in active users by 20% compared to the previous fiscal year, reaching a total of 500,000 active users[10]. - The company is expanding its market presence in Southeast Asia, aiming to increase market share by 5% within the next year[10]. - New product launches are expected to contribute an additional 200 million JPY in revenue, with a focus on enhancing user engagement[10]. - The company is enhancing its digital marketing strategies, with a budget increase of 40% to drive user acquisition and retention[10]. Operational Efficiency and Strategic Initiatives - A strategic acquisition of a local competitor is anticipated to be finalized by Q1 2024, which is expected to enhance operational efficiency[10]. - The company aims to explore new measures and opportunities to enhance operational performance and diversify revenue sources[23]. - The company has implemented new sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[10]. - The company introduced a self-service prize redemption system to enhance customer safety and reduce staff interaction, which is expected to improve operational efficiency[29]. Financial Management and Capital Structure - As of June 30, 2023, the company's total borrowings amounted to approximately 4,883 million JPY, a decrease from 5,404 million JPY as of June 30, 2022, with 72.1% being bank loans and 27.9% from government financial institutions[55]. - The equity attributable to shareholders was approximately 5,718 million JPY as of June 30, 2023, a significant increase from 2,160 million JPY as of June 30, 2022[60]. - The debt-to-equity ratio was approximately 56.6% as of June 30, 2023, down from 84.9% as of June 30, 2022, primarily due to a reduction in borrowings and an increase in equity from share placements[65]. - The company has adopted a prudent financial management policy to maintain a healthy liquidity position throughout fiscal year 2023[58]. Employee and Corporate Governance - As of June 30, 2023, the group had 381 employees, an increase from 367 employees in the previous year, with 334 employees located in Japanese arcade game halls[83]. - The company has a diverse board of directors with expertise in finance, marketing, and corporate governance[102][105]. - The board consists of six members, including three executive directors and three independent non-executive directors[197]. - The board is committed to high standards of corporate governance to protect shareholder interests[196]. Challenges and Market Outlook - The gaming industry faces ongoing challenges due to regulatory changes and rising operational costs, impacting the recovery pace[23]. - The overall business outlook remains uncertain due to long-term declines in the pachinko industry and weakened consumer purchasing power[23]. - The company has faced challenges in business recovery due to a long-term decline in the Japanese pachinko machine business and rising living costs affecting consumer disposable income[142]. Investment and Capital Expenditures - Capital expenditures for the fiscal year 2023 amounted to approximately 676 million JPY, a decrease from 1,006 million JPY in fiscal year 2022[69]. - The company has not conducted any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year[92]. - The company has no plans for significant investments or capital asset additions authorized by the board as of the report date[94]. Compliance and Risk Management - The company has not reported any significant violations of environmental laws or regulations this year[121]. - The company has a strict internal policy to manage risks associated with its suppliers, including comprehensive background checks[119]. - The company has adhered to the corporate governance code, except for the provision that the roles of chairman and CEO should be held by different individuals[192].
OKURA HOLDINGS(01655) - 2023 - 年度财报