Financial Performance - Total revenue for the fiscal year ending March 31, 2023, was ¥117,206 million, an increase from ¥105,141 million in the previous year, representing a growth of 10.4%[37] - Operating profit for the same period was ¥6,764 million, down from ¥10,654 million, indicating a decrease of 36.5%[37] - Net profit attributable to owners for the year was ¥1,798 million, a significant decline from ¥4,977 million, reflecting a drop of 63.8%[37] - EBITDA for the fiscal year was ¥43,729 million, compared to ¥32,383 million in the previous year, showing an increase of 35.2%[37] - The company reported a basic earnings per share of ¥2.5, down from ¥6.8 in the previous year, a decrease of 63.2%[37] - The consolidated net profit for the fiscal year was 1,798 million JPY (approximately 106 million HKD), reflecting a decrease of 36.1% compared to the previous year[43] - Total payout for the fiscal year was 393,521 million JPY (approximately 23,135 million HKD), a decrease of 2.4% from 403,361 million JPY (approximately 25,790 million HKD) in the previous year[42] Assets and Liabilities - Non-current assets totaled ¥256,442 million, an increase from ¥225,934 million in the previous year, representing a growth of 13.5%[38] - Current assets were reported at ¥69,166 million, slightly up from ¥67,487 million, indicating a growth of 2.5%[38] - Total liabilities decreased to ¥197,181 million from ¥196,409 million, reflecting a slight reduction of 0.4%[38] - Current liabilities rose to 53,840 million JPY (approximately 3,165 million HKD) from 47,324 million JPY (approximately 3,026 million HKD) in the previous year, resulting in a decrease in net current assets from 20,163 million JPY (approximately 1,289 million HKD) to 15,326 million JPY (approximately 901 million HKD)[62] - The debt-to-asset ratio increased from 14.7% as of March 31, 2022, to 22.2% as of March 31, 2023, primarily due to an increase in total borrowings[63] Business Strategy and Future Outlook - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[37] - Future guidance indicates a focus on improving profitability and exploring potential mergers and acquisitions to drive growth[37] - The company plans to introduce smart pachinko machines starting April 2023 to enhance profitability[43] - The economic outlook remains uncertain due to ongoing geopolitical tensions and rising material and energy costs[43] - The company aims to create higher value by making pachinko parlors an essential part of the community[76] - The company is committed to low-cost operations and closing unprofitable parlors to improve profitability[77] - The company aims to reshape pachinko gaming into an easily accessible form of daily entertainment, establishing it as a community infrastructure[94] Operational Performance - Total bets for high-stakes gaming halls decreased by 3.3% to 274,204 million JPY (approximately 16,120 million HKD) from 283,647 million JPY (approximately 18,136 million HKD) in the previous year[43] - Total bets for low-stakes gaming halls increased by 4.6% to 233,648 million JPY (approximately 13,736 million HKD) from 223,302 million JPY (approximately 14,278 million HKD) in the previous year[43] - Revenue from the Japanese pachinko business increased by 10.4% to 114,331 million JPY (approximately 6,721 million HKD) from 103,588 million JPY (approximately 6,624 million HKD) in the previous year[42] - Aircraft leasing business revenue surged by 85.1% to 2,875 million JPY (approximately 169 million HKD) from 1,553 million JPY[42] Expenses and Cash Flow - Japanese pachinko business expenses increased by 16,534 million yen (approximately 972 million HKD) or 17.6% to 110,484 million yen (approximately 6,494 million HKD) for the year ended March 31, 2023[47] - General and administrative expenses increased by 30 million yen (approximately 2 million HKD) or 0.7% to 4,309 million yen (approximately 253 million HKD) for the year ended March 31, 2023[51] - Financing expenses increased by 706 million yen (approximately 42 million HKD) or 27.5% to 3,277 million yen (approximately 193 million HKD) for the year ended March 31, 2023[55] - Operating cash flow for the year ended March 31, 2023, was 54,660 million JPY (approximately 3,212 million HKD), an increase from 32,719 million JPY (approximately 2,093 million HKD) in the previous year[58] Corporate Governance - The board of directors is committed to prudent corporate governance principles, which are believed to enhance shareholder value in the long term[106] - The company has adopted a standard code and rules to prevent insider trading, ensuring compliance among all directors and executives[108] - The board has held 13 meetings and one annual general meeting during the reporting period, demonstrating active governance[113] - The Audit Committee conducted 15 meetings, with all members present, ensuring thorough oversight of financial reporting and risk management[117] - The company has established a risk management committee and an internal control committee to oversee risk management and internal control systems, which are regularly reviewed for effectiveness[127] Shareholder Information - The company plans to distribute dividends amounting to no less than 35% of its annual consolidated net income[140] - The company declared a final dividend of JPY 2.5 per ordinary share, amounting to approximately JPY 1,783 million (around HKD 105 million) based on 713,486,296 shares issued as of June 5, 2023[160] - The company repurchased a total of 9,079,200 shares during the reporting period, with a total expenditure of HKD 56,672,262[165] - The total number of issued shares as of the report date was 713,486,296[165] Risk Management - The company has identified significant risks that could impact its financial condition and operational performance, including potential declines in customer numbers for pachinko operations due to demographic changes and negative perceptions[72] - The company actively monitors and manages risks associated with gaming addiction to ensure long-term business growth[87] - The company has implemented anti-money laundering measures, including training for staff to identify unusual customer activities, particularly involving large cash transactions[128] Compliance and Audit - The financial statements were prepared in accordance with International Financial Reporting Standards and audited by PricewaterhouseCoopers Aarata LLC[192] - The independent auditor confirmed their independence and adherence to professional ethical standards throughout the audit process[197] - The audit opinion confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2023, in accordance with International Financial Reporting Standards[196]
DYNAM JAPAN(06889) - 2023 - 年度财报