Business Operations - As of September 2023, the company operates the largest network of Japanese-style pachinko halls with a total of 434 locations[15] - The core business of the company is managing the largest chain of Japanese-style pachinko halls in Japan, directly holding 100% of the issued share capital of 8 subsidiaries[15] - The company has introduced various new products and seasonal prize events to enhance customer service, including special prizes during holidays[15] - The gaming machines offered include Japanese-style pachinko and slot machines, with betting amounts typically ranging from 0.5 to 4 yen per ball for pachinko and 5 to 20 yen per coin for slot machines[15] - The company is committed to community contributions and aims to be closely related to local communities[8] - The company has a significant presence in the Asian market through its subsidiary, DYNAM Hong Kong, which focuses on investment and development of overseas businesses[10] - The company aims to manage approximately 30 aircraft in the medium term to support sustainable growth in the aircraft leasing sector[17] - The company plans to increase the number of game halls through various methods to enhance profitability in the Japanese pachinko business[23] - The company has successfully acquired multiple Japanese pachinko game hall operators to expand its network, including the integration of Yume Corporation[30] - The strategy includes opening new game halls in small commercial areas with populations between 30,000 and 50,000, focusing on suburban expansion[26] Financial Performance - Total revenue for the six months ended September 30, 2023, was ¥64,375 million (approximately HK$3,371 million), an increase from ¥56,195 million (approximately HK$3,048 million) in the same period of 2022, representing a growth of 14.0%[19] - Revenue from aircraft leasing business reached ¥2,188 million (approximately HK$115 million), up from ¥1,045 million (approximately HK$57 million) in the previous year, marking a significant increase of 109.0%[19] - EBITDA for the six months ended September 30, 2023, was ¥26,763 million (approximately HK$1,401 million), compared to ¥19,939 million (approximately HK$1,081 million) in the same period of 2022, reflecting a growth of 34.4%[19] - The company recorded a net profit of ¥1,874 million (approximately HK$98 million) for the six months ended September 30, 2023, compared to ¥1,183 million (approximately HK$64 million) in the same period of 2022, representing a growth of 58.5%[19] - The comprehensive profit for the same period was 4,400 million JPY (approximately 231 million HKD), which is 13.4% higher than the previous year[42] - The total betting amount across high and low betting game halls reached 278,822 million JPY, an increase of 13.4% from 245,981 million JPY in the previous year[39] - Revenue from the Japanese pachinko business totaled 62,187 million JPY, marking a 12.8% increase from 55,150 million JPY year-on-year[39] - Operating profit for the period was ¥4,400 million, representing an increase of 13.4% from ¥3,881 million in the previous year[97] - The net profit for the period was ¥1,874 million, a significant increase of 58.5% compared to ¥1,183 million in the same period last year[97] Operational Costs and Expenses - Operating expenses for the Japanese pachinko business rose by 13.3% to ¥59,208 million (approximately HK$3,099 million) for the six months ended September 30, 2023, from ¥52,246 million (approximately HK$2,833 million) in the previous year[47] - Aircraft leasing expenses increased by 97.6% to ¥1,322 million (approximately HK$69 million) for the six months ended September 30, 2023, from ¥669 million (approximately HK$37 million) in the prior year[49] - General and administrative expenses rose by 4.7% to ¥2,144 million (approximately HK$112 million) for the six months ended September 30, 2023, compared to ¥2,048 million (approximately HK$111 million) in the previous year[50] - Other income decreased by 19.9% to ¥3,963 million (approximately HK$207 million) for the six months ended September 30, 2023, down from ¥4,950 million (approximately HK$268 million) in the same period of 2022[51] - Financing expenses rose by 9.2% to ¥1,895 million (approximately HK$100 million) for the six months ended September 30, 2023, compared to ¥1,736 million (approximately HK$93 million) in the same period of 2022[54] Assets and Liabilities - Non-current assets as of September 30, 2023, totaled ¥300,170 million (approximately HK$15,716 million), an increase from ¥256,442 million (approximately HK$15,076 million) as of March 31, 2023[20] - The net current liabilities were ¥(4,447) million (approximately HK$(233) million) as of September 30, 2023, compared to a net current asset of ¥15,326 million (approximately HK$901 million) as of March 31, 2023[20] - Total current assets as of September 30, 2023, amounted to 53,947 million JPY (approximately 2,824 million HKD), while total current liabilities were 58,394 million JPY (approximately 3,057 million HKD), resulting in a negative net working capital of (4,447) million JPY (approximately (233) million HKD)[61] - The company's total assets as of September 30, 2023, amounted to ¥354,117 million, compared to ¥325,608 million as of March 31, 2023, reflecting a growth of 8.7%[101] - The company's total liabilities as of September 30, 2023, were ¥221,465 million, with ¥107,106 million attributed to the pachinko business and ¥74,429 million to the aircraft leasing business[120] Shareholder Information - The company’s equity interest held by directors and key executives amounted to 421,287,936 shares, representing approximately 59.628% of the company[78] - The company has a total of 706,528,896 shares issued as of the reporting period end[84] - The company declared an interim dividend of ¥2.5 per share, with an expected total payout of approximately ¥1,762 million (around HK$92 million) based on 704,887,696 shares issued[90] - The company repurchased a total of 7,688,600 shares during the reporting period, with a total cost of approximately HK$37,134,374[91] - Basic earnings per share for the period were ¥2.6, up from ¥1.6 in the previous year, indicating a growth of 62.5%[97] Governance and Compliance - The company has complied with all applicable corporate governance codes during the reporting period, except for the dual role of the chairman and CEO[85] - The interim financial statements were reviewed by PricewaterhouseCoopers Aarata LLC, ensuring compliance with international standards[88] - The company has adopted a "prevent insider trading rules" to regulate securities trading by directors and employees[87] Future Outlook - The company aims to enhance future performance by acquiring existing businesses in the new game hall sector rather than opening new locations[155] - The estimated revenue growth rate for the pachinko business is projected to be between 5.5% and 8.4% as it recovers to pre-COVID-19 levels[136] - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[98]
DYNAM JAPAN(06889) - 2024 - 中期财报