Financial Performance - Total bets for the first six months of FY2024 increased by approximately 12.5% to about ¥16,372 million, compared to ¥14,548 million in FY2023[4] - Revenue for the first six months of FY2024 rose by approximately 2.7% to about ¥3,191 million, up from ¥3,106 million in FY2023[4] - Operating profit for the first six months of FY2024 surged by approximately 348.4% to about ¥1,139 million, compared to ¥254 million in FY2023[4] - Profit before tax for the first six months of FY2024 increased by approximately 569.9% to about ¥1,092 million, up from ¥163 million in FY2023[4] - Profit attributable to shareholders for the first six months of FY2024 rose by approximately 1,140.0% to about ¥1,116 million, compared to ¥90 million in FY2023[4] - Basic and diluted earnings per share for the first six months of FY2024 were approximately ¥1.860, compared to ¥0.180 in FY2023[4] Dividends and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the first six months of FY2024, consistent with FY2023[4] - The company did not declare any interim dividends for the six months ended December 31, 2023[55] - The company did not declare an interim dividend for the first six months of FY2024, consistent with the previous year[178] Assets and Liabilities - Total assets as of December 31, 2023, were ¥18,129 million, a slight decrease from ¥18,266 million as of June 30, 2023[10] - Total liabilities decreased to ¥11,300 million as of December 31, 2023, from ¥12,548 million as of June 30, 2023[11] - Total equity attributable to shareholders increased to ¥6,829 million as of December 31, 2023, compared to ¥5,718 million as of June 30, 2023[10] Financial Compliance and Standards - The financial data for the six months ending December 31, 2023, is prepared in accordance with Hong Kong Accounting Standards and International Financial Reporting Standards, ensuring compliance with both frameworks[18] - The company submitted its financial statements for the year ending June 30, 2023, to the Companies Registry, with the auditor's report being unqualified and without any emphasis of matter[20] - The accounting policies adopted for the interim financial data are consistent with those used in the annual financial statements for the year ending June 30, 2023[21] - The group has not adopted new or revised standards that will be effective from January 1, 2024, and is currently assessing their potential impact[25] Financial Risks - The group faces various financial risks, including market risk, credit risk, and liquidity risk, which are detailed in the annual financial report[31] - There has been no significant change in the cash outflows of financial liabilities compared to the year-end[33] Revenue Streams and Operations - The company continues to focus on expanding its operations in Japan, with most of its non-current assets located in the country[45] - The company continues to diversify its revenue streams, generating income from various sources including game halls, vending machines, rental properties, and car rental services in the first six months of fiscal year 2024[98] - Revenue from the Japanese pachinko and pachislot business accounted for approximately 92.4% of total revenue in the first six months of fiscal year 2024, slightly down from 92.6% in the same period of fiscal year 2023[106] - The company operates 10 game halls under the brands "Big Apple," "K's Plaza," and "SENKURA" across regions in Japan, including Kyushu, Kanto, Kansai, and Chugoku[94] Capital Expenditures - Capital expenditures for the six months ended December 31, 2023, amounted to ¥1,259 million, compared to ¥319 million in the previous year, representing a substantial increase of 294.7%[38] - The company recorded capital expenditures of approximately ¥1,259 million in the first six months of fiscal year 2024, compared to approximately ¥319 million in the same period of fiscal year 2023, largely attributed to equipment and installations for its gaming halls[145] Employee and Operational Changes - The company has 381 employees as of December 31, 2023, a decrease from 390 employees as of December 31, 2022[158] - The company plans to close one of its game halls, K's Plaza Ohato, effective January 14, 2024, to focus resources on more promising locations, enhancing customer experience and reducing operational losses[97] Governance and Management - The board of directors consists of six members, including three executive directors and three independent non-executive directors[186] - The executive directors are Mr. Katsuyoshi Yamamoto, Mr. Hiroshi Kagawa, and Mr. Toshio Oe[186] - The independent non-executive directors include Mr. Kazuyuki Yoshida, Ms. Mariko Yamamoto, and Mr. Masaaki Ayres[186] - The company is led by Mr. Katsuyoshi Yamamoto, who serves as the CEO, executive director, and chairman of the board[186] - The board composition reflects a balance between executive and independent oversight[186] - The company is committed to maintaining strong governance practices through its board structure[186] Market and Product Development - The introduction of new gaming machines, such as the "6.5 model slot machine" and "smart slot machine," has contributed to an increase in customer traffic and improved utilization rates in the first half of fiscal year 2024[95] - The company aims to enhance customer flow and operational recovery by implementing new self-service prize redemption systems and introducing more new pachinko and pachislot machines[105] - The company has completed the phase-out and replacement of all high-gambling-content pachinko and pachislot machines by the end of January 2022, in response to regulatory changes[102] Financial Position and Future Outlook - The company expects revenue growth for the twelve months ending December 31, 2024, to be between 0% and 5%[129] - The company maintains a prudent financial management approach, ensuring a healthy liquidity position in the first six months of FY2024[135] - The company plans to continue holding its investment properties to earn long-term rental income[151]
OKURA HOLDINGS(01655) - 2024 - 中期业绩