Financial Performance - The company's pre-tax profit increased from approximately 163 million JPY in the first six months of FY2023 to about 1,092 million JPY in the first six months of FY2024, representing a growth of approximately 569.9%[11]. - Total revenue for the first six months of fiscal year 2024 increased by approximately 85 million JPY or 2.7% to about 3,191 million JPY, compared to approximately 3,106 million JPY in the same period of fiscal year 2023[22]. - 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[22]. - Revenue from the pachinko and pachislot business increased by about 2.5% to approximately 2,948 million JPY in the first six months of fiscal year 2024, up from approximately 2,877 million JPY in the same period of fiscal year 2023[22]. - The company's net profit attributable to shareholders for the first six months of fiscal year 2024 is approximately 1,116 million JPY, an increase of about 1,140.0% compared to the previous year[45]. - Basic and diluted earnings per share for the period were both ¥1.860, compared to ¥0.180 in the same period last year[111]. - The total comprehensive income for the period attributable to shareholders was ¥1,111 million, compared to ¥105 million in the same period last year[111]. - The company reported a net profit of ¥1,116 million for the six months ended December 31, 2023, compared to a profit of ¥90 million for the same period in the previous year, indicating a significant increase[119]. Revenue Streams - Rental revision income rose significantly from about 13 million JPY in FY2023 to approximately 1,027 million JPY in FY2024, marking an increase of about 7,800%[11]. - Revenue from vending machines increased by about 3 million JPY or 6.4% to approximately 50 million JPY in the first six months of fiscal year 2024, compared to approximately 47 million JPY in the same period of fiscal year 2023[23]. - Property rental income rose by approximately 14 million JPY or 7.9% to about 191 million JPY in the first six months of fiscal year 2024, up from approximately 177 million JPY in the same period of fiscal year 2023[23]. - The company continues to diversify its revenue streams, generating income from various operations including vending machines and rental properties in addition to its gaming business[14]. Operational Changes - The company plans to close the K's Plaza Ohato gaming hall effective January 14, 2024, to focus resources on the more promising SENKURA Dejima gaming hall[13]. - The introduction of new gaming machines has contributed to improved utilization rates and revenue in the first half of FY2024 compared to the same period in FY2023[10]. - The company is committed to exploring new measures and opportunities to enhance operational performance and diversify income sources[11]. - The management has implemented infection control measures in its gaming halls to ensure a safe environment for employees and customers[9]. Market Conditions - The Japanese government has relaxed COVID-19 restrictions, which has positively impacted consumer spending on entertainment activities[9]. - The company observed a recovery in customer traffic in its gaming halls, particularly with the popularity of smart slot machines introduced in November 2022 and smart pachinko machines launched in April 2023[10]. Financial Management - The company maintains a prudent financial management approach, ensuring a healthy liquidity position for the first six months of fiscal year 2024[49]. - The company has not utilized any risk hedging instruments during the first six months of fiscal year 2024[49]. - The company's cash and cash equivalents as of December 31, 2023, were approximately 2,056 million JPY, down from about 2,423 million JPY as of June 30, 2023[51]. - The company's equity attributable to shareholders was approximately 6,829 million JPY as of December 31, 2023, compared to about 5,718 million JPY as of June 30, 2023[52]. Capital Expenditures - The company's capital expenditure for the first six months of FY2024 was approximately ¥1,259 million, significantly higher than ¥319 million in the same period of FY2023, primarily due to the acquisition of properties[59]. - The company completed a property acquisition on November 9, 2023, for a total consideration of approximately JPY 935 million, which includes three plots of land and buildings in Japan[84]. Employee and Management Information - Total employee costs for the first six months of fiscal year 2024 reached approximately 550 million yen, representing about 16.8% of total operating expenses[73]. - The employee count as of December 31, 2023, was 381, a decrease from 390 employees as of December 31, 2022[73]. - Mr. Yamamoto serves as both Chairman and CEO, which the board believes enhances leadership and strategic focus[97]. Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests[99]. - The company has established a comprehensive corporate governance framework in accordance with applicable laws and regulations[97]. - The audit committee reviewed the unaudited condensed consolidated interim financial information for the first six months of the fiscal year 2024[101]. Debt and Liabilities - As of December 31, 2023, the total borrowings of the company amounted to approximately 5,384 million JPY, up from about 4,883 million JPY as of June 30, 2023[47]. - The debt-to-equity ratio decreased to approximately 49.2% as of December 31, 2023, down from 56.6% on June 30, 2023, mainly due to the termination of lease liabilities[56]. - The company has no significant contingent liabilities or guarantees as of December 31, 2023[61].
OKURA HOLDINGS(01655) - 2024 - 中期财报