Financial Performance - Total bets for the fiscal year ending March 31, 2024, reached ¥562,029 million, an increase from ¥507,852 million in the previous year, representing a growth of 10.6%[29] - The company reported a net profit of ¥3,385 million for the fiscal year, compared to ¥1,798 million in the previous year, marking an increase of 88.3%[29] - EBITDA for the fiscal year was ¥53,205 million, up from ¥43,729 million in the previous year, reflecting a growth of 21.3%[29] - Total revenue for the fiscal year ending March 31, 2024, was 130,363 million JPY (approximately 6,740 million HKD), representing an increase of 11.2% from the previous year[33] - The operating profit for the year was 8,983 million JPY (approximately 464 million HKD), up 132.8% from the previous year[33] - The basic earnings per share for the fiscal year was ¥4.8, compared to ¥2.5 in the previous year, reflecting an increase of 92%[29] - The total comprehensive income for the year reached ¥8,082 million, compared to ¥2,107 million, reflecting a growth of 284.5%[189] Revenue Sources - The revenue from the Japanese pachinko business was ¥124,480 million, an increase of 8.5% from ¥114,331 million in the previous year[29] - Aircraft leasing business revenue surged by 104.6% to 5,883 million JPY (approximately 304 million HKD) from 2,875 million JPY (approximately 169 million HKD) in the previous year[32] - High-stakes gaming halls saw total bets rise by 7.2% to 294,033 million JPY (approximately 15,203 million HKD) from 274,204 million JPY (approximately 16,120 million HKD) in the previous year[32] - Low-stakes gaming halls experienced a 14.7% increase in total bets, reaching 267,996 million JPY (approximately 13,857 million HKD) from 233,648 million JPY (approximately 13,736 million HKD) in the previous year[32] Expenses and Liabilities - Non-current liabilities increased to ¥174,246 million from ¥143,341 million, representing a rise of 21.5%[30] - The company incurred financing expenses of ¥4,355 million, compared to ¥3,277 million, indicating an increase of 32.8%[188] - The company’s expenses related to the Japanese pachinko business were ¥118,673 million, an increase from ¥110,484 million, which is a rise of 7.4%[188] - General and administrative expenses decreased by 133 million yen to 4,176 million yen (approximately 216 million HKD), a decline of 3.1%[39] Cash Flow and Investments - Operating cash flow for the year ended March 31, 2024, was 64,877 million JPY (approximately 3,356 million HKD), an increase from 54,660 million JPY (approximately 3,212 million HKD) in the previous year[46] - Net cash used in investing activities for the year ended March 31, 2024, was 83,628 million JPY (approximately 4,323 million HKD), up from 64,994 million JPY (approximately 3,821 million HKD) in the previous year[48] - The company raised 47,233 million JPY (approximately 2,442 million HKD) through bank loans during the financing activities for the year ended March 31, 2024[48] Market Strategy and Expansion - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[28] - Future guidance indicates a focus on increasing revenue streams from both the pachinko and aircraft leasing businesses[28] - The company plans to renovate old high-stakes gaming halls to enhance profitability and competitiveness[33] - The company is focused on risk management, addressing credit risk, market risk, and liquidity risk to minimize potential adverse impacts on financial performance[61] Corporate Governance - The company adheres to corporate governance principles, ensuring long-term shareholder value through prudent management practices[95][96] - The board of directors has maintained compliance with the corporate governance code, with a majority of independent non-executive directors ensuring a balance of power[96][98] - The company has established a risk management and internal control system, with the audit committee overseeing its effectiveness[107] - The company has implemented effective risk management and internal control systems, which were reviewed and deemed sufficient during the reporting period[117] Sustainability and Social Responsibility - The company is committed to sustainable growth by integrating environmental, social, and governance (ESG) concepts into its operations[64] - The company aims to enhance corporate value and become an indispensable part of the local community[64] - The company is committed to sustainability initiatives, with a goal to reduce carbon emissions by 40% over the next five years[140] Shareholder Information - The company plans to distribute dividends amounting to at least 35% of its annual consolidated net income[127] - The total fees paid to the external auditor PricewaterhouseCoopers Japan LLC for audit services were ¥107 million (approximately HK$5.5 million) and for non-audit services were ¥3 million (approximately HK$0.2 million), totaling ¥110 million (approximately HK$5.7 million)[121] - The company has established a shareholder communication policy to ensure effective dialogue with shareholders and potential investors[124]
DYNAM JAPAN(06889) - 2024 - 年度财报