Financial Performance - Total revenue for the fiscal year ended March 31, 2019, was ¥28,325 million (approximately HK$2,003 million), an increase from ¥26,554 million (HK$1,961 million) in 2018, representing a growth of 6.6%[14] - The company reported a net profit attributable to shareholders of ¥610 million (HK$43 million) for 2019, compared to a loss of ¥15 million (HK$1 million) in 2018, indicating a significant turnaround[14] - The overall revenue margin for 2019 was 18.3%, slightly up from 18.2% in 2018, reflecting stable operational efficiency[14] - Revenue from Japanese-style pachinko and slot machine operations increased by ¥618 million or 2.4% to ¥25,881 million in 2019, up from ¥25,263 million in 2018[44] - The revenue contribution from the amusement park business was ¥1,535 million in 2019, significantly up from ¥417 million in 2018, primarily due to the full-year impact of the acquisition of Dream Games[48] - The group reported revenue from the Japanese pachinko business of ¥25,881 million for the fiscal year ending March 31, 2019, an increase of 2.4% from ¥25,263 million in 2018, with a profit margin of 18.3%[151] Assets and Liabilities - The total assets as of March 31, 2019, amounted to ¥54,043 million (HK$3,822 million), an increase from ¥52,171 million (HK$3,853 million) in 2018[18] - The company’s asset-liability ratio improved to 70.9% in 2019 from 69.6% in 2018, indicating better financial stability[18] - The company's total liabilities as of March 31, 2019, were ¥19,502 million, compared to ¥18,875 million in 2018, resulting in a debt-to-equity ratio of 70.9%[68] - The total bank loans increased to ¥16,082 million in 2019 from ¥14,740 million in 2018, with an average interest rate ranging from 0.99% to 1.91%[61] - As of March 31, 2019, the company's cash and cash equivalents totaled ¥15,176 million, a decrease from ¥15,594 million in 2018[60] Operational Strategy - The company plans to continue expanding its network of game halls and enhancing customer experience as part of its growth strategy[5] - The company aims to expand its entertainment business across Japan and Asia, focusing on amusement parks, dining, and its main Japanese pachinko business[24] - The company is addressing challenges in the pachinko industry by implementing sales policies to ensure sustainable profit growth and cost efficiency[27] - The company plans to continue opening new amusement parks and seek acquisition opportunities to strengthen its market position[28] - The company is committed to investing in business expansion in Southeast Asia, aiming to make it a major profit pillar in the medium term[29] Corporate Governance - The company adopted and complied with all applicable principles and provisions of the corporate governance code as per the listing rules, except for the separation of roles between the chairman and CEO[81] - The board consists of five members, including one executive director and three independent non-executive directors, ensuring a diverse governance structure[87] - The audit committee held 14 meetings during the fiscal year ending March 31, 2019, reviewing the group's risk management and internal control systems[94] - The company has implemented a board diversity policy, considering various factors such as gender, age, and professional experience to enhance performance quality[88] - The company is focused on ensuring effective corporate governance practices that align with shareholder interests[81] Shareholder Information - Major shareholders include Takaguchi Ryuuou with 223,790,000 shares (18.71%) and Takaguchi Akihiro with 151,570,000 shares (12.67%) [192] - Sumitomo Mitsui Financial Group holds 229,137,500 shares (19.16%) in the company, indicating significant institutional investment [192] - The total shares held by major shareholders represent a substantial portion of the company's equity, with the top three shareholders owning over 39% combined [192] - The company has a diverse shareholder base, including family trusts and corporate entities, which may influence governance and strategic decisions [199] - The company is subject to regulatory disclosures regarding shareholder interests, ensuring transparency in ownership stakes [199] Future Outlook - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10%[137] - New product launches are expected to contribute an additional $50 million in revenue over the next year[137] - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[137] - The company is considering strategic acquisitions to enhance its product offerings and market presence[137] - A new marketing strategy is being implemented, aiming to increase brand awareness by 30%[137] Employee Information - The company has 1,846 employees as of March 31, 2019, with compensation policies determined by the remuneration committee based on performance and qualifications[77] - The group employs 1,457 staff in the pachinko and slot machine business and 389 in the amusement park sector as of March 31, 2019[159] Risk Management - The company has established risk management policies and procedures to identify, analyze, assess, respond to, monitor, and communicate significant risks[122] - The internal audit department independently evaluates the effectiveness of the risk management and internal control systems, reporting findings to the audit committee[126] - The board has reviewed the risk management and internal control systems without identifying any significant issues affecting their effectiveness during the year[131] - The group faces risks related to the ongoing decline of the pachinko industry and uncertainties regarding the profitability of new amusement parks[164]
NIRAKU(01245) - 2019 - 年度财报