Financial Performance - Total revenue for the fiscal year ending March 31, 2025, was ¥28,316 million, an increase from ¥26,955 million in 2024, representing a growth of 5%[7] - The net profit attributable to the company for the fiscal year 2025 was ¥607 million, compared to ¥694 million in 2024, indicating a decrease of approximately 12.5%[7] - The overall revenue margin for 2025 was 17.0%, slightly down from 18.2% in 2024[7] - Total revenue increased by 10.1% year-on-year to ¥145,091 million, reaching the highest level since the company's establishment[13] - Dream Games' revenue decreased by 2.3% year-on-year to ¥1,648 million, with 12 operational stores as of March 31, 2025[18] - Revenue from Japanese pachinko and pachislot operations increased by ¥781 million or 3.3% from ¥23,944 million in 2024 to ¥24,725 million in 2025, driven by the recovery of the Japanese economy and improved customer flow due to machine replacements[24] - The revenue yield decreased from 18.2% in 2024 to 17.0% in 2025, attributed to increased payout rates aimed at stimulating customer traffic[27] - Revenue from amusement park operations decreased by ¥39 million or 2.3% to ¥1,648 million in 2025, impacted by the closure of a non-profitable park in Vietnam and typhoon disruptions[28] - Restaurant revenue increased by ¥332 million or 46.9% to ¥1,040 million, driven by the popularity of the "KOMEDA" café and the opening of new restaurant brands[29] - The company reported a net profit of ¥607 million for the year ending March 31, 2025, compared to ¥118 million in the previous year, representing a significant increase of 414%[190] Assets and Liabilities - The total assets as of March 31, 2025, were ¥63,653 million, a decrease from ¥65,760 million in 2024[8] - The current ratio (current assets to current liabilities) for 2025 was 0.90, indicating a decline from 0.99 in 2024[8] - The total borrowings and lease liabilities as of March 31, 2025, were ¥35,807 million, down from ¥38,357 million in the previous year[39] - The asset-liability ratio as of March 31, 2025, was 1.3, down from 1.4 as of March 31, 2024[42] - As of March 31, 2025, the total cash and cash equivalents amounted to ¥10,574 million, a decrease from ¥12,350 million as of March 31, 2024[37] - The company's total assets decreased to ¥63,653 million from ¥65,760 million, reflecting a decline of approximately 3.2%[192] - Non-current assets decreased from ¥51,888 million to ¥50,847 million, a reduction of about 2%[192] - Current liabilities decreased slightly from ¥14,215 million to ¥14,017 million, indicating a decrease of approximately 1.5%[193] Investments and Expenditures - The company plans to invest in new gaming halls and acquisitions to ensure stable profitability, focusing on increasing the number of installed gaming machines[18] - Capital expenditures for the year ended March 31, 2025, totaled ¥4,223 million, an increase from ¥3,551 million in the previous year[43] - The company completed the acquisition of a 10-story hot spring hotel for ¥358.4 million on April 30, 2025, and another hot spring hotel for ¥798.4 million on May 1, 2025, as part of its expansion strategy[48] - The investment in machine replacement reached ¥7,751 million, aimed at enhancing revenue and increasing customer traffic[112] Governance and Compliance - The company has adopted and complied with all applicable principles and code provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange Listing Rules, except for the separation of roles between the Chairman and the CEO[53] - The board consists of eight directors, including two executive directors and five independent non-executive directors, ensuring a diverse and experienced leadership team[55] - The company’s governance responsibilities include reviewing compliance with laws and regulations, and monitoring the training and development of directors and senior management[59] - The company has established a formal written whistleblowing policy for employees to express concerns regarding risks and internal operations[89] - The company has mechanisms in place to ensure independent viewpoints are obtained for board decisions[73] - The company has maintained and purchased directors' liability insurance to provide adequate protection for its directors[141] Employee and Community Engagement - The company had a total of 1,270 employees as of March 31, 2025, with compensation policies determined by the remuneration committee[51] - The company is committed to providing equal opportunities in recruitment, hiring, compensation, training, and promotion based on knowledge and performance, regardless of gender[77] - The company made charitable donations totaling approximately 2 million yen during the fiscal year[153] Future Outlook - The company plans to continue focusing on new product development and market expansion strategies to drive future growth[195] - Economic growth in Vietnam and Cambodia is projected to exceed 5% in 2025, indicating potential for market expansion[18] - The company is open to market expansion opportunities, including acquisitions and establishing new branches, despite anticipated economic fluctuations[115]
NIRAKU(01245) - 2025 - 年度财报