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(Incorporated in Japan with limited liability)(Stock Code: 1245)

PROFIT WARNING
This announcement is made by 株式会社ニラク▪ジー▪シー▪ホールディングス NIRAKUGC HOLDINGS, INC.* (the “Company”, together with its subsidiaries as the “Group”)
pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited (the “Listing Rules”) and the Inside Information
Provisions (as defined under the Listing Rules) under Part XIVA of the Securities andFutures Ordinance (Chapter 571 of the Laws of Hong Kong).
The board of directors of the Company (the “Board”) wishes to inform the shareholdersof the Company (the “Shareholders”) and the potential investors that based on
preliminary assessment of the consolidated management accounts of the Group, it isexpected the Group will record a loss attributable to Shareholders of approximately¥1,980 million for the six months ended 30 September 2020, as compared to the profit
attributable to Shareholders of ¥496 million for the six months ended 30 September
2019.
The expected loss attributable to Shareholders for the six months ended 30 September
2020 is mainly caused by the outbreak of novel coronavirus (COVID-19) causing
temporary closure of pachinko halls and restaurants in various locations during the firstquarter of the financial period. Although the outlets were subsequently resumed, theperformance of the Group’s restaurant and entertainment businesses was severely
affected leading to a drastic drop in revenue. The Group has implemented various cost
control measures to minimise the impact of the COVID-19, and has closely monitored
the market conditions and adjusted its business strategies to maintain a stable sales
turnover.
Despite the foregoing, the Group maintains a healthy cash flow and financial positionand has sufficient cash to meet its business needs.

*for identification purpose only–1–

The Company is still in the process of finalising the unaudited consolidated results of
the Group for the six months ended 30 September 2020. This profit warning
announcement is only based on the Board’s preliminary assessment of the unaudited
consolidated management accounts of the Group which are subject to finalisation andother potential adjustments, if any, and have not been confirmed or audited by theCompany’s auditor. Shareholders and potential investors are advised to read carefully
the results announcement of the Company for the six months ended 30 September
2020, which is expected to be published on or around 20 November 2020.
Shareholders and potential investors of the Company are advised to exercise
caution when dealing in the shares of the Company.
On behalf of the BoardNIRAKU GC HOLDINGS, INC.*
株式会社ニラク▪ジー▪シー▪ホールディングス
Chairman, Executive Director and Chief Executive Officer
Hisanori TANIGUCHI
Fukushima, Japan, 6 November 2020
As at the date of this announcement, the executive directors of the Company are
Hisanori TANIGUCHI, Akinori OHISHI and Masataka WATANABE; the non-executive
director of the Company is Hiroshi BANNAI; and the independent non-executive
directors of the Company are Michio MINAKATA, Yoshihiro KOIZUMI, Kuraji
KUTSUWATA and Akihito TANAKA.
*for identification purpose only

–2–