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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 for the six months
ended 30 September 2017, as compared to the profit attributable to Shareholders forthe six months ended 30 September 2016.
The expected loss attributable to Shareholders for the six months ended 30 September
2017 is resulted from a decrease in revenue while hall and administrative expenses
remain at a similar level as compared to the same period in last year. The drop inrevenue is mainly due to: (i) change in regulations of pachinko industry associations
which require pachinko operators to replace pachinko machines of higher gaming
element with pachinko machines of lower gaming element, which attracts less halltraffic; and (ii) increase in pay-out ratio to boost up customer visits which, in the shortterm, lowers the profit margin.
The Company is still in the process of finalising the unaudited consolidated results of
the Group for the six months ended 30 September 2017. 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
2017, which is expected to be published on or around 24 November 2017.
–1–

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(also known as JEONG Seonggi)
Fukushima, Japan, 20 October 2017
As at the date of this announcement, the executive director of the Company is Hisanori
TANIGUCHI (also known as JEONG Seonggi); the non-executive director of theCompany is Hiroshi BANNAI; and the independent non-executive directors of theCompany are Hiroaki MORITA, Norio NAKAYAMA, Michio MINAKATA and Yoshihiro
KOIZUMI.
*For identification purposes only–2–