Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong
Limited take no responsibility for the contents of this announcement, make norepresentation as to its accuracy or completeness and expressly disclaim any liability
whatsoever for any loss howsoever arising from or in reliance upon the whole or any
part of the contents of this announcement.

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

ANNUAL RESULTS ANNOUNCEMENTFOR THE YEAR ENDED 31 MARCH 2021
ANNUAL RESULTS HIGHLIGHTS#•

Gross pay-ins were ¥94,414 million (or HK$6,630 million#), recording a decreaseof 32.1% as compared with the year ended 31 March 2020;•

Revenue was ¥18,541 million (or HK$1,302 million #), recording a decrease of
33.9% as compared with the year ended 31 March 2020;•

Loss before income tax was ¥8,502 million (or HK$597 million #), recording adrop of ¥9,083 million as compared with the year ended 31 March 2020;•

Loss for the year attributable to owners of the Company was ¥5,481 million (orHK$385 million#), recording a decrease of ¥5,660 million as compared with theyear ended 31 March 2020;•

The Group operates 47 halls as at the date of this announcement (31 March
2020: 53 halls);•

Basic loss per share of the Company was ¥4.58 (or HK$0.322 #) (2020: basic
earnings per share ¥0.15); and•The Board has resolved not to declare a final dividend for the year ended 31
March 2021 (2020: Nil).
Translated into Hong Kong dollar at the rate of ¥14.24 to HK$1.00, the exchange rate prevailingon 31 March 2021 (i.e. the last business day in March 2021).

Note: The above % increases and decreases refer to the changes in respect of the Japanese Yenamounts but not the translated amounts in Hong Kong dollar.

*

For identification purpose only

–1–The board (the “Board”) of directors (the “Directors”) of NIRAKU GC HOLDINGS, INC.*(the “Company” or “NIRAKU”) would like to announce the audited consolidated resultsof the Company and its subsidiaries (the “Group”) for the year ended 31 March 2021
together with the comparative figures for the year ended 31 March 2020 as follows:
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2021
Note

2021
¥ million2020¥ million

Revenue

4

18,541

28,046

Other income
Other gains, net
Impairment loss on property, plant and equipment
Impairment loss on right-of-use assets
Hall operating expenses
Administrative and other operating expenses

5
5
6
6
6
6

639
173
(2,949)(2,643)(17,571)(3,393)

1,074
400
(213)
(463)
(21,234)(5,655)(7,203)

1,955

Operating (loss)/profit
Finance income
Finance costs

7
7

95(1,394)62(1,436)

Finance costs, net

7(1,299)(1,374)

Share of results of an associate––(Loss)/profit before income tax
Income tax credit/(expense)(8,502)
2,898

581
(717)

Loss for the year

(5,604)(136)

Loss attributable to:
Owners of the Company
Non-controlling interest(5,481)
(123)

179
(315)

(5,604)(136)(4.58)

0.15

17

(241)

(6)

(45)

Total comprehensive loss for the year

(5,593)(422)

Total comprehensive loss attributable to:
Owners of the Company
Non-controlling interest(5,458)
(135)

(107)
(315)

(5,593)(422)

8(Loss)/Earnings per share for (loss)/profit
attributable to owners of the Company— Basic and diluted (expressed in    Japanese Yen per share)
Other comprehensive loss
Items that will not be subsequently reclassified
to profit or loss
Change in value of financial assets through othercomprehensive income
Items that have been or may be subsequently
reclassified to profit or loss
Currency translation difference–2–

9

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2021
Note
ASSETS
Non-current assets
Property, plant and equipment
Right-of-use assets
Investment properties
Intangible assets
Prepayments, deposits and other receivables
Financial assets at fair value throughother comprehensive income
Deferred income tax assets

Current assets
Inventories
Trade receivables
Prepayments, deposits and other receivables
Financial assets at fair value through profit or loss
Current income tax recoverable
Bank deposits with original maturity over
3 months
Cash and cash equivalents

Total assets

–3–

11

2021
¥ million2020¥ million

18,581
27,949
737
1,400
4,545

22,25732,072
630
1,601
5,119

577
5,765

565
2,822

59,55465,066

21
64
1,327
106
474

40
48
1,026
100
–

42
15,903750
14,12817,937

16,09277,491

81,158

2021¥ million2020¥ million

EQUITY
Equity attributable to owners of the Company
Share capital
Reserves

3,000
17,762

3,000
23,220Non-controlling interest

20,762(556)

26,220(421)

Total equity

20,206

25,799738
30,534
2,192
16

9,853
32,0352,270
2233,48044,180108
15,929
2,906
4,131
3
728

114
3,233
2,542
4,404
4
882

23,805

11,179Total liabilities

57,28555,359Total equity and liabilities

77,491

81,158Note

LIABILITIES
Non-current liabilities
Borrowings
Lease liabilities
Provisions and other payables
Derivative financial instruments

13
14

Current liabilities
Trade payables
Borrowings
Lease liabilities
Accruals, provisions and other payables
Derivative financial instruments
Current income tax liabilities

12
13
14

–4–

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1

GENERAL INFORMATION
株式会社二ラク ▪ ジー ▪ シー ▪ ホールディングスNIRAKU GC HOLDINGS, INC.* was incorporated inJapan under the Japan Companies Act with limited liability on 10 January 2013. The address of its
registered office is 1-39 Hohaccho 1-chome, Koriyama-shi, Fukushima, Japan.
The Company is an investment holding company. The Company and its subsidiaries (together, the“Group”) are principally engaged in pachinko and pachislot hall operations, hotel and restaurant
operations in Japan; amusement arcade operations in Southeast Asian countries; and restaurant
operations in China. The Company is listed on the Main Board of The Stock Exchange of Hong Kong
Limited.
These consolidated financial statements are presented in millions of Japanese Yen (“¥”), unlessotherwise stated.
These consolidated financial statements have been approved by the Board of Directors of theCompany on 28 June 2021.

2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThis note provides a list of the significant accounting policies adopted in the preparation of these
consolidated financial statements. These policies have been consistently applied to all the years
presented, unless otherwise stated. The financial statements are for the Group consisting of theCompany and its subsidiaries.

3

BASIS OF PREPARATIONThe consolidated financial statements have been prepared in accordance with all applicable
International Financial Reporting Standards (“IFRSs”). The consolidated financial statements havebeen prepared under the historical cost convention, as modified by financial assets and financial
liabilities (including derivative financial instruments) which are carried at fair value.
(i)

Going concern basis
The Group reported a net loss of ¥5,604 million during the financial year ended 31 March 2021.
As at 31 March 2021, the Group had total borrowings of approximately ¥16,667 million. As at
31 March 2021, management assessed that the Group was not able to comply with certain
financial covenants for part of the Group’s bank borrowings amounting to approximately¥14,758 million (“Relevant Borrowings”). Such non-compliance of the covenants would grant
the banks (“Relevant Banks”) the right to request for immediate repayment of the borrowings.
As a result, the Group reclassified borrowings of approximately ¥7,063 million, representing thenon-current portion of the Relevant Borrowings to current liabilities. As at 31 March 2021,
following the reclassification, the Group’s current liabilities exceeded its current assets byapproximately ¥5,868 million.

–5–

In June 2021, the Group obtained written consents from Relevant Banks on waiving their rights
to request immediate repayment arising from the aforementioned non-compliance of financial
covenants and therefore, the Relevant Borrowings would only be due for repayment inaccordance with the original repayment terms. In addition, the Relevant Banks also agreed torevise the financial covenants of these borrowings to be more favourable to the Group. The
Group will continue to monitor its compliance with the covenant requirements and the directorsof the Company is confident that the Group will be able to comply with the revised and otherexisting financial covenants of its bank borrowings. Should the Group anticipate any noncompliance with the covenant requirements, management will discuss and negotiate with therespective banks and will seek to further revise the terms and covenant requirements or obtaina waiver of compliance with the covenant requirements from the banks as needed.
The directors of the Company have prepared cash flow projections covering a period of not lessthan twelve months from 31 March 2021, to assess the Group’s ability to continue as a going
concern. Based on the cash flow projections, which takes into account the anticipated cash
flows generated from the Group’s operations, the reasonably possible changes in operations
under the COVID-19 pandemic, the continued compliance of the financial covenants andavailability of the Group’s bank borrowings, the Group will have sufficient financial resources tomeet its financial obligations as and when they fall due in the coming twelve months from 31
March 2021. Accordingly, the directors of the Company consider it appropriate to prepare theconsolidated financial statements on a going concern basis.
(ii)

Amendments to standards adopted by the GroupThe Group has applied the following standards and amendments for the first time for theirannual reporting period commencing 1 April 2020:
Amendments to IFRS 3
Amendments to IAS 1 and IAS 8
Amendments to IAS 39, IFRS 7 and IFRS 9
Conceptual Framework for Financial
Reporting 2018

Definition of a Business
Definition of MaterialInterest Rate Benchmark Reform — Phase I
Revised Conceptual Framework for Financial
Reporting

The adoption of the standards and amendments did not have any material impact on theGroup’s accounting policies.

–6–

(iii) New and amended standards, improvements and interpretations to existing standards(collectively, the “Amendments”) not yet adopted by the GroupThe following amendments have been published but not mandatory for 31 March 2021
reporting period and have not been early adopted by the Group.
Effective foraccounting
periods
beginningon or after
Amendments to IFRS 16
Amendments to IAS 39, IFRS 4,IFRS 7, IFRS 9 and IFRS 16
Amendments to IFRS 3
Amendments to IAS 16
Amendments to IAS 37
Amendments to Annual
Improvement project
Amendments to IAS 1
IFRS 17
Amendments to IFRS 10 and
IAS 28

Covid-19 Related Rent Concessions
Interest Rate Benchmark Reform —Phase 2

1 June 2020
1 June 2021

Reference to the Conceptual Framework
Property, Plant and Equipment: Proceeds
before Intended Use
Onerous Contracts — Cost of Fulfillinga Contract
Annual Improvements to IFRSStandards 2018–2020
Classification of Liabilities as Current or
Non-current
Insurance Contracts
Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture

1 January 2022
1 January 2022
1 January 2022
1 January 2022
1 January 2023
1 January 2023
To be determined

The related impacts of the adoption of these amendments to the Group are currently underassessment and the Group is not yet in a position to state whether any substantial changes to
the Group’s significant policies and presentation of the financial information will result.
4

REVENUE AND SEGMENT INFORMATION(a)

Revenue2021¥ million2020¥ million

Revenue
Gross pay-ins
Less: gross pay-outs

94,414(77,531)139,053(114,046)

Revenue from pachinko and pachislot hall business
Revenue from amusement arcades
Vending machine income
Revenue from hotel operations
Revenue from restaurant operations

16,883
1,015
335
55
253

25,007
1,663
480
143
753

18,541

28,046

During the year ended 31 March 2021, revenue recognised that was included in the contract
liabilities balances of rental receipt in advance and unutilised balls and tokens at the beginningof the year amounted to ¥194 million and ¥1,132 million, respectively.
As at 31 March 2021, the amount of transaction price allocated to the contract liabilities inrelation to rental receipt in advance and unutilised balls and tokens that are unfulfilled were¥153 million and ¥1,225 million, respectively, of which all are expected to be recognised asrevenue during the next reporting period.

–7–

(b)

Segment information
Management has determined the operating segments based on the reports reviewed by thechief operating decision maker (“CODM”) that are used for making strategic decisions. The
COMD is identified as the executive directors of the Company. The executive directors consider
the business from a service perspective and assess the performance of the operating segments
based on a measure of segment results, being adjusted (loss)/profit before income tax andunallocated corporate expenses for the purposes of allocating resources and assessing
performance. These reports are prepared on the same basis as this consolidated financial
statements.
Management has identified four reportable segments based on the types of services, namely (i)pachinko and pachislot hall operations, (ii) amusement arcade operations, (iii) restaurant
operations in China and (iv) others, representing hotel and restaurant operations in Japan.
Segment assets consist primarily of property, plant and equipment, investment properties,
right-of-use assets, intangible assets, inventories, trade receivables, prepayments, deposits andother receivables, bank deposits and cash and cash equivalents. They exclude current income
tax recoverable, deferred income tax assets and assets used for corporate functions including
financial assets at fair value through profit or loss, financial assets at fair value through othercomprehensive income and interest in an associate.
Capital expenditure comprises additions to property, plant and equipment, right-of-use assets,
investment properties and intangible assets. Unallocated corporate expenses and income tax
expenses are not included in segment results.

–8–

The segment information provided to the executive directors for the years ended 31 March
2021 and 2020 are as follows:Year ended 31 March 2021
Pachinko andpachislot
hall
operations

Amusement
arcadeoperations

Restaurant
operations

Others

Total

Japan
¥ million

SoutheastAsia¥ million

China¥ millionJapan¥ million¥ million

Timing of revenue recognition
Over time
At a point in time

17,218
–

1,015
–

–
–

55
253

18,288253

Segment revenue from external customers

17,218

1,015

–

308

18,541

Segment results
Corporate expenses(6,493)

(308)

(260)

(506)

(7,567)(935)

Loss before income tax
Income tax credit(8,502)
2,898

Loss for the year

(5,604)

Other segment items
Depreciation and amortisation expenses
Impairment loss on right-of-use assets
Impairment loss on intangible assets
Impairment loss on property,
plant and equipment
Impairment loss on investment properties
Finance income
Finance costs(3,811)(2,488)
(187)

(460)
(58)
–

(92)
(97)
(17)

(31)
–
–

(4,394)(2,643)(204)(2,929)(55)
90(1,289)

(19)
–
5
(105)

(1)
–
–
–

–
–
–
–

(2,949)(55)
95(1,394)–9–

Year ended 31 March 2020
Pachinko andpachislot
hall
operations

Amusement
arcadeoperations

Restaurant
operations

Others

Total

Japan
¥ million

SoutheastAsia¥ million

China¥ millionJapan¥ million¥ million

Timing of revenue recognition
Over time
At a point in time

25,487
–

1,663
–

–
304

144
448

27,294752

Segment revenue from external customers

25,487

1,663

304

592

28,046

Segment results
Corporate expenses

2,438

56

(597)

(493)

1,404
(823)

Profit before income tax
Income tax expense

581
(717)

Loss for the year

(136)

Other segment items
Depreciation and amortisation expenses
Impairment loss on right-of-use assets
Impairment loss on intangible assets
Impairment loss on property,
plant and equipment
Finance income
Finance costs(4,401)
(181)
(1)

(466)
–
–

(85)
(90)
(10)

(56)
(192)
–

(5,008)
(463)
(11)

(107)
60
(1,346)

–
2
(90)

(1)
–
–

(105)
–
–

(213)
62
(1,436)– 10 –

The segment assets as at 31 March 2021 and 2020 are as follows:

As at 31 March 2021
Segment assets
Unallocated assets
Deferred income tax assets

Pachinko andpachislot
hall
operations

Amusement
arcadeoperations

Restaurant
operations

Others

Total

Japan
¥ million

SoutheastAsia¥ million

China¥ millionJapan¥ million¥ million

62,150

1,750

576

933

Total assets
Addition to non-current assets other thanfinancial instruments and deferred tax assets

As at 31 March 2020
Segment assets
Unallocated assets
Deferred income tax assets

77,491

3,909

231

4

90

4,234

Pachinko andpachislot
hall
operations

Amusement
arcadeoperations

Restaurant
operations

Others

Total

Japan
¥ million

SoutheastAsia¥ million

China¥ millionJapan¥ million¥ million

68,234

2,130

970

696

72,0306,306
2,822
81,158

Total assets
Addition to non-current assets other thanfinancial instruments and deferred tax assets

65,409
6,317
5,765

1,221

– 11 –

580

469

229

2,499

The total of non-current assets other than financial instruments and deferred tax assets,
analysed by location of the assets, is as follows:Japan
Southeast Asia
China

2021
¥ million2020¥ million

47,722948
412

54,703
1,202
527

49,08256,432

No single external customer contributed more than 10% revenue to the Group’s revenue for theyears ended 31 March 2021 and 2020.
5

OTHER INCOME AND OTHER GAINS, NET

Other income
Rental income
Income from expired IC and membership cards
Dividend income
Compensation and subsidies (Note)
Income from scrap sales of used pachinko and pachislot machines
OthersOther gains, net
Gain on release of lease liabilities
Gain on fair value for financial assets at fair value through profit or loss
Gain on fair value for derivative financial instruments(Loss)/gain on disposal of property, plant and equipment, net
Others2021¥ million2020¥ million

176
19
27
243
86
88

410
29
55
332
169
79

639

1,074

178
6
7
(55)
37

151
–
5
317
(73)

173

400

Note: Compensation and subsidies received during the year ended 31 March 2021 mainly represents
subsidies from the Government of Japan as a financial aid to Japanese corporations during
the COVID-19 pandemic. During the year ended 31 March 2020, compensation and subsidies
were mainly received from an insurance company for the typhoon that occurred in October
2019. The disaster caused significant damages to certain property, plant and equipment andinventories in certain pachinko and pachislot halls located principally in Fukushima Japan.

– 12 –

6

HALL OPERATING EXPENSES AND ADMINISTRATIVE AND OTHER OPERATING EXPENSES

Auditors’ remuneration— Audit fees
— Other services
Employee benefits expenses— Hall operations— Administrative and others
Expense relating to short-term and low-value leases
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
Depreciation of investment properties
Amortisation of intangible assets
Other taxes and duties
Utilities expenses
Consumables and cleaning
Outsourcing service expenses
Prizes procurement expenses to wholesalers
Pachinko and pachislot machines expenses (Note)
Advertising expenses
Impairment loss on other receivables
Impairment loss on property, plant and equipment
Impairment loss on right-of-use assets
Impairment loss on investment properties
Impairment loss on intangible assets
Legal and professional fees
Others2021¥ million2020¥ million

100
13

101
14

4,805
1,164
174
1,974
2,335
21
64
372
761
853
695
680
4,650
723
271
2,949
2,643
55
204
67
983

5,542
1,830
291
2,178
2,734
20
76
352
987
1,663
960
878
6,692
1,219
–
213
463
–
11
49
1,292

26,556

27,565

Note:
Pachinko and pachislot machines are expensed off in the consolidated statement of comprehensive
income upon installation. The expected useful lives of these machines are less than one year.

– 13 –

7

FINANCE COSTS, NET

Finance income
Bank interest income
Interest income on lease receivables
Other interest income

Finance costs
Bank borrowings
Lease liabilities
Provision for unwinding discountFinance costs, net
82021¥ million2020¥ million

2
37
56

5
–
57

95

62

(239)
(935)
(220)

(197)
(1,131)(108)(1,394)(1,436)(1,299)(1,374)2021¥ million2020¥ million

2
2

1,337
38

4
(2,902)

1,375
(658)

(2,898)717

INCOME TAX (CREDIT)/EXPENSE

Current income tax— Japan— Other Asian countries

Deferred income tax

No provision for Hong Kong profits tax or China income tax have been made for the years ended 31
March 2021 and 2020 as the Group did not generate any assessable profits arising in Hong Kong
and China during the years ended 31 March 2021 and 2020.

– 14 –

The tax on the Group’s (loss)/profit before income tax differs from the theoretical amount that would
arise using the profits tax rate of Japan as follows:92021¥ million2020¥ million(Loss)/profit before income tax(8,502)581

Tax calculated at applicable Japan corporate income tax
Effect of different in tax rates of subsidiaries
Income not subject to tax
Expenses not deductible for tax purpose
Unrecognised tax losses
Unrecognised deductible temporary differences(2,544)
(568)
(14)
65
34
129

174
82
(22)
314
6
163

(2,898)717(LOSS)/EARNINGS PER SHARE
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to owners of theCompany by the weighted average number of ordinary shares in issue during the years ended 31
March 2021 and 2020.

(Loss)/profit attributable to owners of the Company (¥ million)
Weighted average number of ordinary shares for the purpose of
calculating basic earnings per share (thousands)
Basic and diluted (loss)/earnings per share (¥)

2021

2020

(5,481)179

1,195,850

1,195,850(4.58)

0.15

No diluted (loss)/earnings per share is presented as there was no potential dilutive shares during theyears ended 31 March 2021 and 2020. Diluted (loss)/earnings per share is equal to the basic
earnings per share.
10

DIVIDENDS
No dividend was declared during the year ended 31 March 2021. For the year ended 31 March
2020, the Company paid interim dividend of ¥120 million (¥0.10 per ordinary share) and final
dividend of ¥84 million (¥0.07 per ordinary share) to its shareholders in respect of the years ended
31 March 2020 and 2019, respectively.
The board of directors of the Company has resolved not to declare a final dividend in respect of theyear ended 31 March 2021 (2020: Nil).

– 15 –

11

TRADE RECEIVABLES

Trade receivables

2021¥ million2020¥ million

64

48

Trade receivables represent income receivable from vending machines. The credit terms granted by
the Group generally ranged from 0 to 30 days.
As at 31 March 2021 and 2020, the ageing analysis of the trade receivables, based on invoice date,is as follows:

Less than 30 days

2021
¥ million2020¥ million

64

48

The maximum exposure to credit risk at the reporting date is the carrying value of the receivable
mentioned above. The Group does not hold any collateral as security.
The carrying amounts of trade receivables approximate their fair values as at 31 March 2021 and2020 and are denominated in ¥.
12

TRADE PAYABLES
The ageing analysis of the trade payables based on invoice dates as at 31 March 2021 and 2020
were as follows:

Less than 30 days

2021
¥ million2020¥ million

108

114

The carrying amounts of trade payables approximate their fair values as at 31 March 2021 and 2020.

– 16 –

13

BORROWINGS

Non-current portion
Bank loans
Syndicated loans

Current portion
Bank loans
Syndicated loans

Total borrowings

2021¥ million2020¥ million

738
–

3,365
6,488

738

9,853

3,740
12,189

1,427
1,806

15,9293,233

16,667

13,086As at 31 March 2021 and 2020, the Group’s borrowings were repayable as follows:

Within 1 year
Between 1 and 2 years
Between 2 and 5 years
Over 5 years

2021¥ million2020¥ million

15,929
326
406
6

3,233
2,389
5,454
2,010

16,667

13,086

The average effective interest rates (per annum) at the end of each reporting period were set out asfollows:

Bank loans
Syndicated loans– 17 –

2021

2020

1.68%
0.67%

1.80%
1.08%

At the end of each reporting period, the total borrowings are pledged by certain assets and theircarrying values are shown as below:

Property, plant and equipment
Investment properties
Deposits and other receivables

2021¥ million2020¥ million

9,790
611
170

10,475630
178

10,571

11,283The undrawn borrowing facilities of the Group at each reporting period are as follows:

Floating rate
— Expiring over 1 year2021
¥ million2020¥ million

1,383

600

The carrying amounts of borrowings of the Group approximate their fair values as at 31 March 2021
and 2020.
As at 31 March 2021, the Group had total borrowings of approximately ¥16,667 million, of whichapproximately ¥14,758 million are subject to annual financial covenant assessment. As at 31 March
2021, management assessed that the Group was not able to comply with certain covenants of partof the Group’s bank borrowings amounting to approximately ¥14,758 million. In June 2021, theGroup obtained written consents from all relevant banks on waiving the right to request for
immediate repayment arising from the breach of covenants for the year ended 31 March 2021.
These consents would remain in force until next annual assessment. The Group will repay theoutstanding borrowings in accordance with the original repayment schedules.
14

LEASES
During the year ended 31 March 2021, the Group received rent concessions in the form of adiscount on fixed monthly rental payments during the period of severe social distancing and travel
restriction measures introduced to contain the spread of Coronavirus Disease 2019 (“COVID-19”).
The Group has not early adopted the amendment to IFRS 16 “COVID-19-related rent concessions”
and has accounted for the rent concessions as lease modifications.

– 18 –

(a)Amounts recognised in the consolidated statement of financial position
2021¥ million2020¥ million

Right-of-use assets
Buildings
Leasehold improvement
Equipment and tools
Vehicle27,286355
263
4530,565
1,438
69–

Total right-of-use assets

27,94932,072

Lease liabilities
Current
Non-current

2,906
30,534

2,542
32,03533,44034,577

Additions and disposals to the right-of-use assets during the year ended 31 March 2021 were¥2,293 million and ¥1,502 million (2020: ¥562 million and ¥36 million), respectively.
For the year ended 31 March 2021, as a result of the impairment review, impairment loss ofapproximately ¥2,643 million (2020: ¥463 millions) has been recognised on right-of-use assets.
(b)

Amounts recognised in the consolidated statement of comprehensive income
The consolidated statement of comprehensive income shows the following amounts relating toleases:Depreciation of right-of-use assets
Buildings
Leasehold improvement
Equipment and tools
Motor vehicles

Interest expense (included in finance cost)
Expense relating to short-term leases (included inhall operating expenses)
Expense relating to leases of low-value assetsthat are not shown above as short-term leases(included in administrative expenses)

31 March2021¥ million

31 March2020¥ million

1,946
298
70
21

2,412
292
30
–

2,335

2,734

935

1,131

160

259

14

32

The total cash outflow for leases during the year ended 31 March 2021 was ¥4,032 million(2020: ¥3,142 million).

– 19 –

(c)The Group’s leasing activities and how these are accounted for
The Group leases various offices, pachinko and pachislot halls, amusement arcades centres,
equipment and motor vehicles. Rental contracts are typically made for fixed periods of 5 to 20
years but may have extension options as described below.
Lease terms are negotiated on an individual basis and contain a wide range of different terms
and conditions. The lease agreements do not impose any covenants other than the security
interests in the leased assets that are held by the lessor. Leased assets may not be used as
security for borrowing purposes.

(d)Extension and termination options
Extension and termination options are included in a number of property leases across theGroup. These terms are used to maximise operational flexibility in terms of managing contracts.
The majority of extension and termination options held are exercisable under mutual agreementby the Group and the respective lessor.
In determining the lease term, management considers all facts and circumstances that create
an economic incentive to exercise an extension option, or not exercise a termination option.
Extension options (or periods after termination options) are only included in the lease term if thelease is reasonably certain to be extended (or not terminated).

– 20 –

MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS OVERVIEWThe World Health Organization (WHO) declared an outbreak of the new coronavirus
infection (“COVID-19”) which was widespread in China as a global pandemic on 11
March 2020. The pandemic has disrupted consumer markets around the world, andhugely impacted the global economy since the Great Depression. Governments aroundthe world have announced stay-at-home orders and social distancing measures toensure the safety of their people, and also implemented fiscal stimulus packages tosupport businesses and the economy. Under these circumstances, the patterns ofshopping, dining, work and entertainment by consumers have changed, and many of
their behaviors and values have also changed. The IMF anticipated that the global
economy will be recovered to 6.0% in 2021 after the shrinkage by 3.6% in 2020.
However, uncertainty in the anticipation was not expected to be low considering thefuture development of the pandemic such as the spread of new variant and theeffectiveness of political support that will lead to the normalization of vaccine-driven
economic activities. COVID-19 contributing worldwide spread of infection had aconsiderable impact on the business of the Group.
In the pachinko hall business, which is the core business of the Group, the Japan
Government announced the first state of emergency in April 2020, resulting in temporary
closure of all outlets. Since then, the number of new infections has continued to moveup and down, the second state of emergency was announced primarily in the Tokyo
metropolitan area in January 2021, and the third state of emergency was alsoannounced primarily in the Tokyo metropolitan area in April 2021. This state of
emergency restricted travel and going-out activities not only in the specified target areas
but also nationwide, resulting in significant impact on the local economy. Under thesecircumstances, although the Company has taken infection prevention measures so that
customers who come to our outlets are able to play with a sense of security, manycustomers have stopped visiting pachinko halls or reduced the frequency of visits dueto the spread of COVID-19, and the hall traffic has decreased significantly throughout
the year. Therefore, the total revenue (gross pay-ins) of Niraku, a subsidiary thatengages in pachinko hall business, declined by 32% compared with the previous period.
Even now, we cannot exactly tell that the outbreak of COVID-19 has already settled
down, and the number of customers has been recovering by around 80% before thepandemic. The pachinko market has shown a long-term decreasing tendency, and even
if COVID-19 pandemic settles down, people’s lifestyles are expected to change, and therecovery rate of the hall traffic will remain at around 80% with no significant
improvement. In addition, due to the change of standards for machines, it is mandatory
to replace all machines with the machines that comply with new standard by the end of
2021. This means that the gambling nature of machines will become lower thanconventional ones, and it is expected that the revenue (gross pay-ins) per machine will
decrease.

– 21 –Despite these harsh business conditions, such changes in the business environment
can be taken as an opportunity to transform the business structure. In this fiscal year, torespond to these challenges, we not only complied with the industry’s infection
prevention guidelines in each outlet, but also have made efforts to create anenvironment where customers are able to come to the outlets with a sense of security
and play comfortably. In addition, we have accelerated the closure of unprofitable
outlets in accordance with medium-term business plan and closed 7 outlets, and we
started to improve the efficiency of company-wide expenses by substantially reexamining operations of outlets. We have put effort on creating a corporate system thatcan secure profits even under these circumstances. On the other hand, we opened amega outlet with more than 1,000 machines in August 2020. New outlet opening
despite the shrinking market is important for increasing market share and shallconstitute the core of Niraku’s medium-term strategy. Thus, in the domestic pachinko
hall business, we will proceed with the digitization to further improve cost efficiency,
also we will build a solid profit structure in the future by investing in new outlets basedon the financial foundation we have established.
The impact of the COVID-19 pandemic was also significant in our businesses in China
and Southeast Asia, resulting in substantial drop in revenue due to intermittent
temporary closures of restaurants and gaming arcades.
Dream Games, a subsidiary that operates gaming arcades business in Vietnam andCambodia, resulted in a 39% decrease in operating revenue compared to the previous
year due to a series of temporary closure upon the request by the governments of thecountries and requests from malls where the outlets located to remove machines withhigh gambling elements. While the spread of COVID-19 has rebounded from April 2021,
off-and-on suspension of business of gaming arcades continued, and an end to theepidemic is not in sight. In order to deal with this situation, although we have taken
measures such as closure of unprofitable stores, cost reduction, and streamlining ofexpenses, we do not expect the business environment will improve immediately. We willcontinue to strengthen our business structure to cope with the unforeseen businessenvironment by further reducing costs and improving cost efficiency. On the other hand,
although the GDP growth rates of both countries dropped dramatically in 2020 due tothe outbreak of COVID-19, IMF forecast the growth rate will recover to a high level again
after the COVID-19 pandemic settles down, and we expect to see recovery and growthof business. While we closed three unprofitable outlets this fiscal year, we opened threeoutlets in Vietnam. One of these outlets is a large-scale outlet incorporating many
athletic elements that are different from the traditional Japanese arcade style, and weare also making investments in anticipation of the settlement of the COVID-19
pandemic. As mentioned above, both countries are still developing countries, and we
expect that consumption and leisure markets will continue to expand. The amusement
arcade business in both Vietnam and Cambodia is centered on opening outlets inleading shopping malls. The new development plans of leading shopping malldevelopment companies in both countries have not been changed on the assumptionthat future economic growth is foreseeable. While keeping an eye on this situation, we
will continue to expand our business focusing on opening outlets in shopping malls.

– 22 –

The joint business of operating Japanese restaurant food court “YOKOCHO” in
Shenzhen City, Guangdong Province, China, opened in July 2019, was considered tobe difficult to continue operations given that the recovery of number of customers
visiting the shopping malls where the outlets located cannot be expected due to theimpact of the outbreak of COVID-19 within China. Accordingly, in February 2020, we
decided to suspend operations. Nevertheless, China’s domestic economy has improved
as a result of success of Chinese government’s measures against COVID-19 pandemic
and initiatives at an early stage for resumption of economic activities. Therefore, we
decided to resume the operations within 2021.
The Hong Kong-based e-sports joint business in the Asian region was significantly
impacted by changes in the political circumstances and the outbreak of COVID-19. As aresult, we were unable to hold any planned e-sports games events which are major
source of earnings, and the situation has not improved yet. In this business, we haveplanned to form an e-sports university league mainly in the Asian region and organize
events in various locations of the Asian region as the core of our business strategies. In
the future, we will look for a path for business reconstruction, including a review of ourbusiness models.
The Group’s medium-term strategy is to focus on securing revenues and expanding
market share in the pachinko hall business, which is our core business, and to invest in
opening new outlets and M&A, aiming to create a structure that is able to secure stableearnings. At the same time, we will renovate existing outlets and make investments topromote digitization with the aim of further improving business efficiency. In addition,from a long-term perspective, the size of the pachinko market is on a declining trend,
and we plan to branch out into new businesses in Japan.
In addition to Japan, while keeping an eye on COVID-19 pandemic in each country, we
will focus on rebuilding and strengthening individual businesses in the short term andwill put effort on stabilizing the business foundation as a priority issue. Over the medium
term, we will also seek to expand existing businesses and create new business
opportunities in order to respond to changes in the business environment in eachcountry.
FINANCIAL REVIEWRevenue from Pachinko and Pachislot Business
Revenue from pachinko and pachislot is derived from gross pay-ins netted with gross
pay-outs.
Revenue from pachinko and pachislot business recorded a drastic decrease of ¥8,124
million, or 32.5%, from ¥25,007 million in 2020 to ¥16,883 million in 2021. The plunge
was due to the declaration of the state of emergency by the government of Japan,
restricting social activities and people-to-people contact to curb the spread of
COVID-19. Following the declarations, pachinko and pachislot halls of the Group were
temporarily closed. Though the restrictions were lifted subsequently, customers had low
intention to visit the pachinko halls during the pandemic. Further, to reduce costs and– 23 –

preserve resources, during the financial year, seven loss-making pachinko halls wereclosed down. All these factors had caused disruption on the business and in turndampened the revenue in 2021.
Gross pay-ins
For the year ended 31 March 2021, the Group’s gross pay-ins from pachinko andpachislot business amounted to ¥94,414 million, comprising revenue from suburban
halls of ¥92,014 million (2020: ¥132,706 million) and urban halls of ¥2,400 million (2020:¥6,347 million), representing a drop of ¥40,692 million, or 30.7%, and ¥3,947 million, or
62.2%, respectively, as compared to last year. The overall decrease was caused by thefactors mentioned above.
Gross pay-outs
Gross pay-outs, being the aggregate cost of G-prizes and general prizes exchanged bycustomers, dropped from ¥114,046 million in 2020 to ¥77,531 million in 2021, a plungeof ¥36,515 million, or 32.0%, which corresponded to the decrease in gross pay-ins.
Revenue margin
The revenue margin in current year decreased by 0.1% from 18.0% in 2020 to 17.9% in
2021 with no material change as compared to prior year.
Revenue from Amusement Arcade Business
Revenue from amusement arcade business decreased from ¥1,663 million in 2020 to¥1,015 million in current year. The amount comprised revenue derived from Vietnam
and Cambodia amounting to ¥872 million and ¥143 million, respectively (2020: ¥1,292
million and ¥371 million, respectively). The decrease in revenue was due to the
lockdown and social distancing measures imposed by local governments, causing
temporary closure of game centres in both Vietnam and Cambodia.
Other revenue
Other revenue represents incomes from vending machines, hotel and restaurant
operations.
Vending machines income amounted to ¥335 million in 2021. The decrease of ¥145
million as compared to ¥480 million in 2020 was resulted from the negative impact of
COVID-19 as mentioned above.
Income from hotel operation amounted to ¥55 million in 2021, recording a significant
drop of ¥88 million, or 61.5%, as compared to 2020 of ¥143 million. The hit on hotel
income is caused by extremely low occupancy rate of 41.7% for the year ended 31
March 2021 as compared to 66.5% in 2020, as the hotel was closed for few months
during the early outbreak of COVID-19 in 2020 and the earthquake that happened in
February 2021.

– 24 –

Revenue from restaurant also noted a decline of ¥500 million in current year, from ¥753
million in 2020 to ¥253 million in 2021 which was mainly resulted from the temporary
suspension of YOKOCHO business during the pandemic.
Hall operating expenses
Hall operating expenses decreased by ¥3,663 million, or 17.3%, from ¥21,234 million in2020 to ¥17,571 million in current year. Major components of hall operating expenses
are pachinko and pachislot machine expenses, staff cost for hall staff and depreciation
expenses, amounting to ¥4,650 million, ¥4,805 million and ¥4,124 million, respectively,
for the year ended 31 March 2021 (31 March 2020: ¥6,692 million, ¥5,542 million and¥4,384 million, respectively).
The decrease in hall operating expenses was resulted from the combined effects of (i)less pachinko and pachislot machines purchased during the current year; (ii)cancellation of interim bonus for staff; and (iii) decrease in variable costs such as repair
and maintenance.
Administrative and other operating expenses
Administrative and other operating expenses dropped significantly by ¥2,262 million, or
40.0% from ¥5,655 million for the year ended 31 March 2020 to ¥3,393 million in 2021.
The plunge in expenses was attributable to the decrease in staff and recruitment
expenses and advertising expenses under the cost control measures.
Impairment loss
Impairment loss on property, plant and equipment and right-of-use assets increased
drastically from ¥676 million in 2020 to ¥5,592 million in 2021. The International
Accounting Standard 36 “Impairment of Assets” (“IAS 36”) requires that assets be
carried at no more than their recoverable amount. If an asset’s carrying value exceeds
the amount that could be received through use or selling the asset, then the asset isimpaired and IAS 36 requires a company to make provision for the impairment loss. The
management carries out impairment assessment when there are events that indicatethat the related asset values may not be recoverable, and when impairment indicators
exist for the Group’s cash-generating units (“CGUs”).
The Group’s impairment indicators for previous years required impairment assessment
on halls with operating at a loss for current financial year and performed below
management’s expectations. Due to the outbreak of COVID-19 in Japan, there was asignificant drop in customer traffic at pachinko halls during 2021, particularly when theGroup was mandatorily required to temporarily suspend operations at its pachinko halls
from mid-April 2020 to May 2020.
The management noted that its financial performance is highly sensitive to changes inmarket situations. Taking into account the ongoing development and impact of
COVID-19 outbreak, management considered CGU with loss for one year or had
performed below management’s revised expectation as having impairment indicator,– 25 –

and performed impairment assessments over pachinko and pachislot hall operations,amusement arcade operations and restaurant operations by assessing the recoverable
amounts of the CGU, determined as the higher of their value-in-use and fair value lesscost of disposal. As a result, the Group recognised an impairment loss of ¥2,949 millionand ¥2,643 million over plant, property and equipment and right-of-use assets,
respectively.
Finance costs
Finance costs, net amounted to ¥1,299 million for the year ended 31 March 2021 ascompared to ¥1,374 million in 2020. The drop was attributable to the increase ininterest income received from sub-leasing, and decrease in interest expense on leaseliabilities.
(Loss)/profit attributable to owners of the Company, basic (loss)/earnings per
share and dividend
Loss attributable to shareholders of the Company of ¥5,481 million was recorded forthe year ended 31 March 2021, as compared to profit attributable to shareholders of
the Company of ¥179 million for the year ended 31 March 2020. The turnaround fromprofit in 2020 to loss in 2021 was due to the significant drop in revenue and substantive
increase in provision for impairment loss on fixed assets caused by the negative impact
of COVID-19 pandemic.
Basic loss per share for the year ended 31 March 2021 was ¥4.58 (basic earnings per
share for the year ended 31 March 2020: ¥0.15). The Board has resolved not to declarea final dividend for the year ended 31 March 2021 (31 March 2020: Nil).
CAPITAL STRUCTURE
The Group principally meets its working capital and other liquidity requirements througha combination of capital contributions, including cash flow from operations and bankborrowings. The Group’s daily operation is mainly financed by operating cash flows, andrelied on short- and long-term borrowings for financing working capital, future expansion
plans and unexpected needs. The Group’s treasury objective is mainly to ensure there
is sufficient cash flow to meet the payment of expenses, loans and to fund any capital
expenditure and commitment that the Group may have from time to time. The Group’s
cash surpluses are placed in short-term and long-term fixed deposits to maintainliquidity. The Group has not experienced any difficulty in repaying its borrowings.
The Group’s principal business activities are carried out in Japan, with income,expenditure, assets and liabilities mainly denominated in Japanese Yen, as such, theGroup does not have any material foreign exchange exposure.

– 26 –

The table below sets forth the information regarding the cash and bank balances,borrowings, lease liabilities, working capital, total equity and gearing ratio of the Groupas at 31 March 2021 and 2020, and operating cash flows before movements in working
capital of the Group for the years ended 31 March 2021 and 2020, respectively:
As at 31 March
2021
2020
¥ million¥ million
Cash and cash equivalents
Bank deposits with original maturity over 3 months

Bank loans
Syndicated loans
Lease liabilities

Working capital (Note 1)
Total equity
Gearing ratio (Note 2)

15,90342

14,128750

15,945

14,878

4,478
12,18933,4404,792
8,294
34,577

50,10747,663(5,868)20,206
1.7

4,913
25,7991.3

Note 1: Working capital being current assets less current liabilities.
Note 2: Gearing ratio is calculated as total borrowings and lease liabilities less cash and cash equivalents
divided by equity.

For the year ended
31 March
2021
2020¥ million¥ million
Operating cash flows before movements inworking capital

3,150

7,122

As at 31 March 2021, net current liabilities of the Group totalled ¥5,868 million (31March 2020: net current assets ¥4,913 million), and current ratio was 0.75 as at 31
March 2021 (31 March 2020: 1.44). As at 31 March 2021, there were cash and cash
equivalents of ¥15,903 million (31 March 2020: ¥14,128 million), in which ¥14,480
million was denominated in Japanese Yen, ¥1,119 million was denominated in UnitedStates dollar, ¥238 million was denominated in Hong Kong dollar and ¥66 million was
denominated in other currencies. As at 31 March 2021, the Group had total borrowings
and lease liabilities of ¥50,107 million (31 March 2020: ¥47,663 million). Current portionof bank borrowings and current portion of lease liabilities amounted to ¥18,835 million
as at 31 March 2021 (31 March 2020: ¥5,775 million).

– 27 –

The Group’s bank borrowings during the current period comprised bank loans andsyndicated loans. As at 31 March 2021, the total bank borrowings amounted to¥16,667 million (31 March 2020: ¥13,086 million), with average effective interest rates
on bank borrowings ranged from 0.67% to 1.68% (31 March 2020: 1.08% to 1.80%)
per annum. Approximately 6.6% of bank borrowings as at 31 March 2021 were fixed
rate borrowings.
HEDGING OF FLOATING RATE BORROWINGS AND FOREIGN EXCHANGE
As at 31 March 2021, the Group had three floating to fixed interest rate swap contracts
with banks in Japan (i.e. the Group pays fixed interest rates and receives interests at
floating rate). These interest rate swap contracts were entered into as a measure to
manage interest rate risk in relation to loans of the Group. As interest rates of some of
the Group’s loans are on a floating rate basis, the floating to fixed interest rate swap
contracts enabled the Group to reduce the volatility in the amount of interest being paid.
For the year ended 31 March 2021, gain on fair value for interest rate swap contracts
amounted to ¥7 million (2020: ¥5 million).
The Group did not carry out significant foreign currency investment and its debts were
all denominated in Japanese Yen as at 31 March 2021. As the functional currency of
certain subsidiaries are different from the Company, the Group will be exposed toforeign exchange risk arising from such exposure, namely in Singapore Dollar,
Vietnamese Dong, Cambodian Riel and Renminbi against Japanese Yen. The
management is assessing the significance of the foreign currency exposures faced by
the Group and will consider adopting appropriate measures to mitigate the risk,
including but not limited to entering into currency hedges.
GEARING RATIOThe gearing ratio, defined as the aggregate of interest-bearing loans and lease liabilities
less cash and cash equivalents, divided by total equity, was 1.7 as at 31 March 2021
(31 March 2020: 1.3).

– 28 –CAPITAL EXPENDITURE
Capital expenditure mainly comprised of expenditure for (i) the purchase of property,
plant and equipment mainly used for construction of buildings, and (ii) the purchase of
equipment and tools for the maintenance of our pachinko and pachislot hall andamusement arcade operations. The table below shows a breakdown of the capital
expenditure for the indicated periods:

Property, plant and equipment
Right-of-use assets
Investment property
Intangible assets

2021¥ million2020¥ million

1,718
2,293
183
40

1,473
963
–
63

4,234

2,499

CHARGES ON ASSETS
As at 31 March 2021 and 2020, the carrying values of charged assets were as below:

Property, plant and equipment
Investment properties
Deposits and other receivables

2021¥ million2020¥ million

9,790
611
170

10,475630
178

10,571

11,283

CONTINGENT LIABILITIESThe Group did not have any material contingent liabilities as at 31 March 2021 and2020.
SIGNIFICANT INVESTMENTS, MATERIAL ACQUISITIONS AND DISPOSALS OF
SUBSIDIARIES, AND FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITALASSETS
Save for those disclosed in this results announcement, the Group had no planauthorised by the Board for other material investments or additions of capital assets asat the date of this results announcement.
There is no important event affecting the Company that have occurred since the end of
the financial year.

– 29 –

EMPLOYEES AND REMUNERATION POLICY
As at 31 March 2021, the Group had 1,717 employees. The remuneration policy of theGroup (including those for directors and employees) is determined by the Remuneration
Committee under the Board as per the performance, qualifications and competence ofthe employees.
FINAL DIVIDENDThe Board has resolved not to declare a final dividend in respect of the year ended 31
March 2021 (31 March 2020: Nil).
CORPORATE GOVERNANCE
During the year ended 31 March 2021, the Company has adopted and complied with all
the applicable principles and code provisions of the Corporate Governance Code andCorporate Governance Report (the “CG Code”) contained in Appendix 14 to the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the“Listing Rules”), with the exception for code provision A.2.1, which requires the roles ofchairman and chief executive to be separated and should be performed by different
individuals, and code provision E.1.3, which requires that notice for an annual general
meeting should be sent to the shareholders at least 20 clear business days before themeeting.
Code Provision A.2.1
Under code provision A.2.1 of the CG Code, the roles of chairman and chief executive
should be separate and should not be performed by the same individual. Our Chairman
currently holds both positions. Since April 2010, our Chairman has been the key
leadership figure of our Group who has been primarily involved in the formulation ofbusiness strategies and determination of the overall direction of our Group. He has also
been chiefly responsible for our Group’s operations as he directly supervises our
executive officers (other than himself) and members of our senior management. Taking
into account the continuation of the implementation of our business plans, the Directors(including our independent non-executive Directors) consider our Chairman is the best
candidate for both positions and the present arrangements are beneficial to and in theinterests of our Company and our shareholders as a whole.
Code Provision E.1.3
Code provision E.1.3 stipulates that notice for an annual general meeting (the “AGM”)
should be sent to its shareholders by the issuer at least 20 clear business days before
the meeting. The AGM of the Company for the year ended 31 March 2020 was held on
29 July 2020 (the “2020 AGM”), while the notice for the 2020 AGM was despatched on
3 July 2020. The above arrangement complied with the articles of incorporation of theCompany (the “Articles of Incorporation”) prepared pursuant to the Companies Act inrespect of the minimum notice period of 21 calendar days (the date of sending and thedate of the meeting shall not be included within this period) for AGM but the notice
period for the 2020 AGM was less than 20 clear business days before the 2020 AGM.
– 30 –

Under the Companies Act and the Articles of Incorporation, the Company is required tohold an AGM within three months after the expiration of each financial year (i.e. on or
before 30 June 2020 for the financial year ended 31 March 2020). Due to COVID-19, itis permitted by the Ministry of Justice of Japan to hold the 2020 AGM on a day after thedate specified in the Articles of Incorporation.
The Companies Act also requires the notice for the AGM to be despatched together
with the audited financial statements under the Japanese Generally Accepted
Accounting Principles, which must be approved by the Board. On the other hand, theannual report must contain audited financial statements prepared under the IFRS as
required under the Listing Rules. As a result, more time was required to finalise theannual report which accompanied the AGM notice despatched to the shareholders of
the Company (the “Shareholders”).
DIRECTORS’ SECURITIES TRANSACTIONSThe Company has adopted the Model Code for Securities Transactions by Directors of
Listed Issuers as set out in Appendix 10 to the Listing Rules (the “Model Code”) as its
own code of conduct regarding securities transactions by Directors. Having madespecific enquiry with all Directors, the Directors confirmed that they had complied withthe required standard set out in the Model Code and the Company’s code of conduct
during the year ended 31 March 2021.
PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIESThe Company did not redeem any of its listed securities during the year ended 31
March 2021. Neither the Company nor any of its subsidiaries purchased or sold any of
the Company’s listed securities during the year ended 31 March 2021.
AUDIT COMMITTEE
The audit committee of the Company had reviewed, together with the management andexternal auditor, the accounting principles and policies adopted by the Group and theaudited consolidated financial statements of the Group for the year ended 31 March
2021.
SCOPE OF WORK OF PRICEWATERHOUSECOOPERS
The figures in respect of the Group’s consolidated statement of financial position,
consolidated statement of comprehensive income, and the related notes thereto for theyear ended 31 March 2021 as set out in this preliminary results announcement havebeen agreed by the Group’s auditor, PricewaterhouseCoopers, to the amounts set out
in the Group’s audited consolidated financial statements for the year. The work
performed by PricewaterhouseCoopers in this respect did not constitute an assurance
engagement in accordance with Hong Kong Standards on Auditing, Hong Kong
Standards on Review Engagements or Hong Kong Standards on Assurance
Engagements issued by the Hong Kong Institute of Certified Public Accountants andconsequently no assurance has been expressed by PricewaterhouseCoopers on thispreliminary results announcement.
– 31 –

ANNUAL GENERAL MEETING AND RECORD DATE
The annual general meeting of the Company (the “2021 AGM”) will be held on 29 July
2021 at 1-24 Hohaccho 2-chome, Koriyama-shi, Fukushima, Japan. Notice of the 2021
AGM will be published and issued to Shareholders in due course. The right to attend
and vote at the 2021 AGM will be granted to the Shareholders whose names appear on
the Company’s share register at the close of business on Friday, 23 July 2021.
In order for those Shareholders whose names have not been registered on the
Company’s share register to be eligible to attend and vote at the 2021 AGM, all properly
completed, duly stamped and executed transfer documents accompanied by therelevant share certificates should be lodged with the Company’s share registrar,
Computershare Hong Kong Investor Services Limited at Shops 1712–1716, 17th Floor,
Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong before 4:30 p.m.
(Hong Kong time) on Friday, 23 July 2021.
PUBLICATION OF ANNUAL RESULTS ANNOUNCEMENT AND ANNUAL REPORTThis annual results announcement is published on the websites of The Stock Exchange
of Hong Kong Limited (the “Stock Exchange”) (www.hkexnews.hk) and the Company(www.ngch.co.jp), and the annual report of the Company for the year ended 31 March
2021 containing all the information required by the Listing Rules will be dispatched to
the Shareholders and will be published on the respective websites of the Stock
Exchange and the Company in due course.
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, 28 June 2021
As at the date of this announcement, the executive Directors are Hisanori TANIGUCHI,
Akinori OHISHI and Masataka WATANABE; the non-executive Director is Hiroshi
BANNAI; and the independent non-executive Directors are Michio MINAKATA, Yoshihiro
KOIZUMI, Kuraji KUTSUWATA and Akihito TANAKA.
*

for identification purpose only

– 32 –