OKURA HOLDINGS LIMITED

Our Business

Overview

Our Group is a pachinko hall operator in Japan. Customers come to our halls to play pachinko and pachislot games, one of the most popular forms of entertainment for adults in Japan. We currently have 10 pachinko halls, out of which, 7 are in the Kyushu region and 1 in each of the Kanto, Kansai and Chugoku regions.

Our Pachinko Hall Operations

Pachinko and Pachislot Games

A pachinko machine resembles a vertical pinball machine (but without pinball flippers and with a large number of playing balls). The objective is to collect as many pachinko balls as possible, in order to exchange them for prizes at pachinko halls. The customer fires the balls into the playing field in rapid succession, while controlling the velocity of the pachinko balls by turning a handle located next to the tray. Currently, playing costs generally range from around ¥0.2 to ¥4 (including consumption tax) per ball.

A pachislot machine is similar to a traditional western slot machine, with three reels of different images in the playing field. The objective of pachislot is to collect more tokens by stopping the spinning reels such that the images on each reel match up to form a winning combination. The customer inserts tokens into the machine and pulls the start lever, which causes the three reels to begin to spin. While the reels are spinning, the customer presses the stop button under each reel to stop the corresponding reel. If, after the three reels have been stopped and the winning combination of pictures appear, the customer wins more tokens. Currently, playing costs generally range from around ¥2 to ¥22 (including consumption tax) per token.

Players aim to collect the most number of balls and tokens, which can either be exchanged for prizes or saved for subsequent visits.

Redeeming Prizes

Prizes provided by pachinko halls consist of:

General prizes: These are typically the types of daily goods sold in convenience stores, such as accessories, fragrances, food and snacks, household goods, drinks (including liquor), cigarettes and toys.

G-prizes: These are decorative cards with a small embedded piece of precious metal (such as gold) or coin-shaped pendants of precious metal (such as gold), and can be subsequently sold by customers to independent G-prize buyers for cash.

Our Pachinko Halls

We operate 10 pachinko halls under the trading names "K’s Plaza" "Big Apple" and "SENKURA" to cater to customers preference and address the competition in the area. The majority of our halls provide a mix of low and high playing cost machines or just low playing cost machines. The majority of our pachinko halls have a mix of pachinko and pachislot machines, whilst some only have pachislot machines, depending on the customers’ preference in the area.

Customers and Suppliers

As a pachinko hall operator, we have a large and diversified customer base in the regions where we operated our halls. Our suppliers consist of (1) machine suppliers; (2) G-prize wholesalers; and (3) general prize suppliers.

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