Financial Performance - For the first half of 2024, the group's net revenue increased by 37% to HKD 21.5 billion, and adjusted EBITDA also rose by 37% to HKD 6 billion[4]. - In Q2 2024, the group's adjusted EBITDA was HKD 3.2 billion, representing a year-on-year increase of 28% and a quarter-on-quarter increase of 12%[4]. - The group reported a net profit attributable to shareholders of HKD 4.4 billion for the first half of 2024, up 52% year-on-year[4]. - Revenue for the six months ended June 30, 2024, reached HKD 21,470,552 thousand, a 36.6% increase from HKD 15,715,349 thousand in the same period of 2023[9]. - Net profit for the period was HKD 4,407,244 thousand, up 52.0% from HKD 2,897,450 thousand year-over-year[10]. - Basic earnings per share increased to HKD 100.3 from HKD 66.2, reflecting a 51.4% growth[9]. - Total comprehensive income for the period was HKD 4,259,060 thousand, compared to HKD 3,957,591 thousand in the previous year, marking a 7.6% increase[10]. - Adjusted EBITDA for the gaming and entertainment segment was HKD 5,723,987,000, while the construction materials segment reported HKD 366,164,000, leading to a total adjusted EBITDA of HKD 6,011,045,000 for 2024[19]. - The company recorded a net profit of HKD 4,407,244,000 for the six months ending June 30, 2024, compared to HKD 2,897,450,000 for the same period in 2023, indicating an increase of approximately 52%[19][20]. Cash and Investments - As of June 30, 2024, the group held cash and liquid investments of HKD 29 billion, resulting in a net amount of HKD 25.2 billion after deducting liabilities of HKD 3.8 billion[8]. - Cash and cash equivalents increased to HKD 17,372,495 thousand from HKD 14,511,770 thousand, indicating a 19.8% rise[11]. - The company maintains a conservative treasury policy, primarily investing surplus cash in time deposits and high-quality listed debt securities[51]. - The company has no leverage ratio and continues to monitor its borrowing levels closely to ensure smooth repayment of debts[50]. Dividends - The group announced an interim dividend of HKD 0.50 per share, to be distributed around October 25, 2024[8]. - The company declared a special dividend of HKD 0.30 per share, totaling approximately HKD 1.311 billion, payable on April 26, 2024[57]. - The interim dividend of HKD 0.50 per share is expected to total approximately HKD 2.190 billion, payable on October 25, 2024[57]. Market and Operations - The average occupancy rate of the seven hotels in Q2 2024 was 98%[5]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[9]. - The company plans to continue expanding its operations in Macau and Hong Kong, focusing on enhancing its gaming and entertainment offerings while also growing its construction materials business[19]. - The company is investing over HKD 33 billion in non-gaming initiatives to support the diversification of Macau's tourism products under the new license[47]. - The company plans to enhance its resort offerings by upgrading dining and retail options to maintain competitiveness and customer appeal[43]. Development Projects - The group is advancing the internal renovations and Phase 4 development of Galaxy Macau, focusing on non-gaming businesses and family-friendly facilities[3]. - The Galaxy Macau's new project, expected to open in mid-2025, will feature approximately 100 luxury sky villas and suites[44]. - The fourth phase development, covering approximately 600,000 square meters, aims to introduce several high-end hotel brands and is expected to be completed by 2027[45]. Regulatory and Economic Environment - The government has expanded the individual visit scheme to 59 applicable cities, covering a total population of approximately 500 million[2]. - The company plans to support the Macau government's economic diversification efforts and attract more overseas tourists through its investment commitments[12]. - Macau's tourism demand is expected to continue growing, supported by improved transportation links and government initiatives to attract international visitors[46]. Accounting and Compliance - The company has adopted revised accounting standards in 2024, which are not expected to have a significant impact on its financial performance and position[15]. - The company is currently evaluating the impact of new accounting standards and amendments that will take effect in the coming years[16]. - The company's financial statements for the six months ended June 30, 2024, were prepared in accordance with Hong Kong Financial Reporting Standards[13]. Visitor Statistics - The number of visitors to Macau in the first half of 2024 was 16.7 million, a 44% increase compared to the previous year[30].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 50.97, representing a potential upside of 30.86% from the current stock price of HKD 38.95 [1][2]. Core Insights - The company's Q1 2024 performance met expectations, with net revenue increasing by 49.6% year-on-year to HKD 10.55 billion, recovering to 80.9% of the 2019 level [1]. - The VIP gaming table turnover rose by 78.5% year-on-year, while mass gaming revenue increased by 57.0% year-on-year, although it saw a slight decline of 1.3% quarter-on-quarter due to lower win rates [1]. - The adjusted EBITDA grew by 48.7% year-on-year to HKD 2.84 billion, with an EBITDA margin of 26.9% [1]. - The company holds a strong balance sheet with net cash of HKD 25 billion, the strongest in the industry [1]. Financial Performance Summary - Total net revenue for 2023 was HKD 35.68 billion, with a projected increase to HKD 44.31 billion in 2024, reflecting a year-on-year growth of 24.2% [3][4]. - The EBITDA for 2023 was HKD 9.96 billion, expected to rise to HKD 12.79 billion in 2024, indicating a growth rate of 28.4% [3][4]. - Net profit for 2023 was HKD 6.83 billion, with projections of HKD 10.20 billion for 2024, showing a significant increase of 49.4% [3][4]. - The company’s earnings per share (EPS) is projected to grow from HKD 1.6 in 2023 to HKD 2.3 in 2024 [3][4]. Market Position and Future Developments - The company’s market share has shown signs of recovery in April and May, benefiting from an increase in sales personnel and the introduction of smart gaming tables [1]. - The company plans to launch a new hotel brand, Capella, in mid-2025 and is progressing with the construction of the fourth phase of its Macau project, expected to be completed by 2027 [1]. - The company is focusing on enhancing its dining and retail offerings and has a strong interest in expanding into Thailand [1].

Corporate Vision and Strategy - Galaxy Entertainment Group's vision is to become Asia's premier gaming and entertainment enterprise, leveraging deep insights into local markets and Chinese culture to maintain a competitive edge[2] - The company's vision is to become "Asia's leading gaming and entertainment enterprise" and it aims to achieve this through its operational philosophy outlined in the annual report[70] - The company successfully launched Phase 3 projects in 2023, including the Galaxy International Convention Center, Galaxy Arena, Andaz Macau, and Raffles at Galaxy Macau, focusing on non-gaming elements to align with Macau's government policies[70] - Phase 4 projects have commenced, further expanding the company's non-gaming facilities to attract a more diverse customer base and support Macau's vision as a "World Center of Tourism and Leisure"[70] Macau Operations and Facilities - The company operates three flagship projects in Macau, including the "Macau Galaxy™" integrated resort, which spans 1.4 million square meters and features seven world-class hotels with approximately 4,750 rooms[6][7] - "Macau Galaxy™" includes the Galaxy International Convention Center, offering 40,000 square meters of event space, capable of hosting up to 16,000 guests for cocktail events[7] - The Galaxy Arena, part of "Macau Galaxy™," is Macau's largest indoor arena, accommodating up to 16,000 guests and equipped with advanced audiovisual technology[8] - The resort's "Sky Wave" water park covers 75,000 square meters, featuring a 575-meter-long "Sky River" and a wave pool with artificial waves up to 1.5 meters high[7] - Galaxy Fashion Mall, within "Macau Galaxy™," spans over 100,000 square meters and houses more than 200 international luxury and lifestyle brands[7] - The resort offers over 120 dining options, ranging from Michelin-starred restaurants to local culinary experiences[7] - The Galaxy Cinema, equipped with 3D and 4K laser projection systems, provides an unparalleled movie experience across 10 independent theaters[7] - The company's third phase expansion, including the Galaxy International Convention Center and Raffles at Galaxy Macau, opened in 2023, further enhancing its offerings[7] - The company is advancing the development of Phase 4 in Cotai, which will expand its footprint by 600,000 square meters and add approximately 7,500 hotel rooms and suites upon completion[11] - The company completed several development projects in 2023, including the opening of Raffles at Galaxy Macau, the Sky Club high-limit gaming area, and the Galaxy International Convention Center[25] - The company plans to expand its international presence with new offices in Tokyo, Seoul, and Bangkok, aiming to attract high-end international tourists[25] - The company's properties, including Banyan Tree Macau, Galaxy Hotel, Okura Macau, and The Ritz-Carlton Macau, received Forbes Travel Guide Five-Star awards[27] - Galaxy Macau was ranked second in the Asia-Pacific region for Best Integrated Resort and third for Best Hotel in Macau by Travel + Leisure[29] - The company's properties received multiple sustainability awards, including the EarthCheck Gold Certification for Banyan Tree Macau and the Macau Environmental Protection Hotel Award - Gold Award for several properties[29] - Galaxy Entertainment Group's restaurants, including 8½ Otto e Mezzo Bombana and Lai Heen, received Michelin stars and Forbes Travel Guide Five-Star awards[31] - The company's resorts feature over 120 restaurants, offering the widest variety of Pan-Asian and international cuisine in Macau[30] Financial Performance - Net revenue for the group increased by 211% year-on-year to HKD 35.7 billion[14] - Adjusted EBITDA for the group reached HKD 10 billion, compared to a loss of HKD 600 million in 2022[14] - Shareholders' profit attributable was HKD 6.8 billion, compared to a loss of HKD 3.4 billion in 2022[14] - Cash and liquid investments stood at HKD 25 billion, with net cash of HKD 23.5 billion and liabilities of HKD 1.5 billion as of December 31, 2023[14] - "Galaxy Macau™" net revenue increased by 274% year-on-year to HKD 27.7 billion, with adjusted EBITDA of HKD 9.1 billion[15] - "StarWorld Macau" net revenue surged by 343% year-on-year to HKD 4.6 billion, with adjusted EBITDA of HKD 1.3 billion[16] - The group's total gaming revenue increased from HKD 7.5 billion in 2022 to HKD 31.7 billion in 2023, driven by a significant rise in mass market gaming turnover[18] - Total gaming revenue increased significantly from HKD 6,258 million in 2022 to HKD 26,657 million in 2023, reflecting a strong recovery in the gaming sector[21] - Adjusted EBITDA for 2023 was HKD 1,278 million, compared to a negative HKD 527 million in 2022, with an adjusted EBITDA margin of 28%[22] - The company's cash and liquid investments totaled HKD 25 billion as of December 31, 2023, with net cash of HKD 23.5 billion[24] - Galaxy Entertainment Group announced a special dividend of HKD 0.30 per share, expected to be paid on April 26, 2024[24] - Group net revenue increased by 211% year-on-year to HKD 35.7 billion, with adjusted EBITDA reaching HKD 10 billion, compared to HKD (6) billion in 2022[33] - Galaxy Macau™ adjusted EBITDA was HKD 9.1 billion, up from HKD 295 million in 2022, with normalized adjusted EBITDA at HKD 9.3 billion, a 2,739% increase year-on-year[39] - Total gaming revenue for 2023 was HKD 317 billion, a 322% increase year-on-year, with mass market gaming revenue up 328% to HKD 265 billion[33] - StarWorld Hotel recorded net revenue of HKD 4.6 billion, a 343% increase year-on-year, with adjusted EBITDA of HKD 1.3 billion, compared to HKD (527) million in 2022[41] - Group cash and liquid investments stood at HKD 25 billion, with net cash of HKD 23.5 billion and liabilities of HKD 1.5 billion as of December 31, 2023[37] - The company declared a special dividend of HKD 0.20 per share on October 27, 2023, and announced another special dividend of HKD 0.30 per share to be paid around April 26, 2024[37] - Average hotel occupancy rate across seven hotels was 87% in 2023, with StarWorld Hotel achieving a 99% occupancy rate[40][41] - Mass market gaming turnover increased by 328% year-on-year to HKD 265 billion, while VIP gaming turnover rose by 273% to HKD 34 billion[33] - Slot machine gaming revenue increased by 340% year-on-year to HKD 1.8 billion, with a consistent net win rate of 3.5%[33] - Galaxy Macau™ mass market gaming turnover reached HKD 80.8 billion in 2023, with a net win rate of 27%, contributing HKD 21.8 billion in gaming revenue[40] - Macau StarWorld Hotel's total net revenue for Q4 2023 was HKD 1,255 million, with adjusted EBITDA of HKD 353 million and a margin of 28%[42] - Macau Broadway's net revenue in 2023 increased by 72% year-on-year to HKD 103 million, with adjusted EBITDA improving from HKD (62) million in 2022 to HKD (36) million[43] - City Clubs' net revenue in 2023 surged by 264% year-on-year to HKD 222 million, with adjusted EBITDA turning positive at HKD 15 million compared to HKD (21) million in 2022[44] - Galaxy Entertainment Group's construction materials business achieved adjusted EBITDA of HKD 698 million in 2023, up 23% year-on-year[45] - The company's net cash position remains strong at HKD 23.5 billion, with minimal debt[49] - During the Lunar New Year, the company's mid-mass gaming turnover and revenue reached 120% of 2019 levels, with total visitor arrivals to Macau reaching 1.4 million over 8 days[49] - The company announced a special dividend of HKD 0.30 per share, payable around April 26, 2024[48] - Total equity attributable to the company's shareholders increased to HKD 70.759 billion as of December 31, 2023, up 11% from HKD 63.914 billion as of December 31, 2022[51] - Total assets of the group increased to HKD 87.215 billion as of December 31, 2023, compared to HKD 80.961 billion as of December 31, 2022[51] - The group's investment in listed debt securities decreased significantly from HKD 9.019 billion as of December 31, 2022, to HKD 6.787 billion as of December 31, 2023[51] - The group holds 5,200,000 shares of Wynn Resorts, representing approximately 4.7% of its issued share capital, with a fair value of HKD 3.7 billion as of December 31, 2023[52] - The group's cash and bank balances (including time deposits) totaled HKD 14.5 billion as of December 31, 2023, compared to HKD 14.011 billion as of December 31, 2022[53] - Total debt of the group decreased to HKD 1.453 billion as of December 31, 2023, from HKD 7.505 billion as of December 31, 2022[53] - The group employed approximately 20,400 employees in Hong Kong, Macau, and Mainland China as of December 31, 2023, with employee costs (excluding director remuneration) amounting to HKD 7.049 billion[57] - The group provided guarantees of HKD 4.77 billion for credit facilities granted to subsidiaries, of which HKD 596 million was utilized as of December 31, 2023[56] - The company paid a special dividend of HKD 0.20 per share for the year ended December 31, 2023, totaling HKD 0.20 per share for the year (2022: HKD 0.30 per share)[111] - The company announced a special dividend of HKD 0.30 per share, totaling approximately HKD 1.31 billion, to be paid around April 26, 2024[111] - The distributable reserves of the company as of December 31, 2023, were HKD 83,340,567,000 (2022: HKD 84,224,270,000)[112] - The company's main business includes investment holding, casino operations, hotel services, and the manufacturing, sales, and distribution of construction materials in Hong Kong, Macau, and Mainland China[110] - The company voluntarily publishes unaudited quarterly financial data to allow stakeholders to better assess its performance[104] - The company has established various communication channels with shareholders and investors, including electronic delivery of company communications[104] - Shareholders holding at least 5% of the total voting rights can request the board to convene a general meeting[106] - Shareholders holding at least 2.5% of the total voting rights or at least 50 shareholders can request the company to circulate a statement of no more than 1,000 words regarding matters to be discussed at a general meeting[107] - The company's board of directors has the discretion to decide on dividend payments based on financial conditions, economic climate, and future expectations[111] - The company's distributable reserves decreased from HKD 84,224,270,000 in 2022 to HKD 83,340,567,000 in 2023[112] - The company achieved its annual environmental targets for 2023, reducing energy and water consumption by 3% and increasing waste diversion rate by 4-5%[114] - The company's local suppliers accounted for 62% of its total suppliers in 2023[118] - The company issued a total of 780,453 new ordinary shares due to the exercise of share options and allocated 3,894,565 new ordinary shares to satisfy share awards under the share incentive plan[119] - The trustee of the 2021 Share Incentive Plan purchased a total of 504,488 shares on the Hong Kong Stock Exchange at a total cost of approximately HKD 25.83 million[120] - The trustee of the 2014 Share Incentive Plan sold 320,216 forfeited shares, generating HKD 16.52 million[120] - The total remuneration for the Board of Directors is HKD 430,000 for the Chairman and HKD 390,000 for members[122] - The total remuneration for the Audit Committee is HKD 210,000 for the Chairman and HKD 170,000 for members[122] - The total remuneration for the Corporate Governance Committee is HKD 110,000 for the Chairman and HKD 85,000 for members[122] - The total remuneration for the Nomination Committee is HKD 110,000 for the Chairman and HKD 85,000 for members[122] - The total remuneration for the Remuneration Committee is HKD 110,000 for the Chairman and HKD 85,000 for members[122] - Lui Che Woo holds 1,770,199,554 shares, representing 40.47% of the issued shares[125] - Lui Yiu Tung holds 1,814,384,709 shares, representing 41.49% of the issued shares[125] - Tang Lui Wai Yu holds 1,376,508,478 shares, representing 31.47% of the issued shares[125] - City Lion Profits Corp. holds 973,282,206 shares, representing 22.25% of the issued shares[128] - CWL Assets (PTC) Limited holds 1,362,225,231 shares, representing 31.15% of the issued shares[128] - Galaxy Entertainment Group adopted a new share option plan (2023 Share Option Plan) on May 22, 2023, replacing the 2021 Share Option Plan, which was terminated on the same day[130] - A total of 11,194,000 share options were granted under the 2023 Share Option Plan since its adoption[130] - The total number of shares that can be issued under the 2023 Share Option Plan and other share incentive plans, including the 2023 Share Award Scheme, is 436,914,130 shares, representing 10% of the issued shares as of May 22, 2023[131] - The maximum number of shares that can be issued to service providers under the 2023 Share Option Plan and other share incentive plans is 43,691,413 shares, representing 10% of the total authorized limit[131] - As of the annual report date, 11,169,000 share options granted under the 2023 Share Option Plan remain unexercised, representing approximately 0.26% of the issued shares[133] - A total of 3,035,500 share awards granted under the 2023 Share Award Scheme remain unvested, representing approximately 0.07% of the issued shares[133] - The total number of shares that can be issued under the 2023 Share Option Plan and the 2023 Share Award Scheme is 422,709,630 shares, representing approximately 9.67% of the issued shares[133] - Each participant can be granted share options and other incentives up to 1% of the total issued shares within any 12-month period[134] - The exercise period for share options must not exceed 10 years from the date of grant[134] - The 2023 Share Option Plan will be effective for 10 years from May 22, 2023, and will expire on May 22, 2033[135] - The total number of stock options granted in 2023 was 11,194,000, with a total of 7,668,000 options granted on December 29, 2023, at an exercise price of HKD 43.75[137] - The weighted average closing price of shares before the exercise date in 2023 was HKD 49.41[137] - The fair value of stock options granted during the year was calculated using the Black-Scholes model[140] - The total number of stock options held as of December 31, 2023, was 43,769,061, with 34,477,497 options held at the beginning of the year[137] - The exercise price for options granted on October 7, 2022, was HKD 48.65, with a vesting period of 50% on the first and second anniversaries of the grant date[140] - The weighted average closing price of shares before the exercise date in 2023 for certain options was HKD 52.90[139] - The total number of stock options exercised during the year was 780,453, while 1,121,983 options expired[137] - The vesting period for most stock options is one-third on each of the first, second, and third anniversaries of the grant date[140] - The total number of stock options granted to directors and their associates in 2023 was 281,000, with 276,000 granted to Lui Wai Ling on December 29, 2023[139] - The total number of stock options held by directors and their associates as of December 31, 2023, was 1,440,780[139] - 11,194,000 share options were granted on December 29, 2023, with an expected stock return standard deviation of 40.0% to 41.1% and an expected duration of 3.5 to 4.5 years[141] - The closing price of the company's shares on December 28, 2023, was HK$43.75, and the share options granted on December 29, 2023, had no performance targets or clawback mechanisms[142] - A total of 3,036,900 share awards were granted under the 2023 Share Award Plan, which was adopted on May 22, 2023, and will be effective for ten years[143] - The 2021 Share Award Plan was suspended on May

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 56.08, which represents a 41.44% upside from the current price [1]. Core Insights - The company's Q4 2023 performance met expectations, with net revenue increasing by 254% year-on-year and 7% quarter-on-quarter to HKD 10.3 billion, recovering to 80% of the 2019 level [1]. - The VIP gaming table turnover rose by 408% year-on-year and 6% quarter-on-quarter, while mass gaming revenue increased by 398% year-on-year and 5.2% quarter-on-quarter [1]. - The adjusted EBITDA for the group increased by 1.4% quarter-on-quarter to HKD 2.8 billion, with an EBITDA margin of 27% [1]. - The company declared a special dividend of HKD 0.30 per share, resulting in an annual payout ratio of 32%, exceeding expectations [1]. - The company has a strong balance sheet with net cash of HKD 23.5 billion, the strongest in the industry [1]. Financial Performance Summary - Total net revenue for 2023 was HKD 35,683.6 million, a 211% increase from 2022 [3]. - EBITDA for 2023 was HKD 9,955 million, a significant recovery from a loss of HKD 553 million in 2022 [3]. - Net profit for 2023 was HKD 6,828 million, compared to a loss of HKD 3,433.5 million in 2022 [3]. - The company expects total net revenue to reach HKD 46,147 million in 2024, with a projected EBITDA of HKD 14,299.6 million [4]. Business Development and Future Projects - The company plans to launch a high-end hotel in the third phase of "Galaxy Macau™" by 2025, targeting high-end mass and VIP customers [1]. - The fourth phase of "Galaxy Macau™" is under construction and is expected to be completed by 2027, featuring multiple high-end hotel brands and various entertainment facilities [1]. - Capital expenditures for 2024 are estimated at HKD 61 billion, with HKD 51 billion allocated for the third and fourth phases of "Galaxy Macau™" [1]. - The company is expanding its overseas presence by establishing offices in Tokyo and Seoul, with plans for Bangkok [1].

Investment Rating - The report maintains a "Buy" rating for Galaxy Entertainment (0027.HK) [1] Core Views - The company's performance in Q4 2023 was slightly below expectations, with adjusted property EBITDA profit margins expected to recover to 2019 levels. The net revenue for Q4 2023 was HKD 10.32 billion, recovering to 79.5% of Q4 2019 levels, while adjusted property EBITDA was HKD 2.91 billion, recovering to 68.7% of the same period in 2019 [2][3] - The company is focusing on enhancing its long-term competitiveness through continuous renovations and new property developments, including the redesign of high-end gaming areas and the construction of new luxury hotel rooms [3] Financial Forecasts and Valuation - The report forecasts total revenue for 2023, 2024, and 2025 to be HKD 36.31 billion, HKD 43.70 billion, and HKD 47.81 billion respectively, with year-on-year growth rates of 216.5%, 20.3%, and 9.4% [2] - Adjusted property EBITDA is projected to be HKD 10.50 billion, HKD 13.83 billion, and HKD 15.82 billion for the same years [2] - The current stock price corresponds to EV/Adjusted Property EBITDA multiples of 17.34, 13.16, and 11.50 for 2023, 2024, and 2025 respectively, with a target price set at HKD 57.0 [3]

Financial Performance - The group's total net revenue for the year 2023 was HKD 35.7 billion, an increase of 211% year-on-year[3] - Adjusted EBITDA for the year reached HKD 10 billion, compared to a loss of HKD 600 million in 2022[3] - The group's net profit attributable to shareholders for the year was HKD 6.8 billion, compared to a loss of HKD 3.4 billion in 2022[3] - The fourth quarter net revenue was HKD 10.3 billion, up 254% year-on-year and 7% quarter-on-quarter[3] - The adjusted EBITDA for the fourth quarter was HKD 2.8 billion, compared to a loss of HKD 200 million in the fourth quarter of 2022[3] - The company reported a profit of HKD 6,873,976 for the year, compared to a loss of HKD 3,448,177 in the previous year, marking a turnaround in profitability[10] - Basic earnings per share for 2023 were HKD 156.2, recovering from a loss of HKD 78.7 per share in 2022[9] - The company reported a profit before tax of HKD 6,827,956,000 for the year ended December 31, 2023, compared to a loss of HKD 3,433,770,000 in 2022, indicating a significant turnaround[26] Dividends - The group declared a special dividend of HKD 0.30 per share, to be distributed around April 26, 2024[7] - The company declared a special dividend of HKD 0.20 per ordinary share for 2023, down from HKD 0.30 in 2022, with total dividends paid amounting to HKD 873,783,000 compared to HKD 1,307,566,000 in the previous year[25] - The board announced a special dividend of HKD 0.30 per share, totaling approximately HKD 1.31 billion, expected to be paid on April 26, 2024[58] - A special dividend of HKD 0.20 per share was paid to shareholders on October 17, 2023, compared to HKD 0.30 per share in the previous year[58] Assets and Liabilities - The group maintained a strong balance sheet with cash and liquid investments totaling HKD 25 billion and net cash of HKD 23.5 billion as of December 31, 2023[7] - Total assets increased to HKD 87,215,455 in 2023, up from HKD 80,961,332 in 2022, reflecting a growth of approximately 7.8%[11] - Total liabilities decreased to HKD 15,998,364 from HKD 16,495,967, showing a reduction of approximately 3%[11] - The company’s equity attributable to shareholders increased to HKD 70,759,172, up from HKD 63,913,936, representing a growth of about 10.9%[11] - The company’s total liabilities as of December 31, 2023, were HKD 15,998,364,000, an increase from HKD 16,495,967,000 in 2022, indicating a decrease of approximately 3%[23] Gaming Revenue - The company's gaming revenue for the year 2023 reached HKD 31,713,587, a significant increase from HKD 7,319,848 in 2022, representing a growth of approximately 334%[18] - Net gaming revenue after commissions and incentives was HKD 27,289,868 for 2023, compared to HKD 6,566,612 in 2022, indicating a growth of around 314%[18] - The total gaming revenue for 2023 was HKD 31.71 billion, a 322% increase from the previous year[33] Development Projects - The group is advancing its Phase 4 development project, which covers approximately 600,000 square meters and is expected to be completed by 2027[1] - The focus for Phase IV development will be on non-gaming sectors, particularly MICE (Meetings, Incentives, Conventions, and Exhibitions) and family-friendly facilities[8] - The fourth phase of development in Cotai is set to introduce several high-end hotel brands and is expected to be completed by 2027[45] Visitor Statistics - The number of visitors to Macau in 2023 reached 28.2 million, a 395% increase year-on-year, recovering to 72% of 2019 levels[32] - The total number of visitors to Macau during the Lunar New Year reached 1.4 million, averaging 167,725 visitors per day, a 163% increase compared to the previous year[46] Hotel Performance - The average occupancy rate for the seven hotels in the fourth quarter was 95%[4] - The average occupancy rate of the seven hotels in 2023 was 87%[37] - The occupancy rate for the Galaxy Macau hotel was 99% in 2023, indicating strong demand[39] Financial Management - The company has adopted new and revised accounting standards in 2023, which are not expected to have a significant impact on its performance and financial position[16] - The company is currently evaluating the impact of upcoming accounting standard revisions on its accounting policies and consolidated financial statements[17] - The company maintains a conservative treasury policy, primarily investing surplus cash in low-risk deposits and high-quality listed debt securities[52] Other Financial Metrics - Interest income for 2023 was HKD 896,626,000, up from HKD 717,874,000 in 2022, representing an increase of about 25%[24] - The company’s tax expenses for 2023 totaled HKD 102,942,000, compared to HKD 95,887,000 in 2022, reflecting an increase of approximately 7.5%[24] - The company’s non-current assets in Hong Kong increased to HKD 734,000,000 in 2023 from HKD 615,000,000 in 2022, showing a growth of about 19.3%[23] Corporate Governance - The company complied with the corporate governance code, except for one provision regarding the rotation of directors[57] - The company’s annual performance for the year ending December 31, 2023, was reviewed by its audit committee and confirmed by its auditors[56] - The company will hold its 2024 Annual General Meeting on May 14, 2024, with a suspension of share transfer registration from May 8 to May 14, 2024[60] - The 2023 annual report will be published later and will include all information required by the listing rules[61]

Business Expansion and Development - Galaxy Entertainment Group reported a significant expansion with the opening of the third phase of Galaxy Macau, which includes the Galaxy International Convention Center and the Galaxy Theatre in 2023[19]. - The total area of Galaxy Macau is 1.4 million square meters, featuring six world-class hotels with approximately 4,050 rooms, suites, and villas[19]. - The upcoming "Andaz Macau" hotel is set to open in September 2023, featuring over 700 rooms and suites[23]. - The fourth phase of development will expand the area by 600,000 square meters, including six new high-end hotel brands and a 4,000-seat theater[24]. - The group expanded its non-gaming facilities, including the Galaxy International Convention Center and Galaxy Arena, which began trial operations in April 2023[35]. Financial Performance - The group's net revenue reached HKD 15.7 billion, a year-on-year increase of 141%[26]. - Adjusted EBITDA was HKD 4.4 billion, up 2,193% year-on-year[26]. - Shareholders' profit attributable was HKD 2.9 billion, compared to a loss of HKD 850 million in the first half of 2022[26]. - Non-gaming revenue for "Galaxy Macau™" was HKD 2.026 billion, a year-on-year increase of 104%[26]. - The group reported a total gaming revenue of HKD 13.724 billion in the first half of 2023, up from HKD 4.774 billion in the same period of 2022[29]. Market Strategy and Insights - Galaxy's business strategy focuses on local market insights and a demand-driven approach, leveraging its understanding of Asian and Chinese customer preferences[8]. - The company aims to position itself as a leading operator of integrated gaming, leisure, and entertainment facilities in Asia[8]. - The company continues to monitor market developments closely to expand its operations prudently and in a timely manner[8]. Corporate Social Responsibility - The group has a strong commitment to corporate social responsibility, reflecting its dedication to sustainable business practices[12]. - The company is actively involved in corporate social responsibility initiatives, promoting responsible gaming and community engagement[67]. - Galaxy Entertainment Group Foundation has been actively promoting cultural and artistic education, arranging for 800 local students and teachers to participate in workshops and exhibitions from September 2022 to February 2023[73]. - The company organized a series of community and charity activities in the first half of 2023, including a donation of MOP 300,000 to the Macao Charity Association, marking the 11th consecutive year of support for this initiative[75]. Employment and Workforce Development - The group plans to create 1,100 new local jobs as part of its 2023 recruitment plan, focusing on local employment[58]. - The group has successfully hired all necessary staff for its hotels by the end of Q2 2023, with all hotel rooms available for use[36]. - In the first half of 2023, Galaxy Entertainment Group conducted nearly 900 training courses, providing over 500,000 hours of classroom, online, and on-the-job training, with more than 17,500 team members participating[70]. Environmental Initiatives - The company replaced plastic items such as combs and toothbrushes in its hotels with bamboo products, contributing to environmental sustainability efforts[82]. - The company recycled approximately 425.05 tons of cardboard and paper, 25.65 tons of plastic, 35.60 tons of metal, 23.62 tons of glass bottles, 31.48 tons of waste oil, and 0.32 tons of ink cartridges in the first half of 2023[84]. - The company received the "Macao Green Hotel Award - Gold Award" for its hotel brands, including Banyan Tree Macau, JW Marriott Hotel Macau, and The Ritz-Carlton, Macau, recognizing its commitment to environmental protection[84]. Financial Management and Investments - The group's cash and liquid investments amounted to HKD 24.4 billion as of June 30, 2023[26]. - The group maintained a strong balance sheet with cash and liquid investments of HKD 24.375 billion and net cash of HKD 22 billion as of June 30, 2023[30]. - The investment in Wynn Resorts, valued at HKD 4.305 billion, represents 5.1% of the group's total assets as of June 30, 2023[60]. - The company reported a total of HKD 2,296,148 thousand in revenue from hotel, shopping center, and other operations in 2023, compared to HKD 1,078,501 thousand in 2022[108]. Shareholder Returns - A special dividend of HKD 0.20 per share is expected to be distributed on October 27, 2023[26]. - The group announced a special dividend of HKD 0.20 per share, to be distributed on October 27, 2023[35]. - The company declared a special dividend of HKD 0.20 per share, totaling approximately HKD 870 million, expected to be paid on October 27, 2023[140][141]. Gaming License and Regulatory Compliance - The company has been awarded a new gaming license valid from January 1, 2023, to December 31, 2032, ensuring its operational continuity in the Macau gaming market[18]. - The new gaming license contract signed with the Macau government is valid for ten years, from January 1, 2023, to December 31, 2032, with an annual fixed payment of MOP 30 million (approximately HKD 29.13 million)[97]. - The group confirmed an intangible asset and corresponding financial liabilities of MOP 2.79 billion (approximately HKD 2.71 billion) related to the rights to operate gaming in Macau as of January 1, 2023[98].

Financial Performance - For the first half of 2023, the group's net revenue was HKD 15.7 billion, an increase of 141% year-on-year[4] - Adjusted EBITDA for the first half of 2023 was HKD 4.4 billion, up 2,193% compared to the same period in 2022[4] - In Q2 2023, the group's net revenue reached HKD 8.7 billion, a year-on-year increase of 257% and a quarter-on-quarter increase of 23%[4] - Adjusted EBITDA for Q2 2023 was HKD 2.5 billion, compared to a loss of HKD 384 million in Q2 2022[4] - Total revenue for the six months ended June 30, 2023, reached HKD 15,715,349, a significant increase from HKD 6,523,844 in the same period of 2022, representing a growth of approximately 141%[9] - The company reported a profit of HKD 2,897,450 for the period, compared to a loss of HKD 844,990 in the previous year, indicating a turnaround in performance[10] - Basic earnings per share increased to HKD 66.2, compared to a loss of HKD 19.5 per share in the same period last year[9] - The company’s total comprehensive income for the period was HKD 3,957,591, compared to a loss of HKD 2,003,586 in the previous year, marking a substantial recovery[10] - The company's profit before tax for 2023 was HKD 2,890,261, compared to a loss of HKD 850,473 in 2022, indicating a significant turnaround in performance[28] Assets and Liabilities - The company’s total assets as of June 30, 2023, amounted to HKD 83,633,829, up from HKD 80,961,332 at the end of 2022, reflecting a growth of approximately 3%[11] - Non-current assets increased to HKD 67,194,792 from HKD 63,049,143, showing a growth of about 6.8%[11] - The company’s net current assets improved to HKD 5,093,934, compared to HKD 2,613,206 in the previous year, indicating a significant enhancement in liquidity[11] - Total liabilities as of June 30, 2023, were HKD 15,062,136,000, with gaming and entertainment liabilities at HKD 12,793,768,000[24] - The total liabilities, including accounts payable, rose to HKD 8,780,559 in June 2023, compared to HKD 7,689,593 at the end of 2022, marking an increase of approximately 14.2%[31] Gaming and Revenue - Total gaming revenue for the first half of 2023 reached HKD 13.7 billion, a 187% increase compared to the previous year[35] - Net gaming revenue amounted to HKD 11.91 billion, up from HKD 4.13 billion year-on-year, reflecting a strong recovery in the gaming sector[18] - The Macau gaming market showed a recovery with total gaming revenue reaching HKD 77.8 billion in the first half of 2023, a year-on-year increase of 205%[34] - The number of visitors to Macau reached 11.6 million in the first half of 2023, recovering to 57% of the levels seen in the first half of 2019, which is a year-on-year increase of 236%[34] Non-Gaming and Investments - The company committed to invest approximately HKD 27.52 billion in non-gaming facilities and activities over the next ten years as part of its new gaming license agreement with the Macau government[12] - The company’s revenue from hotel, shopping center, and other businesses was HKD 2.30 billion, compared to HKD 1.08 billion in the previous year, indicating growth in these segments[18] - The construction materials business reported adjusted EBITDA of HKD 329 million in the first half of 2023, a 14% increase year-on-year[46] Dividends and Shareholder Information - The group announced a special dividend of HKD 0.20 per share, to be distributed on October 27, 2023[8] - The company declared a special dividend of HKD 0.20 per share, totaling approximately HKD 870 million, to be paid on October 27, 2023[33] - Galaxy Entertainment Group will suspend share transfer registration from September 27 to September 29, 2023, to determine shareholders eligible for the proposed special dividend[63] Future Developments - The new luxury hotel, Macau Galaxy Raffles, began trial operations on August 16, 2023, enhancing luxury service offerings[2] - The group is preparing to open the Andaz Hotel in Macau in September 2023, which will have 700 rooms[2] - The fourth phase of development is focused on non-gaming businesses, targeting MICE, entertainment, and family-friendly facilities[3] - The company is preparing to open its first overseas business development office in Tokyo, with plans for additional offices in Bangkok and Seoul[52] Financial Management - The company maintained a healthy balance sheet with cash and liquid investments of HKD 24.4 billion as of June 30, 2023[37] - The company continues to adopt a conservative treasury policy to ensure sufficient liquidity and financial management[56] - The company has not pledged any properties or bank deposits as collateral for financing as of June 30, 2023[57]

Business Strategy and Market Position - Galaxy Entertainment Group aims to become Asia's leading gaming and entertainment company, leveraging its deep understanding of local markets and Chinese culture as a competitive advantage[5]. - The company operates three flagship projects in Macau, including the Galaxy Macau™ integrated resort, which spans 1 million square meters and features approximately 3,600 hotel rooms across five world-class hotels[11][12]. - The company has a clear positioning as a leading operator of integrated gaming and leisure facilities, focusing on delivering shareholder returns through careful capital expenditure plans[5]. - The company’s vision includes creating award-winning projects and services that consistently outperform the Macau market[11]. - Galaxy Entertainment Group emphasizes a demand-driven strategy, closely monitoring market developments to respond prudently[5]. Financial Performance - The group's net revenue for 2022 was HKD 11.5 billion, a decrease of 42% year-on-year[19]. - Adjusted EBITDA for 2022 was a loss of HKD 600 million, compared to HKD 3.5 billion in 2021[19]. - Shareholders' attributable loss was HKD 3.4 billion, compared to a profit of HKD 1.3 billion in 2021[19]. - The group maintained high liquidity with cash and liquid investments amounting to HKD 26.4 billion as of December 31, 2022[19]. - The total assets decreased to HKD 80.961 billion from HKD 85.243 billion[26]. Gaming and Non-Gaming Revenue - The net win rate for the gaming business was 3.0%, down from 3.4% in the previous year[25]. - Non-gaming revenue decreased by 24% to HKD 2.021 billion[24]. - The average hotel occupancy rate for Galaxy Macau was 31% in 2022[20]. - The group reported a loss attributable to shareholders of HKD (3.434) billion, compared to a profit of HKD 1.326 billion in the previous year[26]. - The total gaming revenue for 2022 was HKD 6.3 billion, down from HKD 12.9 billion in 2021[52]. Development Projects - The Galaxy International Convention Center (GICC) will feature a total exhibition space of 40,000 square meters, accommodating up to 8,500 for banquet events[15]. - The Galaxy Arena can host up to 16,000 spectators, designed for world tours and major sporting events[16]. - The group confirmed the near completion of Phase 3 of the Cotai project and is working on Phase 4, with plans to launch the Galaxy International Convention Center and Galaxy Arena in Q2 2023[33]. - The group plans to invest approximately HKD 28.4 billion over the next ten years to enhance its integrated resort facilities, with over 96% allocated to non-gaming projects and overseas market development[33]. - The new Andaz Macau hotel will offer over 700 rooms and suites, enhancing the local hospitality landscape[17]. Corporate Governance and Compliance - The company is committed to maintaining a strong governance structure, with a dedicated board and various committees overseeing operations and compliance[8][9]. - Galaxy Entertainment maintains a zero-tolerance policy towards bribery and corruption, ensuring compliance with all applicable laws and regulations[97]. - The company has implemented a comprehensive anti-money laundering policy to uphold high ethical standards in gaming-related transactions[97]. - The company has established cybersecurity guidelines in compliance with privacy laws in Hong Kong, Macau, and mainland China[104]. - The group maintains close communication with regulatory bodies to ensure compliance with the latest regulations[98]. Corporate Social Responsibility and Sustainability - The group established the Galaxy Entertainment Group Foundation with an investment of HKD 1.3 billion to support youth education and development in Macau and mainland China[18]. - The company is committed to corporate social responsibility, aiming to promote sustainable development through responsible and transparent practices[69]. - Galaxy Entertainment Group installed solar panels generating 630 kWh of renewable energy monthly, saving 7,560 kWh annually[126]. - The company received multiple awards in 2022 for its environmental performance, including the Green Key certification and the EarthCheck certification for sustainable tourism practices[153]. - The company aims to promote green living habits among its team members through various initiatives, including a coastal cleanup that collected approximately 250 kilograms of waste[158]. Employee Engagement and Well-being - The total number of employees for the group in 2022 was 16,953, a decrease of 4.4% from 17,743 in 2021[174]. - The group offers competitive benefits including medical benefits, maternity leave, and training allowances to attract and retain talent[170]. - In 2022, Galaxy Entertainment Group implemented various mental health and flexible work initiatives, focusing on employee well-being and inclusivity[182]. - The employee turnover rate in Macau was 7.81% in 2022, compared to 7.99% in 2021, indicating a slight improvement[174]. - The company organized various activities to promote team spirit and well-being, including yoga workshops and festive celebrations for employees and their families[181]. Environmental Impact and Resource Management - The total energy consumption for the group was 3,523,759 GJ, a decrease of 33% compared to the previous year[131]. - The total water consumption for the group was 2,903,234 cubic meters, a reduction of 9% from the previous year[136]. - The group generated a total of 21,242 tons of waste, which is a decrease of 25% compared to the previous year[141]. - The company has committed to developing an environmentally responsible workplace culture and exceeding regulatory standards[150]. - The company aims to reduce energy consumption by 3% in 2022 compared to the 2016 baseline, with the same target maintained for 2023[129].

Corporate Strategy and Market Position - Galaxy Entertainment Group aims to be recognized as Asia's leading gaming and entertainment corporation[1] - The company emphasizes a demand-driven strategy, closely monitoring market developments for prudent expansion[2] - The group has a proven business philosophy focused on return on investment (ROI) and controlled capital expenditure (CAPEX) plans[2] - The company is committed to leveraging its deep understanding of Asian and Chinese customer preferences as a competitive advantage[2] - The group is focusing on opportunities in the Greater Bay Area, with plans for a world-class resort on a 2.7 square kilometer site in Hengqin[15] - The group has made a strategic investment in the Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco, exploring overseas development opportunities[16] Properties and Developments - The group operates three flagship projects in Macau, including the Galaxy Macau, which spans 1 million square meters and features approximately 3,600 hotel rooms[7] - The StarWorld Hotel is one of the key properties operated by Galaxy Entertainment Group, contributing to its market leadership[1] - Galaxy Macau features the world's leading sky water park, offering unique attractions such as the longest aerial river and artificial wave pool[8] - The group is expanding its development in the Cotai area with plans to increase its footprint by 1 million square meters[10] - The new Galaxy International Convention Center (GICC) will feature a total exhibition area of 40,000 square meters, including a 10,000 square meter column-free exhibition hall[13] - The Galaxy Arena will accommodate 16,000 spectators, designed for world-class events and performances[14] - The new Andaz Macau hotel will offer over 700 rooms and suites, enhancing the region's appeal for business and leisure travelers[15] - The new Raffles at Galaxy Macau will feature approximately 450 suites, incorporating modern luxury design and advanced technology[12] Financial Performance - The group's net revenue for the first half of 2022 was HKD 6.5 billion, a decrease of 39% year-on-year[17] - Adjusted EBITDA for the group was HKD 191 million, down 90% compared to the same period last year[19] - The group reported a loss attributable to shareholders of HKD 850 million, compared to a profit of HKD 947 million in the first half of 2021[21] - Non-gaming revenue decreased by 22% year-on-year to HKD 1.079 billion[19] - The average hotel occupancy rate for the group's five hotels in the first half of 2022 was 33%[19] - The group has cash and liquid investments of HKD 29 billion as of June 30, 2022[21] - The adjusted EBITDA margin for "Galaxy Macau" was 12% in the first half of 2022, down from 23% in the same period last year[22] - The total gaming revenue for the group was HKD 4.8 billion, a 51% year-on-year decrease, with mass gaming revenue at HKD 3.8 billion, down 35%[39] Community and Social Responsibility - The group has established a fund of HKD 1.3 billion to support youth education and development in Macau and mainland China[16] - The Galaxy Entertainment Group Foundation was established in April 2015 to give back to Macau and the Greater China region, focusing on charitable activities to cultivate responsible citizenship among youth[74] - The foundation launched a non-profit art space called "Galaxy Art Space" in July 2021, aimed at promoting Macau's art culture and providing diverse tourism products[74] - In the first half of 2022, Galaxy Entertainment organized volunteer activities that attracted nearly 300 team members and their families, providing assistance to over 1,300 underprivileged individuals and families[80] - The company donated MOP 300,000 to the "Mercy Hall Social Service Shop," continuing its support for the initiative for 10 consecutive years[83] - Galaxy Entertainment sponsored the "First Volleyball Super Cup" organized by the Macau Volleyball Association, enhancing the appeal of sports activities in Macau[85] Environmental Initiatives - The company has been actively involved in promoting environmental sustainability through various community initiatives, including exhibitions showcasing art made from recycled materials[78] - Galaxy Entertainment Group's "Galaxy Hotel™" received the EarthCheck Silver Certification[92] - The company recycled approximately 286.7 tons of cardboard and paper, 17.2 tons of plastic, 23.2 tons of metal, 16.8 tons of glass bottles, 22.1 tons of waste oil, and 0.5 tons of ink cartridges in the first half of 2022[91] - The company continues to participate in the "Earth Hour" initiative for 14 consecutive years and engaged in monthly energy-saving activities[90] - The company implemented a series of energy-saving measures, including the installation of high-efficiency motors and digital thermostats in its properties[90] Employee Engagement and Training - In the first half of 2022, Galaxy Entertainment Group conducted a total of 868 training programs, providing over 529,422 hours of classroom, online, and on-the-job training to more than 16,124 team members[71] - The group won 9 awards in various skill competitions, showcasing teamwork and the spirit of Asian heart[71] - The "Galaxy Volunteer Team" has been active since 2011, providing community service opportunities and engaging in various activities to promote social harmony[80] Gaming Operations and Market Conditions - The group has successfully applied for an extension of its gaming license until December 2022, preparing for the bidding process for a new gaming license[31] - The Macau gaming market saw a total gaming revenue of HKD 25.5 billion in the first half of 2022, a year-on-year decline of 46%[36] - Visitor arrivals to Macau were 3.5 million in the first half of 2022, down 12% year-on-year, with overnight visitors decreasing by 38% to 1.3 million[36] - The group has ceased operations at two gaming venues and reallocated staff to other properties to optimize operations[32] Financial Position and Assets - The total assets of the group decreased to HKD 83.401 billion as of June 30, 2022, down from HKD 85.243 billion at the end of 2021, representing a reduction of approximately 2%[58] - The group reported a decrease in equity attributable to shareholders to HKD 65.245 billion as of June 30, 2022, a decline of about 5% from HKD 68.425 billion at the end of 2021[58] - The group’s total debt increased to HKD 8.697 billion as of June 30, 2022, compared to HKD 6.386 billion at the end of 2021[61] - The company reported a net cash inflow from investing activities of HKD 3,571,067 thousand, a significant increase from HKD 64,722 thousand in the previous year[104] Governance and Compliance - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors as of June 30, 2022[175] - The company has adhered to the corporate governance code outlined in the listing rules, with the exception of a specific provision regarding the rotation of directors[175] - The chairman's extensive knowledge of the company's global operations and leadership qualities are considered valuable assets, leading to a decision for him to remain in position without rotation[175]