Business Strategy and Market Position - Galaxy Entertainment Group aims to become Asia's leading gaming and entertainment company, leveraging deep understanding of local markets and Chinese cultural preferences as a competitive advantage[2]. - The company emphasizes a prudent capital expenditure plan and strict monitoring of development projects to ensure shareholder returns[2]. - The group is focused on market-driven strategies, closely monitoring market developments to respond swiftly and prudently[2]. - Galaxy Entertainment Group's vision includes a commitment to delivering exceptional service, encapsulated in their motto "Pride of the World, Connected to Asia"[6]. - The company is dedicated to expanding its integrated resort offerings and enhancing customer experiences through innovative entertainment options[6]. - The group plans to continue development in Hengqin and expand into mainland China, especially the Greater Bay Area[14]. - The company is considering strategic acquisitions to strengthen its market position, with a budget of $100 million allocated for potential deals[175]. Financial Performance - The group's net revenue for 2021 was HKD 19.7 billion, a 53% increase year-on-year[13]. - Adjusted EBITDA for 2021 was HKD 3.54 billion, compared to a loss of HKD 1.02 billion in 2020[15]. - Shareholders' profit for 2021 was HKD 1.33 billion, recovering from a loss of HKD 3.97 billion in 2020[17]. - Non-gaming revenue increased to HKD 2.66 billion in 2021, a 69% increase from HKD 1.57 billion in 2020[15]. - The group maintained a strong balance sheet with cash and liquid investments of HKD 33.39 billion as of December 31, 2021[17]. - The total gaming revenue for the group was HKD 17.3 billion in 2021, a 51% increase year-on-year, with mass gaming revenue up 83%[34]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[177]. Development Projects - The group plans to expand its footprint in Macau with a development plan for phases three and four in Cotai, covering an area of 1 million square meters[8]. - The new hotel, Macau Galaxy Raffles, will feature approximately 450 suites, enhancing luxury offerings in Macau[10]. - The Galaxy International Convention Center (GICC) will provide a world-class exhibition space totaling 40,000 square meters, including a 10,000 square meter column-free exhibition hall[11]. - The Galaxy Arena will accommodate 16,000 guests, designed for various events including concerts and combat sports, offering a 360-degree audiovisual experience[12]. - The Andaz Macau hotel will open alongside GICC and Galaxy Arena, featuring over 700 rooms and advanced facilities[12]. Sustainability and Corporate Social Responsibility - The group is committed to sustainable development in Macau and has established a fund of HKD 1.3 billion to support youth education and development in Macau and mainland China[12]. - The company was recognized with the "Green Key" award for the Galaxy Hotel, highlighting its commitment to environmental sustainability[27]. - Galaxy Entertainment Group invested RMB 100 million in the first "biodiversity" themed green bond issued in Asia[87]. - The company has implemented a waste management and recycling program as part of its environmental initiatives[83]. - The company aims to support the sustainable development of the Macau gaming and tourism industry through regular communication with industry groups[81]. Employee Engagement and Training - The total number of employees at Galaxy Entertainment Group in 2021 was 8,745, showing a slight decrease from 8,998 in 2020[129]. - The company provided over 1,050,630 hours of training through various development programs in 2021[146]. - The company emphasizes the importance of team members as valuable assets and actively encourages their participation to create a healthy and inclusive work environment[80]. - The company has conducted nearly 80 responsible gaming training sessions and workshops since 2009, with approximately 130,000 team members participating[105]. - The company organized various activities to promote team cohesion and family relationships, including parent-child baking workshops and educational courses[131]. Awards and Recognition - The company received multiple awards in 2021, including the Michelin One Star for the restaurant 8½ Otto e Mezzo BOMBANA and the Forbes Travel Guide Five-Star Restaurant for the restaurant Lai Heen[29]. - The company was awarded the "Outstanding Corporate Social Responsibility Award" at the 9th Outstanding Corporate Social Responsibility Awards Ceremony[27]. - The company received the "Traveler's Choice 2021" award from Hotels.com for multiple hotels including The Ritz-Carlton, Macau[29]. - The company has been a long-term sponsor of two major international sports events in Macau and has won over 60 awards across various sports disciplines[125]. Governance and Compliance - Galaxy Entertainment emphasizes high standards of corporate governance and risk management to protect shareholder interests[188]. - The company has a zero-tolerance policy towards bribery and corruption, ensuring compliance with applicable laws and regulations[161]. - The compliance committee was established to oversee adherence to anti-money laundering and counter-terrorism financing policies[164]. - The board has delegated responsibilities to specific committees to enhance corporate governance and efficiency[200]. - The company maintains close communication with regulatory authorities, meeting at least once a quarter[164].

Corporate Strategy and Market Position - Galaxy Entertainment Group aims to be recognized as Asia's leading gaming and entertainment corporation, leveraging local market insights and a deep understanding of Asian customer preferences[5][11]. - The company emphasizes a demand-driven strategy, closely monitoring market developments to expand prudently and in a timely manner[9][12]. - Galaxy Entertainment Group focuses on return on investment (ROI) with a prudent capital expenditure (CAPEX) plan and controlled development to enhance shareholder value[7][12]. - The company is committed to delivering high-quality experiences, with state-of-the-art facilities such as the Galaxy Cinema, which includes 10 independent theaters equipped with advanced 3D and 4K laser projection technology[24]. - Galaxy Entertainment Group's strategic focus includes continuous innovation in product offerings and services to maintain a competitive edge in the market[6][8]. Development Projects and Expansion - The company operates three flagship projects in Macau, including the Galaxy Macau, which spans 1 million square meters and features approximately 3,600 hotel rooms across five world-class hotels[23][24]. - The development plan for the Galaxy Entertainment Group will expand its footprint by 1 million square meters in the Cotai area over the next few years[26]. - The new "Galaxy Macau™" will feature the "Raffles" hotel with approximately 450 suites, enhancing luxury offerings in Macau[27]. - The Galaxy International Convention Center (GICC) will provide a total exhibition space of 40,000 square meters, including a 10,000 square meter column-free exhibition hall[27]. - The Galaxy Arena will accommodate 16,000 guests, designed for world-class events and performances[27]. - The company is pursuing a world-class resort development on a 2.7 square kilometer site in Hengqin, complementing its high-density projects in Macau[28]. - The company continues to advance the development of Phase 3 and 4 in Cotai, focusing on non-gaming business[31]. Financial Performance - Net revenue increased by 71% year-on-year to HKD 10.661 billion[29]. - Adjusted EBITDA grew by 283% year-on-year to HKD 1.991 billion[29]. - Shareholders' profit increased by 133% year-on-year to HKD 947 million[29]. - Non-gaming revenue rose by 121% year-on-year to HKD 1.272 billion[29]. - The group reported a net revenue of HKD 5.6 billion for Q2 2021, an improvement from HKD 1.2 billion in the same period last year and HKD 5.1 billion in Q1 2021[43]. - Adjusted EBITDA for Q2 2021 was HKD 1.1 billion, a significant increase from a loss of HKD 1.4 billion in Q2 2020, representing a 32% quarter-over-quarter improvement[43]. - Total gaming revenue for the first half of 2021 was HKD 2.3 billion, compared to HKD 1.3 billion in the first half of 2020, indicating a recovery trend[40]. Community and Social Responsibility - The company 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[28]. - The company committed HKD 10 million to support flood relief efforts in Henan Province, China[44]. - The company donated a total of MOP 100 million to support COVID-19 prevention efforts in mainland China and Macau[94]. - The company provided 1 million masks and funding for deep cleaning services in Macau schools as part of its community support efforts[94]. - Galaxy Entertainment Group actively engages in corporate social responsibility projects to foster community relationships and support local development[100]. Environmental Initiatives - The company is committed to enhancing its environmental performance and regularly reviews measures to reduce its environmental impact[108]. - Galaxy Entertainment launched a coffee capsule recycling initiative at "Galaxy Macao" and "Broadway Macau" to improve resource conservation[108]. - In the first half of 2021, Galaxy Entertainment Group recycled approximately 340.6 tons of cardboard and paper, 19.6 tons of plastic, 9.2 tons of metal, 20.4 tons of glass bottles, 23.7 tons of waste oil, and 0.9 tons of ink cartridges[109]. - The construction materials business installed 500 solar panels at its Hong Kong Eco-Park, generating 240,000 kWh of electricity annually[111]. Employee Engagement and Development - In the first half of 2021, the company conducted 636 training programs, providing over 413,300 hours of training to more than 17,300 team members[96]. - Nearly 60,200 participants engaged in various sports and recreational activities organized by the company for team members and their families[95]. - The company launched the "IR-LEAD" development program to enhance the skills of voluntary participants from the gaming operations team, combining coursework and practical experience[96]. - The company awarded long service certificates and gifts to nearly 5,000 team members who have served for ten years or more[95]. Shareholder and Capital Management - The company decided not to declare dividends due to the ongoing impact of the COVID-19 pandemic[29]. - The market capitalization increased from HKD 228.708 billion in 2020 to HKD 270.495 billion in 2021[35]. - The group maintained a strong balance sheet with cash and liquid investments reaching HKD 43 billion and net cash of HKD 31.6 billion as of June 30, 2021[43]. - The company reported a total comprehensive income for the period was HKD 1,434,154 thousand, compared to a loss of HKD (5,522,833) thousand in 2020[118]. 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 for the six months ending June 30, 2021[189]. - The company has complied with the corporate governance code as per the listing rules, except for a specific provision regarding the rotation of directors[189]. - The chairman's leadership and vision are considered valuable assets for the company, and his continued tenure is deemed beneficial[189].

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 is focused on market-driven strategies, closely monitoring market developments to respond swiftly and prudently[5]. - Galaxy Entertainment Group's vision includes expanding its market presence and enhancing its product offerings through new technologies and services[5]. - Future outlook includes potential market expansion and strategic initiatives to enhance operational efficiency and shareholder value[5]. - The company is committed to delivering exceptional customer experiences, encapsulated in its service philosophy of "World-Class, Asian Heart"[15]. - The company is actively pursuing development projects, including phases three and four of Cotai, and is focused on introducing new products and renovations[31]. - The company is committed to international development plans, including opportunities in Japan, despite delays in licensing due to the pandemic[69]. Financial Performance - The group's net revenue for 2020 was HKD 12.9 billion, a decrease of 75% year-on-year[19]. - Adjusted EBITDA for 2020 was HKD (1.02) billion, compared to HKD 16.48 billion in 2019[21]. - The group's net loss attributable to shareholders for 2020 was HKD (3.97) billion, a decline of 130% year-on-year[23]. - Non-gaming revenue for 2020 was HKD 1.57 billion, down 70% compared to 2019[21]. - The average hotel occupancy rate for the group's five hotels in 2020 was 28%[19]. - The group's total net revenue for 2020 was HKD 12.9 billion, a decrease of 75% year-on-year, with adjusted EBITDA at HKD (1.02) billion compared to HKD 165 billion in 2019[50]. - The total gaming revenue for 2020 was HKD 11.5 billion, down 81% year-on-year, with mass market revenue down 79% to HKD 6.1 billion and VIP revenue down 82% to HKD 4.9 billion[50]. - The company has decided not to declare dividends for the year due to uncertainties caused by the COVID-19 pandemic[32]. Operational Highlights - 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[15][16]. - Galaxy Macau™ offers over 100,000 square meters of retail space with around 200 international luxury brands and more than 120 dining options, showcasing a diverse range of cuisines from 13 countries and 18 regions in China[16]. - The group continues to advance the development of its third and fourth phases in Cotai, focusing on non-gaming business and MICE facilities[20]. - The company has implemented cost control measures and has maintained a strong cash position to support long-term development plans[31]. - The group has a strong balance sheet with cash and liquid investments of HKD 46.07 billion as of December 31, 2020[23]. Awards and Recognition - The group has received numerous awards for its high-end projects, including the award-winning StarWorld Hotel, which features over 500 rooms and Michelin-starred dining options[17]. - Galaxy Entertainment Group was awarded the title of "Best Gaming Operator (Australia and Asia)" at the 13th International Gaming Awards[36]. - The company received the "Outstanding Certificate for Investor Relations" at the 6th Investor Relations Awards by the Hong Kong Investor Relations Association[36]. - Galaxy Entertainment Group's hotels received multiple accolades, including the "Best Hotel" and "Best Luxury Resort" at various prestigious awards[39]. - The company was recognized as a "Socially Responsible Operator" in Asia/Australia at the 13th International Gaming Awards[36]. Environmental Sustainability - Galaxy Entertainment Group achieved a 7% reduction in carbon emissions, earning a Carbon Reduction Certificate[40]. - The company has been recognized for its commitment to environmental sustainability through various awards and certifications[40]. - Galaxy Entertainment achieved ISO 14001 environmental management certification for its properties, identifying six areas for improvement[89]. - The company successfully obtained ISO 50001 energy management certification for "Macau Broadway" and plans to pursue LEED certification for "Galaxy Hotel" in the future[89]. - Water consumption at Galaxy Macau and Broadway Macau decreased by 45.7% and 37.4% respectively compared to the 2016 baseline, while the water usage at StarWorld Hotel reduced by 38.8%[93]. Community Engagement and Social Responsibility - Galaxy Entertainment Group established the COVID-19 Relief Fund in February 2020 to provide immediate support to Macau and mainland China during the pandemic[111]. - The foundation launched the "Galaxy Entertainment Group Literacy Support Program" in 2020, focusing on enhancing Chinese language education for children and parents, with a second phase initiated after the pilot project concluded[110]. - The company has actively supported COVID-19 prevention efforts, donating HKD 100 million to assist in pandemic control and providing 1.5 million masks to various governments[84]. - The company has implemented various employee welfare programs, including competitive salary packages, medical benefits, and flexible working arrangements[120]. - Galaxy Entertainment Group has been actively involved in community development and corporate social responsibility since its establishment in 2015[107]. Corporate Governance - The company has implemented a robust corporate governance framework to enhance shareholder value and ensure transparency[166]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balanced composition[169]. - The company has established a rigorous written guideline for employees regarding insider trading to ensure compliance with legal standards[176]. - The Audit Committee held two meetings in 2020, with all members present, and reviewed the interim and annual consolidated financial statements[178]. - The company emphasizes timely and transparent communication with shareholders and investors, providing quarterly unaudited financial information in addition to interim and annual results[193].

Company Overview - Galaxy Entertainment Group aims to be recognized as Asia's leading gaming and entertainment corporation[5]. - The company operates three flagship projects in Macau, including the Galaxy Macau, which spans 1 million square meters and features approximately 3,600 hotel rooms[17]. - Galaxy Macau offers over 100,000 square meters of retail space with around 200 international luxury brands and 120 dining options[17]. - The company is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng Index[17]. - Galaxy Entertainment Group's service philosophy is centered around "Pride of the World, Connected to Asia," which has led to its continued market leadership[17]. Financial Performance - Net revenue decreased by 76% to HKD 6.22 billion compared to the same period last year[20]. - Adjusted EBITDA was (HKD 1.09 billion), down from HKD 8.32 billion in the first half of 2019[25]. - Shareholders' loss amounted to HKD 2.86 billion, compared to a profit of HKD 6.68 billion in the first half of 2019[27]. - Total net revenue for the first half of 2020 was HKD 3,835 million, a decrease of 79.6% compared to HKD 18,790 million in the first half of 2019[28]. - The total gaming revenue for the first half of 2020 was HKD 4,366 million, down 80% from HKD 21,829 million in the first half of 2019[29]. - The group reported a loss attributable to shareholders of HKD 2.856 billion, compared to a profit of HKD 6.680 billion in the first half of 2019[46]. - The company reported a total loss of HKD 2,802,555 thousand for the period, reflecting the impact of the ongoing market challenges[123]. Operational Challenges - Hotel occupancy rates were significantly low, with Galaxy Macau at 21%, StarWorld at 23%, and Broadway at 22%[21][22][23]. - Non-gaming revenue fell by 75% to HKD 679 million[25]. - The number of visitors to Macau in the first half of 2020 was 3.3 million, an 84% decrease compared to the previous year[45]. - The adjusted EBITDA margin for the Galaxy Macau™ was NEG5% in the first half of 2020, compared to 33% in the first half of 2019[28]. - The company has decided not to declare dividends due to the ongoing impact of the COVID-19 pandemic[36]. Development and Expansion - The company continues to advance the development of its third and fourth phases in Cotai, focusing on non-gaming business and MICE facilities[24]. - The company is exploring international development opportunities, including in Japan[24]. - Future development projects, including the third and fourth phases of Cotai, are progressing well, supporting the vision of Macau as a "World Center of Tourism and Leisure"[37]. - The group continues to pursue international development plans, particularly in Japan, while adjusting timelines as necessary due to ongoing pandemic impacts[69]. Corporate Social Responsibility - The group emphasized its commitment to corporate social responsibility, contributing HKD 100 million in cash donations to combat COVID-19[38]. - The group donated HKD 20 million to Hubei Province and Wuhan City for COVID-19 emergency response efforts, and an additional HKD 75 million for long-term medical infrastructure support[79]. - Galaxy Entertainment Group donated a total of 500,000 masks to Zhuhai and Hengqin New Area during the pandemic[82]. - The group provided various forms of assistance during the pandemic, including waiving fixed rent for eligible tenants from February to June 2020[80]. Environmental Initiatives - The group successfully saved 38,770,800 kWh of electricity and 872,731 cubic meters of water in the first half of the year compared to the same period last year[94]. - The group has implemented a comprehensive recycling program across all properties, focusing on energy efficiency and waste reduction[93]. - The company continues to promote environmental protection and sustainable development through various initiatives, including LED light replacement and energy-saving technologies[93]. Employee Engagement - Employee costs (excluding directors' remuneration) amounted to HKD 3.605 billion as of June 30, 2020, with approximately 22,020 employees hired in Hong Kong, Macau, and mainland China[75]. - The group has implemented a stock option plan and share reward plan to attract, motivate, and retain employees, aligning their interests with those of shareholders[76]. - The total training hours increased to nearly 746,000 hours in the first half of 2020, up from 575,000 hours in the same period last year[84]. Shareholder Information - A special dividend of HKD 0.45 per share was declared on April 24, 2020, but no further dividends were announced due to ongoing impacts from the COVID-19 pandemic[20]. - The company’s equity attributable to shareholders decreased to HKD 66.281 billion, a reduction of approximately 10% from HKD 73.587 billion on December 31, 2019[70]. - The company reported a significant increase in cash and bank deposits to HKD 16,988,279,000, up from HKD 11,183,354,000 in 2019, indicating improved liquidity[104]. Governance and Compliance - The company confirmed that all directors complied with the standards set out in the code of conduct for securities transactions during the six months ended June 30, 2020[174]. - The company has complied with the corporate governance code, except for one provision, during the six months ended June 30, 2020[175]. - The chairman's leadership and vision are considered valuable assets for the company, and his continued tenure is deemed beneficial[175].

Business Strategy and Operations - Galaxy Entertainment Group aims to be recognized as Asia's leading gaming and entertainment corporation, leveraging local market insights and a deep understanding of Asian customer preferences[3][4]. - The company operates three flagship projects in Macau, including Galaxy Macau™, which spans 1 million square meters and features approximately 3,600 hotel rooms across five world-class hotels[13]. - Galaxy Macau™ includes over 100,000 square meters of retail space with around 200 international luxury brands and approximately 120 dining options, showcasing a diverse range of Asian and international cuisines[13]. - The company emphasizes a demand-driven strategy, closely monitoring market developments to expand prudently and in a timely manner[6][8]. - Galaxy Entertainment Group has a prudent capital expenditure plan focused on maximizing return on investment, supported by proven construction and hotel expertise[5][11]. - The company is committed to delivering shareholder value through controlled development and strategic investments in integrated gaming and leisure facilities[5][6]. - Galaxy Entertainment Group's flagship project, Galaxy Macau™, features the world's longest 575-meter lazy river and the largest sky surfing pool, enhancing its leisure offerings[13]. - The company is focused on continuous innovation in its product and service offerings to maintain its leadership position in the gaming and entertainment industry[6][8]. Financial Performance - The group's net revenue decreased by 7% year-on-year to HKD 26.2 billion[15]. - Adjusted EBITDA fell by 4% year-on-year to HKD 8.3 billion[15]. - Shareholders' profit attributable decreased by 7% year-on-year to HKD 6.7 billion[15]. - Non-gaming revenue increased by 3% year-on-year to HKD 2.3 billion[15]. - The adjusted EBITDA margin for "Galaxy Macau" was 33% in the first half of 2019, consistent with the previous year[22]. - The total gaming revenue for the group was HKD 30.6 billion, a year-on-year decline of 11%, with mass gaming revenue increasing by 8% to HKD 14.6 billion, while VIP gaming revenue fell by 25% to HKD 14.8 billion[34]. - The company reported a profit of HKD 6,721,424 for the period, reflecting a decrease compared to previous periods[110]. - The net profit for the period was HKD 6,679,752,000, a decrease of 7.3% from HKD 7,206,369,000 in 2018[123]. Capital Expenditures and Investments - The group continues to advance a HKD 1.5 billion enhancement project at Galaxy Macau and StarWorld Hotel[16]. - The company is investing HKD 1.5 billion in enhancement projects for Galaxy Macau and StarWorld Hotel to maintain competitiveness[50]. - The third and fourth phase development projects will provide approximately 4,500 hotel rooms and 400,000 square feet of conference and exhibition space[51]. - The company plans to develop a stylish resort in Hengqin to complement its high-energy resort in Macau[52]. Shareholder Returns - The group announced a special dividend of HKD 0.45 per share in April 2019 and plans to distribute another special dividend of HKD 0.46 per share in October 2019[15]. - A special dividend of HKD 0.46 per share is to be distributed on October 25, 2019[53]. - The company declared a special dividend of HKD 0.45 per share on April 26, 2019, followed by another special dividend of HKD 0.46 per share announced post the settlement date[35]. - The total estimated special dividend for 2019 is approximately HKD 2.00 billion, compared to HKD 2.16 billion in 2018[144]. Visitor Statistics and Market Trends - The number of visitors to Macau increased by approximately 20% year-on-year to 20.3 million, with overnight visitors rising by 8%[27]. - The average length of stay for overnight visitors remained stable at 2.2 days[33]. - The group experienced a decline in VIP room turnover, but the overall gaming market in Macau remained stable[27]. - The company is optimistic about the medium to long-term prospects in Macau due to the growth potential of mainland tourist arrivals and ongoing infrastructure developments[53]. Employee and Community Engagement - Approximately 21,000 employees were employed across Hong Kong, Macau, and mainland China as of June 30, 2019[58]. - The company actively participated in various social and charitable activities during the first half of 2019, supporting community development and sustainable growth[60]. - Galaxy Entertainment Group joined the non-mandatory Central Provident Fund (CPF) scheme in July 2019 to support the retirement security of Macau residents[62]. - Galaxy provided volunteer opportunities for nearly 160 employees and their families, assisting over 900 underprivileged individuals and low-income families in Macau and mainland China[70]. Environmental Initiatives - The company is committed to environmental protection and sustainability, continuously improving its environmental management practices[73]. - Galaxy Entertainment Group collected approximately 17,156 kg of food waste for composting or fish feed, and recycled about 531 tons of cardboard and paper, 63 tons of plastic, 22 tons of metal, 79 tons of glass bottles, 32 tons of waste oil, and 0.74 tons of ink cartridges in the first half of 2019[75]. - The company upgraded the lighting system in the unloading area of Galaxy Macau™, further reducing electricity consumption[75]. - Galaxy Entertainment Group's environmental performance was recognized with the Silver Award for Broadway Hotel at the 2018 Macau Environmental Hotel Awards[75]. Financial Position and Risk Management - Cash and liquid investments reached HKD 50.4 billion as of June 30, 2019[19]. - The group has a strong balance sheet with total cash and liquid investments amounting to HKD 50.4 billion and net cash of HKD 43.9 billion[27]. - The company’s total debt decreased to HKD 6.523 billion as of June 30, 2019, down from HKD 9.055 billion on December 31, 2018[55]. - The group is exposed to various financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management objectives and policies since December 31, 2018[99].

Business Strategy and Expansion - Galaxy Entertainment Group aims to become Asia's leading gaming and entertainment company, leveraging its understanding of local markets and Chinese culture as a competitive advantage[6]. - The group operates three flagship projects in Macau: Galaxy Macau™, Broadway Macau™, and StarWorld Hotel, with Galaxy Macau™ being one of the largest integrated resorts globally, covering 1 million square meters[12][13]. - The company is expanding its footprint with plans for the third and fourth phases of development, which will add another 1 million square meters[16]. - Galaxy Entertainment has made strategic investments, including a stake in the Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco, and is exploring overseas development opportunities, including in Japan[16]. - The group holds the largest contiguous land reserve in Cotai, positioning itself to capitalize on long-term growth in the tourism and leisure industry in China and Asia[33]. - The company is exploring potential opportunities in overseas markets, including Japan[18]. Financial Performance - Net revenue increased by 14% year-on-year to HKD 55.211 billion[19]. - Adjusted EBITDA rose by 19% year-on-year to HKD 16.857 billion[19]. - Shareholders' profit attributable increased by 29% year-on-year to HKD 13.507 billion[20]. - Non-gaming revenue increased by 8% year-on-year to HKD 5.298 billion[19]. - The total assets increased to HKD 87.384 billion in 2018 from HKD 83.815 billion in 2017[20]. - Cash and liquid investments reached HKD 45.837 billion as of December 31, 2018[20]. - The total net revenue for the year 2018 was HKD 39,491 million, an increase from HKD 34,983 million in 2017[54]. - The adjusted EBITDA for 2018 was HKD 12,871 million, up 17% from HKD 11,130 million in 2017[54]. - The total gaming revenue for 2018 reached HKD 48,251 million, compared to HKD 41,566 million in 2017, reflecting a growth of 16%[54]. Gaming and Tourism Trends - In 2018, the total gaming revenue in Macau increased by 14% year-on-year to HKD 294 billion, with the number of visitors rising by 10% to 35.8 million[33]. - The average length of stay for overnight visitors in Macau increased to 2.2 days, indicating a positive trend in tourism[33]. - The occupancy rate of five hotels approached 100% in 2018[21]. - The total number of visitors to Macau in 2018 was 35.8 million, a 10% increase year-on-year, with overnight visitors accounting for 52% of total arrivals[46]. Corporate Social Responsibility - The company 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[16]. - Galaxy Entertainment Group has maintained a strong focus on corporate social responsibility, receiving multiple accolades for its community engagement efforts[35]. - Galaxy Entertainment Group has organized nearly 200 volunteer activities, serving over 120 charitable organizations and providing more than 10,000 hours of community service[84]. - The company has committed to funding 300 users for a new outdoor "Safe Passage" service for three years, promoting community integration and making Macau a senior-friendly city[86]. - Galaxy Entertainment Group donated MOP 400,000 to the Macau Society for the Prevention of Cruelty to Animals to support its ongoing animal rescue efforts[87]. Awards and Recognition - Galaxy Entertainment Group received multiple awards in 2018, including the "Best Investor Relations Program" and "Best Corporate Governance" from Institutional Investor magazine[34]. - The restaurant "8½ Otto e Mezzo BOMBANA" was awarded a Michelin star and recognized as one of the best Italian restaurants in Macau in 2019[38]. - "Macau Galaxy™" was named the "Best Integrated Resort" at the 11th International Gaming Awards in 2018[34]. - The company achieved recognition for its environmental performance, receiving the "Outstanding Environmental Disclosure Award" from the Hong Kong ESG Reporting Awards[35]. - Galaxy Entertainment Group's "Macau Broadway™" won the "Macau Business Awards" in 2018 for its excellence in business practices[35]. Environmental Sustainability - The company’s commitment to environmental sustainability includes reducing greenhouse gas emissions and optimizing resource usage across all operations[117]. - In 2018, the total greenhouse gas emissions amounted to 301,446 tons of CO2 equivalent, a decrease from 320,919 tons in 2017, representing a reduction of approximately 6.5%[123]. - The company has committed to enhancing its environmental performance by implementing various energy-saving measures, including the installation of solar systems and energy management training for over 20 employees[121]. - The company introduced electric buses for passenger transport, becoming the first gaming operator to do so, in line with the government's clean energy goals[120]. Employee Engagement and Welfare - The group has maintained a workforce of approximately 21,000 employees across its global operations, with a balanced gender ratio[97]. - Galaxy Entertainment Group provided a total training hours of 1,102,541, averaging 53 hours per employee[109]. - The company implemented a flexible work plan to promote work-life balance and meet employee needs[103]. - The company has organized various social and recreational activities for employees, fostering team spirit and camaraderie[100]. - The company emphasizes local supplier engagement, with most suppliers being local SMEs, to stimulate economic growth in Macao[116]. Governance and Compliance - The company has a balanced corporate governance system that adheres to the Hong Kong Stock Exchange's corporate governance code, ensuring high transparency and accountability to shareholders[150]. - The board of directors includes key members such as Dr. Lui Che-woo (Chairman) and Mr. Lui Yiu-tung (Vice Chairman)[194]. - The company has implemented a director and officer liability insurance policy to cover claims arising from business activities[157]. - The audit committee is responsible for overseeing the financial reporting process and risk management systems, maintaining independent communication with external auditors[164]. - The company emphasizes timely and transparent communication with shareholders and investors, adhering to a shareholder communication policy[180].