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]

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].