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].