Group 1 - The core viewpoint of the article highlights the strong performance of Macau gaming stocks, driven by various factors including events, wealth effects from the stock market, relaxed visa policies, and ongoing security concerns in Thailand and the Philippines, leading to increased mainland tourist visits to Hong Kong and Macau [1] - According to Goldman Sachs, the gaming companies in Macau expect strong demand during the upcoming Golden Week, supported by nearly full hotel bookings and positive customer communications, with the National Games not significantly impacting gaming revenue [1] - The overall industry anticipates sustained strong growth momentum for the remainder of the year, with Goldman Sachs projecting a 9% year-on-year increase in Macau's total gaming revenue (GGR) for 2025, translating to a 14% year-on-year growth from September to December this year, and a 7% growth in 2026 [1] Group 2 - Specific stock performances include Wynn Macau rising nearly 3%, Galaxy Entertainment up 2%, Melco International Development increasing by 1.5%, Sands China and Suncity Group both gaining over 1%, and MGM China following suit [1] - The latest stock prices and changes are as follows: Wynn Macau at 6.830 (+2.71%), Galaxy Entertainment at 41.540 (+1.96%), Melco International Development at 5.380 (+1.51%), Sands China at 20.600 (+1.28%), Suncity Group at 0.890 (+1.14%), and MGM China at 15.610 (+0.13%) [1]

Group 1 - The government has introduced 19 specific measures to boost service consumption, focusing on enhancing service supply and attracting foreign consumers [1][3] - The measures cover a wide range of industries, including internet, culture, telecommunications, sports events, education, and high-end healthcare, indicating a favorable policy environment for these sectors [1][3] - The emphasis is on addressing the supply-side shortage of quality services through financial support and policy adjustments, which is expected to invigorate the service consumption market [1][2] Group 2 - In August, the total retail sales of consumer goods reached 39,668 billion yuan, showing a year-on-year growth of 3.4%, with service retail sales growing by 5.1% [2] - The overall consumption trend remains positive, with expectations for further policy support to boost consumption, potentially increasing the annual growth rate of retail sales to around 4.5% [2][4] - Analysts suggest a shift in policy focus from physical investments to experience-based service consumption, highlighting the importance of government support for service supply [4] Group 3 - Companies like Huazhu Group and Trip.com are expected to benefit from the recovery in tourism consumption, with Huazhu's EBITDA projected to grow by 5% to 1.5 billion yuan [5] - Trip.com anticipates a revenue growth of 12%-17% in 2025, benefiting from policies aimed at attracting foreign consumers [5] - Hong Kong Travel and China Duty Free are positioned to gain from inbound tourism and enhanced duty-free shopping opportunities, with potential increases in visitor numbers and sales [6]

Group 1 - The core viewpoint is that Macau's gaming industry is expected to maintain strong momentum due to various factors such as major events, wealth effects from the stock market, relaxed visa policies, and ongoing security concerns in Thailand and the Philippines, leading more mainland tourists to choose Hong Kong and Macau as destinations [1][2] - The overall industry anticipates strong growth momentum to continue for the remainder of the year, with a projected 9% year-on-year increase in Macau's total gaming revenue (GGR) for 2025, translating to a 14% year-on-year growth from September to December this year, and a 7% growth in 2026 [1] - The company Goldman Sachs has a "buy" rating for Sands China (01928), citing that the stock price has not fully reflected its ability to regain market share and potential for dividend growth, with a target price set at HKD 24.8 [1] Group 2 - Galaxy Entertainment (00027) is also favored by the company, with expectations of increased market share driven by the new hotel Capella and numerous major events, and a target price of HKD 55.9 with a "buy" rating [2] - MGM China (02282) is noted for its attractive valuation, with expectations to maintain a market share of 15% to 16% and a dividend yield of 5.1%, also anticipated to absorb some gaming volume from the upcoming closure of satellite casinos, with a target price of HKD 20.4 and a "buy" rating [2]

Group 1 - The core viewpoint of the article is that Macau's gaming companies attribute the strong performance of gross gaming revenue (GGR) in recent months to several factors, including major events, wealth effects driven by the stock market, relaxed visa policies, and ongoing security concerns in Thailand and the Philippines, which have led more mainland travelers to choose Hong Kong and Macau as destinations [1] - For the upcoming Golden Week, gaming companies expect strong demand based on nearly full hotel bookings and communication with clients, while the National Games are not anticipated to have a significant impact on gaming revenue [1] - Overall, the industry expects strong growth momentum to continue for the remainder of the year, with Goldman Sachs projecting a 9% year-on-year increase in Macau's total gaming revenue for 2025, implying a 14% year-on-year growth from September to December this year, and a 7% growth in 2026 [1] Group 2 - Sands China (01928) is favored by Goldman Sachs as the stock price has not fully reflected its ability to regain market share and potential for dividend growth, despite recent adjustments in promotional activities and reinvestment rates that may pressure profit margins in Q3, with a target price of HKD 24.8 and a "Buy" rating [1] - Galaxy Entertainment (00027) is also viewed positively, with expectations of increased market share driven by the new hotel Capella and major events, receiving a target price of HKD 55.9 and a "Buy" rating [1] - MGM China (02282) is considered to have the most attractive valuation, with expectations to maintain a 15% to 16% market share and a dividend yield of 5.1%, also expected to absorb some gaming volume from the upcoming closure of satellite casinos, with a target price of HKD 20.4 and a "Buy" rating [1]

Core Viewpoint - Goldman Sachs reports that Macau gaming companies attribute the strong performance of gross gaming revenue (GGR) in recent months to a combination of major events, wealth effects driven by the stock market, relaxed visa policies, and ongoing security concerns in Thailand and the Philippines, leading more mainland travelers to choose Hong Kong and Macau as destinations [1] Industry Summary - The gaming industry anticipates strong growth momentum to continue for the remainder of the year, with expectations of a 9% year-on-year increase in Macau's total gaming revenue for 2025, translating to a 14% year-on-year growth from September to December this year, and a 7% growth in 2026 [1] Company Summary - Sands China (01928) is favored by Goldman Sachs due to its stock price not fully reflecting its ability to regain market share and potential for dividend growth, despite potential short-term profit margin pressure from recent promotional adjustments and reinvestment rates; target price set at HKD 24.8 with a "Buy" rating [1] - Galaxy Entertainment (00027) is also viewed positively, with expectations of market share growth driven by the new hotel Capella and major events; target price set at HKD 55.9 with a "Buy" rating [1] - MGM China (02282) is considered the most attractively valued, expected to maintain a 15% to 16% market share with a dividend yield of 5.1%, and likely to absorb some gaming volume from the upcoming closure of satellite casinos; target price set at HKD 20.4 with a "Buy" rating [1]

Investment Rating - The report indicates a positive outlook for the Macau gaming industry, expecting GGR growth momentum to continue into the second half of 2025, with overall performance anticipated to exceed that of the first half of 2025 [2][9]. Core Insights - The Macau gaming market has shown better-than-expected performance from June to August, achieving double-digit GGR growth driven by factors such as RMB appreciation, stock market recovery, and strong tourism demand [2][9]. - The premium mass segment is leading GGR growth, surpassing pre-pandemic levels, while the mass market has yet to recover fully [2][9]. - Companies are actively positioning themselves in the premium mass segment, enhancing their offerings with luxury accommodations and services, leading to intense competition [2][9]. Company Summaries SJM Holdings - The company saw an increase in market share in September, particularly on the Macau Peninsula, attributed to a rise in day-trip visitors [10]. - The mass market business performed exceptionally well, with high profit margins expected to boost EBITDA margins [10]. - Confidence in performance for Q3 2025 is high, with expectations to surpass Q2 and Q1 2025 levels [10]. Sands China - The company is focusing on building competitiveness in the premium mass segment, adding numerous rooms and facilities [11]. - It is the last among six gaming enterprises to target the premium mass segment, aiming to regain lost advantages over the past two years [11]. - Capital expenditures will be directed towards a new convention center and garden, with no short-term increase in room numbers [11]. MGM China - Growth trends are expected to continue into the second half of 2025, with positive hotel booking data for September and October [12]. - The company is actively gaining market share in the premium mass segment, which is anticipated to enhance EBITDA profit margins [12]. - New high-end villas and the upcoming Alpha Club targeting ultra-high-end clientele are expected to boost revenue and profit margins [12]. Galaxy Entertainment - The company performed well in August, benefiting from a concert, with stable sales data from shopping centers [13]. - It expects steady improvement in EBITDA profit margins and remains optimistic about next year's performance growth [13]. - The company is advancing a project to add 1,500 guest rooms, expected to be completed by 2027, enhancing its competitiveness in the premium mass segment [13]. Industry Events - Numerous entertainment and sports events in the second half of 2025 are expected to significantly contribute to tourism and GGR growth in Macau [14]. - Upcoming events include concerts by popular artists and the NBA China Games, which are anticipated to attract significant visitor numbers [14][16].

(Stock Code: 27) （股份代號：27） NOTIFICATION LETTER 通 知 函 件 Dear Non-registered holder(Note), Galaxy Entertainment Group Limited (the "Company") – Notice of Publication of 2025 Interim Report ("Current Corporate Communication") (Incorporated in Hong Kong with limited liability) （於香港註冊成立之有限公司） 各位非登記持有人附註： 銀河娛樂集團有限公司（「本公司」） – 2025 中期報告（「本次公司通訊」）之發佈通知 本公司的本次公司通訊的英文及中文版本已上載於本公司網站www.galaxyentertainment.com及香港交易及 結算所有限公司（「香港交易所」）網站www.hkexnews.hk。 閣下可在本公司網站主頁「投資者關係」一 欄內或在香港交易所網站開啟並瀏覽本次公司通訊。 閣下須使用Adobe® Reader®開啟有關文件。 ...

(Stock Code: 27) （股份代號：27） (Incorporated in Hong Kong with limited liability) （於香港註冊成立之有限公司） 本公司的本次公司通訊的英文及中文版本已上載於本公司網站www.galaxyentertainment.com及香港交易及 結算所有限公司（「香港交易所」）網站www.hkexnews.hk。 閣下可在本公司網站主頁「投資者關係」一 欄內或在香港交易所網站開啟並瀏覽本次公司通訊。 閣下須使用Adobe® Reader®開啟有關文件。 NOTIFICATION LETTER 通 知 函 件 Dear Shareholder, Galaxy Entertainment Group Limited (the "Company") – Notice of Publication of 2025 Interim Report ("Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Comm ...

Company Information [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) Galaxy Entertainment Group's Board of Directors comprises a Chairman, Executive Directors, Non-Executive Directors, and Independent Non-Executive Directors, with committees ensuring sound corporate governance - Board members include Chairman Mr. Lui Che Woo, Executive Directors Mr. Francis Lui Yiu Tung, Ms. Jenny Tsang, Ms. Joanna Lui, and several Non-Executive and Independent Non-Executive Directors[9](index=9&type=chunk) - Established Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, with Independent Non-Executive Directors serving as chairmen or key members in each committee[9](index=9&type=chunk) [Company Contact and Listing Information](index=5&type=section&id=Company%20Contact%20and%20Listing%20Information) The company disclosed key corporate information, including its independent auditor, registered office, share registrar, principal bankers, legal advisors, listing code, and investor relations contact details - Independent auditor is PricewaterhouseCoopers[10](index=10&type=chunk) - The company's shares are listed on The Stock Exchange of Hong Kong Limited, stock code **27**[10](index=10&type=chunk) - Investor relations contact details include telephone (852) 3150 1111, fax (852) 3150 1100, and email ir@galaxyentertainment.com[11](index=11&type=chunk) Company Profile [Vision and Operating Philosophy](index=2&type=section&id=Vision%20and%20Operating%20Philosophy) Galaxy Entertainment Group's vision is to become Asia's leading gaming and entertainment enterprise, achieving this through its operating philosophy - Vision: To be Asia's leading gaming and entertainment enterprise[3](index=3&type=chunk)[5](index=5&type=chunk) - Operating philosophy includes: deep understanding of local market, professional experience, clear positioning, and demand-driven strategy[4](index=4&type=chunk)[6](index=6&type=chunk) [Core Business and Properties](index=6&type=section&id=Core%20Business%20and%20Properties) The Group primarily develops and operates integrated resorts, retail, dining, hotel, and gaming facilities in Macau, with three flagship projects: "Galaxy Macau™", StarWorld Hotel, and "Broadway Macau™" - The Group is a world-leading resort, hotel, and gaming enterprise, primarily operating integrated resorts in Macau[14](index=14&type=chunk) - "Galaxy Macau™" is one of the world's largest integrated resorts, spanning **1.4 million square meters**, offering approximately **4,700 rooms, suites, and villas**, along with diverse retail, dining, entertainment, leisure, and MICE facilities[14](index=14&type=chunk)[17](index=17&type=chunk)[20](index=20&type=chunk) - StarWorld Hotel, opened in **2006**, is the Group's first five-star hotel, located in the heart of Macau Peninsula, featuring over **500 luxurious rooms and suites**[18](index=18&type=chunk)[21](index=21&type=chunk) - "Broadway Macau™", opened in **2015**, is connected to "Galaxy Macau™" via a sky bridge, offering approximately **310 rooms and suites**, and features the **2,500-seat** "Broadway Theatre" and a variety of local delicacies[26](index=26&type=chunk) [Future Development Opportunities](index=8&type=section&id=Future%20Development%20Opportunities) The Group is actively advancing several future development projects, including the upcoming full opening of Capella at Galaxy Macau, the Cotai Phase 4 expansion plan, and continuously exploring development opportunities in the Greater Bay Area and overseas markets - Capella at Galaxy Macau provided an exclusive preview in **May 2025**, with a full public opening expected in the coming months, offering approximately **100 ultra-luxury suites** and Capella Sky Villas[23](index=23&type=chunk) - Cotai Phase 4 plan will expand the footprint by **600,000 square meters**, including multiple high-end hotel brands, a theater with approximately **5,000 seats**, diverse dining, retail, non-gaming facilities, gardens, water play zones, and a casino, bringing the total hotel room and suite supply to approximately **7,000** upon completion[24](index=24&type=chunk) - The Group will continue to explore development opportunities in the Greater Bay Area and overseas, including a strategic investment in Société des Bains de Mer et du Cercle des Étrangers à Monaco, and is committed to youth education development in Macau and mainland China[25](index=25&type=chunk) Financial and Operational Highlights [Group Performance](index=9&type=section&id=Group%20Performance) In the first half of 2025, the Group achieved robust growth in both net revenue and adjusted EBITDA, with a significant increase in profit attributable to shareholders, maintaining a highly liquid balance sheet, and declaring an interim dividend Group's Key Financial Data for H1 2025 | Metric | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 23,200 | 21,470 | +8 | | Adjusted EBITDA | 6,900 | 6,011 | +14 | | Profit Attributable to Shareholders | 5,200 | 4,387 | +19 | | Cash and Liquid Investments (as of June 30) | 30,700 | 28,968 | +6 | | Net Cash (as of June 30) | 30,300 | 25,131 | +20.5 | | Interim Dividend (HKD per share) | 0.70 | 0.50 | +40 | - In H1 2025, the gaming business experienced a higher-than-normal net win rate, increasing adjusted EBITDA by approximately **HKD 737 million**; after normalizing the net win rate, adjusted EBITDA was **HKD 6.1 billion**, a **3% year-on-year increase**[32](index=32&type=chunk) ["Galaxy Macau™" Performance](index=9&type=section&id=Galaxy%20Macau%E2%84%A2%20Performance) "Galaxy Macau™" achieved strong growth in H1 2025, with significant increases in both net revenue and adjusted EBITDA, maintaining high hotel occupancy, and growing non-gaming revenue "Galaxy Macau™" Key Financial Data for H1 2025 | Metric | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 19,100 | 16,958 | +13 | | Adjusted EBITDA | 6,300 | 5,395 | +18 | | Average Hotel Occupancy Rate | 98% | - | - | | Non-Gaming Revenue | 2,800 | 2,697 | +4 | - In H1 2025, the gaming business experienced a higher-than-normal net win rate, increasing adjusted EBITDA by approximately **HKD 755 million**; after normalizing the net win rate, adjusted EBITDA was **HKD 5.6 billion**, a **3% year-on-year increase**[32](index=32&type=chunk) [StarWorld Hotel Performance](index=9&type=section&id=StarWorld%20Hotel%20Performance) StarWorld Hotel's net revenue and adjusted EBITDA both decreased in H1 2025, primarily due to a lower-than-normal gaming net win rate, though hotel occupancy remained at 100% StarWorld Hotel Key Financial Data for H1 2025 | Metric | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 2,400 | 2,692 | -10 | | Adjusted EBITDA | 653 | 825 | -21 | | Hotel Occupancy Rate | 100% | - | - | | Non-Gaming Revenue | 248 | 267 | -7 | - In H1 2025, the gaming business experienced a lower-than-normal net win rate, decreasing adjusted EBITDA by approximately **HKD 18 million**; after normalizing the net win rate, adjusted EBITDA was **HKD 671 million**, a **14% year-on-year decrease**[32](index=32&type=chunk) ["Broadway Macau™", City Clubs, and Construction Materials Business Performance](index=9&type=section&id=Broadway%20Macau%E2%84%A2%2C%20City%20Clubs%2C%20and%20Construction%20Materials%20Business%20Performance) Adjusted EBITDA for "Broadway Macau™" and City Clubs both decreased, while the construction materials business saw growth in adjusted EBITDA, benefiting from improved sales in mainland China Adjusted EBITDA for Other Businesses in H1 2025 | Business | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | | :--- | :--- | :--- | | "Broadway Macau™" | 6 | 12 | | City Clubs | 3 | 9 | | Construction Materials Business | 423 | 365 | - Construction materials business adjusted EBITDA increased by **16% year-on-year**, primarily benefiting from improved sales in mainland China[32](index=32&type=chunk) [Recent Developments](index=10&type=section&id=Recent%20Developments) The Group continues to advance multiple development projects, including the exclusive preview of Capella at Galaxy Macau, enhancement of Cotai Phase 3 facilities, focus on non-gaming development for Cotai Phase 4, and exploration of overseas market opportunities such as Thailand - Capella at Galaxy Macau provided an exclusive private preview in May[33](index=33&type=chunk) - Cotai Phase 3 continues to enhance the performance of Galaxy International Convention Center, Galaxy Arena, Raffles at Galaxy Macau, and Andaz Macau[33](index=33&type=chunk) - Cotai Phase 4 project focuses on non-gaming businesses, primarily targeting entertainment and family-friendly facilities, in addition to a casino[33](index=33&type=chunk) - The Group continues to explore development opportunities in overseas markets, including Thailand[33](index=33&type=chunk

Group 1 - UBS report indicates that the upcoming Federal Reserve interest rate cuts will benefit Hong Kong real estate but negatively impact Hong Kong banks [1] - The bank maintains a cautious stance on bank stocks, currently underweighting them, and has placed Hang Seng Bank on its least favored list [1] - UBS continues to favor Hong Kong property developers and has a positive outlook on Wynn Macau and Galaxy Entertainment due to improved demand from high-end clientele and attractive dividend yields [1] Group 2 - In the first half of the year, approximately 98% of the 49 Hong Kong-listed companies covered by UBS have reported earnings, with an overall net profit decline of 7% year-on-year despite a 4% increase in revenue [2] - More than half of the companies met expectations, but those falling short slightly outnumbered those exceeding expectations; the financial sector performed well due to favorable market conditions and better-than-expected non-interest income [2] - The upcoming interest rate cuts are expected to reverse the outperformance of bank stocks, which have outperformed Hong Kong real estate stocks by 80% since the HIBOR uptrend began in December 2021 [2]