JMMIT 凱 升 控 股 有 限 公 司 ● Holdings Limited 凱升控股有限公司 (於百慕迪赴冊成立之有限公司) 股票代號: 102 Hotel & Resort 2022 中 期 報 告 目 錄 摘 要 2 管理層討論與分析 3 簡明綜合財務報表審閱報告 21 簡明綜合損益及其他全面收益表 22 簡明綜合財務狀況表 23 簡明綜合權益變動表 25 簡明綜合現金流量表 26 簡明綜合財務報表附註 27 其他資料 42 公司資料 50 1 凱升控股有限公司 二零二二中期報告 摘 要 • 本集團於二零二二年上半年之總收益為港幣177,900,000元，較 二 零 二 一 年 上 半 年 港 幣129,500,000元上升37%，主要是由於強勁的俄羅斯聯邦本地市場帶動所致。 • 本集團於二零二二年上半年錄得經調整EBITDA港 幣60,000,000元，而二零二一年上半 年則錄得港幣17,200,000元。 • 二零二二年上半年本集團錄得溢利港幣123,800,000元，而 二 零 二 一 年 上 半 年 則 錄 得 虧損港幣8,100,000元。二 零 二 二 年 上 半 年 本 公 司 擁 有 ...

Financial Performance - The total revenue for the group in 2021 was HKD 265,500,000, an increase of 26% compared to HKD 211,200,000 in 2020, primarily driven by local customers[5]. - The group recorded a positive adjusted EBITDA of HKD 40,900,000 in 2021, compared to a negative adjusted EBITDA of HKD 14,700,000 in 2020[5]. - The company reported a loss attributable to shareholders of HKD 230,000,000 in 2021, compared to a profit of HKD 10,000,000 in 2020, mainly due to a fair value loss of approximately HKD 149,100,000 from derivative financial instruments and impairment losses of approximately HKD 136,900,000 on properties, operating rights, and equipment[5]. - The group confirmed a net loss of HKD 149,100,000 from derivative financial instruments for the year ended December 31, 2021, compared to a net gain of HKD 86,000,000 in 2020, primarily due to holdings in Suntrust Home Developer, Inc.[19]. - The company reported a total loss attributable to owners of the company of HKD 229,988,000 for the year ended December 31, 2021, compared to a profit of HKD 10,018,000 in 2020[62]. - The company recorded an adjusted EBITDA turnaround from negative to positive in 2021, driven entirely by local contributions from the gaming and slot machine business[51]. - The net revenue from gaming operations reached HKD 248,355,000 in 2021, compared to HKD 202,924,000 in 2020, reflecting a growth of approximately 22.4%[60]. - Total gaming revenue for 2021 was HKD 286,101,000, up from HKD 249,736,000 in 2020[67]. - The net gaming revenue from the mass market increased by 38% to HKD 113,000,000 in 2021, compared to HKD 82,000,000 in 2020[74]. - Slot machine gaming revenue rose by 31% to HKD 135,000,000 in 2021, up from HKD 103,000,000 in 2020[79]. - Hotel business revenue increased to HKD 17,164,000 in 2021 from HKD 8,314,000 in 2020, marking a growth of 106.5%[60]. COVID-19 Impact - Due to the ongoing negative impact of COVID-19, particularly on international travel restrictions and economic uncertainty, the company has decided to postpone the development of Phase II of the Tigre de Cristal project, with the current target for opening no earlier than 2025[6]. - The ongoing COVID-19 pandemic continues to negatively impact the group's business, operational performance, and financial condition, despite progress in vaccine development[11]. - The company is currently unable to determine when travel restrictions will be lifted, affecting visitor traffic to the Tigre de Cristal[13]. - The group has initiated a large-scale vaccination program for its employees starting from early February 2021[13]. - The company’s operations have been impacted by COVID-19, particularly in Manila, leading to restrictions that hindered financing discussions for the development of the main hotel entertainment venue[29]. - The company continues to advance the development of the second phase of the Crystal Palace despite ongoing negative impacts from COVID-19[46]. Strategic Initiatives - The group aims to explore business expansion opportunities under potential new restrictions, including further capital investments in the second phase of the project[16]. - The group is focused on diversifying and expanding its market presence through strategic investments and partnerships, particularly in the Philippine entertainment sector[21]. - The company aims to strategically transform into a pan-Asian gaming operator, leveraging the issuance of convertible bonds in 2020 and 2021 for flexibility and immediate interest income[53]. - The company has a strong opportunity to become part of the local integrated resort market in the Philippines, which has shown double-digit growth in gaming revenue over the past decade[53]. - The company remains cautiously optimistic about future expansion in the Russian Far East region, assessing the impact of geopolitical tensions[52]. Operational Adjustments - The group has been adjusting its operations in response to the economic sanctions imposed on Russia due to the conflict with Ukraine[15]. - The group has not engaged in any bank borrowings and is maintaining operations independently in the Russian Far East region[16]. - The group is committed to ensuring operational efficiency despite rising costs due to inflation and supply chain disruptions[16]. - The company has implemented prudent cost control measures since the COVID-19 outbreak, leading to stable general and administrative expenses[58]. - The group maintained strict cost control measures throughout the year to mitigate the impact of COVID-19 on its business[83]. Governance and Management - The board of directors consists of six members, including three executive directors and three independent non-executive directors[136]. - All independent non-executive directors are independent of the group's management and possess extensive experience in accounting, banking, financial management, and business[137]. - The company has adhered to the corporate governance code, except for a specific deviation regarding communication with shareholders[135]. - The company provides comprehensive onboarding information to new directors to ensure they understand the company's operations and responsibilities[140]. - Continuous professional development for directors is emphasized, with training sessions provided to keep them informed of regulatory changes[140]. - The company has established a procedure for directors to seek independent professional advice, with no requests made in 2021[148]. - The company has implemented a securities trading policy for directors and employees, ensuring compliance with listing rules[149]. - The company conducts annual reviews of its insurance arrangements for directors and officers against potential legal actions[150]. Risk Management - The company has established a risk management framework to oversee the effectiveness of risk management and internal control systems, which includes a clear governance structure and reporting mechanisms[189]. - The board is responsible for monitoring the design and implementation of the risk management and internal control systems to achieve the company's strategic objectives[189]. - The group has established a risk management policy to identify, assess, and manage significant risks, with a dedicated risk management team conducting annual reviews[190]. - Risk management and internal control assessment reports are submitted to the audit committee at least once a year, ensuring the effectiveness of the group's risk management systems[191]. Financial Position - The company maintains a strong balance sheet with all financing sourced from equity, without any bank borrowings[52]. - The company maintained a debt-to-asset ratio of 0% as of December 31, 2021, consistent with the previous year[95]. - The net cash flow from operating activities for 2021 was HKD 20,061,000, compared to a negative cash flow of HKD 35,075,000 in 2020[99]. - Cash and cash equivalents as of December 31, 2021, amounted to HKD 606,600,000, a significant decrease from HKD 1,562,300,000 in 2020[98]. - The company had no outstanding bank borrowings as of December 31, 2021[95]. - The group has unutilized tax losses of approximately HKD 589,500,000 as of December 31, 2021, compared to HKD 559,600,000 in 2020[92]. Employee and Community Engagement - The total number of employees in the group was 994, a decrease from 1,081 in 2020, with over 97% being Russian citizens[108]. - The company continues to provide employee compensation benefits and training programs in line with current market practices[108].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 凱升控股有限公司 Holdings Limited 凱升控股有限公司 （於百慕達註冊成立之有限公司） （股份代號：102） 有 關 截至二零二零年十二月三十一日止年度之年報之 補充公告 茲 提 述 凱 升 控 股 有 限 公 司（「本公司」，連 同 其 附 屬 公 司「本集團」）於 二 零 二 一 年 四 月 二 十 二 日 所 刊 發 截 至 二 零 二 零 年 十 二 月 三 十 一 日 止 年 度 的 年 報（「二零二零 年年報」）。除 非 文 義 另 有 所 指，否 則 本 公 告 所 用 詞 彙 與 二 零 二 零 年 年 報 所 界 定 者具有相同涵義。 除 二 零 二 零 年 年 報 所 提 供 的 資 料 外，本 公 司 董 事 會（「董事會」）謹 此 提 供 以 下 額 外資料，內容有關(i)所得款項用途；及(ii)購股權計劃。 所得款項用途 (1) 根 據 一 般 授 權 配 售 新 ...

Financial Performance - The total revenue for the first half of 2021 was HKD 129,500,000, a 35% increase from HKD 96,000,000 in the first half of 2020[7] - The adjusted EBITDA for the first half of 2021 was HKD 17,200,000, compared to a negative adjusted EBITDA of HKD 22,100,000 in the first half of 2020[7] - The loss attributable to owners of the company for the first half of 2021 was approximately HKD 131,000, significantly improved from HKD 47,000,000 in the same period of 2020[7] - The total revenue from the gaming and hotel business was HKD 129,452,000 in 2021, up from HKD 95,967,000 in 2020, representing an increase of approximately 35%[27] - The company recorded a net loss attributable to shareholders of HKD 131,000 for the first half of 2021, a significant improvement from a loss of HKD 46,975,000 in the same period of 2020[30] - The total loss for the period was HKD 8,064,000, a substantial improvement from a loss of HKD 89,157,000 in the previous year, representing a reduction of 91%[81] - Basic and diluted loss per share improved to HKD (0.003) from HKD (2.33) year-on-year[81] Cash and Liquidity - As of June 30, 2021, the company had cash and bank balances of HKD 635,300,000, with no bank borrowings[7] - Cash and cash equivalents decreased to HKD 635,300,000 as of June 30, 2021, down from HKD 1,562,300,000 on December 31, 2020, primarily due to loan disbursements[60] - The net cash generated from operating activities for the first half of 2021 was HKD 8,896,000, compared to a cash outflow of HKD 8,419,000 in the same period of 2020[61] - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 8,896,000, compared to HKD 8,419,000 for the same period in 2020, representing an increase of approximately 5.7%[94] - The total decrease in cash and cash equivalents was HKD 926,198,000, compared to a decrease of HKD 33,767,000 in the previous year, reflecting a substantial cash outflow[96] Operational Highlights - The company continues to focus on the local market in the Russian Federation, where it operates the Tigre de Cristal integrated resort[9] - The first phase of the Tigre de Cristal resort opened in Q4 2015 and features a gaming area of approximately 36,000 square meters[10] - The expansion plan for the Crystal Tiger Palace is progressing, with the number of rooms expected to triple and gaming equipment to double upon the opening of the second phase in 2023[20] - The new VIP lounge and hot pot restaurant at the Crystal Tiger Palace are now fully operational, ready to serve customers once borders reopen[21] - The company has been monitoring the potential impacts of COVID-19 on its business operations and assessing its working capital needs[14] Gaming and Hotel Performance - The net gaming revenue from the mass market segment increased by 62% to HKD 55,000,000 in the first half of 2021, up from HKD 34,000,000 in the same period of 2020[41] - The gaming turnover for the mass market segment rose significantly by 68% to HKD 237,000,000 in the first half of 2021, compared to HKD 141,000,000 in the first half of 2020[41] - The slot machine gaming turnover reached HKD 1,563,000,000 in the first half of 2021, a substantial increase of 93% from HKD 810,000,000 in the first half of 2020[46] - The net gaming revenue from the slot machine segment increased by 66% to HKD 68,000,000 in the first half of 2021, compared to HKD 41,000,000 in the same period of 2020[46] - Hotel business revenue increased by 82% to HKD 6,700,000 in the first half of 2021, compared to the same period in 2020[47] - The average hotel occupancy rate on weekends rose to 44% in the first half of 2021, up from 15% in the first half of 2020[47] Debt and Financing - The company has a strong balance sheet with no debt and sufficient cash reserves to navigate through the pandemic[20] - The company currently relies entirely on equity financing and has no bank borrowings, indicating a strong capital structure[99] - The company provided a short-term loan of USD 120,000,000 to its subsidiary Suntrust Home Developers, Inc., with an interest rate of 6%[15] - Financing costs decreased by 60% to HKD 5,900,000 in the first half of 2021, compared to HKD 14,800,000 in the same period of 2020[50] Shareholder Information - As of June 30, 2021, the total number of issued shares of the company was 4,509,444,590 shares[196] - Mr. Zhou Zhuohua holds a controlling interest of 69.66% in the company, representing 3,141,561,811 shares[177] - Major shareholder Tai Yang Cheng held 123,255,000 shares, representing 2.73% of the total issued shares[195] - Tai Yang Cheng, through its subsidiary Sheng Tian, owned 3,018,306,811 shares, accounting for 66.93% of the total issued shares[196] Corporate Governance - The company has complied with the corporate governance code as of June 30, 2021, except for the attendance of the chairman at the annual general meeting[200] - The board of directors has arranged for an executive director to represent the chairman at the annual general meeting due to scheduling conflicts[200]

JIMI F 司 Holdings Limited 凱 升 控 股 有 限 公 ● 凱 升 控 股 有 限 公 司 年 報 • 2020 | --- | --- | |--------------------------|-------| | | | | 目 錄 | | | 摘要 | 2 | | 主席報告 | 3 | | 管理層討論與分析 | 5 | | 董事及高級管理層履歷詳情 | 20 | | 企業管治報告 | 25 | | 環境、社會及管治報告 | 37 | | 董事會報告 | 60 | | 獨立核數師報告 | 70 | | 綜合損益及其他全面收益表 | 75 | | 綜合財務狀況表 | 76 | | 綜合權益變動表 | 78 | | 綜合現金流量表 | 79 | | 綜合財務報表附註 | 81 | | 五年概要 | 153 | | 公司資料 | 154 | 1 凱升控股有限公司 • 二零二零年年報 摘 要 • 本集團於二零二零年之總收益為港幣211,200,000元，較 二 零 一 九 年 的 港 幣532,800,000元下降60%，主 要 是 由 於COVID-19疫 情 的 不 利 影 響，特 ...

Financial Performance - The total revenue for the first half of 2020 was HKD 96,000,000, a decrease of 63% compared to the first half of 2019, primarily due to the COVID-19 pandemic and the suspension of operations at Tigre de Cristal from March 28, 2020, until July 16, 2020[15]. - The loss attributable to the owners of the company for the first half of 2020 was HKD 47,000,000, compared to a profit of HKD 42,800,000 in the first half of 2019[15]. - The group recorded a negative adjusted property EBITDA of HKD 22,100,000 for the first half of 2020, down from a positive adjusted property EBITDA of HKD 108,500,000 in the first half of 2019[15]. - The group reported a total loss attributable to owners of HKD 46,975,000 for the first half of 2020, compared to a profit of HKD 42,814,000 in the same period of 2019[57]. - The company reported a loss before tax of HKD 89,044,000 compared to a profit of HKD 55,445,000 in the previous year[114]. - Basic and diluted loss per share was HKD (2.60), compared to earnings of HKD 2.86 in the previous year[115]. - The company reported a total comprehensive loss of HKD 89,157,000 compared to a total comprehensive income of HKD 55,364,000 in the previous year[115]. Revenue Breakdown - Total revenue from gaming operations decreased to HKD 95,967,000 in the first half of 2020, down 62.7% from HKD 257,291,000 in the first half of 2019[54]. - The gaming revenue from Tigre de Cristal was HKD 92,300,000 in the first half of 2020, down from HKD 236,900,000 in the same period of 2019, representing a decline of 61%[62]. - The turnover from the remittance business was HKD 1,192,000,000 in the first half of 2020, an 86% decrease from HKD 8,360,000,000 in the first half of 2019[67]. - The net win from the remittance business fell 74% to HKD 18,000,000 in the first half of 2020, down from HKD 69,000,000 in the same period of 2019[67]. - The total betting amount for table games decreased by 60% to HKD 141,000,000 in the first half of 2020, compared to HKD 350,000,000 in the first half of 2019[70]. - The net win from table games was HKD 34,000,000 in the first half of 2020, a 56% decrease from HKD 77,000,000 in the same period of 2019[70]. - Revenue from gaming and hotel operations decreased to HKD 95,967,000, down 62.7% from HKD 257,291,000 in the previous year[114]. Operational Changes - The company suspended its gaming operations from March 28, 2020, until July 16, 2020, due to COVID-19, which adversely affected visitor numbers and revenue[131]. - The company has implemented standard operating procedures to prevent the spread of COVID-19, including temperature checks and mandatory mask-wearing[26]. - The company continues to support the Russian government's measures against COVID-19, prioritizing the health and safety of guests and employees[25]. - The group has focused on local market operations, particularly in table games and slot machines, due to ongoing border restrictions[43]. Future Developments - Future developments include a hotel expansion project with 34 new guest rooms, a new VIP gaming hall, and a new noodle shop[24]. - The second phase of the Tigre de Cristal project is expected to have a total development cost of approximately USD 200 million, with the company's estimated capital requirement being around USD 120 million (approximately HKD 930 million)[33]. - The second phase of the Tigre de Cristal project aims to double the number of gaming tables and slot machines, and increase accommodation capacity to at least double that of existing properties[33]. - The company plans to utilize the proceeds from the proposed rights issue to enhance its financial position and fund the development of the second phase of Tigre de Cristal[47]. Financial Position - As of June 30, 2020, the company maintained a healthy financial position with cash on hand of HKD 816,700,000 and no bank borrowings[15]. - The group maintained a liquidity ratio of 3.0 and a debt-to-equity ratio of zero as of June 30, 2020, showcasing strong financial resilience during the pandemic[43]. - The company did not incur any external borrowings as of June 30, 2020, maintaining a debt-to-asset ratio of 0%[90]. - The group maintained a current ratio of 3.0 as of June 30, 2020, compared to 3.2 as of December 31, 2019[91]. - Cash and cash equivalents decreased to HKD 816.7 million as of June 30, 2020, from HKD 860.7 million as of December 31, 2019[91]. Rights Issue and Capital Management - The proposed rights issue aims to raise approximately HKD 1,623,400,000 before expenses, with a subscription price of HKD 0.6 per share[27]. - The estimated net proceeds from the rights issue are approximately HKD 1,618,420,000, with about 52.3% (HKD 847 million) allocated for the subscription of convertible bonds[37]. - The estimated costs related to the rights issue, including printing, registration, legal, accounting, and documentation fees, are approximately HKD 4,980,000[37]. - The company plans to hold a special general meeting on September 7, 2020, to consider and approve matters related to a rights issue, underwriting agreement, and subscription matters[16]. Employee and Management Information - The total number of employees as of June 30, 2020, was 1,164, an increase from 1,139 as of December 31, 2019, with over 97% being local Russian citizens[104]. - The total remuneration for directors and key management personnel for the six months ended June 30, 2020, was 4,185,000 HKD, compared to 3,285,000 HKD in the same period of 2019[191]. - The company continues to provide employee benefits and training programs, including a stock option plan for directors, employees, and consultants[104]. Currency and Taxation - The company has not hedged against currency translation risks, which may significantly impact the performance and financial position due to exchange rate fluctuations[99]. - The group had unused tax losses of approximately HKD 560 million under Russian corporate tax as of June 30, 2020, compared to HKD 522.3 million as of December 31, 2019[87]. - The estimated repayment amount of input VAT to the tax authority is calculated using an effective interest rate of 8.47%[180]. Miscellaneous - The company has agreed to subscribe to convertible bonds issued by Suntrust Home Developers, Inc. with a total principal amount of 5.6 billion Philippine Pesos (approximately HKD 847 million) and an interest rate of 6%[30]. - The company has entered into a conditional subscription agreement with Suntrust Home Developers, Inc. for convertible bonds that can be converted into shares, which will be measured at fair value according to HKFRS 9[196].

Expense Overview - The total other expenses for the year 2019 amounted to HKD 42,686,000, an increase from HKD 36,410,000 in 2018, representing a growth of approximately 7.4%[3] - Bank charges increased significantly to HKD 7,366,000 in 2019 from HKD 3,830,000 in 2018, reflecting an increase of about 92.5%[5] - Employee relationship costs rose to HKD 7,133,000 in 2019, compared to HKD 6,546,000 in 2018, marking an increase of approximately 9%[5] - The cost of non-recoverable VAT on gaming supplies was HKD 6,905,000 in 2019, up from HKD 4,994,000 in 2018, indicating a growth of around 38.2%[5] - Legal and professional fees were reported at HKD 2,912,000 in 2019, slightly up from HKD 2,708,000 in 2018, showing an increase of about 7.5%[5] - The total miscellaneous expenses decreased to HKD 7,784,000 in 2019 from HKD 9,316,000 in 2018, a decline of approximately 16.4%[5] Financial Reporting and Management - The company confirmed that the additional information provided does not affect the other data reported in the 2019 annual report[5] - The board of directors remains committed to transparency and accuracy in financial reporting, as evidenced by the detailed breakdown of expenses[6] - The company is focused on maintaining operational efficiency while managing costs effectively in the upcoming fiscal periods[6] - The financial data indicates a trend of increasing operational costs, which may impact future profitability if not managed properly[6]

Financial Performance - The company's profit attributable to owners significantly increased to HKD 82 million in 2019, compared to HKD 7.6 million in 2018, representing a substantial growth[16] - Total revenue for the group in 2019 was HKD 532.8 million, a 15% increase from HKD 463.2 million in 2018[17] - The company reported a profit attributable to shareholders of HKD 81,998,000 in 2019, significantly up from HKD 7,611,000 in 2018[41] - The group reported a profit attributable to owners of HKD 82 million in 2019, significantly up from HKD 7.6 million in 2018[68] - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[115] Revenue Growth - Adjusted EBITDA for the integrated resort Tigre de Cristal in the Russian Far East was HKD 214.8 million in 2019, an 18% increase from HKD 181.4 million in 2018, with an EBITDA margin rising to 40% from 39%[16] - The slot machine business generated revenue of HKD 185.6 million in 2019, a 30% increase from HKD 142.9 million in 2018[17] - Gaming revenue from Tigre de Cristal reached HKD 482,200,000 in 2019, up from HKD 419,300,000 in 2018, driven by a rebound in the gaming business and growth in slot machine operations[43] - The net win from the gaming business was HKD 482,233,000 in 2019, compared to HKD 419,341,000 in 2018[41] - Non-gaming revenue from hotel operations increased by 15% to HKD 50.6 million, with average hotel occupancy rates on weekends at 88% and weekdays at 63%[55] Operational Developments - The company plans to expand the existing property by adding approximately 30 new rooms, increasing accommodation capacity by about 25%[21] - The new luxury VIP lounge at Tigre de Cristal is nearing completion, expected to attract high-end customers soon[21] - Future expansions include a hotel extension with 30 new rooms, a new VIP gaming hall, and an independent restaurant[29] - The company continues to enhance its offerings with new facilities, including a virtual golf area and a private club with karaoke rooms[28] - The group anticipates significant growth driven by the expected increase in operational businesses and the addition of more traditional VIP room operators in the Russian market[89] Financial Position - As of December 31, 2019, the company's total equity attributable to shareholders was HKD 1,644,400,000, an increase from HKD 1,250,700,000 as of December 31, 2018[69] - The company maintained a 0% debt-to-asset ratio as of December 31, 2019, consistent with the previous year[69] - The company has no outstanding external borrowings as of December 31, 2019, maintaining a strong financial position[69] - The majority of the company's cash equivalents are fixed deposits with a maturity of three months or less[70] - The company plans to use the proceeds from the share placement to further develop the integrated entertainment resort in the Primorye region[70] Shareholder Engagement - Major shareholder changes occurred in April 2019, with Tai Yang Cheng Group becoming the largest shareholder after acquiring shares at HKD 1.94 each[30] - The company encourages shareholder participation in the annual general meeting and provides opportunities for communication[198] - The company’s website serves as a channel for shareholders to access group information[198] - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting[192] - Shareholders can propose resolutions at the general meeting if they hold at least 1/20 of the voting rights or 100 shareholders sign the request[193] Corporate Governance - The company has maintained compliance with corporate governance standards, ensuring transparency and accountability[130] - The board confirmed its responsibility for the effectiveness of the risk management and internal control systems, which are designed to manage rather than eliminate risks[183] - The company has established a whistleblowing policy to provide a confidential reporting channel for employees and business partners[190] - The board's composition includes a mix of executive and independent non-executive directors, enhancing governance and oversight[140] - The company has adopted a strict Securities Trading Policy for directors and employees, ensuring compliance with the Listing Rules as of December 31, 2019[142] Future Outlook - The company remains optimistic about future business prospects despite short-term challenges, supported by the ongoing economic development in the Primorsky Krai region[23] - The company expects continued collaboration with Sun City Group, which became the major shareholder in April 2019, to enhance its strategic offerings[48] - The group is planning to expand its hotel capacity and gaming facilities significantly with a new integrated resort expected to open in 2022, which will double the current capacity[91] - The impact of the temporary entry ban on Chinese citizens due to COVID-19 is expected to have a negative effect on visitor numbers, particularly affecting the gaming business[92] - The group has developed a diverse customer base and does not overly rely on a single market or gaming segment, anticipating a rapid rebound post-challenges[92]

Financial Performance - Adjusted EBITDA for the integrated resort Tigre de Cristal in the first half of 2019 was HKD 108.5 million, a 62% increase from HKD 66.8 million in the same period of 2018[7]. - The profit attributable to the owners of the company for the first half of 2019 was HKD 42.8 million, compared to HKD 2.6 million in the first half of 2018[7]. - Total revenue for the group in the first half of 2019 was HKD 257.3 million, a 24% increase from HKD 207.8 million in the same period of 2018[7]. - The slot machine business generated revenue of HKD 90.6 million in the first half of 2019, a 37% increase from HKD 66.3 million in the first half of 2018[8]. - The turnover from the gaming business improved significantly, with revenue rising 69% from HKD 40.8 million in the first half of 2018 to HKD 68.8 million in the first half of 2019[8]. - Gaming revenue from Tigre de Cristal increased to HKD 236,900,000 in the first half of 2019, up from HKD 190,700,000 in the same period of 2018, driven by a rebound in the gaming business[25]. - The turnover from the gaming business reached HKD 8,400,000,000 in the first half of 2019, a 28% increase compared to the same period in 2018[29]. - Net win from the gaming business increased by 68% to HKD 69,000,000 in the first half of 2019, compared to HKD 41,000,000 in the same period of 2018[29]. - The total win percentage increased from 2.90% in the first half of 2018 to 3.06% in the first half of 2019[29]. - The company reported a pre-tax profit of HKD 55,445,000, compared to a loss of HKD 10,260,000 in the previous year, indicating a significant turnaround[71]. - The total comprehensive income for the period was HKD 55,364,000, compared to HKD 42,814,000 in the previous year, representing an increase of approximately 29.4%[79]. Operational Highlights - The company is currently refining the design and construction elements for the second phase of the Tigre de Cristal project, located on land plot 10[10]. - Tigre de Cristal is recognized as a five-star hotel and was awarded "Russia's Leading Resort 2018" at the Europe Gala Ceremony 2018[12]. - The integrated resort spans approximately 36,000 square meters and offers a variety of gaming options, luxury accommodations, and dining experiences[11]. - The company plans to expand non-gaming product offerings at Tigre de Cristal to attract more players and enhance the value of the gaming business[30]. - The company plans to enhance its existing integrated resort offerings by adding non-gaming facilities, including a Korean BBQ restaurant and a private club, aiming for completion by Q1 2020[63]. - The group employed 1,133 staff as of June 30, 2019, an increase from 1,050 as of December 31, 2018, with over 97% being local Russian citizens[61]. Shareholder and Management Changes - The company’s major shareholder changed on April 23, 2019, when it sold all its shares to a subsidiary of Suncity Group at HKD 1.94 per share, making Suncity the largest shareholder[15]. - The board of directors saw several changes, including the appointment of Mr. Zhou Zhuohua as a non-executive director and chairman effective June 1, 2019[16]. - The company’s major shareholder, Sun City, holds a 26.40% interest through its controlled entity, Winning Group[181]. Cash Flow and Financial Position - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 100.24 million, compared to HKD 74.59 million for the same period in 2018[50]. - The net cash used in investing activities for the first half of 2019 was HKD 21 million, primarily due to equipment purchases of HKD 11.3 million and VAT refunds of HKD 9.9 million[52]. - The net cash used in financing activities for the six months ended June 30, 2019, was HKD 58.4 million, down from HKD 69.6 million in the same period of 2018[52]. - The total cash and cash equivalents at the end of June 30, 2019, were HKD 507.2 million, compared to HKD 479.8 million at the end of 2018[50]. - The company anticipates observing the "cluster effect" from its development plans as early as 2021 or 2022[66]. - The company plans to enhance its cash position with net proceeds of approximately HKD 297,000,000 from the placement of 300,000,000 shares, which will be used for the development of the second phase project[65]. Asset and Liability Management - As of June 30, 2019, the group's net current assets amounted to HKD 492 million, an increase from HKD 451.6 million as of December 31, 2018[49]. - Non-current assets as of June 30, 2019, were HKD 1,454,256,000, a slight decrease from HKD 1,477,368,000 as of December 31, 2018[73]. - Current liabilities decreased to HKD 60,395,000 from HKD 76,266,000, indicating improved financial stability[73]. - Non-current liabilities decreased from HKD 302,429,000 in December 2018 to HKD 257,991,000 as of June 30, 2019, representing a reduction of approximately 14.7%[75]. - The company’s total equity as of June 30, 2019, was HKD 1,688,293,000, an increase from HKD 1,626,584,000 in December 2018, indicating a growth of approximately 3.8%[75]. Compliance and Governance - The company has maintained compliance with the corporate governance code, except for the separation of roles between the Chairman and CEO during a transitional period[186]. - The Audit Committee consists of three independent non-executive directors, responsible for reviewing financial reports and risk management[193]. - The company has a commitment to high standards of corporate governance, maintaining relationships with stakeholders[186]. Accounting Standards and Financial Reporting - The group has adopted the new Hong Kong Financial Reporting Standards (HKFRS) No. 16, which replaces HKAS 17, effective from January 1, 2019[85]. - The application of HKFRS No. 16 has not significantly impacted the group's financial position and performance during the reporting period[87]. - The group recognizes right-of-use assets at the commencement date of the lease, measured at cost, less any accumulated depreciation and impairment losses[92]. - Lease liabilities are recognized at the present value of unpaid lease payments at the lease commencement date[97]. - The group applies short-term lease recognition exemptions for leases with a term of 12 months or less and for low-value asset leases[91]. Stock Options and Share Capital - The company has a stock option plan approved on July 7, 2011, which allows the granting of options to directors and employees[171]. - The stock options granted to directors as of June 30, 2019, totaled 78,464,000, with 15,400,000 exercised during the period[174]. - The company’s stock options plan is subject to specific terms and conditions as outlined in the plan[171]. - As of June 30, 2019, the total number of issued shares was 1,503,777,836[168].

Financial Performance - Adjusted property EBITDA for Tigre de Cristal was HKD 181,400,000 in 2018, a 4% increase from HKD 173,700,000 in 2017[6] - Adjusted property EBITDA margin improved to 39.2% in 2018 from 36.9% in 2017[7] - The group recorded a profit of HKD 4,100,000 for the year ended December 31, 2018, compared to a loss of HKD 10,000,000 in 2017[7] - Total revenue for 2018 was HKD 463,200,000, a decrease of 1.6% from HKD 470,800,000 in 2017, partly due to the weak Russian Ruble[7] - Revenue from the gaming business increased by 26% to HKD 166,900,000 in 2018, up from HKD 132,100,000 in 2017[7] - The total revenue for the group in 2018 was HKD 463.2 million, a decrease of 1.6% from HKD 470.8 million in 2017[20] - The group's revenue in Russian rubles for 2018 was 3,523.3 million rubles, representing a year-on-year growth of 6% when adjusted for average exchange rates[20] - Total revenue from the gaming business was HKD 484,385,000 in 2018, down from HKD 689,329,000 in 2017, with net gaming revenue at HKD 419,341,000[43] Operational Developments - The company plans to increase accommodation capacity by approximately 50% with the construction of villas and serviced apartments near Tigre de Cristal, expected to be operational in early 2020[12] - The second phase of the project design and financing is expected to be completed in the coming months, with the first phase planned to launch in summer 2021[12] - The company appointed new non-executive directors with extensive experience in the gaming industry to enhance business development[12] - The company has focused on developing high-end table games targeting Asian customers, which has shown promising results[26] - The company expects continued growth in its gaming operations, particularly in the mass gaming and slot machine segments, driven by improved marketing strategies and increased foreign tourist arrivals[69] Cost Management - Marketing and promotional expenses decreased by 16% to HKD 16,200,000 in 2018 from HKD 19,200,000 in 2017[46] - Employee benefits expenses (excluding share-based compensation) decreased by 7% to HKD 135,600,000 in 2018 from HKD 146,300,000 in 2017[46] - Depreciation and amortization expenses decreased by 14% to HKD 115,500,000 in 2018 from HKD 133,700,000 in 2017[47] - Financial expenses, primarily interest expenses, decreased by 17% to HKD 36,500,000 in 2018 from HKD 44,000,000 in 2017[47] - The group maintained strict cost control and further streamlined its operations during the year[46] Corporate Governance - The company has a strong management team with diverse backgrounds and extensive experience in various industries, including finance and real estate[86][88][90][94][96][98] - The company is actively involved in mergers and acquisitions, enhancing its corporate governance and management capabilities[86][88][90][94][96] - The company has appointed independent non-executive directors to strengthen its board and ensure compliance with corporate governance standards[90][94][96] - The board of directors consists of eight members, including two executive directors and three non-executive directors, ensuring a diverse governance structure[104] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations for the year ending December 31, 2018[103] Risk Management - The company has established a risk management framework involving the board of directors, audit committee, and a dedicated risk management team to oversee risk management and internal control systems[156] - The risk management team identifies risks that could adversely affect the achievement of the company's objectives at least once a year and prioritizes these risks for mitigation planning[157] - The board has conducted an annual review of the effectiveness of the risk management and internal control systems for the year 2018, concluding that they are sufficient and effective[157] Environmental, Social, and Governance (ESG) Initiatives - The company identified 18 key environmental, social, and governance (ESG) issues for focus, including water and energy usage, waste management, and workplace health and safety[186] - The company has established a management framework to integrate ESG considerations into business decisions and daily operations[175] - The company has implemented resource-saving measures and technologies to ensure effective use of energy and water[195] - The company has committed to protecting community interests and ensuring ethical business practices[188] Shareholder Engagement - The company encourages shareholder participation in the annual general meeting, providing an opportunity for communication between the board and shareholders[168] - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[162] - Shareholders can propose resolutions at the general meeting if they collectively hold at least 5% of the voting rights or at least 100 shareholders submit the proposal[163]