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]