Financial Performance - The group's net revenue for the six months ended June 30, 2023, was HKD 13,040 million, an increase of 116.4% compared to HKD 6,030 million in the same period of 2022[4]. - The group reported a loss of HKD 1,400 million for the six months ended June 30, 2023, significantly reduced from a loss of HKD 4,580 million in the same period of 2022[4]. - Adjusted EBITDA surged by 1,804.6%, reaching HKD 3,202.6 million compared to HKD 168.2 million in the same period last year[27]. - The loss attributable to the company's owners decreased by 69.1%, from HKD 2,374.6 million to HKD 733.2 million[28]. - The basic loss per share improved from HKD 1.58 to HKD 0.49, reflecting a 69.1% reduction in losses[29]. - Total operating revenue for the company's gaming operations rose by 118.6%, from HKD 4,904.9 million to HKD 10,723.3 million[26]. - The total comprehensive loss for the six months ended June 30, 2023, was HKD 1,556,816, down from HKD 5,186,383 in the same period of 2022, reflecting a 70.0% reduction[64]. - The total loss before tax for the six months ended June 30, 2023, was HKD 1,414,071, compared to a loss of HKD 4,555,942 in 2022, showing an improvement of 69.0%[63]. Operational Developments - The second phase of Studio City and the indoor water park opened in April 2023, contributing to the recovery of the group's operations[4]. - The City of Dreams Mediterranean in Cyprus officially opened in July 2023 after a successful trial operation in June 2023[3]. - The flagship integrated resort, City of Dreams, has approximately 430 gaming tables and 637 gaming machines as of the first half of 2023[6]. - The new hotel, Starry Suites, featuring 338 luxurious suites, was launched in April 2023, showcasing the group's commitment to providing exceptional service[7]. - The "Exclusive Series Concert" featuring numerous superstars commenced in April 2023, with a total of 90 performances planned over three years[8]. - The group plans to open the Macau Studio City W Hotel in September 2023, adding approximately 560 rooms and several new non-gaming attractions[14]. - The group continues to operate three satellite casinos in Cyprus, contributing to the expansion of its business in the region[12]. Visitor Trends - In the first half of 2023, the number of visitors to Macau increased by 236.1% year-on-year to 11.65 million, with an average of over 64,000 daily visitors, reaching 59.6% of pre-pandemic levels[14]. - Macau's total gaming revenue increased by 205% year-on-year in the first half of 2023, with the group's direct VIP room business surpassing the performance of the same period in 2019[3]. Sustainability Initiatives - The group aims to replace single-use plastic bottles with reusable glass bottles across all operations, having already reduced over 1.4 million single-use plastic bottles in Macau and Manila[22]. - The group has committed to sourcing only cage-free eggs by 2025, with 100% of eggs supplied at City of Dreams Manila already being cage-free since March 2022[22]. - The group received the "Best Environmental Responsibility Award" at the Asia Excellence Awards 2023, highlighting its commitment to environmental sustainability[22]. Awards and Recognition - The group achieved 97 stars in the Forbes Travel Guide 2023, maintaining its leading position among integrated resort operators in Macau and Asia[18]. - The group’s properties received a total of 17 five-star honors in the Forbes Travel Guide, with the Macau property, Studio City, winning five-star recognition for 14 consecutive years[18]. - The group’s restaurants earned seven stars in the Hong Kong Macau Michelin Guide 2023, making it one of the operators with the most Michelin stars in Macau[19]. - The City of Dreams Mediterranean project in Europe won the "Best Hotel Architecture in Cyprus" and "Best New Hotel Construction and Design in Cyprus" at the 2023 European Real Estate Awards[19]. Employee and Talent Development - The total number of employees as of June 30, 2023, was 19,676, up from 17,270 in 2022, representing an increase of 13.9%[58]. - The group’s "Career Advancement Program" was awarded the ATD Excellence in Practice Award 2023, reflecting its commitment to talent development[20]. - The group’s "Reach! New Macau Sports Elite Training Program" encourages employees to adopt healthier lifestyles through sports and physical activities[20]. Financial Position and Debt Management - The total assets decreased by 3.2% from HKD 97,091.6 million to HKD 93,946.1 million[24]. - The total liabilities also decreased by 2.2%, from HKD 83,705.6 million to HKD 81,840.6 million[24]. - The capital debt ratio improved to 71.2% as of June 30, 2023, compared to 74.4% at the end of 2022[51]. - The group has available undrawn borrowing capacity of HKD 4.84 billion as of June 30, 2023, significantly up from HKD 0.56 billion at the end of 2022[48]. - The group repaid principal amounts of HKD 5.31 billion and USD 1.12 billion during the reporting period[49]. Corporate Governance - The company has established a corporate governance code to ensure high transparency and accountability to shareholders[182]. - The audit committee consists of one non-executive director and two independent non-executive directors, responsible for reviewing financial reports and risk management[185]. - The company has complied with its corporate governance code throughout the six months ending June 30, 2023, except for certain deviations[182]. Future Outlook - The company provided an optimistic outlook for the second half of 2023, projecting a revenue growth of 20% to 30%[188]. - New product launches are expected to contribute an additional HKD 1 billion in revenue by the end of 2023[188]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2025[188].

Financial Performance - For the six months ended June 30, 2023, net revenue was HKD 13.04 billion, an increase of HKD 7.01 billion or 116.4% compared to HKD 6.03 billion for the same period in 2022[3]. - Adjusted EBITDA for the six months ended June 30, 2023, was HKD 3.20 billion, compared to HKD 168.2 million for the same period in 2022[3]. - The after-tax loss for the six months ended June 30, 2023, was HKD 1.40 billion, a significant improvement from an after-tax loss of HKD 4.58 billion for the same period in 2022[3]. - Basic loss per share attributable to owners of the company for the six months ended June 30, 2023, was HKD 0.49, compared to HKD 1.58 for the same period in 2022[3]. - The company reported a loss attributable to owners of HKD 4,197,202,000 for the period[8]. - The group reported a pre-tax loss of HKD 733,248,000 for the six months ended June 30, 2023, compared to a loss of HKD 2,374,583,000 for the same period in 2022, indicating a significant improvement[32]. - The company reported a net loss of HKD 1,402,622,000 for the six months ended June 30, 2023, compared to a net loss of HKD 4,579,376,000 for the same period in 2022, showing a reduction in losses[21][22]. Assets and Liabilities - Non-current assets as of June 30, 2023, totaled HKD 79.88 billion, slightly up from HKD 79.79 billion as of December 31, 2022[7]. - Current assets as of June 30, 2023, amounted to HKD 14.07 billion, down from HKD 17.30 billion as of December 31, 2022[7]. - As of June 30, 2023, the total current liabilities amounted to HKD 8,310,183,000, an increase of 14.2% from HKD 7,276,784,000 as of December 31, 2022[8]. - The net current assets decreased to HKD 5,755,960,000 from HKD 10,027,168,000, reflecting a decline of 42.6%[8]. - Non-current liabilities totaled HKD 73,530,401,000, down 3.7% from HKD 76,428,769,000[8]. - The company's equity decreased to HKD 12,105,562,000 from HKD 13,386,065,000, representing a decline of 9.5%[8]. - The total assets as of June 30, 2023, amounted to HKD 93,946,146,000, while total liabilities were HKD 81,840,584,000, reflecting a stable financial position[23]. Revenue Sources - The revenue from external customers in Macau for the six months ended June 30, 2023, was HKD 10,619,906,000, up from HKD 4,147,205,000 in the same period of 2022, marking an increase of approximately 156.5%[25]. - Customer contract revenue for the six months ended June 30, 2023, reached HKD 12,844,373,000, compared to HKD 5,843,392,000 for the same period in 2022, indicating a growth of approximately 119.5%[28]. - Casino revenue surged by 118.6% to HKD 10,723.3 million, up from HKD 4,904.9 million in the prior year[78]. - Non-gaming revenue for the six months ended June 30, 2023, totaled USD 127.2 million, compared to USD 62.1 million in the same period of 2022, indicating a strong recovery in this segment[83]. Operational Developments - The first phase of the City of Dreams Mediterranean opened on June 12, 2023, with full public access starting July 10, 2023[11]. - The second phase of the Studio City development is expected to open in September 2023[11]. - The company opened the Starry Sky and indoor water park in April 2023, contributing to improved operational performance[77]. - The group launched the second phase of Studio City and the first concert series featuring Asian superstars, enhancing market share growth[58]. - The group is upgrading facilities at Studio City, with the return of the show "The House of Dancing Water" expected in 2024[61]. Corporate Governance and Strategy - The board of directors recommended not to declare an interim dividend for the six months ended June 30, 2023[3]. - The company has established various board committees to maintain high corporate governance standards, including an Executive Committee and an Audit Committee[109]. - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the six months ended June 30, 2023[112]. - The company has not conducted any foreign exchange hedging transactions for operational cash flows during the review period[102]. Market and Economic Conditions - The impact of the COVID-19 pandemic and geopolitical tensions continues to create uncertainty for future operational performance[11]. - Macau's tourism saw a significant recovery, with visitor numbers increasing by 236.1% year-on-year to 11.65 million in the first half of 2023, reaching an average of over 64,000 daily visitors[67]. - The Philippines' tourism industry is also recovering strongly, with over 3.2 million inbound travelers recorded in the first seven months of 2023[67]. Sustainability and Social Responsibility - The company aims to eliminate 14.8 million plastic bottles annually by fully implementing the NORDAQ filtration system across all properties in Macau[74]. - The company has committed to sourcing 100% cage-free eggs by 2025, with current operations in Manila already achieving this goal[75]. - The company received the "Best Environmental Responsibility Award" at the Asia Excellence Awards 2023, highlighting its commitment to sustainability[75]. Employee and Workforce - The total number of employees as of June 30, 2023, was 19,676, an increase from 17,270 as of June 30, 2022[105]. - Employee costs for the six months ended June 30, 2023, were HKD 2,991,700,000, compared to HKD 2,606,700,000 for the same period in 2022[105].

Financial Performance - Net revenue decreased by 32.4% to HKD 10.57 billion, compared to HKD 15.64 billion for the year ended December 31, 2021[11]. - Adjusted EBITDA was negative HKD 362 million, down from HKD 1.54 billion for the year ended December 31, 2021[11]. - Net loss after tax was HKD 9.99 billion, compared to a net loss of HKD 7.94 billion for the year ended December 31, 2021[11]. - The group's net revenue for the year ended December 31, 2022, was HKD 10.57 billion, a decrease of 32.4% compared to HKD 15.64 billion in the same period of 2021[27]. - The group reported a loss of HKD 9.99 billion for the year, compared to a loss of HKD 7.94 billion in 2021[27]. - The loss attributable to shareholders increased by 34.2% to HKD 5,110 million in 2022 from HKD 3,810 million in 2021[54]. - Casino revenue fell by 35.3% to HKD 8,426 million in 2022, down from HKD 13,030 million in 2021[52]. - Hotel room revenue decreased by 25.5% to HKD 912.7 million in 2022 compared to HKD 1,224.6 million in 2021[52]. - Total operating revenue for Melco Resorts and Entertainment was $559.7 million for the year ended December 31, 2022, down from $1,146.9 million in 2021, representing a decrease of 51.1%[58]. - Adjusted property EBITDA for Melco Resorts was negative $32.2 million in 2022, compared to positive $202 million in 2021[58]. Operational Developments - The gaming revenue in the Philippines has rebounded to near pre-pandemic levels, while Cyprus's gaming revenue exceeded pre-pandemic levels in Q4 2022[12]. - The opening of the second phase of Studio City and City of Dreams Mediterranean in Cyprus is expected in 2023, aiming to meet pent-up travel demand[12]. - The company reported a significant increase in visitor numbers to Macau since the easing of social distancing measures on January 8, 2023, indicating a positive outlook for the region[24]. - The company anticipates strong performance during the upcoming Spring Festival, with both foot traffic and revenue maintaining substantial levels[24]. - The first phase of the new Studio City Phase 2 is set to open in Q2 2023, featuring a new hotel and an all-weather water park, aimed at attracting more visitors[24]. - The company is optimistic about its Cyprus operations, which have shown improved profitability as pandemic restrictions are lifted, with the City of Dreams Mediterranean set to open in Q2 2023[24]. - The group’s gaming operations in the Philippines have fully reopened since March 1, 2022, with gaming volumes recovering towards pre-pandemic levels[26]. - The total operating revenue for City of Dreams Manila increased to $396.4 million in 2022, up from $268.6 million in 2021, marking a growth of 47.5%[66]. - Cyprus operations generated total revenue of $91.3 million in 2022, an increase from $52.6 million in 2021, representing a growth of 73.5%[68]. Sustainability and Corporate Social Responsibility - The company is committed to sustainable development and has received recognition for its efforts in corporate social responsibility and sustainability initiatives[13]. - The total greenhouse gas emissions increased to 17,688 MtCO2e in 2022 from 15,387 MtCO2e in 2021[16]. - Total energy consumption rose to 390,278 MWh in 2022, up from 383,628 MWh in 2021[17]. - Charitable contributions exceeded HKD 63.88 million in 2022, with over 22,000 volunteer hours logged[14]. - The company aims for carbon neutrality and zero waste at its resorts by 2030[48]. - The company is committed to supporting sustainable and diversified development in Macau's tourism and leisure industry, backed by a new ten-year gaming license[36]. - The company has implemented various community support initiatives, including volunteer activities and charitable donations, to address the needs of vulnerable community members[158]. Corporate Governance - The company has maintained a high level of corporate governance, focusing on responsible decision-making and improving transparency to shareholders[93]. - The board includes experienced independent non-executive directors with backgrounds in law, finance, and media, enhancing the company's governance structure[89][90]. - The company emphasizes risk management and aims to enhance overall performance through improved governance practices[93]. - The audit committee and remuneration committee are composed of independent directors, ensuring unbiased oversight of financial reporting and executive compensation[88][89]. - The company has established a governance policy for environmental, social, and governance (ESG) matters to ensure sustainable operations and compliance with listing rules[138]. - The company has established its own corporate governance code to ensure high transparency and accountability to shareholders[94]. - The board of directors regularly reviews and updates the governance guidelines, policies, and procedures in accordance with applicable laws and market practices[95]. Employee Engagement and Development - The company emphasizes the importance of talent and aims to create a supportive work environment, promoting diversity and equal opportunities across all areas[81]. - The company is committed to providing employee training to enhance skills necessary for business development, aligning training goals with desired outcomes[83]. - The company has established a strong learning and development culture to support the holistic development of its employees, offering competitive compensation and wellness programs[156]. - The company expanded its mental health program "Feel Better" and launched the "Reach! Elite Sports Talent Development Program" to promote employee well-being[152]. - The company’s training completion rate for occupational safety and health measures reached 99.5% in 2022, indicating significant progress in enhancing employee safety awareness[41]. Market Position and Competitive Advantage - The company has established a competitive advantage in the high-end mass market segment, which is expected to drive overall market recovery in Macau[25]. - The company has successfully positioned itself as a leader in the entertainment and leisure industry, with a focus on innovative products and services[20]. - The company is focused on expanding its market presence and enhancing its operational capabilities through strategic initiatives and potential acquisitions[79]. Shareholder Communication and Rights - The company has a framework for effective communication with shareholders, ensuring their rights are upheld[145]. - The company held its 2022 Annual General Meeting in a hybrid format, allowing shareholders to participate both in-person and online, addressing public health concerns during the COVID-19 pandemic[147]. - Shareholders holding at least 5% of total voting rights can request a special meeting, and those with at least 2.5% can propose resolutions at the annual general meeting[143]. Awards and Recognition - The company received the "Corporate Social Responsibility Award" at the 2022 Asia Global Gaming Awards for its community contributions[7]. - Melco International received multiple awards for outstanding corporate governance, including being named "Best Investor Relations Company" for the 11th time by Asia Corporate Governance Magazine in 2022[40]. - The company was awarded the "Best Responsible Gaming Program" at the 2023 Asia Gaming Awards, further validating its efforts in promoting responsible gaming culture[46]. - Melco International achieved 97 Forbes stars in 2023, including 17 five-star awards, showcasing its commitment to high-quality service[47].

Financial Performance - Net revenue for the year ended December 31, 2022, was HKD 10.57 billion, a decrease of HKD 5.07 billion or 32.4% compared to HKD 15.64 billion for the year ended December 31, 2021[3]. - Adjusted EBITDA for the year ended December 31, 2022, was a negative HKD 362 million, down from positive HKD 1.54 billion for the year ended December 31, 2021[3]. - The net loss attributable to shareholders for the year ended December 31, 2022, was HKD 9.99 billion, compared to a net loss of HKD 7.94 billion for the year ended December 31, 2021[3]. - Basic loss per share attributable to shareholders for the year ended December 31, 2022, was HKD 3.40, compared to HKD 2.52 for the year ended December 31, 2021[3]. - The company recorded a total comprehensive loss of HKD 10.26 billion for the year ended December 31, 2022, compared to HKD 8.48 billion for the year ended December 31, 2021[6]. - The company reported a loss before tax of HKD 9,981,683 for the year ended December 31, 2022, compared to a loss of HKD 7,899,979 for the year ended December 31, 2021, reflecting an increase in losses of approximately 26.1%[22][23]. - The company reported a loss attributable to owners of the company of HKD 5,113,127 thousand for 2022, compared to a loss of HKD 3,808,968 thousand in 2021, representing an increase in loss of approximately 34.1%[40]. Assets and Liabilities - Total non-current assets as of December 31, 2022, amounted to HKD 79.79 billion, an increase from HKD 78.98 billion as of December 31, 2021[7]. - Current assets as of December 31, 2022, totaled HKD 17.30 billion, compared to HKD 15.21 billion as of December 31, 2021[7]. - Total assets as of December 31, 2022, amounted to HKD 97,091,618, an increase from HKD 94,193,277 in 2021, representing a growth of approximately 3.0%[24]. - Total liabilities increased to HKD 83,705,553 in 2022 from HKD 71,725,269 in 2021, reflecting a rise of about 16.6%[24]. - The company's equity decreased to HKD 13,386,065 from HKD 22,468,008, a decline of 40.3%[8]. - The company reported a significant drop in total equity attributable to owners, down to HKD 1,791,305 from HKD 6,862,667, a decrease of 73.9%[8]. Operational Challenges - The impact of COVID-19 continued to significantly affect the company's operations, particularly in Macau due to travel restrictions[11]. - The company faced a 12-day mandatory closure of its casinos in Macau during July 2022, which impacted revenue generation[11]. - The company experienced a significant decrease in gaming tax and license fees, which were HKD 3.83 billion for the year ended December 31, 2022, down from HKD 6.55 billion in the previous year[4]. Strategic Developments - The company is actively expanding its operations in Cyprus with the development of City of Dreams Mediterranean, which is expected to enhance its market presence in Europe[9]. - The group anticipates the opening of the first phase of City of Dreams Mediterranean in the second quarter of 2023, with the second phase expected in the third quarter of 2023[13]. - The Macau government has granted a ten-year gaming concession to Melco Resorts (Macau) Limited, effective from January 1, 2023, to December 31, 2032[15]. Cost Management - The group has implemented cost-cutting measures to mitigate challenges posed by the COVID-19 pandemic, including postponing and reducing capital expenditures[14]. - The company incurred total operating expenses of HKD 4,586,000, with significant costs attributed to depreciation and amortization, share-based compensation, and other operational expenditures[22]. Corporate Governance and Compliance - The audit committee held three meetings during the year to review the financial reporting process and monitor risk management and internal control systems[140]. - The company has established various board committees to maintain high corporate governance standards[138]. - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors as of the announcement date[144]. Sustainability and Community Engagement - The company aims to achieve carbon neutrality and zero waste in its resorts by 2030 or earlier[104]. - The company received the "Sustainable Development Award" at the International Gaming Awards in 2022 for its commitment to sustainability[104]. - Over 20,000 volunteer hours were contributed by the company in 2022, participating in more than 2,200 volunteer activities[101]. Future Outlook - Visitor numbers to Macau surged following the easing of social distancing measures on January 8, 2023, indicating a positive outlook for the region[83]. - The company aims to leverage its competitive advantages in the high-end mass market segment to drive overall recovery in the Macau market[84]. - The company plans to enhance its entertainment experiences with a series of exciting projects, including concerts featuring major superstars starting in April 2023[83].

Stock Options - Melco International Development Limited granted a total of 4,355,496 stock options on April 7, 2021, of which 3,970,152 were awarded to employees, representing approximately 0.03% of the total shares issued at that time[3] - An additional 251,388 stock options were granted on June 11, 2021, with 245,106 options awarded to employees, equating to about 0.0004% of the total shares issued at that date[5] Company Operations - The company operates integrated resort facilities in Asia and Europe, with its American Depositary Shares listed on the NASDAQ Global Select Market[6]

Management Discussion and Analysis [Significant Events and Developments](index=4&type=section&id=重要事件及發展) The group faced significant COVID-19 impacts in H1 2022, particularly in Macau, while operations in the Philippines and Cyprus showed continuous improvement and revenue recovery. - COVID-19 continued to significantly impact the group's operations and financial performance, with Macau's gross gaming revenue decreasing by **46.4%** due to rising mainland China cases and travel restrictions[4](index=4&type=chunk) - Philippines and Cyprus operations showed continuous improvement, with revenue gradually recovering to pre-pandemic levels; the Philippines fully reopened in March 2022, increasing gross gaming revenue by nearly **40%** quarter-on-quarter[4](index=4&type=chunk)[5](index=5&type=chunk) - Studio City Phase 2 construction progressed well, with phased openings expected from **Q2 2023**, while City of Dreams Mediterranean faced contractor delays, now anticipated to open in **early Q2 2023**[4](index=4&type=chunk)[5](index=5&type=chunk) - Macau's gaming law amendment bill passed in June 2022, extending Melco Resorts & Entertainment (Macau)'s gaming sub-concession until **December 31, 2022**[5](index=5&type=chunk) [Business Review](index=5&type=section&id=業務回顧) The group, primarily through its 55.8% owned subsidiary Melco Resorts & Entertainment, saw net revenue decline by 28.5% to HKD 6.03 billion in H1 2022, with loss for the period expanding to HKD 4.58 billion due to Macau's pandemic restrictions. | Indicator | Six Months Ended June 30 (HKD Million) | | :--- | :--- | | | **2022** | **2021** | | **Net Revenue** | 6,030 | 8,430 | | **Loss for the Period** | 4,580 | 3,750 | - The group primarily operates its gaming business through its subsidiary Melco Resorts & Entertainment, in which it held approximately **55.8%** equity as of June 30, 2022[6](index=6&type=chunk) [City of Dreams (Macau)](index=6&type=section&id=新濠天地) As the group's flagship integrated resort, City of Dreams (Macau) was severely impacted by the pandemic in H1 2022, experiencing significant declines in both total operating revenue and Adjusted Property EBITDA. | Indicator (USD Million) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Total Operating Revenue** | 354.1 | 650.1 | | **Adjusted Property EBITDA** | 15.9 | 119.6 | | Gaming Operations Performance (USD Million) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **VIP Rolling Chip Turnover** | 3,197.2 | 8,687.3 | | **Mass Market Table Games Drop** | 761.7 | 1,537.7 | [Studio City (Macau)](index=7&type=section&id=新濠影滙) Studio City Phase 2 construction is progressing with a USD 1.2 billion budget, expected to open in phases starting Q2 2023, while H1 performance was weak with a significant decline in total operating revenue and a worsening negative Adjusted Property EBITDA. - Studio City Phase 2 construction budget is **USD 1.2 billion**, with phased openings anticipated from **Q2 2023**, adding **900 hotel rooms**, a large water park, and MICE facilities[11](index=11&type=chunk) | Indicator (USD Million) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Total Operating Revenue** | 107.0 | 202.3 | | **Adjusted Property EBITDA** | (48.4) | (6.4) | [Altira Macau](index=8&type=section&id=澳門新濠鋒) Since Q3 2021, Altira Macau has repositioned to focus on the mass and premium mass markets, closing its VIP gaming business, resulting in lower total operating revenue but a narrowed negative Adjusted Property EBITDA in H1. - Since **Q3 2021**, Altira Macau has strategically repositioned, closing its VIP gaming business to focus on the premium mass market[12](index=12&type=chunk)[34](index=34&type=chunk) | Indicator (USD Million) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Total Operating Revenue** | 21.2 | 32.7 | | **Adjusted Property EBITDA** | (20.6) | (46.9) | [Mocha Clubs](index=8&type=section&id=摩卡娛樂場) As Macau's largest non-casino electronic gaming machine operation, Mocha Clubs maintained relatively stable performance in H1, with slight decreases in both total operating revenue and Adjusted Property EBITDA. | Indicator (USD Million) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Total Operating Revenue** | 38.1 | 42.0 | | **Adjusted Property EBITDA** | 6.8 | 7.4 | [City of Dreams (Manila)](index=8&type=section&id=新濠天地（馬尼拉）) Benefiting from eased pandemic restrictions in the Philippines, City of Dreams (Manila) has been fully operational since March 2022, showing strong H1 performance with significant growth in total operating revenue and Adjusted Property EBITDA. | Indicator (USD Million) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Total Operating Revenue** | 198.6 | 132.2 | | **Adjusted Property EBITDA** | 82.0 | 42.7 | | Gaming Operations Performance (USD Million) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **VIP Rolling Chip Turnover** | 1,419.2 | 544.0 | | **Mass Market Table Games Drop** | 305.7 | 169.3 | | **Gaming Machine Handle** | 1,702.3 | 969.9 | [City of Dreams Mediterranean and Cyprus Casinos (C2)](index=9&type=section&id=City%20of%20Dreams%20Mediterranean及塞浦路斯娛樂城) Cyprus operations significantly improved in H1 due to eased pandemic restrictions, with substantial growth in total operating revenue and a shift from negative to positive Adjusted Property EBITDA, while the flagship City of Dreams Mediterranean is expected to open in early Q2 2023. | Indicator (USD Million) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Total Operating Revenue** | 37.8 | 10.0 | | **Adjusted Property EBITDA** | 6.5 | (7.2) | - The City of Dreams Mediterranean project experienced construction delays due to contractor difficulties and is now expected to open in **early Q2 2023**[17](index=17&type=chunk) [Outlook](index=10&type=section&id=展望) The group anticipates continued pandemic impact in H2, with recovery dependent on eased travel restrictions and restored consumer confidence, while the Philippines and Cyprus show optimistic prospects. - The COVID-19 pandemic is expected to continue impacting the group's operations, financial condition, and outlook in the second half of the year[18](index=18&type=chunk) - Macau implemented static management in July due to a COVID-19 outbreak, resulting in a **12-day casino closure** and strict epidemic prevention requirements upon reopening[18](index=18&type=chunk) - Philippines operations have been fully operational since March, with strong growth in international flight bookings, anticipating further growth in the second half of the year[18](index=18&type=chunk) - Cyprus operations rebounded due to tourism recovery, with visitor arrivals increasing by **258.2%** year-on-year in H1 2022, benefiting the City of Dreams Mediterranean expected to open in 2023[18](index=18&type=chunk) [Achievements and Awards](index=11&type=section&id=成就及獎項) The group received multiple accolades for corporate governance, social responsibility, talent development, business operations, and environmental sustainability, with its hotels and restaurants earning star ratings from Forbes Travel Guide and Michelin Guide. - Business Excellence: Melco Resorts & Entertainment earned **97 stars** in the Forbes Travel Guide 2022, and four of its premium restaurants received **seven stars** in the Michelin Guide Hong Kong Macau 2022[24](index=24&type=chunk) - Corporate Social Responsibility: Actively supported Macau government's anti-epidemic measures, mobilized volunteers for nucleic acid testing, and organized events generating nearly **MOP 4.4 million** in revenue for local SMEs[21](index=21&type=chunk)[23](index=23&type=chunk) - Environmental Sustainability: Committed to achieving **carbon neutrality** and **zero waste** by 2030 or earlier through its "Beyond Boundaries" sustainability strategy, earning the 2022 International Gaming Awards' Sustainability Award[25](index=25&type=chunk) [Financial Review](index=14&type=section&id=財務回顧) In H1 2022, the group's net revenue decreased by 28.5% to HKD 6.025 billion, Adjusted EBITDA declined by 77.0% to HKD 168.2 million, and loss attributable to owners expanded to HKD 2.375 billion, primarily due to tightened travel restrictions in Macau and mainland China. | Financial Indicator (HKD Million) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | **Year-on-Year Change** | | **Net Revenue** | 6,025.1 | 8,425.3 | -28.5% | | **Adjusted EBITDA** | 168.2 | 732.5 | -77.0% | | **Loss Attributable to Owners of the Company** | (2,374.6) | (1,647.6) | -44.1% | | **Basic Loss Per Share (HKD)** | (1.58) | (1.09) | -45.1% | | Financial Position (HKD Million) | As of June 30, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | 94,988.0 | 94,193.3 | | **Total Liabilities** | 76,647.9 | 71,725.3 | | **Gearing Ratio (%)** | 67.6% | 61.4% | [Liquidity, Financial Resources and Capital Structure](index=22&type=section&id=流動資金、財務資源及資本結構) The group prudently managed its financial position, holding HKD 13.165 billion in cash and bank balances and HKD 9.02 billion in available borrowing capacity as of June 30, 2022, with the gearing ratio increasing to 67.6%. - As of June 30, 2022, the group held bank balances and cash of **HKD 13.165 billion** and had available borrowing capacity of **HKD 9.02 billion**[50](index=50&type=chunk) - Key debt changes during the period included: issuance of **USD 350 million** in senior secured notes; and drawing **USD 420 million** from a revolving credit facility[50](index=50&type=chunk) - The gearing ratio (total interest-bearing borrowings/total assets) increased from **61.4%** at the end of 2021 to **67.6%** as of June 30, 2022[53](index=53&type=chunk)[27](index=27&type=chunk) [Human Resources](index=24&type=section&id=人力資源) As of June 30, 2022, the group's total number of employees was 17,270, a decrease from the prior year, with related employee costs of HKD 2.607 billion for H1. | Indicator | As of June 30, 2022 | As of June 30, 2021 | | :--- | :--- | :--- | | **Total Number of Employees** | 17,270 persons | 18,178 persons | | **Employee Costs (HKD Million)** | 2,606.7 | 3,034.0 | Interim Financial Information Review Report [Auditor's Review Conclusion](index=25&type=section&id=核數師審閱結論) Ernst & Young conducted a review of the interim financial information in accordance with HKSRS 2410, concluding that nothing came to their attention to suggest the information was not prepared in all material respects according to HKAS 34. - The review was conducted in accordance with Hong Kong Standard on Review Engagements **2410**, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"[61](index=61&type=chunk) - Conclusion: We have not become aware of any material modifications that should be made to the interim financial information for it to be prepared in accordance with Hong Kong Accounting Standard **34**[62](index=62&type=chunk) Condensed Consolidated Interim Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=簡明綜合損益及其他全面收益表) In H1 2022, the group's net revenue decreased by 28.5% to HKD 6.025 billion, operating loss expanded to HKD 3.024 billion, and total loss for the period increased to HKD 4.579 billion, with loss attributable to owners at HKD 2.375 billion. | Indicator (HKD Thousand) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Net Revenue** | 6,025,107 | 8,425,275 | | **Operating Loss** | (3,024,122) | (2,574,752) | | **Loss for the Period** | (4,579,376) | (3,754,765) | | **Loss Attributable to Owners of the Company** | (2,374,583) | (1,647,621) | [Condensed Consolidated Statement of Financial Position](index=28&type=section&id=簡明綜合財務狀況表) As of June 30, 2022, the group's total assets were HKD 94.988 billion, total liabilities were HKD 76.648 billion, and net assets were HKD 18.340 billion, with a net current liability of HKD 248 million. | Indicator (HKD Thousand) | As of June 30, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | **Total Non-current Assets** | 80,180,608 | 78,979,622 | | **Total Current Assets** | 14,807,406 | 15,213,655 | | **Total Assets** | 94,988,014 | 94,193,277 | | **Total Current Liabilities** | 15,055,167 | 12,731,552 | | **Total Non-current Liabilities** | 61,592,708 | 58,993,717 | | **Total Liabilities** | 76,647,875 | 71,725,269 | | **Total Equity** | 18,340,139 | 22,468,008 | [Condensed Consolidated Statement of Changes in Equity](index=30&type=section&id=簡明綜合權益變動報表) For the six months ended June 30, 2022, the group's total equity decreased by HKD 4.128 billion from HKD 22.468 billion to HKD 18.340 billion, primarily due to a total comprehensive loss of HKD 5.186 billion. - Total equity decreased from **HKD 22.468 billion** at the beginning of the period to **HKD 18.340 billion** at the end of the period[70](index=70&type=chunk) - The decrease in equity was primarily due to a total comprehensive loss of **HKD 5.186 billion** for the period, including a loss for the period of **HKD 4.579 billion** and other comprehensive loss of **HKD 607 million** from foreign currency translation differences[70](index=70&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=32&type=section&id=簡明綜合現金流量表) In H1 2022, net cash generated from operating activities was HKD 201 million, net cash used in investing activities was HKD 2.585 billion, and net cash from financing activities was HKD 2.209 billion, resulting in a net decrease of HKD 175 million in cash and cash equivalents. | Activity (HKD Thousand) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Net Cash from Operating Activities** | 201,045 | 383,560 | | **Net Cash Used in Investing Activities** | (2,585,488) | (4,142,689) | | **Net Cash from Financing Activities** | 2,209,121 | 2,089,291 | | **Net Decrease in Cash and Cash Equivalents** | (175,322) | (1,669,838) | Notes to the Condensed Consolidated Interim Financial Information [Note 1: Organization and Business](index=34&type=section&id=附註1%3A%20組織及業務) This note outlines the group's business structure, detailing the ongoing impact of COVID-19 across Macau, the Philippines, and Cyprus, and discloses the extension of Macau's gaming sub-concession to December 31, 2022, along with related financial guarantees and asset reversion commitments. - The COVID-19 pandemic continued to significantly disrupt the group's business, particularly impacting Macau operations due to travel restrictions, while operations in the Philippines and Cyprus showed recovery[79](index=79&type=chunk)[80](index=80&type=chunk) - The Macau gaming sub-concession contract was extended to **December 31, 2022**, for which the group paid an extension fee of **MOP 47 million** and will provide a bank guarantee of no less than **MOP 820 million**[83](index=83&type=chunk) - The group committed that upon the sub-concession's expiry, the gaming areas, gaming support areas, and gaming equipment of its Macau casinos will revert to the Macau government without compensation[83](index=83&type=chunk) - As of June 30, 2022, the group had a net current liability of **HKD 248 million**, but management believes existing cash and undrawn borrowing facilities will support operations for at least the next twelve months, thus preparing financial statements on a going concern basis[81](index=81&type=chunk)[82](index=82&type=chunk) [Note 3: Segment Information](index=41&type=section&id=附註3%3A%20分類資料) The group's operations are primarily categorized into "Casino and Hotel" and other segments, with Macau remaining the largest revenue source at HKD 4.147 billion despite a significant year-on-year decline, while the Philippines and Cyprus segments showed strong revenue growth. | Net Revenue from External Customers by Geography (HKD Thousand) | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Macau** | 4,147,205 | 7,296,938 | | **Philippines** | 1,554,431 | 1,026,762 | | **Cyprus** | 295,864 | 77,707 | | **Total** | 6,025,107 | 8,425,275 | | Non-current Segment Assets by Geography (HKD Thousand) | As of June 30, 2022 | | :--- | :--- | | **Macau** | 71,107,635 | | **Cyprus** | 3,400,548 | | **Philippines** | 2,496,058 | | **Total** | 78,338,685 | [Note 9: Loss Per Share Attributable to Owners of the Company](index=49&type=section&id=附註9%3A%20本公司擁有人應佔每股虧損) For the six months ended June 30, 2022, basic and diluted loss per share attributable to owners of the company expanded to HKD 1.58, compared to HKD 1.09 in the prior year, based on a weighted average of approximately 1.504 billion ordinary shares. | Indicator | Six Months Ended June 30 | | :--- | :--- | | | **2022** | **2021** | | **Loss Attributable to Owners of the Company (HKD Thousand)** | (2,374,583) | (1,647,621) | | **Weighted Average Number of Ordinary Shares (Thousand Shares)** | 1,504,474 | 1,514,766 | | **Basic Loss Per Share (HKD)** | (1.58) | (1.09) | [Note 16: Interest-bearing Borrowings](index=55&type=section&id=附註16%3A%20計息借貸) As of June 30, 2022, the group's total interest-bearing borrowings (net of deferred costs) increased to HKD 64.25 billion from HKD 57.88 billion at the end of 2021, driven by the issuance of USD 350 million in senior secured notes and a USD 420 million draw from a revolving credit facility. | Borrowing Type (HKD Thousand) | As of June 30, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | **Unsecured Notes** | 48,469,327 | 48,151,277 | | **Secured Bank Loans** | 6,665,568 | 6,608,324 | | **Unsecured Bank Loans** | 6,412,953 | 3,117,000 | | **Secured Notes** | 2,701,789 | – | | **Total** | 64,249,637 | 57,876,601 | - In February 2022, the group issued **USD 350 million** aggregate principal amount of **7.00%** Senior Secured Notes due 2027[124](index=124&type=chunk) - During the period, the group drew **USD 420 million** from an unsecured revolving credit facility of **HKD 14.85 billion**[125](index=125&type=chunk) - In March 2022, the company entered into a financing agreement with subsidiary Melco Resorts & Entertainment for a **USD 250 million** revolving loan, of which **USD 200 million** was drawn by period-end[123](index=123&type=chunk) [Note 18: Long Term Incentive Plans](index=58&type=section&id=附註18%3A%20長期獎勵計劃) Both the company and its subsidiary Melco Resorts & Entertainment implemented share option exchange programs during the period, allowing eligible participants to exchange certain underwater options for newly granted options and award shares/restricted shares to better incentivize and retain talent, resulting in incremental share-based compensation expenses. - The company implemented the "Melco Share Option Exchange Program" on April 6, 2022, canceling **33,590,000** eligible share options and granting **453,000** new share options and **11,032,000** new award shares[129](index=129&type=chunk) - Melco Resorts & Entertainment implemented a similar exchange program on April 15, 2022, canceling **26,076,978** eligible share options and granting **2,486,241** new share options and **5,912,547** new restricted shares[130](index=130&type=chunk) [Note 19: Changes in Ownership Interests in Certain Subsidiaries](index=60&type=section&id=附註19%3A%20於若干附屬公司擁有權權益之變動) During the reporting period, the group's ownership interests in key subsidiaries, including Melco Resorts & Entertainment, SCIHL, and the Philippine subsidiary (MRP), experienced minor changes due to share repurchases, private placements, and share award vesting, without altering controlling status. - Due to share repurchases and share award vesting by Melco Resorts & Entertainment, the group's interest in Melco Resorts & Entertainment slightly increased from **57.10%** to **57.26%**[131](index=131&type=chunk) - Following SCIHL's private placement, in which the group participated, its interest in SCIHL slightly increased from **31.41%** to **31.50%**[132](index=132&type=chunk) - The group's interest in MRP increased from **56.52%** to **56.85%** due to the acquisition of MRP shares held by non-controlling interests[133](index=133&type=chunk) [Note 21: Commitments and Contingencies](index=61&type=section&id=附註21%3A%20承擔及或然事項) As of June 30, 2022, the group had capital commitments of approximately HKD 1.927 billion, primarily for property, plant, and equipment acquisition, while the development period for the Studio City Macau land concession was extended to June 30, 2023, and the City of Dreams Mediterranean project in Cyprus experienced construction delays. - Contracted but unprovided capital expenditure for the acquisition of property, plant, and equipment amounted to **HKD 1.927 billion**[135](index=135&type=chunk) - The Macau government further extended the development period for the Studio City land concession development project to **June 30, 2023**[137](index=137&type=chunk) - The City of Dreams Mediterranean project in Cyprus experienced construction delays and is now expected to open in **early Q2 2023**[139](index=139&type=chunk) [Note 24: Events After the Reporting Period](index=64&type=section&id=附註24%3A%20報告期後事項) Subsequent to the reporting period, the group undertook several significant financial actions, including securing an extension for financial covenant waivers on a major credit facility, Melco Resorts & Entertainment repurchasing shares from a company subsidiary, and drawing an additional USD 400 million from its revolving credit facility for general corporate purposes. - In August 2022, the group obtained an extension of the financial covenant waiver for its 2020 credit facility until **March 31, 2024**[148](index=148&type=chunk) - In August 2022, Melco Resorts & Entertainment repurchased approximately **85 million ordinary shares** (including ADSs) from Melco Leisure, a subsidiary of the company[149](index=149&type=chunk) - On August 24, 2022, the group drew an additional **USD 400 million** from its 2020 credit facility for general corporate purposes[149](index=149&type=chunk) Other Information [Directors' and Chief Executive's Interests and Major Shareholders' Interests](index=66&type=section&id=董事及主要股東權益) The report discloses the interests of directors, the chief executive, and major shareholders in the company's shares, related shares, and debentures of the company and its associated corporations (e.g., Melco Resorts & Entertainment, SCIHL) as of June 30, 2022. - Chairman and Chief Executive Officer Mr. Lawrence Ho held a total long position of **886,992,396 shares** in the company as of June 30, 2022, representing approximately **58.48%** of the issued shares[154](index=154&type=chunk) - Mr. Lawrence Ho is deemed to have an interest in **820,091,853 ordinary shares** of its subsidiary Melco Resorts & Entertainment, representing approximately **56.30%** of its issued shares[159](index=159&type=chunk)[160](index=160&type=chunk) - Major shareholder Southeastern Asset Management, Inc., as an investment manager, held **196,518,781 shares** in the company, representing approximately **12.96%**[195](index=195&type=chunk) [Share Option Schemes and Share Award Schemes](index=70&type=section&id=購股權及股份獎勵計劃) The report details changes in the company's and its subsidiary Melco Resorts & Entertainment's share option and share award schemes, including the implementation of option exchange programs and the adoption of a new share option scheme by the company in June 2022. - The company implemented a share option exchange program in April 2022, canceling **33,590,000** old share options and granting **453,000** new share options and **11,032,000** new award shares[166](index=166&type=chunk) - Subsidiary Melco Resorts & Entertainment also implemented a similar program, canceling **26,076,978** old share options and granting **2,486,241** new share options and **5,912,547** new restricted shares[174](index=174&type=chunk) - The company's share option scheme adopted in 2012 expired in May 2022, and a new share option scheme was adopted in June of the same year[166](index=166&type=chunk) [Corporate Governance](index=87&type=section&id=企業管治) The company complied with the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer are combined and held by Mr. Lawrence Ho, which the Board believes is in the company's best interest given his deep industry knowledge. - The company complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are not separated, both held by **Mr. Lawrence Ho**[198](index=198&type=chunk) - The Board believes that Mr. Lawrence Ho's combined role as Chairman and Chief Executive Officer, leveraging his deep industry knowledge and business network, is in the company's current best interest[198](index=198&type=chunk) - The Audit Committee reviewed the company's unaudited interim results and interim report for the six months ended June 30, 2022[201](index=201&type=chunk) Company Information [Basic Company Information](index=89&type=section&id=公司基本信息) This section lists the company's essential details, including its Board of Directors, committee members, company secretary, registered office, auditor (Ernst & Young), legal advisors, share registrar (Tricor Standard Limited), and website. - The company's Chairman and Chief Executive Officer is **Mr. Lawrence Ho**[205](index=205&type=chunk) - The company's auditor is **Ernst & Young**[206](index=206&type=chunk) - The company's shares are listed on The Stock Exchange of Hong Kong Limited under stock code **200**[206](index=206&type=chunk)

[Company Overview](index=4&type=section&id=Company%20Overview) Melco International Development Limited prioritizes health and safety, actively fulfills social responsibilities, pursues sustainable development, and expands its global integrated resort portfolio [Company Core Values and Vision](index=4&type=section&id=Company%20Core%20Values%20and%20Vision) Melco International Development Limited prioritizes guest and employee health and safety, actively fulfills social responsibilities, commits to sustainable development, and pursues excellence in hospitality while advancing major expansion projects - The company prioritizes guest and employee health and safety, with several hotels receiving Sharecare health security verification from Forbes Travel Guide[5](index=5&type=chunk) - During the pandemic, the company launched the "Small Acts, Big Love" volunteer program, engaging nearly **8,000** employees to assist local communities, demonstrating corporate social responsibility[8](index=8&type=chunk) - The company is committed to sustainable development, implementing AI systems to address food waste and using filtered water refill systems to reduce plastic bottle consumption[9](index=9&type=chunk) - The company is actively expanding its business footprint, with the Studio City Phase 2 development adding approximately **900** luxury hotel rooms and a large water park[13](index=13&type=chunk) - City of Dreams Mediterranean, expected to open in summer 2022, will be Europe's largest integrated resort, featuring over **500** luxury rooms and extensive MICE facilities[16](index=16&type=chunk) [Key Performance Indicators](index=16&type=section&id=Key%20Performance%20Indicators) The company's financial performance significantly deteriorated in 2020 due to the COVID-19 pandemic, while it continued to advance sustainability initiatives [Financial Key Performance Indicators](index=16&type=section&id=Financial%20Key%20Performance%20Indicators) The company's 2020 financial performance severely deteriorated due to the COVID-19 pandemic, with net revenue, adjusted EBITDA, and annual profit all turning to significant losses, yet global expansion plans continue Financial Performance Summary | Indicator | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | HKD 13.42 billion | HKD 44.99 billion | -70.2% | | **Adjusted EBITDA** | HKD -1.2 billion | HKD 12.5 billion | Turned to loss | | **Annual (Loss)/Profit** | HKD -12.38 billion | HKD 1.77 billion | Turned to loss | | **Basic (Loss)/Earnings Per Share** | HKD -4.19 | HKD 0.46 | Turned to loss | - The significant decline in financial data is primarily attributed to the temporary closure of casinos and a sharp reduction in inbound tourist arrivals due to the COVID-19 pandemic[20](index=20&type=chunk) - In response to the pandemic, the company implemented prudent cost control and capital expenditure streamlining measures, strengthening its balance sheet through preferred note issuance and private placements to fund long-term development projects[20](index=20&type=chunk) [Non-Financial Key Performance Indicators](index=17&type=section&id=Non-Financial%20Key%20Performance%20Indicators) Despite pandemic challenges, the company maintained its sustainable development strategy in 2020, contributing significantly to the community and achieving notable reductions in environmental impact - In 2020, the company made over **HKD 264 million** in charitable and in-kind donations, with **53%** specifically allocated to COVID-19 response efforts[23](index=23&type=chunk) Environmental Indicators | Environmental Indicator | 2019 | 2020 | Trend | | :--- | :--- | :--- | :--- | | **Total Greenhouse Gas Emissions (Tonnes of CO2e)** | 32,718 | 17,145 | Decrease | | **Total Energy Consumption (MWh)** | 518,668 | 378,848 | Decrease | | **Waste Disposal (Tonnes)** | 18,394 | 8,275 | Decrease | [Group Business Overview](index=18&type=section&id=Group%20Business%20Overview) Melco International, founded in 1910, has transformed into a leading Asian leisure and entertainment enterprise, primarily operating integrated resorts through its subsidiary Melco Resorts & Entertainment [Company History and Core Business](index=18&type=section&id=Company%20History%20and%20Core%20Business) Melco International, established in 1910, has evolved into a leading Asian leisure and entertainment company under Chairman Lawrence Ho, focusing on developing and operating integrated resorts globally - Melco International was founded in 1910 and listed on the Hong Kong Stock Exchange in 1927, now a leading next-generation Asian leisure and entertainment enterprise[29](index=29&type=chunk) - In 2017, Melco International became the sole major shareholder of its group member, Melco Resorts & Entertainment, which operates integrated resort businesses in Asia and Europe, further strengthening the company's financial position[30](index=30&type=chunk) [Group Structure](index=19&type=section&id=Group%20Structure) Melco International Development Limited operates integrated entertainment and leisure resorts globally through its Nasdaq-listed subsidiary, Melco Resorts & Entertainment Limited, with core assets in Macau, the Philippines, and Cyprus [Business Distribution and Key Properties](index=19&type=section&id=Business%20Distribution%20and%20Key%20Properties) Melco International Development Limited operates integrated entertainment and leisure resorts globally through its Nasdaq-listed subsidiary, Melco Resorts & Entertainment Limited, with core assets in Macau, the Philippines, and Cyprus, targeting various market segments Key Properties by Region | Region | Key Property | Market Positioning | | :--- | :--- | :--- | | **Macau** | City of Dreams, Cotai | High-end Market | | | Studio City, Cotai | Mass Market | | | Altira Macau, Taipa | High-stakes Market | | | Mocha Clubs across Macau | Casual Market | | **Philippines** | City of Dreams Manila | Mass Market | | **Cyprus** | City of Dreams Mediterranean | Under Development | [Chairman and Chief Executive Officer's Report](index=20&type=section&id=Chairman%20and%20Chief%20Executive%20Officer's%20Report) Chairman and CEO Lawrence Ho's report highlights the unprecedented impact of the 2020 pandemic on global tourism, the company's financial resilience through cost control, and an optimistic outlook for recovery and continued expansion [Responding to Pandemic Challenges and Future Outlook](index=20&type=section&id=Responding%20to%20Pandemic%20Challenges%20and%20Future%20Outlook) Chairman and CEO Lawrence Ho's report highlights the unprecedented impact of the 2020 pandemic on global tourism, the company's financial resilience through cost control, and an optimistic outlook for recovery and continued expansion - Affected by the pandemic, the company implemented strict cost control measures and issued senior notes and completed private placements to strengthen its balance sheet[36](index=36&type=chunk)[37](index=37&type=chunk) - With the easing of travel restrictions, the company's Macau and global properties recorded positive property EBITDA in the fourth quarter of 2020[37](index=37&type=chunk) - The company continues to advance major development projects despite adversity, including the Studio City Phase 2 expansion in Macau and the construction of City of Dreams Mediterranean in Cyprus[37](index=37&type=chunk) - The company maintains a strong focus on the potential of the Japanese market, committed to developing a Japanese-style integrated resort there[38](index=38&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section details the unprecedented challenges faced by the Group in 2020 due to the COVID-19 pandemic, its impact on operations, and the strategic measures taken to ensure resilience and continued development [Significant Events and Developments](index=22&type=section&id=Significant%20Events%20and%20Developments) The 2020 COVID-19 pandemic presented unprecedented challenges, severely impacting operations in Macau, the Philippines, and Cyprus due to travel restrictions and temporary closures, though business stabilized in Q4 with the resumption of individual visit scheme visas - The pandemic led to varying degrees of temporary operational suspension for casino businesses in Macau, the Philippines, and Cyprus during 2020[40](index=40&type=chunk) - Macau operations moderately stabilized in the fourth quarter of 2020 with the resumption of individual visit scheme visas[40](index=40&type=chunk) - The Group continued to advance its global expansion plans during the pandemic, including the Macau Studio City expansion and the European City of Dreams Mediterranean project, with the latter expected to open in summer 2022[40](index=40&type=chunk) [Business Review](index=23&type=section&id=Business%20Review) Melco International primarily operates its gaming business through its **55.8%** owned subsidiary, Melco Resorts & Entertainment, experiencing a significant decline in 2020 net revenue to **HKD 13.42 billion** and an annual loss of **HKD 12.38 billion** due to the pandemic - As of the end of 2020, Melco International held approximately **55.8%** of shares in Melco Resorts & Entertainment, its primary operating entity for gaming businesses[42](index=42&type=chunk) - City of Dreams, as the flagship integrated resort, is undergoing facility upgrades, including the optimized reopening of Morpheus and the reimagining of The Countdown hotel[43](index=43&type=chunk) - Studio City is undergoing Phase 2 development, which will add approximately **900** hotel rooms, a large water park, and MICE facilities[44](index=44&type=chunk) - The City of Dreams Mediterranean project in Cyprus is expected to become Europe's largest premium integrated resort, with a gaming area featuring over **100** gaming tables and **1,000** slot machines[49](index=49&type=chunk) [Outlook](index=25&type=section&id=Outlook) Despite ongoing global economic uncertainties from the COVID-19 pandemic, management remains optimistic about Macau's market recovery and increased visitor arrivals, continuing to advance global expansion projects and explore opportunities in Japan - The outlook for Macau's gaming industry recovery is optimistic, primarily due to the lifting of quarantine requirements for mainland Chinese visitors, anticipated easing of travel restrictions, and widespread vaccine availability[50](index=50&type=chunk) - The Group will continue to advance its global expansion plans, including the construction of Studio City Phase 2 and City of Dreams Mediterranean[50](index=50&type=chunk) - The Japanese market remains a strategic focus for the Group; despite delays in the licensing process due to the pandemic, the company will remain patient to seize suitable development opportunities[50](index=50&type=chunk) [Achievements and Awards](index=26&type=section&id=Achievements%20and%20Awards) In 2020, the Group received extensive recognition and numerous accolades across corporate governance, business operations, corporate social responsibility, and environmental sustainability, including multiple Forbes Travel Guide and Michelin stars - Chairman and CEO Lawrence Ho received the "Best CEO in Asia" award from Corporate Governance Asia magazine for the **ninth** time[55](index=55&type=chunk) - The Group earned **97 stars** in the Forbes Travel Guide 2021, including **17 Five-Star awards**, leading among integrated resort operators in Macau and Asia[56](index=56&type=chunk) - Four of the Group's restaurants collectively garnered **seven Michelin stars** in the Michelin Guide Hong Kong Macau 2021, with Jade Dragon receiving three Michelin stars for the third consecutive year[56](index=56&type=chunk) - The Group's "Small Acts, Big Love" initiative received the "Community Award – Asia" at the Industry Community Contribution Awards 2020[57](index=57&type=chunk) - The Studio City Phase 2 project received the "Asia Award" at the BREEAM Awards, recognizing its excellence in sustainable development[62](index=62&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) The Group's financial performance in fiscal year 2020 was severely impacted by the pandemic, with net revenue decreasing by **70.2%** to **HKD 13.42 billion**, adjusted EBITDA turning to a loss of **HKD 1.2 billion**, and a loss attributable to owners of **HKD 6.34 billion** Financial Highlights (Million HKD) | Financial Indicator (Million HKD) | 2020 | 2019 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | **Net Revenue** | 13,424.4 | 44,987.8 | -70.2% | | **Adjusted EBITDA** | (1,198.2) | 12,497.7 | Not Applicable | | **Loss Attributable to Owners of the Company** | (6,339.9) | 689.8 | Not Applicable | | **Total Assets** | 95,534.7 | 100,361.6 | -4.8% | | **Total Liabilities** | 64,757.4 | 58,693.9 | 10.3% | | **Gearing Ratio (%)** | 53.0% | 41.2% | Not Applicable | Revenue Breakdown (Million HKD) | Revenue Category (Million HKD) | 2020 | 2019 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | **Casino Revenue** | 11,417.8 | 38,989.5 | -70.7% | | **Rooms** | 842.6 | 2,741.2 | -69.3% | | **Food and Beverage Services Revenue** | 581.3 | 1,899.7 | -69.4% | | **Entertainment, Retail and Other** | 576.1 | 1,350.7 | -57.3% | - Melco Resorts & Entertainment, the Group's principal subsidiary, reported total operating revenue of **USD 1.73 billion** in 2020, a **70%** year-on-year decrease, and an operating loss of **USD 940 million**, compared to an operating income of **USD 750 million** in 2019[69](index=69&type=chunk) - To address liquidity pressure, the Group undertook multiple debt financing activities during the year, including entering into a **HKD 14.85 billion** revolving credit facility, issuing several senior notes, and redeeming some maturing notes[91](index=91&type=chunk)[92](index=92&type=chunk) [Operating Performance by Property](index=31&type=section&id=Operating%20Performance%20by%20Property) All of the Group's properties experienced significant declines in operating performance due to the pandemic, with total operating revenue and adjusted property EBITDA for City of Dreams, Altira Macau, and Studio City turning negative or substantially decreasing Property Operating Performance (Million USD) | Property | 2020 Total Operating Revenue (Million USD) | 2019 Total Operating Revenue (Million USD) | 2020 Adjusted Property EBITDA (Million USD) | 2019 Adjusted Property EBITDA (Million USD) | | :--- | :--- | :--- | :--- | :--- | | **City of Dreams** | 985.6 | 3,050.5 | (1.3) | 922.8 | | **Altira Macau** | 108.9 | 465.1 | (58.8) | 51.5 | | **Mocha Clubs** | 65.3 | 117.5 | 3.6 | 23.3 | | **Studio City** | 266.5 | 1,355.3 | (79.0) | 415.1 | | **City of Dreams Manila** | 224.7 | 602.5 | 29.0 | 247.1 | | **Cyprus Operations** | 51.0 | 94.7 | 2.3 | 29.8 | [Human Resources](index=39&type=section&id=Human%20Resources) As of year-end 2020, the Group's total employee count decreased to **19,769** from **23,261** in 2019, with related employee costs also declining, while the company emphasizes talent development and an inclusive work environment - As of December 31, 2020, the Group's total number of employees was **19,769**, a decrease from **23,261** in 2019[104](index=104&type=chunk) - Related employee costs for the year ended December 31, 2020, were **HKD 5.92 billion**, a decrease from **HKD 7.59 billion** in 2019[104](index=104&type=chunk) [Board of Directors and Senior Management](index=40&type=section&id=Board%20of%20Directors%20and%20Senior%20Management) This section provides an overview of the company's Board of Directors and senior management, including their backgrounds and qualifications, highlighting key leadership roles and extensive professional experience [Board and Executive Profiles](index=40&type=section&id=Board%20and%20Executive%20Profiles) This section details the backgrounds and qualifications of the company's Board of Directors and senior management, including Chairman and CEO Lawrence Ho, President and Managing Director Evan Andrew Winkler, and other executives with extensive experience in various fields - Mr. Lawrence Ho has served as Chairman and Chief Executive Officer since 2006, also holding the same positions at Nasdaq-listed Melco Resorts & Entertainment Limited[106](index=106&type=chunk) - Mr. Evan Andrew Winkler has served as President and Managing Director since 2018, bringing extensive investment banking experience from UBS Investment Bank and Moelis & Company[109](index=109&type=chunk) - Senior management includes Mr. Geoffrey Stuart DAVIS, Chief Financial Officer, and Mr. Kevin LEUNG, Group General Counsel, both possessing deep professional backgrounds in finance and law, respectively[116](index=116&type=chunk)[117](index=117&type=chunk) [Corporate Governance Report](index=44&type=section&id=Corporate%20Governance%20Report) The company is committed to high corporate governance standards, adhering to the Corporate Governance Code with a noted deviation where the Chairman and CEO roles are combined, which the Board deems in the company's best interest [Corporate Governance Practices and Board of Directors](index=44&type=section&id=Corporate%20Governance%20Practices%20and%20Board%20of%20Directors) The company maintains high corporate governance standards, adhering to the Corporate Governance Code, with a noted deviation where the Chairman and CEO roles are combined, which the Board deems in the company's best interest, while ensuring board diversity and training - The company complies with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are held by Mr. Lawrence Ho, which the Board believes is in the company's best interest[124](index=124&type=chunk) - The Board of Directors comprises **seven** directors, including **three** independent non-executive directors, exceeding one-third of the Board's total number, in compliance with listing rules[126](index=126&type=chunk) Committee/Meeting Attendance | Committee/Meeting | Average Attendance Rate | | :--- | :--- | | **Board Meetings** | 100.00% | | **Audit Committee Meetings** | 100.00% | | **Remuneration Committee Meetings** | 100.00% | | **Nomination Committee Meetings** | 100.00% | | **Corporate Governance Committee Meetings** | 100.00% | [Board Committees](index=51&type=section&id=Board%20Committees) To facilitate effective board management, the company has established several specialized committees, including the Executive, Audit, Nomination, Remuneration, Corporate Governance, Finance, and Monitoring Affairs Committees, each with defined terms of reference - The Audit Committee, composed of two independent non-executive directors and one non-executive director, oversees external auditors, reviews financial statements, and supervises risk management and internal control systems[143](index=143&type=chunk) - The Nomination Committee is responsible for reviewing the Board's size and composition, and making recommendations to the Board regarding the appointment and re-election of new directors[143](index=143&type=chunk) - The Remuneration Committee is responsible for formulating remuneration policies for executive directors and senior management, and determining their remuneration packages[144](index=144&type=chunk) - Since August 2020, the oversight of Environmental, Social, and Governance (ESG) matters has been transferred from the Audit Committee to the Corporate Governance Committee, directly led by the Chairman and Chief Executive Officer[146](index=146&type=chunk) [Risk Management and Internal Control](index=55&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board is responsible for establishing and maintaining robust internal control and risk management systems, employing a combined top-down and bottom-up approach, with the Internal Audit Department reporting directly to the Audit Committee - The Group's risk management model combines a top-down strategic overview with bottom-up business processes, supported by a dedicated Risk Management Task Force to assist the Board in oversight[152](index=152&type=chunk) - The Internal Audit Department employs a COSO framework-based audit methodology, reviewing and evaluating the effectiveness of internal control systems across five components: control environment, risk assessment, control activities, information and communication, and monitoring activities[154](index=154&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) - The Board, through the Audit Committee, reviewed the effectiveness of the Group's risk management and internal control systems in 2020 and deemed them complete and effective[161](index=161&type=chunk) [Directors' Report](index=59&type=section&id=Directors'%20Report) This section reviews the Group's business and highlights its commitment to Environmental, Social, and Governance (ESG), with the Board overseeing ESG strategy and achieving progress in guest experience, employee well-being, responsible gaming, community investment, and environmental protection [Business Review and Environmental, Social and Governance (ESG)](index=59&type=section&id=Business%20Review%20and%20Environmental,%20Social%20and%20Governance%20(ESG)) This section reviews the Group's business and highlights its commitment to Environmental, Social, and Governance (ESG), with the Board overseeing ESG strategy and achieving progress in guest experience, employee well-being, responsible gaming, community investment, and environmental protection - ESG oversight was strengthened in 2020, with responsibility transferred to the Corporate Governance Committee and direct oversight by the Chairman and Chief Executive Officer[172](index=172&type=chunk) - In 2020, the Group made over **HKD 264 million** in charitable and in-kind donations, with **53%** specifically allocated to pandemic response efforts[174](index=174&type=chunk) - The Group's properties became the first in Macau and the Philippines to receive international third-party certification for responsible gaming programs after verification by the Responsible Gaming Council[176](index=176&type=chunk) [Dividends, Shares and Reserves](index=63&type=section&id=Dividends,%20Shares%20and%20Reserves) Given the suspension of the semi-annual dividend program announced in May 2020, the Board recommends no final dividend for the year ended December 31, 2020, with details on share transfer book closure dates and distributable reserves provided - As the company announced the suspension of its semi-annual dividend program on May 14, 2020, the Board recommends no final dividend for the 2020 financial year[182](index=182&type=chunk) - As of December 31, 2020, the company's distributable reserves included capital reserves of approximately **HKD 7.053 million** and retained profits of approximately **HKD 5.442 billion**[187](index=187&type=chunk) [Directors' Interests in Shares, Underlying Shares and Debentures](index=66&type=section&id=Directors'%20Interests%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) This section details the interests of the company's directors and chief executive in the shares, underlying shares, and debentures of the company and its associated corporations, such as Melco Resorts & Entertainment, as of December 31, 2020 - As of December 31, 2020, Chairman and Chief Executive Officer Lawrence Ho collectively held **881,172,396** ordinary shares of the company, representing approximately **58.13%** of all issued shares[197](index=197&type=chunk) - Mr. Lawrence Ho is also deemed to have an interest in **812,729,781** shares of Melco Resorts & Entertainment, representing **55.80%** of its total issued shares, held by the company's wholly-owned subsidiaries[200](index=200&type=chunk)[201](index=201&type=chunk) [Share Option Schemes and Share Award Schemes](index=69&type=section&id=Share%20Option%20Schemes%20and%20Share%20Award%20Schemes) This section details the share option and share award schemes of the company and its subsidiaries (Melco Resorts & Entertainment, Melco Resorts Philippines), outlining their purposes, eligibility, share limits, exercise price determination, and changes in holdings - The company has a 2012 Share Option Scheme, under which a total of **2,931,000** share options were granted to directors and employees on April 14, 2020, with an exercise price of **HKD 12.70** per share[217](index=217&type=chunk)[220](index=220&type=chunk) - Subsidiary Melco Resorts & Entertainment has a revised 2011 Share Award Scheme, under which a total of **12,159,207** share options were granted to eligible participants on March 31, 2020, with an exercise price of **USD 4.13** per share[244](index=244&type=chunk) - The company has a Share Purchase Scheme, and as of the end of 2020, the total number of unvested awarded shares held by directors and employees was **7,543,000** shares[256](index=256&type=chunk)[257](index=257&type=chunk) [Connected Transactions and Continuing Connected Transactions](index=88&type=section&id=Connected%20Transactions%20and%20Continuing%20Connected%20Transactions) The report discloses connected transactions and continuing connected transactions subject to listing rules during the year, including restricted share grants to Director Lawrence Ho, a private placement to New Cotai, LLC, and ferry ticket purchases from Shun Tak-China Travel Ship Management Limited - Melco Resorts & Entertainment granted restricted shares worth approximately **HKD 150 million** to Chairman Lawrence Ho as part of his 2019 performance bonus and the company's cash preservation measures[265](index=265&type=chunk) - Subsidiary SCIHL conducted a private placement to its major shareholder, New Cotai, LLC, for a total subscription price of approximately **HKD 148 million**, with proceeds used for Studio City Phase 2 development[266](index=266&type=chunk)[267](index=267&type=chunk) - The Group has a ferry ticket sales framework agreement with Shun Tak-China Travel Ship Management Limited, with total transaction value in 2020 of approximately **HKD 2.067 million**, well below the annual cap of **HKD 37.8 million**[268](index=268&type=chunk)[269](index=269&type=chunk) [Independent Auditor's Report](index=93&type=section&id=Independent%20Auditor's%20Report) Ernst & Young issued an unmodified opinion on the company's consolidated financial statements for the year ended December 31, 2020, highlighting key audit matters related to trade receivables recoverability, goodwill and trademark impairment, and non-current non-financial asset impairment [Auditor's Opinion and Key Audit Matters](index=93&type=section&id=Auditor's%20Opinion%20and%20Key%20Audit%20Matters) Ernst & Young issued an unmodified opinion on the company's consolidated financial statements for the year ended December 31, 2020, deeming them true and fair, while highlighting key audit matters involving significant management judgment and estimates amidst the pandemic - The auditor issued an unmodified opinion, stating that the consolidated financial statements fairly and truly reflect the Group's financial position in accordance with Hong Kong Financial Reporting Standards[283](index=283&type=chunk) - One key audit matter is the recoverability of trade receivables, as management used subjective judgment in estimating the allowance for expected credit losses; as of year-end, the allowance was approximately **HKD 1.553 billion**[285](index=285&type=chunk) - Impairment of goodwill and trademarks is another key audit matter, as its testing is based on management's expectations and estimates of future performance, involving significant uncertainty[287](index=287&type=chunk) - Due to the severe market downturn caused by the pandemic, the Group conducted impairment tests on non-current non-financial assets such as property, plant, and equipment, constituting a third key audit matter[290](index=290&type=chunk) [Consolidated Financial Statements](index=100&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows, providing a comprehensive overview of its financial performance and position for the year [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=100&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended December 31, 2020, the company recorded net revenue of **HKD 13.42 billion**, a **70.2%** decrease from 2019, resulting in a full-year loss of **HKD 12.38 billion**, compared to a profit of **HKD 1.77 billion** last year, with a loss attributable to owners of **HKD 6.34 billion** Consolidated Statement of Profit or Loss and Other Comprehensive Income (Thousand HKD) | Item (Thousand HKD) | 2020 | 2019 | | :--- | :--- | :--- | | **Net Revenue** | 13,424,435 | 44,987,768 | | **Operating (Loss)/Income** | (8,232,594) | 4,884,974 | | **(Loss)/Profit Before Tax** | (12,345,070) | 1,834,051 | | **(Loss)/Profit for the Year** | (12,377,928) | 1,768,158 | | **(Loss)/Profit Attributable to Owners of the Company** | (6,339,887) | 689,772 | [Consolidated Statement of Financial Position](index=102&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2020, the Group's total assets decreased by **4.8%** to **HKD 95.53 billion**, while total liabilities increased by **10.3%** to **HKD 64.76 billion**, leading to a significant reduction in total equity from **HKD 41.67 billion** to **HKD 30.78 billion** Consolidated Statement of Financial Position (Thousand HKD) | Item (Thousand HKD) | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Non-Current Assets** | 79,679,735 | 85,211,253 | | **Total Current Assets** | 15,854,998 | 15,150,320 | | **Total Assets** | 95,534,733 | 100,361,573 | | **Total Current Liabilities** | 13,055,071 | 12,447,122 | | **Total Non-Current Liabilities** | 51,702,366 | 46,246,759 | | **Total Liabilities** | 64,757,437 | 58,693,881 | | **Net Assets** | 30,777,296 | 41,667,692 | | **Equity Attributable to Owners of the Company** | 10,764,187 | 16,950,323 | [Consolidated Statement of Changes in Equity](index=104&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the year ended December 31, 2020, equity attributable to owners of the company decreased from **HKD 16.95 billion** at the beginning of the year to **HKD 10.76 billion** at year-end, primarily due to a **HKD 6.34 billion** loss for the year - Equity attributable to owners of the company decreased from **HKD 16.95 billion** at the beginning of 2020 to **HKD 10.76 billion** at year-end[305](index=305&type=chunk) - The primary driver of the change in equity was the **HKD 6.34 billion** loss recorded for the year[305](index=305&type=chunk) [Consolidated Statement of Cash Flows](index=107&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In 2020, the Group experienced a net cash outflow of **HKD 5.29 billion** from operating activities, a significant reversal from 2019's net inflow, while net cash outflow from investing activities was **HKD 42.07 million**, offset by **HKD 7.78 billion** net cash inflow from financing activities Consolidated Statement of Cash Flows (Thousand HKD) | Item (Thousand HKD) | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | (5,286,787) | 8,677,473 | | **Net Cash Used in Investing Activities** | (42,074) | (7,889,673) | | **Net Cash from/(Used in) Financing Activities** | 7,782,051 | (1,480,160) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | 2,453,190 | (692,360) | | **Cash and Cash Equivalents at Year-End** | 13,821,297 | 11,213,138 | [Notes to the Consolidated Financial Statements](index=109&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies, key judgments, and estimates, breaking down financial statement items such as segment information, revenue and expense components, financial instruments, debt structure, leases, long-term incentive plans, and related party transactions - Note 1(b) details the specific impacts of the COVID-19 pandemic on operations in Macau, the Philippines, and Cyprus, including periods of closure and subsequent restrictive operating measures[318](index=318&type=chunk)[319](index=319&type=chunk)[320](index=320&type=chunk) - Note 4 on segment information indicates that the vast majority of the Group's revenue is derived from the "Casino and Hotel" segment, with Macau contributing **HKD 11.24 billion** in revenue[392](index=392&type=chunk)[405](index=405&type=chunk) - Note 33 provides a detailed breakdown of the Group's interest-bearing borrowings, totaling **HKD 50.63 billion**, primarily comprising unsecured notes and secured bank loans, and discloses various refinancing activities undertaken during the year[469](index=469&type=chunk) - Note 37 details the changes in the company's and its subsidiary Melco Resorts & Entertainment's share option and share award schemes, including new awards granted during the year[490](index=490&type=chunk)[506](index=506&type=chunk) - Note 49 discloses post-reporting period events, including the issuance of several senior notes for refinancing in early 2021 and the disposal of all investments in EHang[579](index=579&type=chunk)[581](index=581&type=chunk) [Five-Year Financial Summary](index=218&type=section&id=Five-Year%20Financial%20Summary) This summary reviews the Group's key financial data from 2016 to 2020, showing stable net revenue and annual profit from 2017-2019 before a sharp decline and significant loss in 2020 due to the pandemic [Five-Year Performance and Financial Position Review](index=218&type=section&id=Five-Year%20Performance%20and%20Financial%20Position%20Review) This summary reviews the Group's key financial data from 2016 to 2020, showing stable net revenue and annual profit from 2017-2019 before a sharp decline and significant loss in 2020 due to the pandemic, while total assets remained relatively stable Five-Year Financial Summary (Thousand HKD) | Item (Thousand HKD) | 2016 | 2017 | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Revenue** | 23,852,811 | 41,180,086 | 40,724,673 | 44,987,768 | 13,424,435 | | **Annual Profit/(Loss)** | 9,890,779 | 1,062,534 | 1,600,168 | 1,768,158 | (12,377,928) | | **Total Assets** | 103,650,932 | 98,270,226 | 98,026,241 | 100,361,573 | 95,534,733 | | **Total Liabilities** | (46,607,439) | (52,418,180) | (57,323,215) | (58,693,881) | (64,757,437) | | **Equity Attributable to Owners of the Company** | 22,347,746 | 18,988,887 | 16,232,230 | 16,950,323 | 10,764,187 | [Company Information](index=219&type=section&id=Company%20Information) This section lists the company's core information, including the Board of Directors and committee members, company secretary, registered office address, auditor, legal counsel, share registrar, and stock code [Basic Company Information](index=219&type=section&id=Basic%20Company%20Information) This section lists the company's core information, including the Board of Directors and committee members, company secretary, registered office address, auditor, legal counsel, share registrar, and stock code - Chairman and Chief Executive Officer: Lawrence Ho[590](index=590&type=chunk) - Auditor: Ernst & Young[591](index=591&type=chunk) - Stock Code: **200** (The Stock Exchange of Hong Kong Limited)[591](index=591&type=chunk)

目錄 | 管理層討論及分析 | 2 | | --- | --- | | 中期財務資料審閱報告 | 29 | | 簡明綜合損益及其他全面收益表 | 31 | | 簡明綜合財務狀況表 | 33 | | 簡明綜合權益變動報表 | 35 | | 簡明綜合現金流量表 | 37 | | 簡明綜合中期財務資料附註 | 39 | | 其他資料 | 67 | | 公司資料 | 89 | 管理層討論及分析 本集團一直致力為澳門創造領先全球的酒店及娛樂體驗，推動澳門的嶄新及優質旅 遊業發展。 重要事件及發展 澳門以外，新濠天地（馬尼拉）在菲律賓的博彩營運因呂宋島全島（包括馬尼拉大都會） 於二零二零年三月起實施嚴格社區隔離措施而暫時停業。在塞浦路斯，為全面配合 塞浦路斯政府就遏止2019冠狀病毒病蔓延所採取的措施，塞浦路斯娛樂城亦已由二 零二零年三月起暫停所有博彩營運。 為應對2019冠狀病毒病疫情帶來的挑戰，本集團已迅速啟動一系列緩解措施，包括 實施成本削減計劃，以盡量減少非必要項目造成的現金流出，並通過押後和削減資 本開支，調整本集團的資本開支，從而增強資產負債表狀況。於二零二零年五月，本 公司宣佈暫停本公司股息政策下的半年度股 ...