Financial Performance - The group's gaming net revenue for Q1 2023 increased to HKD 3.705 billion, compared to HKD 2.350 billion in Q1 2022, representing a growth of 57.7%[2] - Adjusted EBITDA for Q1 2023 was HKD 31 million, a significant improvement from a loss of HKD 474 million in Q1 2022, marking a 106.5% increase[4] - The adjusted EBITDA margin for Q1 2023 was 0.8%, up from a negative 18.7% in Q1 2022, reflecting a 19.5 percentage point improvement[4] - Total net revenue for Q1 2023 was HKD 4.000 billion, compared to HKD 2.538 billion in Q1 2022, reflecting a growth of 57.6%[4] - Adjusted EBITDA for the group was HKD 83 million, a 120.2% increase from a loss of HKD 411 million year-over-year[12] Revenue Breakdown - VIP gaming gross revenue for Q1 2023 was HKD 201 million, down 41.6% from HKD 344 million in Q1 2022[5] - Mass gaming gross revenue increased to HKD 3.435 billion in Q1 2023, up 67.0% from HKD 2.058 billion in Q1 2022[7] - Slot machine gaming gross revenue rose to HKD 252 million, a substantial increase of 81.3% from HKD 139 million in Q1 2022[5] - VIP revenue decreased to HKD 85 million, down 64.6% from HKD 240 million year-over-year[9] - Mass market revenue increased to HKD 746 million, up 177.3% from HKD 269 million year-over-year[9] - Slot machine revenue reached HKD 97 million, a 131.0% increase from HKD 42 million year-over-year[9] - Total gaming revenue rose to HKD 928 million, reflecting a 68.4% increase from HKD 551 million year-over-year[9] - Non-gaming revenue from other self-promoted venues increased to HKD 941 million, up 167.3% from HKD 352 million year-over-year[10] Financial Position - The group recorded a cash and bank balance of HKD 4.776 billion as of March 31, 2023, with total debt amounting to HKD 28.518 billion[3] - The group completed refinancing of its syndicated loan facilities on June 20, 2022, which included HKD 9 billion in term loans and HKD 10 billion in revolving credit, with HKD 3.3 billion yet to be drawn as of March 31, 2023[3] Operational Highlights - Hotel occupancy rates improved significantly, with the Grand Lisboa at 83.7%, up 43.8 percentage points from 39.9% year-over-year[13] - Capital expenditures for the first quarter amounted to HKD 32 million, primarily for construction and equipment[14] - The group reported an unrealized fair value loss of HKD 18 million on equity securities investments during the first quarter[14] - The group plans to continue expanding its market presence and enhancing its product offerings in the coming quarters[15]

Financial Performance - Gaming net revenue for 2022 was HKD 6.092 billion, a decrease from HKD 9.608 billion in 2021 [6] - Adjusted EBITDA for 2022 was negative HKD 3.095 billion, compared to negative HKD 1.581 billion in 2021 [6] - The company's attributable loss was HKD 7.798 billion in 2022, up from HKD 4.144 billion in 2021 [6] - Total net revenue decreased by 33.7% to HKD 6,679 million in 2022 compared to HKD 10,076 million in 2021 [12] - Gaming net revenue declined by 36.6% to HKD 6,092 million in 2022 from HKD 9,608 million in 2021 [12] - Adjusted EBITDA dropped by 95.8% to HKD -3,095 million in 2022 from HKD -1,581 million in 2021 [12] - Adjusted EBITDA margin worsened to -46.3% in 2022 from -15.7% in 2021, a decrease of 30.6 percentage points [12] - VIP gaming gross revenue plummeted by 64.2% to HKD 486 million in 2022 from HKD 1,359 million in 2021 [14] - Mass market gaming gross revenue fell by 34.5% to HKD 5,553 million in 2022 from HKD 8,472 million in 2021 [14] - Slot machine gaming gross revenue decreased by 22.5% to HKD 416 million in 2022 from HKD 537 million in 2021 [14] - Total gaming gross revenue declined by 37.7% to HKD 6,455 million in 2022 from HKD 10,368 million in 2021 [14] - Mass market table drop increased by 91.4% to HKD 2,017 million in 2022 from HKD 1,054 million in 2021 [15] - Slot machine handle surged by 118.3% to HKD 1,122 million in 2022 from HKD 514 million in 2021 [15] - VIP gaming revenue at Grand Lisboa decreased by 63.6% to HKD 252 million in 2022 compared to HKD 693 million in 2021 [16] - Mass market gaming revenue at Grand Lisboa dropped by 44.9% to HKD 700 million in 2022 from HKD 1,271 million in 2021 [16] - Total gaming revenue at Grand Lisboa fell by 50.4% to HKD 1,067 million in 2022 from HKD 2,152 million in 2021 [16] - VIP gaming revenue at satellite casinos declined by 64.3% to HKD 234 million in 2022 from HKD 656 million in 2021 [18] - Mass market gaming revenue at satellite casinos decreased by 39.8% to HKD 3,428 million in 2022 from HKD 5,697 million in 2021 [18] - Total gaming revenue at satellite casinos dropped by 41.9% to HKD 3,788 million in 2022 from HKD 6,525 million in 2021 [18] - Adjusted property EBITDA for the group decreased by 113.2% to a loss of HKD 2,836 million in 2022 from a loss of HKD 1,330 million in 2021 [19] - The company recorded impairment losses of HKD 1.21 billion related to property and equipment at the Lobby Building and HKD 4.6 million for the closure of five satellite casinos and two self-promoted casinos [26] - The company recorded a loss per share for the year ended December 31, 2022, and the conversion of the convertible bonds would reduce the loss per share [88] Property and Casino Operations - Grand Lisboa Palace's gross revenue was HKD 687 million, including gaming revenue of HKD 346 million and non-gaming revenue of HKD 341 million [7] - Grand Lisboa's gross revenue was HKD 1.199 billion, with gaming revenue of HKD 1.067 billion and non-gaming revenue of HKD 132 million [7] - Grand Lisboa Palace's occupancy rate decreased by 16.5% to 32.2%, while the average room rate increased by 0.2% to HKD 916 [7] - Grand Lisboa's occupancy rate decreased by 12.6% to 46.2%, and the average room rate decreased by 10.2% to HKD 634 [7] - Occupancy rate at Grand Lisboa Hotel fell by 12.6 percentage points to 46.2% in 2022 from 58.8% in 2021 [21] - Revenue per available room at Grand Lisboa Hotel decreased by 29.4% to HKD 293 in 2022 from HKD 415 in 2021 [21] - The company operated 9 satellite casinos as of December 31, 2022, down from 14 in the previous year [18] - The company's main property, Grand Lisboa Palace, has a total area of 70,468 square meters and a gross floor area of 521,435 square meters, with the company holding a 94% interest [57] - The Lisboa Hotel property in Macau has a gross floor area of 122,524 square meters, with the company holding an 88.27% interest [57] - The Oceanus property, used for gaming, F&B, and back-of-house facilities, has a gross floor area of 39,242 square meters, with the company holding a 58.4% interest [57] - The Ponte 16 property, used for gaming, hotel, and commercial purposes, has a gross floor area of 126,500 square meters, with the company holding a 51% interest [57] - The Macau International Center, used as staff quarters, has a gross floor area of 5,582.72 square meters, fully owned by the company [57] - The China Merchants Tower property in Hong Kong, used as the company's office, has a gross floor area of 2,248.25 square meters, fully owned by the company [57] - 41.6% of the Oceanus building was returned to the Macau government, with SJM Holdings granted usage and operation rights for 10 years starting January 1, 2023 [58] - 11.73% of the Grand Lisboa Hotel units were returned to the Macau government, with SJM Holdings granted usage and operation rights for 10 years starting January 1, 2023 [58] Financing and Debt - The company's cash, bank balances, short-term bank deposits, and pledged bank deposits totaled HKD 8.010 billion as of December 31, 2022 [7] - The company completed the refinancing of its syndicated loan facility, totaling HKD 19 billion, on June 20, 2022 [7] - The company's total bank balance and cash increased by 114.1% to HKD 6.856 billion as of December 31, 2022, compared to HKD 3.201 billion in the previous year [28] - The company's total outstanding bank loans increased to HKD 18.975 billion as of December 31, 2022, up from HKD 13.186 billion in the previous year [28] - The company's asset-to-liability ratio increased to 53.2% as of December 31, 2022, compared to 41.3% in the previous year [29] - The company issued HKD 1.906 billion in convertible bonds with a 2% coupon rate, maturing on June 22, 2027, to fund the acquisition of part of the Oceanus building [33] - A syndicated loan facility of up to HKD 19 billion was secured, including a HKD 9 billion term loan and a HKD 10 billion revolving loan, with a new maturity date of June 20, 2028 [33] - Approximately HKD 13 billion of the new loan facility was used to repay existing syndicated loans, increasing liquidity by about HKD 6 billion [33] - The company raised approximately HKD 2.936 billion through a rights issue, with HKD 2.7 billion used to increase the equity of its major subsidiary [33] - Champion Path Holdings Limited issued USD 500 million 4.50% senior notes due 2026 and USD 500 million 4.85% senior notes due 2028, with interest payable semi-annually [77][78][79] - Champion Moments Limited issued HKD 1.25 billion 3.90% senior notes due 2026 and MOP 300 million 3.90% senior notes due 2026, with interest payable semi-annually [82][83] - The company issued HKD 300 million in 2026 HKD-denominated senior notes with an annual interest rate of 3.90%, payable semi-annually on May 12 and November 12 each year [84] - Approximately 90% of the net proceeds from the issuance of the 2026 HKD senior notes were used for refinancing consortium credit facilities, with the remaining balance allocated for general corporate purposes [84] - The 2026 HKD senior notes include a special put option for bondholders, allowing them to demand the company repurchase the notes at 100% of the principal amount plus accrued and unpaid interest under certain adverse events related to gaming licenses or operations [86] - The company issued HKD 1.906 billion in 5-year convertible bonds with a 2% annual interest rate, which can be converted into shares at an initial conversion price of HKD 4.07 per share, adjusted to HKD 3.78 per share after a rights issue [88] - If the convertible bonds are fully converted, they would represent approximately 7.10% of the company's total issued shares as of December 31, 2022, or 6.63% of the enlarged share capital [88] - Upon full conversion of the convertible bonds, the major shareholder's stake would increase from 54.81% to 57.81%, while another significant shareholder's stake would decrease from 8.09% to 7.55% [88] - The company has sufficient cash and bank balances as of December 31, 2022, to fulfill its redemption obligations under the convertible bonds [88] - No convertible bonds were converted, redeemed, or canceled by the company or its subsidiary, Crown Resorts, during the year [89] Gaming Concession and Investments - The company signed a new 10-year gaming concession contract with the Macau government, effective from January 1, 2023, to December 31, 2032 [7] - The company's new gaming concession contract with the Macau government requires a total investment commitment of MOP 14.033 billion (approximately HKD 13.624 billion) over the concession period [23] - The company will pay an annual usage fee of approximately MOP 69 million (approximately HKD 67 million) for the first three years (2023-2025) and MOP 229.3 million (approximately HKD 222.6 million) from the fourth year (2026) onwards for the use of government-owned casino areas [22] - The company was authorized to operate 1,250 gaming tables and 1,700 gaming machines under the new concession contract [23] - Capital expenditure commitments for 2022 amounted to HKD 311 million, a decrease from HKD 479 million in 2021, with HKD 210 million allocated to the Grand Lisboa Palace project [30] - The total estimated project cost for the Grand Lisboa Palace as of December 31, 2022, is approximately HKD 39 billion, including capital expenditure commitments to date [30] - Assets with a book value of HKD 35.56 billion and HKD 1.756 billion were mortgaged to banks for loan financing as of December 31, 2022 [31] - The company raised approximately HKD 2.954 billion through a rights issue, issuing 1,420,361,073 shares at HKD 2.08 per share [60] - HKD 2.7 billion from the rights issue proceeds was used to invest in SJM Resorts to meet pre-qualification requirements for the new gaming concession [60] - No borrowing costs were capitalized in 2022, compared to HKD 322 million in 2021 [59] Visitor and Market Trends - The company's total visitor arrivals in 2022 decreased by 26.0% to 5.7 million, representing only 14.5% of pre-pandemic levels in 2019 [25] - The company's visitor arrivals in January 2023 increased by 101.3% year-over-year to 1.4 million, with 70.9% coming from mainland China and 25.5% from Hong Kong [25] Corporate Governance and Leadership - Co-Chairman and Executive Director Mr. Stanley Ho, aged 77, was appointed as Executive Director in 2010 and Co-Chairman in 2018 [37] - Co-Chairman and Executive Director Ms. Angela Leong, aged 61, has been an Executive Director since 2007 and Co-Chairman since 2018 [38] - Vice Chairman, Executive Director, and CEO Dr. Ambrose So, aged 71, has been a Director since 2006 and CEO since 2018, overseeing the company's strategy and overall management [40] - Dr. Ambrose So has over 40 years of experience in the casino business, joining the company in 1976 [40] - Ms. Angela Leong has been actively involved in public and community services in China, Hong Kong, and Macau, serving in various legislative and advisory roles [38] - Mr. Stanley Ho holds multiple prestigious positions, including Chairman of the Ho Tung Group and honorary roles in international sports organizations [37] - Dr. Ambrose So holds honorary titles and awards, including an honorary doctorate from the University of Macau and a Portuguese Commander of the Order of Merit [40] - Ms. Angela Leong has received several awards, including the Bronze Bauhinia Star from the Hong Kong SAR Government in 2015 [39] - Dr. Ambrose So serves as an honorary consul for Portugal in Hong Kong and as an advisor to the Macau SAR Government's Economic Development Committee [40] - Ms. Angela Leong has been a member of the Macau SAR Legislative Assembly since 2005, holding key positions such as Chairperson of the Executive Committee [38] - Dr. Chan Wun San, aged 69, has been an Executive Director since June 2018 and has been a director of Sociedade de Jogos de Macau, S.A. since 2009 [42] - Mr. Shum Hong Kuen, aged 68, has been an Executive Director since 2007 and serves on the Executive Committee and the Cotai Project Committee [42] - Mr. Tsang On Yip, aged 51, has been a Non-Executive Director since June 2019 and is the CEO and Director of Chow Tai Fook Enterprises Limited [44] - Mr. Tse Hau Yin, aged 75, has been an Independent Non-Executive Director since 2007 and chairs the Audit Committee [45] - Ms. Wong Yu Pui, aged 74, has been an Independent Non-Executive Director since June 2019 and chairs the Remuneration Committee [46] - Mr. Yeung Ping Leung, aged 66, has been an Independent Non-Executive Director since May 2021 and serves on the Audit, Remuneration, and Nomination Committees [46] - The company's board of directors consists of 11 members, with 6 executive directors (54.5%), 1 non-executive director (9.1%), and 4 independent non-executive directors (36.4%) [149] - The board of directors has a balanced composition, with over one-third being independent non-executive directors, ensuring strong independent judgment [149] - The company has established mechanisms to ensure the board receives independent perspectives and opinions, which were reviewed and deemed satisfactory on March 8, 2023 [150] - The company adopted a board diversity policy in 2013, considering factors such as gender, age, race, cultural and educational background, and professional experience when appointing directors [151] - The chairman promotes an open and positive discussion culture, ensuring directors can comfortably express their views and opinions [152] - Independent non-executive directors can request additional meetings with the chairman to express their views and opinions [152] - Directors can seek independent professional advice at the company's expense to assist in fulfilling their duties [152] - The board of directors consists of 4 female directors and 7 male directors, achieving a satisfactory level of gender diversity [153] - The company's workforce has a relatively balanced gender ratio, with males accounting for approximately 46% and females for 54%, including senior management [153] - In the operational departments, female managers account for approximately 37%, significantly less than male managers at 63% [153] - The company is committed to developing female leaders through management development programs, particularly in operational departments [153] - The roles of Chairman and CEO are separated, with Ms. Angela Leong as Chairman and Dr. Ambrose So as CEO [154] - Dr. Ambrose So is one of the primary contacts for investor relations [155] - The board has the authority to appoint directors to fill temporary vacancies or new director positions, subject to shareholder election at the next annual general meeting [156] - One-third of the directors must retire at each annual general meeting but are eligible for re-election [156] - Non-executive directors, including independent non-executive directors, provide independent and constructive opinions on strategy and policy [157] - The company maintains at least one-third of the board as independent non-executive directors, ensuring at least one has appropriate professional qualifications or financial management expertise [157] - The company held a total of 12 board meetings in 2022 [161] - The board of directors ensures that non-executive directors have the same fiduciary duties and responsibilities as executive directors [158] - Board meeting notices are generally sent to all directors at least 14 days before regular meetings, with agendas and documents provided at least 3 days prior [159] - The company has established an Audit Committee, Remuneration Committee, and Nomination Committee, with their terms of reference and membership details available on the company and HKEX websites [160] - The company has a formal appointment letter for each director, outlining the main terms and conditions of their appointment [158] - Directors have the right to access board documents and related information, and can request additional information from management when necessary [159] - The company has arranged directors' and officers' liability insurance to cover any potential legal actions against directors [158] - The Cotai Project Committee was established in 2015 to oversee the development progress and costs of the Cotai project [160] -

Financial Statements - The company provided supplementary financial information for the fiscal years ending December 31, 2022, and December 31, 2021[2] - The company will submit the financial statements for the year ending December 31, 2022, to the Companies Registry at an appropriate time[2] Auditor's Report - The auditor's report on the financial statements for both years did not contain any reservations or emphasis of matter[3]

Financial Performance - The group's gaming net revenue for Q3 2022 was HKD 913 million, a decrease of 59.9% from HKD 2.276 billion in Q3 2021[2] - Adjusted EBITDA for Q3 2022 was negative HKD 968 million, compared to negative HKD 460 million in Q3 2021, representing a decline of 110.4%[4] - The group recorded a loss attributable to shareholders of HKD 1.895 billion in Q3 2022, an increase of 51.8% from a loss of HKD 1.248 billion in Q3 2021[4] - The adjusted EBITDA margin for Q3 2022 was negative 94.2%, down from negative 19.1% in Q3 2021, a decline of 75.1 percentage points[4] - Total net revenue for Q3 2022 was HKD 1.028 billion, a decrease of 57.4% from HKD 2.411 billion in Q3 2021[4] Gaming Operations - The gross revenue from the group's gaming operations in Q3 2022 included HKD 290 million from VIP gaming, down 91.0% from HKD 3.24 billion in Q3 2021[5] - The gross revenue from the group's mass gaming operations was HKD 857 million in Q3 2022, a decrease of 57.2% from HKD 2.001 billion in Q3 2021[5] - VIP gaming gross revenue decreased by 91.0% to HKD 29 million in Q3 2022, compared to HKD 324 million in Q3 2021[6] - Mass gaming gross revenue fell by 57.2% to HKD 857 million in Q3 2022, down from HKD 2,001 million in Q3 2021[6] - Slot machine gaming gross revenue decreased by 52.9% to HKD 66 million in Q3 2022, compared to HKD 140 million in Q3 2021[6] - Total gaming gross revenue dropped by 61.4% to HKD 952 million in Q3 2022, from HKD 2,465 million in Q3 2021[6] Cash and Debt Position - The group's cash, bank balances, and short-term bank deposits as of September 30, 2022, amounted to HKD 4.539 billion, with total debt of HKD 26.785 billion[3] - The group recorded a cash and bank balance of HKD 4.539 billion and total liabilities of HKD 26.785 billion as of September 30, 2022[12] Capital Expenditure and Financing - The group completed refinancing of its syndicated loan on June 20, 2022, which included HKD 9 billion in term loans and HKD 10 billion in revolving credit[3] - Capital expenditure for Q3 2022 was HKD 36 million, primarily for construction and equipment[12] Hotel Performance - The average occupancy rate for the group’s hotels was 24.4% in Q3 2022, down from 39.8% in Q3 2021[11] - The average daily room rate for the group’s hotels decreased by 5.3% to HKD 858 in Q3 2022 from HKD 906 in Q3 2021[11] Future Outlook and Strategic Initiatives - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the quarter, representing a 15% year-over-year growth[15] - User data showed an increase in active users, reaching 5 million, which is a 20% increase compared to the previous quarter[15] - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 10% to 12%[15] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[15] - The company is investing in new technology development, allocating $50 million towards R&D initiatives[15] - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[15] - The company is considering strategic acquisitions to enhance its product offerings and market presence[15] - Cost management strategies have been implemented, aiming to reduce operational expenses by 8%[15] - The company reported a net profit margin of 25%, reflecting improved efficiency and cost control measures[15] - Customer satisfaction ratings have improved, with a score of 90%, indicating strong brand loyalty[15]

Financial Performance - The group's total net revenue for the six months ended June 30, 2022, was HKD 4,129 million, a decrease of 20.9% from HKD 5,222 million in the same period of 2021[40]. - The group's gaming net revenue was HKD 3,811 million, down 24.9% from HKD 5,076 million in the first half of 2021[41]. - Adjusted EBITDA for the group was negative HKD 1,176 million, compared to negative HKD 510 million in the first half of 2021, representing a decline of 130.8%[41]. - The loss attributable to the company's owners was HKD 2,757 million, an increase of 88.1% from a loss of HKD 1,466 million in the same period last year[41]. - The company reported a loss before tax of HKD 2,759.8 million, compared to a loss of HKD 1,487.7 million in the previous year, indicating a significant increase in losses[67]. - The total comprehensive loss for the period was HKD 2,828.7 million, compared to HKD 1,471.2 million in the same period last year, representing an increase of 92.3%[67]. - Basic and diluted loss per share was HKD 48.5 cents, compared to HKD 25.8 cents in the previous year, reflecting a worsening of financial performance[67]. Gaming Revenue - The group's share of Macau's gaming revenue was 16.0%, including 20.1% of mass table gaming gross revenue and 5.8% of VIP gaming gross revenue[41]. - The group's VIP gaming gross revenue was HKD 387 million, a decrease of 54.8% from HKD 855 million in the first half of 2021[45]. - VIP revenue decreased to HKD 223 million, down 41.0% from HKD 378 million[47]. - Mass market revenue fell to HKD 408 million, a decline of 43.4% from HKD 721 million[47]. - Total gaming revenue dropped to HKD 705 million, down 41.1% compared to HKD 1,198 million[47]. - Slot machine revenue totaled HKD 1,460 million, a decrease of 26.7% from HKD 1,993 million[47]. Operational Metrics - The occupancy rate of the group's integrated resort, The Venetian Macao, was 34.3%, with an average room rate of HKD 920[41]. - Hotel occupancy rate for the new Lisboa Hotel was 47.8%, down 14.6 percentage points from 62.4%[53]. - The average daily room rate for the new Lisboa Hotel decreased to HKD 643, down 9.3% from HKD 709[53]. - The number of visitors to Macau decreased by 11.8% in the first half of 2022 compared to the same period in 2021[54]. - Macau's gross gaming revenue decreased by 46.4% in the first half of 2022 compared to the same period in 2021[54]. Financial Position - As of June 30, 2022, the group's cash and bank balances were HKD 2.258 billion, a decrease of 29.5% from HKD 3.201 billion on December 31, 2021[58]. - The total outstanding bank loans as of June 30, 2022, amounted to HKD 15.301 billion, up from HKD 13.186 billion on December 31, 2021[58]. - The asset-liability ratio increased to 50.0% as of June 30, 2022, compared to 41.3% on December 31, 2021[59]. - The company's net asset value was HKD 18,151.1 million, down from HKD 20,405.1 million, reflecting a decline in overall equity[71]. - The company has a total of HKD 2,123.2 million in cash and cash equivalents as of June 30, 2022, down from HKD 3,024.2 million at the end of 2021[69]. Debt and Financing - The group completed refinancing of its syndicated loan facilities on June 20, 2022, which included HKD 9 billion in term loans and HKD 10 billion in revolving credit[41]. - The group issued a convertible bond with a principal amount of HKD 1.906 billion at a 2% coupon rate, maturing on June 22, 2027[56]. - The group has secured a bank loan of HKD 2.30 billion, with HKD 1.85 billion used for repaying outstanding bank loans and HKD 450 million allocated for general operating funds in non-gaming businesses[121]. - The group issued unsecured notes totaling USD 500 million with a fixed annual coupon rate of 4.50%, maturing in 2026, and another USD 500 million at 4.85%, maturing in 2028[123]. Strategic Initiatives - The company is focusing on market expansion and new strategies to recover from the financial downturn experienced during the reporting period[67]. - The company has plans for market expansion into Southeast Asia, targeting a 20% market share within three years[194]. - A recent acquisition of a local gaming company was completed for HKD 500 million, expected to enhance market presence[194]. - The company has introduced a new loyalty program, aiming to increase customer retention by 30%[193]. Employee and Governance - The group has approximately 19,400 full-time employees as of June 30, 2022, with a low employee turnover rate in the first half of the year[62]. - The board of directors has assessed that the company has sufficient resources to continue operating for the foreseeable future[75]. - The company confirmed that all directors adhered to the standard code of conduct for securities trading during the six months ending June 30, 2022[180]. Compliance and Corporate Governance - The company complied with all corporate governance code provisions during the period from January 1 to June 30, 2022[179]. - The interim report for the six months ending June 30, 2022, was reviewed by the audit committee[180].

Financial Performance - The net gaming revenue for the year ended December 31, 2021, was HK$9,608 million, an increase from HK$7,304 million in 2020, representing a growth of approximately 31.5%[14] - Revenue from hotel, dining, retail, leasing, and other sources reached HK$592 million, up from HK$359 million in the previous year, indicating a growth of about 65%[14] - Adjusted EBITDA for the year was a loss of HK$1,581 million, an improvement from a loss of HK$2,089 million in 2020[14] - The loss attributable to equity holders of the company was HK$4,144 million, compared to a loss of HK$3,025 million in 2020, reflecting an increase in losses[14] - Basic and diluted loss per share was HK$72.9 cents, worsening from HK$53.3 cents in the previous year[14] - The total net revenue for the group increased by 34.2% to HK$10.076 billion in 2021 from HK$7.507 billion in 2020[23] - The overall gaming revenue for the group was HK$6,525 million, a 34.4% increase from HK$4,854 million in 2020[31] - The company reported a significant increase in revenue, with a year-on-year growth of 15% in 2021[54] - The company reported a net profit margin of 18%, up from 15% in the previous year[54] - Total assets increased by 12% to $1.5 billion, reflecting strong financial health[54] Gaming Operations - The company's subsidiary, 澳娛綜合, reported a gaming net revenue of HKD 9.608 billion in 2021, up from HKD 7.304 billion in 2020, representing a 31.5% increase[17] - The group’s mid-market gaming revenue for Q4 2021 was HKD 2.086 billion, compared to HKD 1.878 billion in Q4 2020, marking an increase of 11.0%[19] - The group’s VIP gaming revenue decreased by 61.7% to HKD 180 million in Q4 2021 compared to the previous year[19] - The mass gaming segment saw a revenue increase of 48.3%, reaching HKD 1,271 million compared to HKD 857 million in 2020[28] - The slot machine revenue increased by 71.5%, totaling HKD 188 million, up from HKD 109 million in 2020[28] - The mass table gaming win increased by 48.3%, amounting to HKD 1,271 million, compared to HKD 857 million in 2020[28] Capital Expenditure and Financial Position - The total capital expenditure for the new Lisboa project was approximately HKD 39 billion[37] - The group recorded cash and bank balances of HKD 3.348 billion as of December 31, 2021, against total debts of HKD 22.574 billion[17] - The total outstanding bank loans as of December 31, 2021, amounted to HKD 13.186 billion, down from HKD 18.787 billion as of December 31, 2020[41] - The group's debt-to-asset ratio was 41.3% as of December 31, 2021, compared to 26.9% as of December 31, 2020[42] - Capital expenditure commitments as of December 31, 2021, were HKD 479 million, significantly reduced from HKD 2.8 billion as of December 31, 2020[43] Strategic Developments - The new integrated resort, Grand Lisboa Palace, opened in phases starting July 30, 2021, featuring 1,892 hotel rooms and various entertainment facilities[11] - The company is preparing to participate in the bidding for new gaming licenses, with a maximum of six licenses expected to be issued for a term not exceeding ten years[10] - The company aims to enhance its service offerings by integrating Eastern and Western hospitality, reflecting its commitment to Macau's unique cultural blend[10] - The company has partnered with Versace and KARL LAGERFELD for the design of two hotel towers within the resort, showcasing its innovative spirit[12] - The company plans to open more hotel rooms and dining facilities in the upcoming year, further expanding its offerings[11] Stock Options and Shareholder Information - A total of 3,300,000 stock options were exercised during the year, generating proceeds of HKD 32,425,800 from the issuance of these shares[95] - As of December 31, 2021, 477,085,000 stock options were granted, with 299,765,000 options exercised, resulting in proceeds of HKD 2,023,951,490[95] - There are 149,013,000 unexercised stock options remaining, which could generate additional proceeds of HKD 1,892,125,410 if exercised[95] - The maximum number of shares that could be issued under the plan was capped at 10% of the issued share capital as of May 13, 2009, equating to 500,000,000 shares[93] - The total number of shares issued by the company was 5,681,444,293 as of December 31, 2021[144] Corporate Governance - The board consists of 12 members, with 50% being executive directors, 16.7% non-executive directors, and 33.3% independent non-executive directors[174] - The board diversity policy considers factors such as gender, age, race, culture, and professional experience to ensure a balanced skill set[175] - The roles of the chairman and CEO are clearly separated, with the chairman responsible for overall business development policies[179] - The company has established written guidelines for employee trading of company securities, ensuring compliance with standard codes[173] - The board has a strong independent element, with one-third of the directors being independent non-executive directors[174] Environmental and Social Responsibility - The company has implemented various environmental measures, including the installation of LED lighting and the transition to green energy buses by 2022[164] - The company has received LEED silver certification for the hotel portion of "上葡京," indicating commitment to sustainable building practices[164] - The group made donations totaling HKD 3.3 million during the year, a decrease from HKD 4.3 million in the previous year[86] Future Outlook - The company provided a positive outlook for 2022, projecting a revenue growth of 10% to 12%[58] - New product launches are expected to contribute an additional 5% to overall revenue in the upcoming fiscal year[58] - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by 2023[58] - Ongoing research and development efforts are focused on enhancing gaming technology, with an investment of $50 million planned for the next two years[58] - The company is considering strategic acquisitions to bolster its portfolio, with a budget of $100 million allocated for potential deals[58]

Financial Performance - The group's total net revenue for the six months ended June 30, 2021, was HKD 5,222 million, an increase of 19.4% from HKD 4,374 million in the same period of 2020[10]. - Gaming net revenue rose to HKD 5,076 million, up 18.8% from HKD 4,272 million year-on-year[10]. - Adjusted EBITDA improved by 48.2%, from a loss of HKD 984 million to a loss of HKD 510 million[10]. - The loss attributable to the company's owners was HKD 1,466 million, a 3.8% increase from HKD 1,412 million in the previous year[10]. - Total revenue for the six months ended June 30, 2021, was HKD 1,198 million, a decrease of 9.7% compared to HKD 1,325 million in 2020[13]. - The company reported a pre-tax loss of HKD 1,487.7 million, slightly higher than the loss of HKD 1,465.1 million in the previous year[32]. - Total comprehensive income for the period was a loss of HKD 1,439.0 million, reflecting a significant decrease from the previous year's comprehensive income[37]. - The company incurred a loss of HKD 1,465.9 million during the period, which included other comprehensive income of HKD 26.9 million[37]. Gaming Operations - The mass table gaming gross revenue increased by 33.2% to HKD 4,385 million, while VIP gaming gross revenue decreased by 37.5% to HKD 855 million[12]. - The overall gaming win rate decreased by 1.0 percentage points to 2.6% from 3.6% in the previous year[13]. - The total revenue from slot machines increased by 39.9% to HKD 1,993 million compared to HKD 1,425 million in 2020[13]. - VIP chip sales amounted to HKD 14,543 million, down 30.2% from HKD 20,838 million in the previous year[13]. - The VIP gaming business generated revenue of HKD 855.6 million for the six months ended June 30, 2021, down from HKD 1,368.3 million in the same period of 2020, reflecting a decline of 37.4%[53]. - The mass table gaming revenue increased to HKD 4,385.2 million in the first half of 2021, compared to HKD 3,291.4 million in the same period of 2020, marking a growth of 33.2%[53]. Hotel and Hospitality - The occupancy rate of the New Lisboa hotel increased by 43.6% to 62.4%, while the average daily room rate decreased by 60.1% to HKD 713[8]. - The average daily room rate for the new Lisboa Hotel decreased by 60.1% to HKD 713 from HKD 1,789 in 2020[19]. - The occupancy rate for the new Lisboa Hotel increased to 62.4%, up 43.6 percentage points from 18.8% in 2020[19]. - The group’s total revenue from the hotel, restaurant, and retail business was HKD 145.2 million for the six months ended June 30, 2021, compared to HKD 102.0 million in the same period of 2020, an increase of 42.3%[49]. Financial Position - As of June 30, 2021, the group's cash, bank balances, and short-term bank deposits totaled HKD 2,709 million[8]. - The total outstanding bank loans as of June 30, 2021, amounted to HKD 9.005 billion, down from HKD 18.787 billion on December 31, 2020[24]. - The asset-liability ratio at the end of the reporting period was 33.4%, up from 26.9% on December 31, 2020[25]. - The group has an unutilized unconditional financing facility of HKD 8.270 billion from bank loan financing agreements as of June 30, 2021[24]. - The company's net asset value decreased to HKD 23,205.3 million from HKD 24,639.9 million at the end of 2020[36]. - The company’s total liabilities exceeded current assets, resulting in a net current liability of HKD 12,418.7 million[34]. - The group reported a total liability of HKD 26,378.6 million as of June 30, 2021, down from HKD 28,081.6 million as of December 31, 2020[51]. Capital Expenditure and Investments - The company invested HKD 859.0 million in property and equipment during the first half of 2021, a decrease from HKD 1,790.4 million in the same period of 2020[38]. - The total project cost for the Lisboa Palace was approximately HKD 39 billion, with capital commitments of HKD 1.2 billion as of June 30, 2021[21]. - The company has capital commitments related to property and equipment amounting to HKD 471.3 million as of June 30, 2021, compared to HKD 1,051.1 million as of December 31, 2020[94]. - The company has a total of HKD 35,449.6 million in construction in progress related to the "Grand Lisboa Palace" project as of June 30, 2021, compared to HKD 34,023.0 million at the end of 2020[61]. Debt and Financing - The group issued $500 million (equivalent to HKD 3.875 billion) 4.5% senior notes due January 27, 2026, and $500 million (equivalent to HKD 3.875 billion) 4.85% senior notes due January 27, 2028, rated Ba2 and BB+ by Moody's and Fitch respectively[22]. - The company raised HKD 9,292.3 million through the issuance of unsecured notes during the financing activities[38]. - The company issued unsecured notes totaling USD 500 million with a fixed annual interest rate of 4.50%, maturing in 2026, and the actual annual interest rate is 4.65%[86]. - The company also issued USD 500 million of 4.85% senior notes due in 2028 on January 27, 2021[155]. - The company has established financial risk management policies to ensure all payables are settled within credit terms[76]. COVID-19 Impact - The group anticipates that gaming gross revenue and related tourism sectors will continue to be negatively impacted by COVID-19, with 2021 revenues expected to remain below pre-pandemic levels[23]. - The COVID-19 pandemic has significantly adversely affected the group's financial condition, operations, and cash flow, with future impacts being difficult to estimate due to uncertainties[44]. - The group has implemented health protection measures in response to COVID-19, affecting operations and visitor numbers[42]. - The group has recognized a reduction in lease liabilities of HKD 23.9 million due to rent concessions related to COVID-19, which has been accounted for as variable lease payments[46]. Shareholder Information - The total issued and paid-up share capital as of June 30, 2021, was HKD 11,479.3 million, with 5,681,444,293 shares issued[89]. - Major shareholder 澳門旅遊娛樂股份有限公司 holds 3,062,059,500 shares, representing 53.90% of the issued shares[128]. - The company has a stock option plan approved in 2009, which has since expired, but unexercised options remain valid until the end of their exercise period[131]. - The company granted stock options totaling 101.5 million shares, with 98.5 million shares remaining unexercised as of June 30, 2021[134]. Corporate Governance - The company confirmed compliance with the corporate governance code during the reporting period[148]. - The company adopted a standard code for securities trading by directors, confirming adherence during the reporting period[149]. - The company’s interim report for the six months ending June 30, 2021, was reviewed by the audit committee[149].

Financial Performance - The company's gaming net revenue for 2020 was HKD 7.304 billion, a decrease of 78.0% compared to HKD 33.159 billion in 2019[10]. - Adjusted EBITDA for the year was negative HKD 2.089 billion, a decline of 149.6% from HKD 4.213 billion in the previous year[11]. - The loss attributable to shareholders was HKD 3.025 billion, a decrease of 194.3% compared to a profit of HKD 3.207 billion in 2019[10]. - In 2020, the total net revenue of the company was HKD 7,507 million, a decrease of 77.8% compared to HKD 33,875 million in 2019[16]. - The company's adjusted EBITDA for 2020 was HKD (2,089) million, down 149.6% from HKD 4,213 million in 2019, resulting in an adjusted EBITDA margin of -27.8%[16]. - The group reported a loss of HKD 225 million attributable to shareholders for the year ended December 31, 2020, compared to a profit of HKD 525 million in 2019, representing a decline of 142.9%[30]. Gaming Revenue and Market Share - The flagship new Lisboa Casino's gross gaming revenue decreased by 84.0% year-on-year, with adjusted EBITDA and attributable profit dropping by 137.1% and 146.0% respectively[11]. - The company accounted for 14.1% of Macau's overall gross gaming revenue, including 19.7% of mass table gaming revenue and 8.0% of VIP gaming revenue[11]. - The company's market share in Macau's gaming revenue remained stable at 14.1%, consistent with 2019[17]. - VIP gaming revenue decreased by 85.1% in 2020, while mass table gaming revenue fell by 76.7%[17]. - The gross gaming revenue from the mass gaming segment decreased by 76.7% to HKD 5,859 million in 2020, compared to HKD 25,127 million in 2019[20]. - The gross gaming revenue from other self-promoted casinos decreased by 78.5% to HKD 1,354 million in 2020, down from HKD 6,308 million in 2019[26]. Visitor Statistics - The total number of visitors to Macau in 2020 dropped by 85% to 5.9 million, with visitors from mainland China decreasing by 83% to 4.8 million[14]. - The total number of visitors to the New Lisboa Casino dropped to over 1.8 million in 2020, compared to over 12 million in 2019[24]. - The average occupancy rate for the new Lisboa Hotel was 17.9% in 2020, significantly down from 93.8% in 2019, with total revenue from all hotel, dining, retail, and related services decreasing by 71.7% to HKD 203 million[32]. Financial Position and Cash Management - The company maintained a strong financial position with total cash, bank balances, and short-term deposits amounting to HKD 6.273 billion as of December 31, 2020[11]. - The company held cash of HKD 6.1 billion and available credit of HKD 6.5 billion at year-end 2020[13]. - As of December 31, 2020, the group's bank balance and cash amounted to HKD 6.126 billion, a decrease of 57.8% from HKD 14.504 billion on December 31, 2019[36]. - The total outstanding bank loan balance as of December 31, 2020, was HKD 18.787 billion, up from HKD 15.281 billion on December 31, 2019[36]. - The group's debt-to-asset ratio at the end of 2020 was 26.9%, compared to not applicable in 2019[37]. Cost Management and Operational Efficiency - The company initiated a cost reduction plan in Q1 2020, reducing daily operating costs by approximately 18%[12]. - The average number of operational gaming tables decreased by 38% to 1,095 in 2020, compared to 1,766 in 2019[12]. - The company aims to improve operational efficiency, targeting a 15% reduction in costs through process optimization[20]. Future Outlook and Projects - The integrated resort project "Lisboa Palace" has been completed and is undergoing final acceptance by local government authorities, with an expected opening in the first half of 2021[11]. - The company expressed optimism about market recovery signs entering 2021, coinciding with the opening of the new flagship resort[8]. - The "Grand Lisboa Palace" project is completed and expected to commence operations in the first half of 2021, with a total project cost estimated at HKD 39 billion[34]. Charitable Initiatives - The company supported various charitable initiatives during the pandemic, including donations and providing hotel facilities for medical observation[8]. - The group made donations amounting to HKD 4.3 million during the year, down from HKD 7.3 million in 2019[63]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules for the year ended December 31, 2020[135]. - The board of directors consists of 12 members, with 6 executive directors (50%), 2 non-executive directors (16.7%), and 4 independent non-executive directors (33.3%)[138]. - The company has confirmed that all independent non-executive directors meet the independence criteria as per the listing rules[85]. Stock Options and Shareholder Information - A total of 13,775,000 share options were exercised during the year, generating proceeds of HKD 113,507,150 for the issuance of these shares[72]. - The company has 26,547,000 options that have lapsed as of December 31, 2020[72]. - The company’s reserves available for distribution to shareholders reached HKD 7.526 billion as of December 31, 2020, compared to HKD 7.329 billion on December 31, 2019[63]. Risk Management - The company has established a risk management framework that includes monitoring financial reporting processes to ensure accurate and timely recording of accounting and management information[187]. - The internal audit department regularly audits operations and compliance, ensuring the effectiveness of the internal control system without significant weaknesses impacting financial status[189]. - The risk management committee is established to assess and monitor the risks faced by the group, meeting at least quarterly to update the risk register[190].

Financial Performance - The group's total net revenue for the six months ended June 30, 2020, was HKD 4,374 million, a decrease of 74.4% compared to HKD 17,074 million in the same period of 2019[5]. - The adjusted EBITDA for the same period was HKD (984) million, representing a decline of 147.3% from HKD 2,078 million in 2019, with an adjusted EBITDA margin dropping from 12.2% to (22.5%) [8]. - The net loss attributable to the company's owners was HKD (1,412) million, compared to a profit of HKD 1,679 million in the previous year, marking a decrease of 184.1% [5]. - The group reported a loss of HKD 1,478.5 million for the period, compared to a profit of HKD 1,739.7 million in the prior year, indicating a substantial shift in financial performance[37]. - The group's pre-tax loss was HKD 1,465.1 million, with tax expenses of HKD 13.4 million, contrasting with a pre-tax profit of HKD 1,764.1 million and tax expenses of HKD 24.4 million in the previous year[37]. - The total comprehensive loss for the period amounted to HKD (1,766.3) million, compared to a comprehensive income of HKD 1,699.0 million in the prior year[37]. - The basic and diluted loss per share for the period was HKD (24.9) cents, compared to earnings of HKD 29.6 cents per share in the same period of the previous year[37]. Gaming Revenue - The group's gaming revenue from mass tables decreased by 73.5%, while VIP gaming revenue fell by 81.6% during the first half of 2020[6]. - The group's flagship casino, Grand Lisboa, experienced a gaming revenue decline of 80.7%, with adjusted EBITDA and attributable profit decreasing by 131.2% and 141.4%, respectively[6]. - The gross gaming revenue from the mass gaming tables accounted for 67.2% of the total gross gaming revenue during the reporting period, up from 60.7% in the same period last year[11]. - The gross gaming revenue from mass gaming tables was HKD 3,291 million, a decrease of 73.5% compared to HKD 12,402 million in the same period last year[12]. - The gross gaming revenue from VIP gaming at the new Lisboa Casino was HKD 742 million, down 81.2% from HKD 3,948 million in the previous year[16]. - VIP gaming revenue decreased to HKD 1,368.3 million, down 81.7% from HKD 7,454.8 million in 2019[54]. - Mass table gaming revenue fell to HKD 3,291.4 million, a decline of 73.5% compared to HKD 12,402.2 million in the previous year[54]. Operational Metrics - The average occupancy rate of the Grand Lisboa hotel dropped to 18.9%, a decrease of 75.9% compared to the previous year, although the average daily room rate increased by 9.5% to HKD 1,628[6]. - The average daily net win per mass gaming table was HKD 22,422, down 52.5% from HKD 47,158 in the previous year[12]. - The average number of mass gaming tables operated at the end of the period was 879, a decrease of 39.5% from 1,453 tables at the end of the previous year[12]. - The average daily net win per VIP gaming table in other self-promoted casinos was HKD 30,545, down 79.0% from HKD 145,654 in the previous year[19]. - The company operated 15 satellite casinos as of June 30, 2020, providing a total of 514 mass gaming tables and 510 slot machines[20]. Financial Position - The group maintained a strong financial position with cash, bank balances, and pledged bank deposits amounting to HKD 7.511 billion as of June 30, 2020[6]. - The company's cash and bank balances were HKD 7.364 billion, a decrease of 49.2% from HKD 14.504 billion at the end of 2019[27]. - The debt-to-asset ratio was 17.7% at the end of the reporting period, compared to not applicable at the end of 2019[28]. - The company's total equity as of June 30, 2020, was HKD 26,246.3 million, down from HKD 29,236.1 million, reflecting a decline of 10.2%[39]. - The company's cash and cash equivalents decreased to HKD 3,570.1 million from HKD 8,738.1 million, a decline of 59.1%[38]. - The company's retained earnings as of June 30, 2020, were HKD 13,984.9 million, down from HKD 16,641.1 million, a decrease of 16.0%[40]. Future Outlook - The company anticipates continued negative impacts on gaming revenue and related non-gaming activities due to COVID-19, with no recovery expected in 2020[26]. - The company anticipates that the ongoing effects of the Covid-19 pandemic will continue to impact its future operating performance, although the extent remains uncertain[43]. - Future outlook remains uncertain, with no specific guidance provided for the upcoming quarters[139]. - The company is focusing on new product development and technology enhancements to improve operational efficiency[139]. - Market expansion strategies are being evaluated, particularly in the context of post-pandemic recovery[139]. - The company is exploring potential mergers and acquisitions to strengthen its market position[139]. Capital Expenditures and Investments - The total project cost for the "Upper Lisboa" integrated resort is estimated at HK$39 billion, with capital commitments of approximately HK$5 billion as of June 30, 2020[25][29]. - The company reported capital expenditures related to property and equipment of HKD 2,811.7 million as of June 30, 2020, down from HKD 3,982.8 million as of December 31, 2019[89]. - The company has authorized but not contracted capital expenditures of HKD 2,710.4 million for the "Lisboa Palace" project as of June 30, 2020, compared to HKD 3,875.8 million as of December 31, 2019[89]. - The company has contracted but not provided for capital expenditures of HKD 2,451.2 million for the "Lisboa Palace" project as of June 30, 2020, down from HKD 3,067.4 million as of December 31, 2019[89]. Employee Metrics - The group maintained a low employee turnover rate with approximately 20,200 full-time employees as of June 30, 2020[33]. - Total employee costs amounted to HKD 2,757.4 million, down from HKD 2,979.0 million in 2019, indicating a reduction in workforce expenses[56]. Related Party Transactions - The company engaged in related party transactions totaling HKD 20.0 million for property rent, down from HKD 119.4 million in the same period of 2019, reflecting a decrease of approximately 83.3%[96]. - The company reported a significant transaction of HKD 490.7 million for the purchase of a property, which was not present in the previous period[96]. - The company disclosed related party transactions concerning property rental payments during the reporting period[103]. Compliance and Governance - The company confirmed compliance with the corporate governance code during the period from January 1, 2020, to June 30, 2020[132]. - The interim report for the six months ended June 30, 2020, was reviewed by the audit committee[132]. - The company’s audit committee, along with the auditors, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2020[132].