Financial Performance - Casino revenue for 2022 was HKD 3,695,226, a decrease of 58.8% from HKD 8,973,480 in 2021[8] - Other income for 2022 was HKD 1,948,714, down 29.1% from HKD 2,751,946 in 2021[8] - Adjusted EBITDA for 2022 was a loss of HKD 1,948,480 compared to a profit of HKD 383,800 in 2021[8] - Loss attributable to owners for 2022 was HKD 7,339,270, an increase of 41.7% from HKD 5,179,295 in 2021[8] - Basic and diluted loss per share for 2022 was HKD 1.41, compared to HKD 1.00 in 2021[8] - Total operating revenue decreased by 51.9% from HKD 11.73 billion in 2021 to HKD 5.64 billion in 2022 due to travel-related restrictions and COVID-19 measures[50] - The company reported a significant operating loss of HKD 4,888,445 in 2022, compared to a loss of HKD 2,651,449 in 2021, indicating a worsening financial position[42] - Net loss attributable to owners increased by 41.7% from HKD 5.18 billion in 2021 to HKD 7.34 billion in 2022[62] - The company anticipates ongoing uncertainty regarding potential future restrictions that may impact operations and financial performance[63] Casino Operations - Wynn Macau features approximately 294,000 square feet of gaming space with 276 gaming tables and 567 slot machines[15] - Wynn Palace includes approximately 468,000 square feet of gaming space with 287 gaming tables and 560 slot machines[12] - The company operates two casinos under the gaming concession: Wynn Macau and Wynn Palace[21] - Casino revenue dropped from HKD 89.73 billion (76.5% of total operating revenue) in 2021 to HKD 37.0 billion (65.5% of total operating revenue) in 2022, with VIP table revenue falling by 80.4% to HKD 6.2 billion[51] - VIP table drop for Wynn Palace decreased to HKD 20,658,894 in 2022 from HKD 49,991,814 in 2021, a decline of about 58.7%[46] - The average daily revenue per VIP table at Wynn Palace fell to HKD 9,815 in 2022, down from HKD 57,806 in 2021, a decrease of approximately 83.0%[46] - Wynn Macau's total operating revenue was HKD 2,694,479 in 2022, down from HKD 4,864,225 in 2021, reflecting a decline of about 44.7%[44] - Slot machine revenue for Wynn Macau decreased to HKD 248,688 in 2022 from HKD 275,678 in 2021, a decline of approximately 9.8%[47] - The average daily revenue per slot machine at Wynn Macau was HKD 1,091 in 2022, down from HKD 1,286 in 2021, a decrease of about 15.1%[47] Regulatory and Compliance - The company signed a 10-year gaming concession contract with the Macau government on December 16, 2022, allowing operations from January 1, 2023, to December 31, 2032[19] - The company is required to pay a special gaming tax of 35% on gross gaming revenue and contribute up to 5% of gross gaming revenue annually for public interest initiatives[20] - The company must submit an annual execution proposal for investment projects to the Macau government by September 30 each year, detailing investment amounts and timelines[25] - The company is subject to ongoing regulatory oversight by the Macau government, including compliance with financial reporting and operational requirements[19] - The company must notify the Macau government of any financial decisions exceeding 10% of its capital, including employee compensation and significant loans[24] - The company is obligated to submit a report on the execution of the previous year's investment proposal by March 31 each year[25] - The company faces significant compliance risks due to evolving laws and regulations, which may lead to increased operational costs and reduced profits[121] - The company is subject to strict anti-money laundering regulations, and any violations could negatively impact its business and financial performance[117] Market Conditions and Risks - The company has experienced a significant decrease in visitor numbers due to COVID-19, but restrictions have been lifted as of December 2022, with no further entry limitations for tourists[16] - Visitor numbers to Macau in 2022 decreased by 26.0% compared to 2021 and by 85.5% compared to 2019, significantly impacting the tourism and gaming sectors[34] - The company faces inherent risks and uncertainties related to potential future restrictions on public and tourism activities due to COVID-19[16] - The company faces significant risks related to the COVID-19 pandemic, which has adversely affected its business, operations, financial condition, and performance due to reduced visitor numbers to Macau[96] - The company cannot predict when its Macau properties will return to pre-pandemic business levels due to ongoing uncertainties regarding public health measures and travel restrictions[98] - The company's financial performance is significantly impacted by the macroeconomic environment, including consumer discretionary spending, geopolitical tensions, and economic downturns, which may adversely affect its business and cash flow[101] - The current macroeconomic conditions, characterized by historical inflation levels and relatively low unemployment rates, have led to rising interest rates and market volatility, negatively affecting the company's gaming revenue and financial status[102] - Geopolitical tensions, economic downturns, and travel restrictions may reduce the demand for the company's products and services, impacting overall business performance[104] Leadership and Management - The company appointed Pan Guohong as the Executive Director and CEO effective February 1, 2022, after serving as a non-executive director since August 17, 2018[153] - Chen Zhiling was appointed as the President of the company on March 1, 2023, and also serves as the Vice Chairperson of the Board[154] - Luo Weixin has been the Executive Director and Chief Operating Officer since July 7, 2022, overseeing operations at Wynn Macau and Wynn Palace[161] - The company has a strong leadership team with over 30 years of industry experience, including significant roles in the successful openings of Wynn Las Vegas, Wynn Macau, and Wynn Palace[159] - The company emphasizes local management talent development and service excellence to maintain its market leadership reputation[164] - The company is focused on expanding its market presence and enhancing product quality to drive growth in the competitive landscape[164] - The leadership team has a diverse background in hospitality, law, and business, contributing to a well-rounded strategic approach[163][171] Community and Social Responsibility - The company is focused on corporate social responsibility through initiatives like the Wynn Care Foundation, established by Chen Zhiling in 2020[159] - The "永利關愛" program focuses on community development, volunteer service, and responsible gaming, aiming to positively impact the local community[191] - The company has established a community and government relations department to enhance its social impact and support local initiatives[198] - The group reported a cash donation of HKD 145.9 million and HKD 142.2 million for the years ended December 31, 2022, and 2021, respectively[200] - The company provides professional development and training opportunities for employees, including a "Career Advancement Development Program" launched in 2016[193] Financial Obligations and Debt - The company has a significant amount of debt, and failure to meet payment obligations could lead to acceleration of debt repayment and potential bankruptcy[147] - The capital debt ratio increased to 162.0% in 2022 from 133.2% in 2021, indicating a significant rise in net debt relative to total capital[69] - Total interest-bearing borrowings amounted to HKD 48.23 billion as of December 31, 2022, compared to HKD 46.54 billion in 2021[77] - The company has a high leverage ratio, and future cash flows may be insufficient to meet obligations, making it difficult to obtain additional financing[146] - The company plans to use the proceeds from the issuance of USD 600 million (approximately HKD 4.68 billion) convertible bonds for general corporate purposes[67] Operational Challenges - The company faces significant development and construction risks for ongoing and future renovation projects, which could impact project success[38] - The company may need to seek additional financing for unforeseen developments or new business opportunities[93] - The company is exposed to risks from external factors such as pandemics, social unrest, and natural disasters that could impact the tourism and leisure industry[112] - The company faces potential negative impacts from any damage to its reputation, which could significantly affect business performance and cash flow[110] - The company may experience increased costs related to maintaining its properties and a decrease in visitor numbers to Macau[112] Cybersecurity and Compliance - Cybersecurity risks, including data breaches and system failures, pose a threat to the company's operations and reputation[122] - The company must comply with privacy laws and data security standards, which may increase operational costs and affect marketing capabilities[126] - Any unauthorized disclosure of confidential or personal data could lead to significant reputational damage and legal liabilities for the company[125] - The company has implemented various systems and training to mitigate risks associated with fraud and theft, but acknowledges that these measures may not be sufficient to prevent all incidents[128] Future Outlook - The company is committed to maintaining a competitive edge in the gaming and hospitality industry through strategic leadership and operational excellence[161] - The company aims to leverage its experienced board to navigate future challenges and capitalize on growth opportunities in the market[165] - The company is focused on expanding its market presence in Macau, leveraging its experienced management team[183]

Annual Results Announcement [Financial Highlights](index=1&type=section&id=Financial%20Highlights) In fiscal year 2022, the company's operating revenue declined by 51.9%, casino revenue by 58.8%, adjusted EBITDA turned negative, and loss attributable to owners expanded to HKD 7.34 billion FY2022 Financial Highlights (For the year ended December 31) | Indicator | 2022 (Thousand HKD) | 2021 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Casino Revenue | 3,695,226 | 8,973,480 | -58.8% | | Other Revenue | 1,948,714 | 2,751,946 | -29.2% | | Adjusted EBITDA | (1,948,480) | 383,800 | N/A | | Loss Attributable to Owners | (7,339,270) | (5,179,295) | +41.7% | | Loss Per Share (HKD) | (1.41) | (1.00) | +41.0% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed consolidated statements of comprehensive income and financial position, revealing an expanded operating loss of HKD 4.89 billion and a net asset deficit of HKD 17.15 billion by year-end 2022 [Consolidated Statement of Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total operating revenue for fiscal year 2022 was HKD 5.64 billion, a 51.9% decrease, with core casino revenue down 58.8%, leading to an operating loss of HKD 4.89 billion and a net loss attributable to owners of HKD 7.34 billion Key Items from Consolidated Statement of Comprehensive Income (For the year ended December 31) | Item | 2022 (Thousand HKD) | 2021 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | **5,643,940** | **11,725,426** | **-51.9%** | | Casino | 3,695,226 | 8,973,480 | -58.8% | | Rooms | 514,650 | 928,717 | -44.6% | | Food & Beverage | 476,468 | 624,907 | -23.8% | | Retail & Other | 957,596 | 1,198,322 | -20.1% | | **Operating Costs & Expenses** | **10,532,385** | **14,376,875** | **-26.7%** | | **Operating Loss** | **(4,888,445)** | **(2,651,449)** | **+84.4%** | | **Net Loss Attributable to Owners of the Company** | **(7,339,270)** | **(5,179,295)** | **+41.7%** | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2022, total assets decreased by 13.9% to HKD 36.08 billion, total liabilities increased by 2.5% to HKD 53.23 billion, and the net asset deficit expanded to HKD 17.15 billion Key Items from Consolidated Statement of Financial Position (As of December 31) | Item | 2022 (Thousand HKD) | 2021 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Current Assets | 8,304,500 | 12,741,030 | -34.8% | | Total Non-Current Assets | 27,774,438 | 29,155,967 | -4.7% | | **Total Assets** | **36,078,938** | **41,896,997** | **-13.9%** | | Total Current Liabilities | 4,754,257 | 5,090,516 | -6.6% | | Total Non-Current Liabilities | 48,476,942 | 46,829,080 | +3.5% | | **Total Liabilities** | **53,231,199** | **51,919,596** | **+2.5%** | | **Net Liabilities / Total Asset Deficit** | **(17,152,261)** | **(10,022,599)** | **+71.1%** | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes detail key financial items, including the new 10-year gaming concession, COVID-19's impact, segment reporting for Wynn Palace and Wynn Macau, and disclosures on operating expenses, financing costs, taxation, receivables, and borrowings - The company's wholly-owned subsidiary, WRM, signed a new **10-year gaming concession** contract with the Macau government, allowing it to operate games of fortune at Wynn Palace and Wynn Macau from January 1, 2023, to December 31, 2032[8](index=8&type=chunk) - The COVID-19 pandemic significantly reduced visitor arrivals to Macau, resulting in a **significant adverse impact** on the Group's 2022 operating results, and despite the easing of most pandemic measures by Macau authorities, future uncertainties persist[9](index=9&type=chunk) - As of year-end 2022, the Group had a **net asset deficit of HKD 17.15 billion** but held **HKD 7.42 billion in cash and cash equivalents** and approximately **HKD 3.90 billion in available borrowing facilities**, leading management to believe the company can continue as a going concern[11](index=11&type=chunk) Segment Operating Revenue (For the year ended December 31) | Segment | 2022 (Thousand HKD) | 2021 (Thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Wynn Palace** | **3,209,461** | **7,231,196** | **-55.6%** | | Casino | 2,000,956 | 5,267,310 | -62.0% | | Non-Casino | 1,208,505 | 1,963,886 | -38.5% | | **Wynn Macau** | **2,434,479** | **4,864,230** | **-49.9%** | | Casino | 1,694,270 | 3,706,170 | -54.3% | | Non-Casino | 740,209 | 1,158,060 | -36.1% | | **Total Operating Revenue** | **5,643,940** | **11,725,426** | **-51.9%** | [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) Management discusses the business overview, key performance drivers, historical results, and liquidity, highlighting the impact of COVID-19, the new 10-year gaming concession, and the company's financial position and investment commitments [Overview](index=18&type=section&id=Overview) The Group develops, owns, and operates Wynn Palace and Wynn Macau integrated resorts in Macau, focusing on sustainable development and planning non-gaming expansions for Wynn Palace - The company operates two integrated resorts in Macau: **Wynn Palace and Wynn Macau**, offering gaming, hotel, food and beverage, retail, and entertainment services[36](index=36&type=chunk) - The next phase of Wynn Palace's development is in the design stage, planning to add **non-gaming facilities** such as a theater, interactive entertainment, and specialty dining[37](index=37&type=chunk) [Factors Affecting Our Results of Operations and Financial Condition](index=20&type=section&id=Factors%20Affecting%20Our%20Results%20of%20Operations%20and%20Financial%20Condition) Key factors affecting performance include COVID-19 and Macau's gaming regulations, with the new 10-year concession requiring strict compliance, including a commitment to MOP 17.73 billion in non-gaming and gaming investments - The company's wholly-owned subsidiary, WRM, secured a **new 10-year gaming concession** valid from January 1, 2023, to December 31, 2032[40](index=40&type=chunk) - Concessionaires are required to pay a **35% special gaming tax** and allocate up to **5% of gross gaming revenue** for public interest and social security purposes[41](index=41&type=chunk) - The company committed to investing **MOP 17.73 billion** (approximately **HKD 17.21 billion**) over the new 10-year concession period, with **MOP 16.50 billion** allocated for non-gaming projects and activities[45](index=45&type=chunk) - Macau's gross gaming revenue in 2022 was **HKD 40.97 billion**, a **51.4% year-on-year decrease**, primarily due to reduced visitor arrivals caused by border restrictions[47](index=47&type=chunk) [Review of Historical Operating Results](index=27&type=section&id=Review%20of%20Historical%20Operating%20Results) Total operating revenue in 2022 decreased by 51.9% to HKD 5.64 billion due to COVID-19, with casino revenue down 58.8%, VIP table game revenue down 80.4%, and mass market table game revenue down 50.2%, leading to an expanded operating loss Casino Gaming Business Performance (For the year ended December 31) | Item | 2022 | 2021 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **VIP Business** | | | | | VIP Table Game Rolling Chip Turnover (Thousand HKD) | 34,509,356 | 92,621,727 | -62.7% | | VIP Table Game Revenue (Thousand HKD) | 620,848 | 3,175,164 | -80.4% | | **Mass Market Business** | | | | | Mass Market Table Game Drop (Thousand HKD) | 19,425,925 | 36,105,991 | -46.2% | | Mass Market Table Game Revenue (Thousand HKD) | 3,691,087 | 7,405,804 | -50.2% | | **Slot Machine Business** | | | | | Slot Machine Handle (Thousand HKD) | 12,740,522 | 19,518,689 | -34.7% | | Slot Machine Revenue (Thousand HKD) | 493,516 | 727,545 | -32.2% | Hotel Business Performance (For the year ended December 31) | Item | 2022 | 2021 | | :--- | :--- | :--- | | **Wynn Palace** | | | | Average Daily Rate | 1,218 HKD | 1,416 HKD | | Occupancy Rate | 38.4% | 58.5% | | Revenue Per Available Room | 467 HKD | 828 HKD | | **Wynn Macau** | | | | Average Daily Rate | 1,206 HKD | 1,659 HKD | | Occupancy Rate | 41.1% | 58.8% | | Revenue Per Available Room | 495 HKD | 975 HKD | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of year-end 2022, the company held HKD 7.42 billion in cash and cash equivalents, utilized various financing channels including a USD 500 million revolving loan and a HKD 11.7 billion credit facility, issued a USD 600 million convertible bond in March 2023, and saw its debt-to-capital ratio rise to 162.0% - As of December 31, 2022, the company held **HKD 7.42 billion** in cash and cash equivalents[69](index=69&type=chunk) - The company entered into a **USD 500 million** (approximately **HKD 3.9 billion**) unsecured revolving loan facility with its parent company WRL, which remained undrawn at year-end[69](index=69&type=chunk)[82](index=82&type=chunk) - On March 7, 2023, the company issued **USD 600 million** of 4.50% convertible bonds due 2029 for general corporate purposes[70](index=70&type=chunk)[83](index=83&type=chunk) Cash Flow Summary (For the year ended December 31) | Item | 2022 (Million HKD) | 2021 (Million HKD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (2,120.0) | (1,212.4) | | Net Cash Used in Investing Activities | (1,285.5) | (453.9) | | Net Cash Used in Financing Activities | (860.4) | (5,565.1) | | **Net Decrease in Cash and Cash Equivalents** | **(4,265.9)** | **(7,231.4)** | - The debt-to-capital ratio increased from **133.2%** at year-end 2021 to **162.0%** at year-end 2022[71](index=71&type=chunk) [Material Risk Factors](index=41&type=section&id=Material%20Risk%20Factors) This section details business, Macau operations, and debt-related risks, including COVID-19 uncertainty, reliance on Macau and China's economy, market competition, regulatory compliance, high leverage, and dependence on high-end customers [Risks Related to Our Business](index=42&type=section&id=Risks%20Related%20to%20Our%20Business) Business risks arise from macro factors and operations, including COVID-19 uncertainty, reliance on discretionary spending, vulnerability to economic downturns, and risks related to key management, reputation, cybersecurity, AML compliance, and intellectual property - The COVID-19 pandemic has had a **significant adverse impact** on the business, and future re-imposition of restrictions would further increase risks[86](index=86&type=chunk) - The business is particularly vulnerable to reduced **discretionary consumer spending**, and adverse macroeconomic conditions or geopolitical tensions could have a detrimental effect[87](index=87&type=chunk) - All of the company's cash flows depend on a **few resorts in Macau**, posing greater risks compared to geographically diversified companies[90](index=90&type=chunk) - The company faces **intense market competition** not only from the other five concessionaires in Macau but also from casinos in other Asian regions like Singapore and the Philippines[92](index=92&type=chunk) [Risks Related to Our Operations in Macau](index=53&type=section&id=Risks%20Related%20to%20Our%20Operations%20in%20Macau) Macau's operating risks are significant, with business success highly dependent on the political and economic conditions of Macau and China, and the critical risk being the government's right to terminate the gaming concession for non-compliance - Failure to fulfill obligations under the gaming concession contract or Macau laws could lead to the Macau government's **uncompensated termination of the concession**, significantly harming the company's business and financial condition[105](index=105&type=chunk) - Macau's **smoking control laws** may reduce patronage from smoking gaming customers, adversely impacting performance[104](index=104&type=chunk) - As a subsidiary of WRL, the company's certain directors and executives also serving WRL may lead to **conflicts of interest**[108](index=108&type=chunk) [Risks Related to Our Indebtedness](index=56&type=section&id=Risks%20Related%20to%20Our%20Indebtedness) The company faces significant financial risks from high leverage, potentially limiting cash flow for operations and capital expenditures, hindering access to additional financing, and exposing it to rising interest rates and LIBOR discontinuation uncertainty - The company's **high leverage** may result in insufficient future cash flow to meet debt obligations and difficulty in obtaining further financing[110](index=110&type=chunk) - The company faces **interest rate risk** related to floating-rate credit facilities, and the phasing out of LIBOR introduces uncertainty for renegotiation and interest calculation in existing credit agreements[111](index=111&type=chunk)[112](index=112&type=chunk) [Other Disclosures](index=57&type=section&id=Other%20Disclosures) This section covers dividends, share repurchases, corporate governance, litigation, and director changes, noting no dividends or repurchases in FY2022, compliance with governance code, and ongoing litigation related to 'Dore Entertainment' - For the year ended December 31, 2022, the company **did not declare any dividends**[114](index=114&type=chunk) - The company has **complied with the code provisions** of the Corporate Governance Code for the year ended December 31, 2022[115](index=115&type=chunk) - The company is a defendant in several lawsuits related to former gaming promoter 'Dore Entertainment,' but it believes these cases are **without legal merit** and intends to vigorously defend them[119](index=119&type=chunk)

Financial Performance - Total revenue for Wynn Macau in 2018 was HKD 34,096,436, an increase of 15.5% from HKD 29,519,830 in 2017[5] - Adjusted EBITDA for 2018 reached HKD 10,777,018, up 27.0% from HKD 8,497,522 in 2017[5] - Net profit attributable to owners for 2018 was HKD 6,245,390, representing an increase of 68.6% compared to HKD 3,700,494 in 2017[5] - Basic and diluted earnings per share for 2018 were HKD 1.20, compared to HKD 0.71 in 2017[5] - Non-gaming revenue increased by 21.8% from HKD 4.51 billion in 2017 to HKD 5.50 billion in 2018, accounting for 13.9% of total operating revenue[50] - Total operating revenue increased by 16.3% from HKD 34.03 billion in 2017 to HKD 39.59 billion in 2018, driven by growth in VIP and mass gaming segments[47] - Casino revenue rose by 15.5% from HKD 29.52 billion (86.7% of total operating revenue) in 2017 to HKD 34.10 billion (86.1% of total operating revenue) in 2018[48] - VIP table gaming revenue increased by 2.6% to HKD 27.13 billion in 2018, with VIP turnover rising by 16.9% to HKD 478.82 billion[48] - Mass table gaming revenue surged by 33.2% to HKD 17.40 billion, attributed to increased business volume and higher win rates[48] - Slot machine revenue grew by 14.6% to HKD 2.86 billion, with total slot machine turnover increasing by 17.3% to HKD 60.13 billion[48] - Adjusted EBITDA for 2018 was HKD 10.68 billion, compared to HKD 8.25 billion in 2017, reflecting improved operational efficiency[40] - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[93] Market Conditions - Macau's gaming revenue reached approximately HKD 294.03 billion for the year ended December 31, 2018, an increase of about 13.96% from approximately HKD 258.00 billion for the year ended December 31, 2017[13] - Visitor numbers to Macau increased by 9.8% to 35.8 million in 2018, benefiting the company's operations[14] - The company faces potential negative impacts on revenue and operating performance due to restrictions on outbound travel for mainland Chinese citizens and currency transfer regulations[16] - The overall economic conditions in mainland China and travel restrictions may adversely affect visitor numbers and spending at the company's properties[16] - The company is subject to competition from other gaming markets in Asia, including potential new entrants as countries like Japan and Taiwan move towards legalizing gaming[18] - Competition has increased with 41 casinos operating in Macau as of December 31, 2018, including major competitors expanding their facilities[17] Operational Strategy - The company plans to complete the renovation of Wynn Macau's gaming area and open new restaurants by Q3 2019, with a total budget of approximately HKD 939.8 million[10] - The company emphasizes customer experience through continuous upgrades and renovations of its resorts[6] - Wynn International Marketing, Ltd. operates international offices in Hong Kong, Singapore, Taiwan, Japan, and the United States to attract international customers[6] - The company is considering various strategies to secure a favorable position in the renewal or extension process for its gaming license[19] - The combination of VIP tables, mid-level tables, and slot machines is adjusted to adapt to market demand and industry competition, impacting profitability[26] - The company is committed to enhancing and renovating its resorts to meet market demand and customer preferences, which will incur capital expenditures[83] Human Resources and Management - As of December 31, 2018, the company employed approximately 12,500 full-time equivalent employees[122] - The company has a strong focus on employee development and well-being, investing significant resources in training and health programs[122] - The senior management team includes key positions such as President of Market Operations, Senior Vice President of Finance, and Senior Vice President of Legal Affairs, with ages ranging from 45 to 63 years[107] - The company emphasizes training and development for its staff, ensuring high standards of service and operational efficiency across its venues[110] - The management team is well-versed in both local and international markets, enhancing the company's ability to adapt to changing market conditions[107] Financial Position and Capital Management - Cash balance as of December 31, 2018, was approximately HKD 9.53 billion, available for operations and new business developments[61] - The company's capital debt ratio increased to 95.8% in 2018 from 92.0% in 2017[62] - Net cash flow from operating activities decreased to HKD 9,715.6 million in 2018 from HKD 12,667.3 million in 2017[64] - The company incurred capital expenditures of HKD 11,900 million for renovations and property purchases in 2018[66] - The company has a revolving credit facility with an initial maximum amount of HKD 15.5 billion (approximately USD 1.977 billion), which was later increased to HKD 38.7 billion (approximately USD 4.943 billion)[77] Compliance and Governance - The company must hold all necessary regulatory licenses and permits to operate in Macau, which are subject to ongoing government oversight[20] - The company has established a compliance committee and specialized subcommittees to manage specific compliance issues, including anti-money laundering and anti-corruption[121] - The board of directors confirmed that all related party transactions were conducted on normal commercial terms and are fair and reasonable[84] - The company has confirmed compliance with the Hong Kong Listing Rules regarding its continuing related party transactions, ensuring they are conducted on normal commercial terms[153] Community Engagement and Corporate Responsibility - The company emphasizes its commitment to community engagement through initiatives like "Wynn Care," focusing on youth, education, and local SMEs[123] - The company donated HKD 101.6 million and HKD 103.6 million in cash to various charitable organizations in 2018 and 2017, respectively[124] - The company is committed to responsible gaming and environmental initiatives as part of its community engagement strategy[123] Risks and Challenges - The company faces evolving cybersecurity threats that could disrupt operations and damage reputation, potentially leading to significant financial liabilities[31] - The reliance on third-party information systems poses additional cybersecurity risks that the company does not directly control[30] - The company faces risks from potential challenges to its trademark rights by third parties, which could adversely affect its business performance[29] - The company is exposed to interest rate risk associated with floating-rate borrowings and plans to manage this risk through a combination of fixed and floating-rate debt[81]