Financial Restructuring - The company has reached a preliminary consensus with banks on a transitional restructuring arrangement, addressing material uncertainties related to going concern[10] - A substantial shareholder confirmed in writing that no demand for repayment of HK$205 million in shareholder loans, representing 60.4% of total current shareholder loans, will be made until the group is capable of repayment[10] - The company will continue to actively communicate with banks to confirm details regarding the repayment of outstanding loan principal while monitoring liquidity closely[13] - The company is focused on maintaining normal business operations while addressing financial restructuring[13] Shareholder Information - The company’s executive director and a former co-chairman transferred a total of 589,112,776 shares to Elite Success International Limited, representing approximately 9.5% of the issued shares[11] - Elite Success International Limited now holds beneficial interest in 1,601,715,526 shares, representing approximately 25.83% of the issued shares[14] Revenue and Financial Performance - For the year ended 31 December 2024, the Group achieved total reported revenue from continuing operations of approximately HK$771.5 million, representing an increase of approximately HK$31.8 million or approximately 4.3% over the previous year[44] - The Group recorded total gaming revenue from continuing operations of approximately HK$393.1 million, an increase of approximately HK$57.4 million or approximately 17.1% compared to the previous year[45] - The total amount wagered on mass market tables increased by 12.9% to HK$4,353.5 million in 2024 from HK$3,855.3 million in 2023[48] - The net win from mass market tables rose by 17.6% to HK$714.8 million in 2024, up from HK$607.7 million in 2023[48] - The average net win per table per day increased by 15.7% to HK$59,000 in 2024 from HK$51,000 in 2023[48] - For the year ended 31 December 2024, the Group recorded total non-gaming revenue from continuing operations of approximately HK$378.3 million, representing a decrease of approximately HK$25.7 million or approximately 6.4% compared to the previous year[52] - Income from hotel rooms decreased from HK$218.6 million in 2023 to HK$197.5 million in 2024, a decline of approximately 9.7%[54] - Adjusted EBITDA for continuing operations increased to approximately HK$159.8 million in 2024 from approximately HK$96.8 million in 2023, an increase of approximately 65.1%[56] - The Group's loss for the year ended 31 December 2024 increased significantly to approximately HK$622.6 million, compared to a loss of approximately HK$4.9 million in the previous year[63] - Total revenue from gaming services increased by approximately HK$24.4 million or 25.7% from HK$94.9 million in 2023 to HK$119.2 million in 2024[69] Visitor Statistics - Visitor arrivals in Macau increased from 28.2 million in 2023 to 34.9 million in 2024, although a downward trend in visitor spending was noted[34] - The total number of visitors to Macau increased by 23.8% from 28.2 million in 2023 to 34.9 million in 2024[69] Operational Developments - The Group plans to optimize facilities at Macau Fisherman's Wharf, including the re-activation of the Roman Amphitheatre and the renovation of "The French Terrace" for various events[36] - The Group aims to explore new event types such as mini concerts and sports competitions to enhance its offerings and contribute to Macau's development as a "City of Performing Arts" and a "City of Sports"[36] - The Group will implement new sustainability measures, including switching to eco-friendly materials and reducing plastic use in the coming year[36] Employee Information - As of December 31, 2024, the Group had a total of 1,149 employees, a significant decrease from 2,273 employees in 2023, primarily due to the disposal of operations in Lao PDR[98] - The Group recognizes the importance of maintaining a stable staff force, with remuneration based on qualifications, performance, and market trends[99] - The Group offers various benefits to eligible employees, including retirement benefits, subsidized medical care, and sponsorship for education and training[99] Corporate Governance - The company is actively involved in corporate governance, ensuring compliance with listing rules and regulations[146] - The Company has complied with the Corporate Governance Code and Listing Rules requirements for the year ended 31 December 2024, except for code provision C.2.1 which states that the roles of chairman and chief executive should be separate[150] - The Board is composed of executive directors, non-executive directors, and independent non-executive directors, ensuring a balance of skills and experience appropriate for the Group's business needs[163] - The Company has established a Nomination Committee to identify suitable candidates for directorships, including independent non-executive directors, and assesses their independence annually[165] - The Company emphasizes the importance of good corporate governance practices for maintaining investor confidence and sustainable growth[149] Audit and Compliance - The Audit Committee conducted significant work during the year ended December 31, 2024, including discussions with external auditors regarding audit and financial reporting issues[200] - The Audit Committee comprises four members, including three independent non-executive Directors and one non-executive Director, ensuring compliance with the Listing Rules[197] - The main duties of the Audit Committee include reviewing financial information and reports, considering significant items raised by financial officers or external auditors, and reviewing the Company's financial reporting system[198] - The Company has no disagreements with the Audit Committee regarding the appointment of Ernst & Young as the external auditor for the year ended December 31, 2024[200]

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 771,465,000, an increase of 4.4% from HKD 739,656,000 in 2023[4] - The cost of sales and services decreased to HKD 675,780,000 from HKD 697,256,000, resulting in a gross profit of HKD 95,685,000, compared to HKD 42,400,000 in the previous year[4] - The company reported a total comprehensive loss of HKD 667,238,000 for the year, compared to a loss of HKD 2,983,000 in 2023[5] - The company reported a significant loss of approximately HKD 622.6 million for the year, compared to a loss of about HKD 4.9 million in the previous year, mainly due to impairment losses on non-financial assets[50] - The group incurred a total depreciation expense of HKD 260,075,000 for property and equipment in the fiscal year 2024[31] - Adjusted EBITDA for continuing operations was approximately HKD 159.8 million, up from HKD 96.8 million in the previous year, primarily due to revenue increases and cost control measures[49] Losses and Liabilities - The loss from continuing operations before tax increased to HKD 741,102,000, up 57.4% from HKD 470,978,000 in 2023[5] - The net loss for the year from continuing operations was HKD 697,662,000, compared to a loss of HKD 49,882,000 in the previous year[5] - The company has a net current liability of approximately HKD 2,512,960,000 as of December 31, 2024[9] - Current liabilities increased significantly to HKD 2,672,646,000 from HKD 1,010,020,000, largely due to bank borrowings[6] - The company has a net current liability of HKD 2,513,000,000 and total bank borrowings of HKD 2,405,800,000 due within 12 months[41] Asset Management - Total non-current assets decreased to HKD 5,721,522,000 from HKD 6,652,164,000, primarily due to a reduction in property and equipment[6] - The company's net asset value decreased to HKD 3,037,991,000 from HKD 3,705,229,000, reflecting a decline in reserves[7] - As of December 31, 2024, the company's net asset value attributable to owners decreased to approximately HKD 3,038,000,000, down by about HKD 667,200,000 from HKD 3,705,200,000 as of December 31, 2023, primarily due to a loss of approximately HKD 622,600,000 during the year[54] Revenue Breakdown - Total revenue from gaming-related operations for 2024 was HKD 771,465,000, an increase from HKD 739,656,000 in 2023[19] - Non-gaming total revenue decreased to HKD 378,326,000 in 2024 from HKD 403,993,000 in 2023[19] - Hotel room revenue for 2024 was HKD 197,467,000, down from HKD 218,570,000 in 2023[19] - For the fiscal year ending December 31, 2024, the total external revenue was HKD 771,465,000, with the gaming segment contributing HKD 393,139,000 and the non-gaming segment contributing HKD 378,326,000[22] - The total segment loss for the same period was HKD 487,963,000, with the gaming segment reporting a profit of HKD 51,572,000 and the non-gaming segment reporting a loss of HKD 539,535,000[22] Operational Challenges - The company is in discussions with banks regarding compliance with loan covenants due to a breach related to the sale of its business in Laos[10] - The group is actively seeking continued support from banks to avoid immediate repayment demands due to loan covenant breaches[14] - The board believes that achieving sufficient financing and operating cash flow is critical for the group's ability to continue as a going concern for at least the next 12 months[13] - The company’s ability to continue as a going concern is under significant doubt due to various uncertainties, including non-compliance with loan covenants[42] Employee and Operational Metrics - The total employee costs for the fiscal year 2024 amounted to HKD 209,876,000, down from HKD 225,902,000 in 2023[31] - The group had a significant reduction in employee count to 1,149 as of December 31, 2024, down from 2,273 in the previous year, mainly due to the sale of its business in Laos[61] - The average occupancy rate for hotels was 91.8% for the year, with average daily room rates decreasing from HKD 1,043 to HKD 965[48] Shareholder and Governance - The group repaid part of the shareholder loans, reducing the balance by HKD 125,600,000 as of December 31, 2024[12] - The group is seeking continued support from major shareholders to avoid repayment of HKD 339,400,000 in shareholder loans[15] - The board will not declare any final dividend for the year ended December 31, 2024[51] - The company has not declared or proposed any dividends for the year, consistent with the previous year[35] - The company has adhered to the corporate governance code, except for the provision regarding the separation of the roles of Chairman and CEO[63][64] Impairment and Financial Adjustments - The group recognized an impairment loss of HKD 376,239,000 on non-financial assets, with HKD 330,354,000 attributed to assets in Macau and HKD 45,885,000 related to projects in Cape Verde[29] - The group’s total impairment loss on deposits paid was HKD 15,098,000 for the gaming segment and HKD 12,360,000 for the non-gaming segment[23] Miscellaneous - The company has not recognized any impact from the revised Hong Kong Financial Reporting Standards on its financial position or performance[17] - The company did not purchase, sell, or redeem any shares during the year ended December 31, 2024[59] - There were no significant events after the reporting period that would require adjustments to the financial statements or significantly impact the understanding of the group's current situation[62] - The financial statements for the year ended December 31, 2024, were reviewed by the audit committee, which consists of independent non-executive directors[65] - The figures in the preliminary announcement for the year ended December 31, 2024, were verified against the draft financial statements by Ernst & Young, the company's auditors[66] - The company operates under the name 澳門漁人碼頭集團, which includes its subsidiaries[68] - The revenue per available room (RevPAR) metric is a key performance indicator for the company, reflecting its operational efficiency[68]

Revenue Performance - Revenue for the six months ended June 30, 2024, was HKD 390,401,000, an increase of 16.5% compared to HKD 335,002,000 for the same period in 2023[1] - Revenue from gaming-related operations for the six months ended June 30, 2024, was HKD 390,401,000, compared to HKD 335,002,000 for the same period in 2023, representing an increase of approximately 16.5%[11] - For the six months ended June 30, 2024, the total revenue from the gaming segment was HKD 208,511,000, while the non-gaming segment generated HKD 199,612,000, resulting in a total segment revenue of HKD 408,123,000[13] - Total reported revenue for the six months ended June 30, 2024, was approximately HKD 390.4 million, an increase of about HKD 55.4 million or 16.5% compared to HKD 335 million in the same period last year[31] - The group reported a significant increase in revenue, with a year-over-year growth of 25% in Q2 2024[55] Profit and Loss - The cost of sales and services was HKD 342,389,000, resulting in a gross profit of HKD 48,012,000, compared to a gross loss of HKD 1,404,000 in the previous year[1] - The net loss for the period was HKD 109,925,000, a decrease from a loss of HKD 182,498,000 in the same period last year[2] - The company reported a basic loss per share of HKD 1.77 for the period, compared to HKD 2.94 in the previous year[2] - The group reported a segment loss of HKD 68,969,000 for the six months ended June 30, 2024, with the gaming segment contributing a profit of HKD 39,973,000 and the non-gaming segment incurring a loss of HKD 108,942,000[13] - The group recorded a pre-tax loss from continuing operations of HKD 187,818,000 for the six months ended June 30, 2024, compared to a loss of HKD 215,885,000 for the same period in 2023, indicating an improvement of about 13%[14][18] Financial Position - The total non-current assets decreased to HKD 6,259,620,000 from HKD 6,652,164,000 as of December 31, 2023[3] - Current liabilities increased significantly to HKD 2,673,894,000 from HKD 1,010,020,000, primarily due to reclassification of bank borrowings[4] - The net current liabilities amounted to HKD 2,497,300,000, indicating a significant liquidity challenge for the company[6] - The total assets less current liabilities stood at HKD 3,762,320,000, down from HKD 5,852,596,000[4] - The company currently lacks sufficient financial resources to meet the repayment obligation of HKD 135,000,000 due in September 2024, raising significant doubts about its ability to continue as a going concern[8] Cash Flow and Liquidity - The company’s cash and cash equivalents were HKD 65,141,000, which raises concerns about its ability to meet upcoming financial obligations[6] - The total amount of bank and other borrowings due within one year is HKD 339,400,000, which includes HKD 50,000,000 from the company's controlling shareholder and HKD 289,400,000 from other major shareholders[7] - The company is actively seeking continued support from banks and shareholders to avoid repayment of the total HKD 339,400,000 in shareholder loans[8] - The company has not received any immediate repayment demands from banks due to covenant breaches, but the situation remains uncertain[8] - The company is facing significant uncertainties regarding its ability to continue as a going concern due to various factors, including non-compliance with loan covenants[29] Operational Performance - The company has implemented cost control measures to reduce unnecessary cash outflows in response to the current business environment[8] - The average occupancy rate for the hotel was 90.8% for the six months ended June 30, 2024, compared to 90.2% in the same period last year[34] - The average daily room rate decreased to HKD 951 from HKD 1,044 in the same period last year[34] - The total number of visitors to Macau increased by 42.7%, from 11.7 million in the first half of 2023 to 16.7 million in the first half of 2024[39] - The company expects to continue optimizing resources and enhancing facilities in Macau to better capture opportunities and address challenges in the second half of 2024[39] Strategic Initiatives - The company is considering asset sales outside of Macau to improve operational cash flow[8] - The group decided to terminate its operations in Laos by selling MLD Resorts Laos Limited to focus resources on its operations in Macau[20] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2025[55] - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and increase market penetration[55] - Research and development investments have increased by 30%, focusing on innovative technologies[55] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the provision C.2.1, which states that the roles of chairman and CEO should be separate[48][49] - The independent audit committee reviewed the unaudited interim condensed consolidated financial information for the six months ended June 30, 2024, ensuring compliance with relevant accounting standards[52] - There were no significant events after the reporting period that would require adjustments to the financial statements or significantly impact the understanding of the group's current situation[51]

澳 門 勵 駿 創 建 有 限 公 司* Macau Legend Development Limited (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：1680 2023 Ann * for identification purposes only * 僅供識別 the store the states of the may e 11 P of or 12 psell and the Firm I t - HT the state re | --- | --- | --- | --- | --- | |--------------------------------------------------------------------|----------------------|--------------------------|-------------------------------------------------------------------- ...

Financial Performance - The total reported revenue for the year ended December 31, 2023, was approximately HKD 901.6 million, an increase of about HKD 190 million or approximately 26.7% compared to HKD 711.6 million in the previous year[34]. - The operating loss before tax for 2023 was HKD 408.9 million, a significant improvement from a loss of HKD 755.4 million in 2022[4]. - The net loss for the year was HKD 4.9 million, compared to a net loss of HKD 607.2 million in the previous year[4]. - The adjusted EBITDA for the group was HKD 101,896,000 for the year ended December 31, 2023, compared to an adjusted EBITDA of HKD (260,064,000) for the previous year[41]. - Adjusted EBITDA for the year ending December 31, 2023, was approximately HKD 101.9 million, an improvement of about HKD 362 million compared to a loss of approximately HKD 260.1 million in the same period last year[64]. - The company reported a basic loss per share of HKD 0.08 for the year, compared to HKD 9.79 in the previous year[9]. - The company reported a segment loss of HKD 143,293,000, with gaming segment profit at HKD 163,087,000 and non-gaming segment loss at HKD 306,380,000[112]. - The company incurred financing costs of HKD 202,849,000, which impacted overall profitability[111]. - The company reported a pre-tax loss of HKD 17,165,000 for the year 2023, compared to a loss of HKD 72,585,000 in 2022, showing an improvement[143]. Assets and Liabilities - The total non-current assets decreased to HKD 6,652.2 million in 2023 from HKD 6,925.7 million in 2022[5]. - Current liabilities totaled HKD 1,010.0 million in 2023, down from HKD 1,202.4 million in 2022[5]. - The company’s total assets less current liabilities stood at HKD 5,852.6 million in 2023, compared to HKD 5,948.0 million in 2022[10]. - The company’s non-current liabilities totaled HKD 2,147.4 million in 2023, a decrease from HKD 2,239.8 million in 2022[11]. - The total equity as of December 31, 2023, was HKD 3,705.2 million, showing stability in the company's financial position[78]. - Outstanding secured bank loans amounted to approximately HKD 2,103,600,000, with additional unsecured loans of HKD 465,000,000 as of December 31, 2023[165]. - The group’s total net asset value as of December 31, 2023, was approximately HKD 3,705,200,000, a slight decrease from HKD 3,708,200,000 in the previous year due to the reported loss[164]. Revenue Breakdown - Total gaming revenue for the year was HKD 493,133,000, compared to HKD 519,119,000 in the previous year, reflecting a decrease of approximately 5.0%[107]. - Non-gaming revenue amounted to HKD 408,512,000, contributing to a total external revenue of HKD 901,645,000, which is consistent with the previous year[112]. - Non-gaming revenue from hotel room income surged to HKD 221,054,000 in 2023, compared to HKD 50,422,000 in 2022, representing a growth of 338.5%[134]. - The total revenue from non-gaming operations reached HKD 901,645,000 in 2023, up from HKD 711,605,000 in 2022, an increase of 26.7%[134]. - The group recorded a net win of HKD 428,006,000 from the mass gaming tables for the year ended December 31, 2022, with a win rate of 23.46%[36]. - The group reported a net win of HKD 607,674,000, up 269.7% from HKD 164,388,000 in 2022[177]. - The average daily net win per gaming table was HKD 51,000, a 218.8% increase from HKD 16,000 in 2022[177]. Operational Developments - The group operated 33 gaming tables in Macau as of December 31, 2023, compared to none in the previous year, indicating a significant expansion in operations[61]. - The group plans to focus resources on its operations in Macau, reallocating resources from its overseas business, particularly following the sale of MLD Resorts Laos Limited for an initial consideration of USD 39,000,000[44]. - The average number of mass tables increased to 20 in 2023, up from 10 in 2022, indicating a 100% growth[130]. - The group remains optimistic about the recovery of the tourism industry and is preparing to seize opportunities in the coming years[163]. - The group anticipates challenges and competition in 2024, focusing on talent recruitment and technology upgrades to enhance productivity[187]. Cash Flow and Financing - The total financing costs increased to HKD 202.8 million in 2023 from HKD 110.0 million in 2022[21]. - The company has received written confirmations from its controlling and major shareholders regarding the non-repayment of HKD 150 million in shareholder loans until specified dates in 2024, providing financial support[81]. - The company aims to enhance cash flow by completing the sale of its business in the Lao People's Democratic Republic[83]. - The group reported financing costs of HKD 170,562,000 for the year ended December 31, 2023, compared to HKD 105,696,000 in the previous year[41]. - The company has implemented various mitigation measures, including cost control plans to reduce unnecessary cash outflows, ensuring sufficient operating funds for at least the next 12 months[100]. Market and Economic Conditions - The company expects to improve its business and financial performance, leveraging the Macau government's goal to restore international tourist numbers to pre-pandemic levels by 2024[83]. - Visitor numbers to Macau surged, with an average of 2.35 million visitors per month in 2023, compared to 0.48 million in 2022, reaching 71.6% of pre-pandemic levels[162]. - Non-gaming revenue increased significantly due to the easing of travel restrictions since January 2023, leading to a rise in occupancy rates and average room rates, resulting in increased hotel room revenue[62]. Employee and Operational Costs - Employee costs totaled HKD 260,974,000 in 2023, down from HKD 290,503,000 in 2022, a reduction of 10.1%[140]. - The group employed a total of 2,273 staff as of December 31, 2023, an increase from 1,966 in the previous year[192]. Miscellaneous - The company is registered in the Cayman Islands and its shares are listed on the main board of the stock exchange[196]. - The consolidated financial statements for the year ending December 31, 2023, have been verified by Ernst & Young, aligning with the final draft of the group's financial reports[195]. - The term "Adjusted EBITDA" refers to the group's earnings before interest income, financing costs, income tax, depreciation, amortization, and certain pre-item adjustments[196]. - The company will not declare any final dividend for the year ended December 31, 2023, consistent with the previous year[186].

澳 門 勵 駿 創 建 有 限 公 司* Macau Legend Development Limited (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號：1680 2023 th * for identification purposes only * 僅供識別 the store the states of the may e 11 P of or 12 psell and the Firm I t - HT the state re | --- | --- | --- | --- | |----------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------- ...

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 420,232,000, a decrease of 22.8% compared to HKD 543,751,000 for the same period in 2022[6] - The company recorded a net loss of HKD 182,498,000 for the six months ended June 30, 2023, compared to a net loss of HKD 485,508,000 in the prior year, reflecting an improvement of 62.4%[9] - The total comprehensive loss for the period was HKD 189,145,000, compared to HKD 487,820,000 in the previous year, showing a substantial reduction in losses[8] - Basic loss per share for the period was HKD 2.94, an improvement from HKD 7.83 in the same period last year[17] - The group reported a loss before tax of HKD 52,389,000, compared to a loss of HKD 328,123,000 in the previous year, indicating an improvement[43] - The group reported a net loss of approximately HKD 182.5 million for the six months ended June 30, 2023, compared to a net loss of HKD 485.5 million for the same period in 2022[64] Revenue Breakdown - Revenue from gaming operations for the six months ended June 30, 2023, was HKD 145,146,000, a decrease of 66.8% compared to HKD 436,974,000 for the same period in 2022[27] - Total gaming revenue for the first half of 2023 was HKD 228,193,000, a decrease from HKD 449,255,000 in the same period of 2022, representing a decline of 49.3%[40] - Non-gaming revenue reached HKD 192,039,000, compared to HKD 94,496,000 in the previous year, showing an increase of 103.1%[40] - The group recorded a total gaming revenue of approximately HKD 163,000,000 from the Le Casino and Savan Legend Casino, which is an increase of about 62.1% year-on-year[87] - The group recorded non-gaming revenue of approximately HKD 192,000,000 for the six months ended June 30, 2023, an increase of approximately HKD 97,500,000 or about 103.2% compared to approximately HKD 94,500,000 in the same period last year[88] Cost Management - The cost of sales and services for the same period was HKD 356,948,000, down from HKD 729,043,000, indicating a significant reduction in operational costs[6] - The group has implemented cost control measures to reduce cash outflows for non-essential items in response to the current business environment[22] - Interest expenses on bank loans increased to HKD 62,460,000 from HKD 29,711,000, marking a rise of 110.0%[49] Assets and Liabilities - Non-current liabilities as of June 30, 2023, amounted to HKD 2,202,901,000, a slight decrease from HKD 2,239,797,000 at the end of 2022[11] - The company's total assets less current liabilities stood at HKD 5,721,968,000 as of June 30, 2023, down from HKD 5,948,009,000 at the end of 2022[21] - The company has a net current liability of approximately HKD 1,078,700,000 as of June 30, 2023, compared to HKD 977,656,000 at the end of 2022[21] - The group’s total outstanding secured and unsecured bank borrowings amounted to approximately HKD 2.6 billion as of June 30, 2023[111] Future Outlook - The group expects sufficient funds to continue operations for at least 12 months from the reporting date, based on profit and cash flow forecasts[22] - The number of tourists visiting Macau is expected to increase significantly following the lifting of travel restrictions, which will improve the group's business and financial performance[22] - The group remains optimistic about the tourism industry's recovery and is well-prepared to seize opportunities in the second half of 2023[109] Corporate Governance - The company emphasizes the importance of maintaining a stable employee team for its ongoing success, with compensation based on individual qualifications, performance, industry experience, and market trends[132] - The company has adhered to corporate governance codes, except for the provision C.2.1, which states that the roles of the chairman and CEO should be separate[133][134] - The company believes that good corporate governance practices are crucial for maintaining and enhancing investor confidence and ongoing growth[133] Employee and Operational Changes - The group employed approximately 2,226 staff as of June 30, 2023, an increase from 1,966 as of December 31, 2022[114] - The group has terminated its indirect participation in gaming intermediary business through a subsidiary as of January 1, 2023[38] Gaming Operations - The total betting amount for the mass gaming tables increased by 68.2% to HKD 1,717,340,000 compared to HKD 1,021,249,000 in the same period last year[74] - The net win for the mass gaming tables was HKD 261,279,000, reflecting a 58.9% increase from HKD 164,388,000 year-on-year[74] - The average net win per table per day for mass gaming tables rose significantly by 181.3% to HKD 45 from HKD 16 in the previous year[74] - The total betting amount for the VIP gaming tables was HKD 3,040,232,000, showing a 100% change as it was not applicable in the previous year[74] - The net win for VIP gaming tables was HKD 105,760,000, with a 100% change as it was not applicable in the previous year[74] Adjusted EBITDA - Adjusted EBITDA for the group was approximately HKD 103,800,000, a significant improvement of approximately HKD 264,300,000 compared to a loss of HKD 160,500,000 in the same period last year[105] - The adjusted EBITDA for the group improved from a loss of HKD 161.6 million in the first half of 2022 to a profit of HKD 57.0 million in the first half of 2023[122] - The adjusted EBITDA for the non-gaming operations in Macau increased by 101.4% year-on-year, reaching a level 94.0% of the first half of 2019[125]

Corporate Governance - The Company reviewed the implementation and effectiveness of its shareholders' communication policy and considered it effective and adequate [28]. - The Remuneration Committee comprises five members, with a majority being independent non-executive Directors [12]. - The Audit Committee reviewed the annual financial statements and the effectiveness of the internal audit function for the year ended December 31, 2022 [9]. - The Company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee [5]. - The Board acknowledges its responsibility for risk management and internal control systems, which are designed to manage risks rather than eliminate them [22]. - The Board is responsible for presenting a balanced assessment of financial information and ensuring compliance with regulatory requirements [46]. - The Company appointed Ms. So Ka Man as the company secretary effective December 1, 2022 [26]. - The Company has amended its Articles of Association on August 16, 2022, with no further significant changes since [58]. - The Company has provided training for board members to comply with listing rules, ensuring governance standards are met [51]. - The Company aims to maintain at least 1 female director on the Board, with 2 out of 8 directors being female as of the report date [176]. - The Nomination Committee is committed to achieving diversity at all levels and will consider various factors including gender, age, and professional qualifications [176]. - The Company adopted a Board Diversity Policy during the year under review to enhance competitive advantage through increased diversity [176]. - The independent non-executive directors include Mr. Lau Ngai Kee, Mr. Wang Hongxin, and Mr. Mak Ka Wing, with Mr. Mak appointed on March 1, 2022 [179]. - The Company has established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined terms of reference [173]. - All directors received regular briefings and updates on the Group's business and corporate governance matters relevant to their duties [183]. - The Board and the Nomination Committee reviewed the implementation and effectiveness of the board diversity policy and deemed it effective for the year ended December 31, 2022 [176]. - The Company is committed to ensuring recruitment practices at all levels are structured to consider a diverse range of candidates [176]. - The company experienced a significant turnover in its Board members, with multiple resignations and appointments throughout 2022, indicating a dynamic governance structure [4]. - The company’s financial statements for the year ended December 31, 2022, were prepared in accordance with applicable regulations, ensuring transparency and accountability [188]. - The company’s governance practices include voting on all resolutions presented at the shareholders' meetings, with results published on the relevant stock exchange and company websites [191]. - The company continues to enhance its corporate governance framework to align with best practices and regulatory requirements [189]. Risk Management and Internal Controls - The internal audit team is responsible for reviewing the effectiveness of the Group's risk management and internal control systems [21]. - The company has adopted different risk management procedures across various business functions, including finance and human resources [47]. - The company emphasizes the importance of identifying and managing ESG risks to safeguard its operations [68]. - The Audit Committee meets at least twice a year to discuss ESG issues and report to the Board [75]. - The company recognizes the significant risks posed by ESG issues to its business operations and the importance of incorporating ESG considerations into internal controls [81]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG report outlines policies, initiatives, and performance related to environmental, social, and governance aspects for the year 2022 [35]. - The company has identified six key ESG topics as its main considerations, including Climate Change and Employment [63]. - The company has developed policies to address challenges posed by flooding and typhoons, promoting the switch to electric vehicles [70]. - The company has engaged stakeholders through online surveys to identify key ESG topics [42]. - The Group has launched a Green Hotel Programme for years to conserve resources and minimize waste generated under daily operations [83]. - The Group obtained ISO 27001 certification, demonstrating its commitment to addressing cyber-related risks [83]. - The Group is preparing to comply with current laws and anticipated stricter regulations regarding responsible business practices and environmental considerations [83]. - The Group has set a target to reduce carbon emission intensity (Scope 1 and Scope 2) by 15% per million HK$ revenue by 2025 compared to the 2021 baseline [106]. - The Group aims to reduce water consumption intensity by 10% per million HK$ revenue by 2025 compared to the 2021 baseline [106]. - The Group plans to decrease energy intensity by 15% per million HK$ revenue by 2025 compared to the 2021 baseline [106]. - The Group intends to reduce waste to landfill by 10% compared to the 2021 baseline by 2025 [106]. - The Group has replaced all visitor vehicles at Macau Fisherman's Wharf with electric vehicles and installed more charging stations [94]. - The Group complies with applicable laws and regulations regarding air and greenhouse gas emissions, and has no issues sourcing fit-for-purpose water [94]. - An external consultant was engaged to conduct an in-depth ESG risk assessment, resulting in a prioritized list of ESG issues [101]. - The Audit Committee reviews the Group's ESG management approach and evaluates performance against ESG goals [99]. - The company has conducted an in-depth ESG risk assessment with external consultants, integrating results into a prioritized list of ESG issues [80]. - The company has implemented a green hotel program to reduce resource consumption during guest stays [71]. - The company has installed water-saving plumbing fittings, including water-efficient urinals and rainwater recycling systems [71]. - The company offers anti-corruption training and anti-money laundering tests for its staff to maintain high ethical standards in commercial dealings [73]. - A COVID-19 preparedness and response team has been established to prevent the spread of diseases, consisting of senior management and representatives from various departments [78]. - The company frequently reviews customer feedback to improve service quality [71]. - Maintaining a positive relationship with employees is crucial to avoid losing qualified personnel and skills [71]. Financial Performance and Costs - The audit fee for the year ended December 31, 2022, was $3,500,000 [48]. - Operating costs are expected to increase due to additional expenses related to frequent maintenance of machinery and outdoor facilities, as well as higher insurance premiums in disaster-prone areas [91]. - The Group is expected to incur additional costs from the disposal of municipal wastes as environmental laws tighten [91]. - The transition to a lower-carbon economy requires the adoption of eco-friendly and energy-efficient business operations, including the use of renewable energy [91]. - The Group's local insurance providers may implement similar actions to the Federal Emergency Management Agency, which anticipates an 18% increase in flood insurance premiums over the next 20 years [91]. - The company plans to increase research and development and/or procurement expenditures to introduce new and alternative technologies during the transitional period [114]. - The operating costs of office and casino supplies are expected to rise due to the adoption of more environmentally friendly products [114]. Energy and Resource Management - The company has implemented various energy-saving measures, including converting around 99% of non-LED lights to LED and optimizing lighting schedules [121]. - Total energy consumption in 2022 was 37,668.93 MWh, slightly up from 37,646.63 MWh in 2021 [139]. - The intensity of energy consumption per revenue increased to 52.94 MWh/million HK$ in 2022 from 33.15 MWh/million HK$ in 2021 [139]. - Direct energy consumption from LPG decreased to 2,167.00 MWh in 2022 from 2,795.91 MWh in 2021 [139]. - Indirect energy consumption from electricity rose to 35,501.93 MWh in 2022 compared to 34,850.72 MWh in 2021 [139]. - Water usage decreased to 425,599 m³ in 2022 from 441,169 m³ in 2021, with intensity increasing to 598.08 m³/million HK$ revenue from 388.49 m³/million HK$ revenue [150]. - Nitrogen oxides emissions reduced to 30.35 kg in 2022 from 39.15 kg in 2021, while sulfur oxides emissions decreased to 0.15 kg from 0.20 kg [145]. - The company aims to achieve its energy reduction target set for 2025 while managing revenue impacts from COVID-19 [140]. - Energy-saving devices installed for the chilled water unit are expected to save 25% of energy consumption [144]. - The company has implemented measures to reduce plastic use, including phasing out plastic straws and takeaway boxes [154]. - A greywater and swimming pool water recapturing system is being planned for irrigation and other uses to enhance environmental protection [161]. Impact of COVID-19 - The COVID-19 pandemic has significantly impacted the hospitality industry due to travel restrictions and health concerns, leading to financial uncertainty [82].

Financial Performance - The total reported revenue for the year ended December 31, 2022, was approximately HKD 711,600,000, a decrease of about HKD 424,000,000 or approximately 37.3% compared to HKD 1,135,600,000 in the previous year[8]. - The company reported a total revenue of HKD 1,135,586,000 for the year, compared to HKD 711,605,000 in the previous year, indicating a growth of approximately 59.5%[144]. - The company reported a net loss of HKD 607 million for the year ended December 31, 2022, compared to a net loss of HKD 1,190 million in the previous year, indicating a significant improvement[104]. - The company has identified a pre-tax loss of HKD 1,117,574,000 for the year, reflecting challenges in operational performance[158]. - The company reported a total comprehensive loss of HKD 606.7 million for the year, compared to a loss of HKD 1.206 billion in the previous year[87]. Revenue Breakdown - Non-gaming revenue for the year was approximately HKD 192,500,000, down by about HKD 25,700,000 or approximately 11.8% from HKD 218,200,000 in the prior year[13]. - Total revenue from gaming operations reached HKD 519,119,000, with gaming revenue contributing HKD 519,119,000 and non-gaming revenue HKD 242,415,000[159]. - Revenue from gaming-related services decreased to HKD 450,873,000 from HKD 902,795,000 year-on-year[124]. - The gaming revenue for VIP tables increased by 29.9% to HKD 158,756,000 from HKD 122,167,000 year-on-year[56]. - The average daily net win per gaming table decreased to HKD 9 from HKD 27, representing a decline of 66.7%[30]. Assets and Liabilities - The group's net asset value attributable to owners as of December 31, 2022, was approximately HKD 3,708,200,000, a decrease of about HKD 606,700,000 from HKD 4,314,900,000 a year earlier[22]. - The total amount of outstanding secured and guaranteed bank loans was approximately HKD 2,158,000,000, with additional unsecured loans of HKD 400,000,000 as of December 31, 2022[23]. - The company had a net current liability of approximately HKD 978 million as of December 31, 2022, compared to HKD 787.7 million in the previous year[104]. - The total non-current liabilities amounted to HKD 2,239,797,000, a decrease from HKD 2,443,754,000 in the previous year[109]. - The company’s non-current assets decreased to HKD 6.926 billion from HKD 7.546 billion year-on-year[102]. Operational Metrics - The average occupancy rate for the group's hotels was 60.2% in 2022, down from 67.5% in 2021[15]. - The average daily room rate for the group's hotels was HKD 580 in 2022, compared to HKD 769 in 2021[15]. - The average number of table games decreased by 4.9% to 58 from 61 in the previous year[56]. - The company had approximately 1,966 employees as of December 31, 2022, down from 3,603 in the previous year, including zero gaming operation employees[27]. - The total betting amount for table games and slot machines was HKD 1,021,249,000, a decrease of 58.9% compared to HKD 2,481,775,000 in the previous year[56]. Financing and Debt Management - The company is negotiating a restructuring plan for existing bank loans and obtaining additional credit financing[34]. - The company has pledged certain assets as collateral for credit financing, including investment properties valued at approximately HKD 464.8 million and buildings valued at approximately HKD 3.687 billion[37]. - The company received waivers from its lenders regarding certain loan covenants, which are valid until December 31, 2023, and plans to seek further extensions or amendments[104]. - The total bank and other borrowings amounted to HKD 2.558 billion, with HKD 542.3 million due within the next 12 months[104]. - The company is currently discussing the restructuring of outstanding loans totaling HKD 2,069,300,000 with banks[107]. Future Outlook - The group anticipates continued support from local customers and an increase in visitors from mainland China, which may positively impact future performance[20]. - The group anticipates a significant increase in tourist arrivals to Macau following the lifting of travel restrictions, which is expected to improve business and financial performance[107]. - The company is focused on market expansion and new product development in the gaming sector[56]. - The company is navigating regulatory changes in Macau, which may affect future operations and market strategies[199]. - The company plans to continue evaluating its corporate governance structure, particularly regarding the roles of the Chairman and CEO[177].

Financial Performance - The company reported a pre-tax loss of HKD 755,444,000 for the year ended December 31, 2022, compared to a loss of HKD 1,117,574,000 in the previous year, indicating a 32.4% improvement[2]. - Basic loss per share for the year was HKD 9.79, an improvement from HKD 19.20 in the previous year, reflecting a 48.9% reduction in losses[12]. - The group reported a net loss of HKD 606,728,000 for the year 2022, compared to a net loss of HKD 1,206,245,000 in 2021, indicating an improvement of about 49.7%[37]. - The group’s loss for the year ended December 31, 2022, was approximately HKD 607.2 million, an improvement from a loss of approximately HKD 1,190.4 million in the previous year, primarily due to the absence of impairment losses on overseas projects and cost control measures taken by the group[136]. - Adjusted EBITDA for the year was a loss of HKD 260.06 million, compared to a loss of HKD 282.02 million in the previous year[111]. - The adjusted EBITDA loss for the group was approximately HKD 218.8 million for the year ended December 31, 2022, an improvement of about HKD 81.5 million or 27.1% compared to a loss of HKD 300.3 million in the previous year[160]. Revenue and Assets - Total revenue for the year 2022 was HKD 711,605,000, a decrease from HKD 1,135,586,000 in 2021, representing a decline of approximately 37.3%[34]. - Total gaming revenue for the year 2022 was HKD 519,119,000, a significant decrease from HKD 917,340,000 in 2021, representing a decline of approximately 43.5%[52]. - Non-gaming revenue for 2022 was HKD 192,486,000, down from HKD 218,246,000 in 2021, indicating a decrease of about 11.8%[54]. - The total assets as of December 31, 2022, were HKD 3,708,212,000, down from HKD 4,314,940,000 in the previous year[39]. - The company’s total equity decreased from HKD 3,694,821,000 in 2021 to HKD 3,088,093,000 in 2022, a decline of 16.4%[15]. Liabilities and Financing - The total liabilities decreased from HKD 3,655,166,000 in 2021 to HKD 3,442,168,000 in 2022, a reduction of 5.8%[14]. - The group had a net current liability of approximately HKD 977,700,000 as of December 31, 2022, with total bank and other borrowings amounting to HKD 2,558,000,000[42]. - The group has drawn down HKD 350,000,000 from major shareholders under loan agreements, which is due for repayment in 2023[44]. - The group obtained waivers from its lenders regarding breaches of certain loan covenants, effective until December 31, 2023, but may need to seek extensions or amendments thereafter[123]. - As of December 31, 2022, the group had outstanding secured bank loans of approximately HKD 2,158 million and unsecured loans of HKD 400 million, with interest rates ranging from 2.5%-3% and 5%-9% respectively[144]. Operational Insights - The company anticipates a significant increase in tourist arrivals to Macau following the lifting of travel restrictions, which is expected to improve business and financial performance[21]. - The group has implemented cost control measures to reduce unnecessary cash outflows in response to the current business environment[45]. - The average occupancy rate for the group's hotels was 60.2% for the year, compared to 67.5% in the previous year[133]. - The average daily room rate for the group's hotels was HKD 580, down from HKD 769 in the previous year[133]. - The group plans to upgrade its dining and entertainment offerings at the Macau Fisherman's Wharf to attract both domestic and international visitors[167]. Employee and Governance - The total employee costs for 2022 amounted to HKD 290,503,000, down from HKD 326,972,000 in 2021, a reduction of about 11.1%[68]. - The group had a total of approximately 1,966 employees as of December 31, 2022, down from 3,603 employees in the previous year[177]. - The company has adhered to corporate governance codes, although it did not fully comply with the requirement for the separation of the roles of Chairman and CEO[178]. - The company appointed new co-chairmen and a CEO on March 1, 2022, following the resignation of a non-executive director[179]. Future Outlook - The group is optimistic about the rebound in tourism following the lifting of travel restrictions in January 2023, anticipating a significant increase in visitor numbers to Macau[168]. - The group is negotiating a repayment plan for existing bank loans and seeking additional credit financing[170]. - The group aims to continue providing effective management services for satellite casinos and is committed to identifying collaboration opportunities under new legal regulations[165].