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]

Business Operations - The Group operates the Macau Fisherman's Wharf, a waterfront integrated gaming, hotel, convention, and entertainment complex, aligning with the Macau government's policy on leisure and tourism [16]. - The Group provides gaming services to SJM for the operation of Legend Palace Casino [17]. - The Group operates a casino within the Savan Legend Resorts Hotel and Entertainment Complex in Laos [17]. - The Group's business includes the operation of hotels, entertainment, and leisure facilities within its properties [17]. - The Group is one of the leading owners of entertainment and casino gaming facilities in Macau [16]. - The Group's operations contribute to the diversification of the local economy in Macau [16]. - The Group's headquarters is located in Macau, with significant operations in the region [15]. - The Group's strategic focus includes enhancing its gaming and entertainment offerings to attract more visitors [16]. - The Group aims to expand its market presence through potential new developments and partnerships in the region [16]. Financial Performance - In 2023, total reported revenue was approximately HK$901.6 million, an increase of about HK$190.0 million or approximately 26.7% compared to HK$711.6 million in 2022 [28]. - The total gross gaming revenue in Macau surged from HK$41 billion in 2022 to approximately HK$177.7 billion in 2023 [25]. - Adjusted EBITDA for the year was a profit of approximately HK$185.9 million, significantly improved from a loss of approximately HK$218.8 million in the previous year [25]. - The number of recorded visits to Macau increased from about 5.7 million in 2022 to approximately 28.2 million in 2023 [25]. - The Group's revenue from gaming services included service income from SJM for mass market tables and casino operations in Laos [29]. - The net win from mass market tables was HK$607.7 million, a 269.7% increase from HK$164.4 million in the previous year [30]. - The average number of gaming tables in operation at year-end was 33, with a net win per table of HK$51, a 218.8% increase from HK$16 [30]. - For the year ended 31 December 2023, the Group's gaming revenue decreased by approximately HK$26.0 million or 5.0% compared to the previous year [46]. - The total gaming revenue decline was primarily due to the termination of contracts with New Legend and the cessation of operations at Babylon Casino, resulting in a loss of approximately HK$356.2 million in total gaming revenue [46]. - Improvements in the mass market tables operation at Legend Palace Casino and overall gaming operations at Savan Legend Casino helped recover approximately HK$331.3 million in total gaming revenue [46]. - As of 31 December 2023, the Group operated 33 gaming tables in Macau, a significant increase from zero tables as of 31 December 2022 [47]. - The Group recorded a total non-gaming revenue of approximately HK$408.5 million for the year ended 31 December 2023, representing an increase of approximately HK$216.0 million or 112.2% from HK$192.5 million in the previous year [48]. - The company reported a loss attributable to owners of HK$13,171,000 for 2023, a significant recovery from a loss of HK$758,053,000 in 2022 [61]. Non-Gaming Operations - Hotel room income increased to HK$218,570,000 in 2023 from HK$49,677,000 in 2022, marking a substantial rise driven by increased tourist visitation [51]. - The occupancy rate for Legend Palace Hotel reached 89.7% in 2023, up from 60.2% in 2022, while the average daily rate (ADR) increased to HK$1,043 from HK$580 [58]. - Non-gaming revenue growth was primarily attributed to the relaxation of travel restrictions in January 2023, leading to higher occupancy rates and average room rates [52]. - The income from food and beverage operations rose to HK$107,385,000 in 2023, compared to HK$67,043,000 in 2022, indicating a growth of approximately 60% [51]. - Licensing income from investment properties increased to HK$38,866,000 in 2023 from HK$32,157,000 in 2022, reflecting a growth of about 20.5% [51]. - The company’s total revenue for 2023 was HK$408,512,000, compared to HK$192,486,000 in 2022, representing an increase of approximately 112.3% [51]. Environmental and Sustainability Initiatives - The company generated 26,445.11 tons of CO2 equivalent greenhouse gases during the reporting period, with electricity consumption being the largest source of carbon emissions [95]. - The company has converted approximately 99% of non-LED lights to LED and optimized lighting schedules to ensure only necessary lights are on [101]. - The company has stopped operating boilers and replaced them with heat pumps for generating hot water for guest rooms, casinos, and restaurants [101]. - The company is investing in energy efficiency to lower its carbon footprint and achieve environmental protection [97]. - The company acknowledges the increasing importance of identifying and mitigating ESG risks, integrating ESG factors into existing risk management and control [110]. - The company aims to reduce carbon emission intensity (Scope 1 and Scope 2, per million HK$ revenue) by 15% by the target year 2025 [113]. - Water consumption intensity (per million HK$ revenue) is targeted to decrease by 10% by 2025 [113]. - Energy consumption intensity (per million HK$ revenue) is set to be reduced by 15% by 2025 [113]. - The Group has implemented energy-saving devices that can save 25% of energy consumption by replacing high energy consumption AC motors with energy-efficient DC motors [125]. - The Group has developed a centralized waste treatment and recycling center to enhance waste management practices [135]. - The Group encourages guests to participate in sustainability efforts, such as minimizing the replacement of bed linens and towels [163]. - The Group strategically placed recycling bins during the Mid-Autumn Festival to support sustainable waste management initiatives [167]. Corporate Governance - The company has received written annual confirmation from each independent non-executive Director of their independence, considering all independent non-executive Directors to be independent according to the Listing Rules [106]. - The Board has established a Nomination Committee to identify suitable candidates for Directors, including independent non-executive Directors, and will assess their independence annually [106]. - On January 1, 2023, Mr. Li Chu Kwan was appointed as the Chief Executive Officer, also serving as Chairman, which deviates from the corporate governance code but is deemed appropriate by the Board [108]. - The Board believes that the current structure of having the same individual as both Chairman and CEO provides strong and consistent leadership for the Group [108]. - The independent non-executive Directors contribute to the effective direction of the Company and provide adequate checks and balances to safeguard the interests of the Group and shareholders [106]. - The independent non-executive Directors are appointed for terms of two or three years, renewable automatically unless terminated with prior notice [108]. - The Group's overall management and control are vested in the Board, which is responsible for enhancing shareholder value through strategic policy approval [190]. - The Company has complied with the Corporate Governance Code and Listing Rules requirements for the year ended December 31, 2023, except for the separation of the roles of chairman and chief executive [190]. Management and Leadership - The Group's human resources management and strategy are overseen by experienced professionals in various industries, including gaming and hospitality [185]. - The senior management is delegated authority by the Board for day-to-day operations, with periodic reviews of delegated functions [190]. - The Group collaborates with 1,796 suppliers from various regions and countries during the reporting period [197]. - The Group sets standards for consumables and other supplies to prevent over-purchasing and excess storage, reviewed and adjusted every two years based on actual consumption [194]. - The Group considers ESG factors when selecting suppliers, making their ESG performance a significant part of the evaluation criteria during the bidding process [196].

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].

Financial Performance - For the six months ended June 30, 2023, the Group reported total revenue of approximately HKD 420.2 million, a decrease of approximately HKD 123.6 million or about 22.7% compared to approximately HKD 543.8 million in the same period last year[21] - The Group reported total revenue of approximately HK$420.2 million for the six months ended June 30, 2023, a decrease of approximately HK$123.6 million or 22.7% compared to HK$543.8 million in the same period last year[23] - The company reported a basic loss per share of HK$2.94, compared to HK$7.83 for the same period in 2022, showing a 62.5% improvement[133] - The company incurred a loss for the period of HK$182,498,000, compared to a loss of HK$485,508,000 in the prior year, indicating an improvement of 62.4%[133] - Total comprehensive loss for the period was HK$189,145,000, down from HK$487,820,000 in the previous year, reflecting a significant reduction in losses[133] - The Group's loss before tax for the six months ended June 30, 2023, was HK$176,020,000, compared to a loss of HK$449,004,000 in the prior year[193] - The Group's loss for the six months ended June 30, 2023, was approximately HK$182.5 million, compared to a loss of approximately HK$485.5 million in the corresponding period in 2022, representing a significant recovery[66] - The adjusted EBITDA for the six months ended June 30, 2023, was a profit of approximately HK$103.8 million, an improvement of approximately HK$264.3 million compared to a loss of approximately HK$160.5 million in the same period of 2022[52] - The adjusted EBITDA for gaming operations improved from a loss of HK$37.2 million in the first half of 2022 to a profit of HK$33.3 million in the first half of 2023[72] - The adjusted EBITDA for non-gaming operations improved from a loss of HK$117.5 million in the first half of 2022 to a profit of HK$28.7 million in the first half of 2023[73] Gaming Operations - The net win from mass market tables at Legend Palace Casino increased by 58.9% to HK$261.3 million from HK$164.4 million year-on-year[25] - The Group's gaming services revenue from mass market tables and VIP tables totaled HK$163.0 million and HK$39.2 million respectively, compared to HK$374.3 million and HK$68.5 million in the previous year[29] - For the six months ended June 30, 2023, the Group's gaming revenue decreased by approximately 49.2% to approximately HK$228.2 million compared to the same period in 2022[41] - The total gaming revenue from mass market tables in Legend Palace Casino and Savan Legend Casino increased by approximately 62.1% to approximately HK$163.0 million during the same period[41] - The average number of gaming tables in operation decreased to 145 from 146, while the number of slot machines decreased to 33 from 59 year-on-year[32] - The Group operated 33 gaming tables in Macau as of June 30, 2023, down from 190 tables a year earlier[32] - The Group ceased operations at Babylon Casino and VIP tables in Legend Palace Casino since January 1, 2023, resulting in no reported revenue from these sources for the current period[38] - The average net win per table per day for mass market tables increased by 181.3% to HK$45 from HK$16 year-on-year[25] - The hold rate for mass market tables was 15.21%, a decrease from 16.10% in the previous year[25] - The Group's casino operations in Laos contributed to the overall revenue, with a notable increase in net win and turnover compared to the previous year[28] Non-Gaming Operations - Non-gaming revenue for the six months ended June 30, 2023, was approximately HK$192.0 million, representing an increase of approximately 103.2% compared to approximately HK$94.5 million in the previous year[43] - The increase in non-gaming revenue was primarily due to higher hotel room income resulting from increased tourist visitation following the relaxation of travel restrictions[48] - The occupancy rate for Legend Palace Hotel was 90% and for Harbourview Hotel was 95% for the six months ended June 30, 2023[50] - Average Daily Rate (ADR) for Legend Palace Hotel was HK$1,044 and for Harbourview Hotel was HK$828 for the same period[50] - Revenue per available room (REVPAR) for Legend Palace Hotel was HK$941 and for Harbourview Hotel was HK$787 for the six months ended June 30, 2023[50] - Non-gaming performance in Macau showed recovery rates of 89.5% and 98.3% for the first and second quarters of 2023, respectively, compared to 2019[66] - Revenue from hotel rooms and building management services was HK$117,805,000, compared to HK$27,997,000 in the previous year, indicating a substantial increase[166] - Food and beverage revenue increased to HK$46,932,000 from HK$39,940,000, reflecting a growth of approximately 17.5%[166] Market Strategy and Outlook - The Group's business strategy aligns with the Macau government's policy on "Leisure, Tourism, Economic and Multi-Cultural Diversification"[17] - Future outlook includes potential market expansion and new product offerings to enhance revenue streams[21] - The Group is focused on enhancing its integrated gaming and entertainment offerings to attract more visitors[21] - The management team emphasizes the importance of adapting to market trends and consumer preferences in their strategic planning[21] - The Group continues to explore opportunities for acquisitions and partnerships to strengthen its market position[21] - The Group remains optimistic about the recovery of the tourism industry in the second half of 2023[75] - The Group plans to enhance dining and entertainment offerings at MFW to attract visitors from Mainland China and Southeast Asia[73] Financial Position - As of June 30, 2023, the consolidated net assets attributable to owners decreased to approximately HK$3,519.1 million from HK$3,708.2 million as of December 31, 2022, primarily due to a loss of approximately HK$182.5 million during the period[79] - The Group held cash and bank balances of approximately HK$96.4 million as of June 30, 2023[79] - The Group's outstanding secured and guaranteed bank borrowings amounted to approximately HK$2,132.8 million as of June 30, 2023[79] - The Group's net gearing ratio increased to 71.5% from 66.6% as of December 31, 2022, primarily due to a decrease in consolidated net assets[81] - The company expects its net asset value to fall below HK$5,500,000,000 after the current loan covenant revisions expire on December 31, 2023, and is in discussions with banks for favorable amendments[156] - The company received a waiver from banks regarding a covenant breach related to net asset value, which was reduced from HK$5,500,000,000 to HK$2,800,000,000 until December 31, 2023[156] Employee and Corporate Governance - The Group had a total of approximately 2,226 employees as of June 30, 2023, an increase from 1,966 employees as of December 31, 2022, including approximately 280 gaming operation employees[85] - The Group's employee remuneration is based on personal qualifications, work performance, and market trends, with discretionary bonuses granted based on merit[86] - The company has established rigorous employee guidelines to regulate securities trading by employees with insider information, with no known violations reported during the period[127] - The company has complied with the Corporate Governance Code except for code provision C.2.1, where the roles of chairman and CEO are held by the same individual[125] Shareholder Information - Mr. Chan Weng Lin holds a substantial interest of 2,051,485,252 shares, representing approximately 33.08% of the total issued shares[108] - Elite Success holds 1,012,599,750 shares, accounting for 16.33% of the total issued shares[108] - As of June 30, 2023, Mr. Li Chi Keung has a beneficial interest in 109,326,429 shares, which is 1.76% of the total issued shares[108] - Ms. Chan Un Chan's controlled corporation, Earth Group Ventures Ltd., holds 934,269,609 shares, representing 15.07% of the total issued shares[108] - Mr. David Chow has a beneficial interest in 483,781,402 shares, which is 7.80% of the total issued shares[108] - The total number of shares held by substantial shareholders as of June 30, 2023, indicates a concentration of ownership among a few key individuals and entities[110] Other Information - The Group has entered into a letter of intent to dispose of its operations in Lao PDR to reallocate resources to its Macau operations[74] - The Group did not engage in any significant investments, acquisitions, or disposals of subsidiaries during the six months ended June 30, 2023, except for a letter of intent to dispose of operations in Lao PDR[81] - There were no significant litigations or claims of material importance pending or threatened against the Group as of June 30, 2023[81] - The Group has a funding and treasury policy to monitor funding requirements and maintain a healthy financial position throughout the period[81] - The Group reimbursed SJM for the salaries and benefits of gaming operation employees, reflecting its oversight role under the New Service Agreement[85] - The Group's share option plan, adopted on June 5, 2013, had 623,217,787 options available for grant as of January 1 and June 30, 2023[99] - No share options have been granted since the adoption of the share option plan[100] - As of June 30, 2023, the number of share options available for grant under the Share Option Scheme was 623,217,787, with no options granted since its adoption[103] - The Share Option Scheme expired on July 4, 2023, and no further options can be granted[103] - There were no changes in the Directors' information required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules, except for the appointment of Mr. Wang Hongxin[116] - The company has terminated its indirect participation in the gaming promotion business in Macau through New Legend VIP Club Limited effective January 1, 2023[148] - The company is currently working on a loan restructuring arrangement with banks, which has been preliminarily agreed upon in August 2023[156]

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].

Financial Performance - Macau Legend Development Limited reported a significant increase in revenue, reaching HKD 1.2 billion, representing a 25% year-over-year growth[19]. - For the six months ended June 30, 2022, the Group reported total revenue of approximately HK$543.8 million, an increase of approximately HK$16.4 million or 3.1% compared to HK$527.4 million in the same period last year[28][31]. - Revenue for the six months ended June 30, 2022, was HK$543,751,000, an increase of 3% compared to HK$527,439,000 in the same period of 2021[152]. - The Group's gaming revenue increased by approximately 6.7% to approximately HK$449.3 million for the six months ended 30 June 2022 compared to the same period last year[47]. - The Group's total reported revenue for gaming services was HK$449.3 million, with mass market tables contributing HK$374.3 million[42]. - The reported revenue from the Legend Palace Casino was HK$235.4 million, a 14.6% increase from HK$205.4 million in the previous year[38]. - The Group's revenue from the Babylon Casino showed a net win of HK$67.8 million, a 12.5% increase from HK$60.3 million year-on-year[38]. Visitor Engagement - The company experienced a 30% increase in user visits to its gaming facilities, totaling 1.5 million visitors in the first half of 2022[19]. - The total gaming turnover for mass market tables was HK$1,824.4 million, representing a 22.3% increase from HK$1,491.5 million in the previous year[38]. - The average number of gaming tables in operation increased to 75 from 69, representing an 8.7% increase[38]. Operational Efficiency - Macau Legend's EBITDA margin improved to 35%, up from 30% in the previous year, reflecting better cost management and operational efficiencies[19]. - The company has set a target to reduce operational costs by 10% over the next year through efficiency improvements and technology integration[19]. - The Group incurred a net cash outflow from investing activities of HK$39,576,000 for the six months ended June 30, 2022, compared to HK$38,218,000 in the same period of 2021[168]. Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new marketing strategies and enhanced customer engagement[19]. - Macau Legend plans to expand its market presence by opening two new gaming venues in the next 12 months, aiming to increase its market share by 10%[19]. - The Group expects the economy to remain low for a certain period due to the impact of COVID-19 and the new gaming law[66]. Financial Challenges - The Group recorded a loss of approximately HK$485.5 million during the six months ended June 30, 2022[73]. - The Group's financial situation raises significant doubt about its ability to continue operations without successful implementation of its financial strategies[145]. - The Group breached certain loan covenant clauses, which may lead to immediate repayment demands from creditor banks for outstanding borrowings totaling HK$2,136 million[144]. - The Group's liquidity needs primarily comprise working capital, capital expenditure, and servicing borrowings, funded from internal resources, debt, and/or equity financing[72]. COVID-19 Impact - The Group's operations were significantly affected by COVID-19 related social distancing measures and travel restrictions, leading to a decline in visitor arrivals to Macau and Lao PDR compared to 2019[63]. - The Group has implemented various measures to mitigate the impact of COVID-19, including active cost control strategies[63]. Shareholder Information - The interests of substantial shareholders as of June 30, 2022, include Mr. Chan Weng Lin with 2,058,146,252 shares, representing approximately 33.19% of total issued shares[94]. - Mr. David Chow holds 613,471,468 shares, accounting for approximately 9.89% of total issued shares[94]. - The total number of shares held by substantial shareholders as of June 30, 2022, is 1,121,926,179, representing 18.09% of total issued shares[121]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2022, except for code provision C.2.1[126]. - The company has established written guidelines for employees regarding securities trading, ensuring compliance with the standard code[129]. Asset Management - The Group's total comprehensive loss reflects ongoing challenges in the gaming and hospitality sectors, influenced by regulatory changes and market conditions[172]. - The Group's consolidated net assets attributable to owners of the Company amounted to approximately HK$3,827.1 million, a decrease of approximately HK$487.8 million from HK$4,314.9 million as of December 31, 2021[73]. - The Group's total non-current assets as of June 30, 2022, were HK$7,307,590,000, down from HK$7,546,383,000 at the end of 2021[157].

Financial Performance - The company reported a total revenue of HKD 1.2 billion for the year 2021, representing a 15% increase compared to the previous year[19]. - In 2021, the total reported revenue of the Group was approximately HK$1,135.6 million, representing an increase of approximately 62.1% compared to HK$700.7 million in 2020[36]. - The company expects revenue growth of 10-15% for the upcoming fiscal year, driven by increased tourism and new marketing strategies[19]. - The Group's loss attributable to owners for the year ended December 31, 2021, was approximately HK$1,190.4 million, a decrease from a loss of approximately HK$1,955.1 million in the previous year, representing an improvement of about 39.2%[67]. - Adjusted EBITDA for the year ended 31 December 2021 recorded a loss of approximately HK$300.3 million, representing an improvement of approximately HK$129.0 million or approximately 30.0% over the loss of approximately HK$429.3 million in the previous year[57]. Visitor and Gaming Statistics - User data indicated that the number of visitors to the company's properties increased by 20% year-on-year, reaching 3 million visitors in 2021[19]. - The number of visitors to Macau reached approximately 7.7 million in 2021, an increase of about 31% compared to 2020[27]. - Total gross gaming revenue in Macau for 2021 was approximately HK$84 billion, an increase of approximately 44% compared to the previous year[27]. - The Group's gaming turnover for mass market tables increased by 36% to approximately HK$3,049.1 million in 2021[39]. - The total gaming drop for the year ended December 31, 2021, reached HK$3,824,633,000, a significant increase of 196.3% compared to HK$1,290,712,000 in 2020[41]. Market Expansion and Strategic Initiatives - The company is expanding its market presence in Southeast Asia, with plans to open two new properties by the end of 2023[19]. - New product launches, including a themed hotel and entertainment offerings, are projected to contribute an additional HKD 300 million in revenue[19]. - A strategic acquisition of a local gaming company was completed, expected to enhance the company's market share by 5%[19]. - The Group plans to optimize facilities at Macau Fisherman's Wharf and enhance the leisure experience in alignment with the Macau government's tourism initiatives[29]. - The Group expects the number of visitors to Macau to increase steadily in the second half of 2022 due to the increasing popularity of vaccines and the gradual relaxation of travel restrictions[89]. Operational Improvements and Investments - The company invested HKD 150 million in technology upgrades to improve customer experience and operational efficiency[19]. - The Group has been actively monitoring the impact of COVID-19 and has implemented measures to manage operating costs and expenses[67]. - The Group's operations were significantly impacted by COVID-19, leading to a decline in visitor arrivals to Macau and Laos, which necessitated various cost control measures[67]. - The Group has been upgrading dining and entertainment offerings at MFW to improve existing operations in Macau[83]. - The Group's finance costs for the year were HK$63.9 million, compared to HK$126.6 million in the previous year, indicating a reduction of approximately 49.6%[1]. Corporate Governance and Management - The board has committed to enhancing corporate governance practices to ensure transparency and accountability[160]. - The company has maintained compliance with corporate governance codes, with a focus on separating the roles of chairman and CEO[160]. - The board composition includes a diverse range of expertise, with at least three independent non-executive directors ensuring effective oversight[164]. - The Company has received written annual confirmation of independence from each independent non-executive Director as per Listing Rules[174]. - The Company encourages all Directors to participate in relevant training courses, with costs covered by the Company[188]. Human Resources and Workforce - The Group employed approximately 3,603 employees as of December 31, 2021, a decrease from 3,898 employees in 2020[104][105]. - The Group recognizes the importance of maintaining a stable workforce for continued success, with remuneration based on qualifications, performance, and market trends[106]. - The human resources vice president, Ms. Ng Wai Ching, has rich experience in HR management across various sectors, including gaming and hospitality[151]. - The management team is committed to enhancing the company's operational strategies and market expansion efforts[144]. - The Group reimbursed SJM for the salaries and benefits of approximately 1,122 gaming operation employees[105]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[156]. - The company aims to leverage Mr. Chow's extensive experience to drive future growth and market expansion in the hospitality sector[121]. - The company is focused on strategic human resource management to support its projects in Macau, mainland China, and overseas[151]. - The company has a strategic focus on expanding its gaming services and enhancing its operational capabilities in Macau[121]. - The company is actively involved in overseas business development, leveraging the expertise of its senior vice president in this area[146].