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].

Financial Performance - The group's total revenue for the year ended December 31, 2021, was HKD 1,135,586,000, representing a 62% increase from HKD 700,726,000 in 2020[5] - The cost of sales and services increased to HKD 1,506,840,000, up from HKD 1,168,703,000, resulting in a gross loss of HKD 371,254,000 compared to a gross loss of HKD 467,977,000 in the previous year[5] - The net loss for the year was HKD 1,190,444,000, an improvement from a net loss of HKD 1,955,147,000 in 2020[5] - The total comprehensive loss for the year amounted to HKD 1,206,245,000, compared to HKD 1,922,182,000 in the previous year[5] - The operating loss for the gaming segment was HKD 162,980,000, while the non-gaming segment reported a loss of HKD 497,485,000 in 2021[30] - The company recorded a net loss of HKD 1,863,502,000 before tax for the year ended December 31, 2021[31] - The group's pre-tax loss for the year was HKD 1,190 million, compared to a loss of HKD 1,955 million in the previous year[44] - The group's loss attributable to owners for the year was approximately HKD 1,190,400,000, down from a loss of approximately HKD 1,955,100,000 in the previous year[77] Assets and Liabilities - Non-current assets decreased to HKD 7,546,383,000 from HKD 8,280,548,000 in 2020[7] - Current assets increased slightly to HKD 423,723,000 from HKD 412,430,000 in the previous year[7] - Total liabilities increased to HKD 3,655,166,000 from HKD 3,171,793,000 in 2020[9] - The group's net asset value decreased to HKD 4,314,940,000 from HKD 5,521,185,000 in the previous year[9] - The group has a current net liability of approximately HKD 788,000,000 as of December 31, 2021[11] - The group's bank borrowings totaled HKD 2,359,000,000, with HKD 207,000,000 due within the next 12 months, and cash and cash equivalents at HKD 133,000,000 as of December 31, 2021[58] - The group's total outstanding secured and guaranteed bank borrowings amounted to approximately HKD 2,358,700,000 as of December 31, 2021[88] - The net capital debt ratio of the group was 52.7% as of December 31, 2021, compared to 33.4% on December 31, 2020[90] Revenue Breakdown - The group reported total gaming revenue of HKD 917,340,000 for the year ended December 31, 2021, compared to HKD 526,845,000 in the previous year, representing a year-over-year increase of approximately 74%[21] - The revenue from mass gaming tables was HKD 780,365,000, while VIP gaming tables contributed HKD 119,583,000 for the year ended December 31, 2021[21] - Non-gaming revenue for 2021 reached HKD 218,246,000, an increase of 25.5% from HKD 173,881,000 in 2020[23] - Hotel room revenue increased to HKD 45,176,000 in 2021 from HKD 31,940,000 in 2020, representing a growth of 41.1%[23] - Food and beverage revenue surged to HKD 96,361,000 in 2021, up 68.3% from HKD 57,273,000 in 2020[23] - Total revenue from customer contracts for 2021 was HKD 1,088,771,000, a significant increase of 67.7% compared to HKD 648,722,000 in 2020[23] - The company reported a total external revenue of HKD 1,135,586,000 for 2021, compared to HKD 700,726,000 in 2020, marking a growth of 62.2%[30] Operational Measures - The group is actively negotiating with banks to amend covenants or extend existing waivers due to potential breaches of financial covenants[12] - The group has implemented cost control measures to reduce unnecessary cash outflows in response to the current business environment[14] - The group is considering various divestment transactions to improve its working capital situation[14] - The group has taken measures to improve its liquidity and financial position, which are critical for the validity of the going concern assumption in the financial statements[58] - The company has implemented measures to actively control operational costs and expenses in response to the impact of COVID-19 on its operations[77] Future Outlook - The group anticipates sufficient working capital to meet its financial obligations in the foreseeable future, contingent on successful negotiations with banks and the completion of divestment plans[14] - The group expects the number of visitors to Macau to gradually recover in the second half of 2022 as vaccination rates increase and travel restrictions are eased[84] - The group aims to continue providing effective casino management services and explore new collaboration opportunities within the constraints of the new gaming law[83] Governance and Compliance - The company appointed Mr. Li Zhukun as the chairman and Ms. Chen Meiyi as the CEO, ensuring a clear division of responsibilities and enhancing governance functions[98] - The consolidated financial statements for the year ended December 31, 2021, were reviewed by the audit committee, which consists of three independent non-executive directors[99] - Ernst & Young confirmed that the figures in the preliminary announcement are consistent with the annual consolidated financial statements[100] Shareholder Information - The group did not declare or propose any dividends for the year[43] - The company did not declare any final dividend for the year ended December 31, 2021[78] - Trading of the company's shares was suspended on April 1, 2022, and resumed on June 29, 2022, following the announcement of the annual results[101]

Business Operations - The group operates the Macau Fisherman's Wharf, a waterfront integrated facility that combines gaming, hotels, conferences, and entertainment, aligning with the Macau government's policies on leisure and tourism [15]. - The company provides gaming services at the Legend Palace Casino, Babylon Casino, and the Land Casino under service agreements [15]. - The group also operates the Savan Legend Hotel and Entertainment Complex in Laos, expanding its gaming and hospitality footprint [15]. - The company is committed to developing new technologies and products to improve operational efficiency and customer engagement [15]. - The group aims to align its business strategies with the evolving regulatory landscape in Macau and the broader region [15]. - The company plans to invest in marketing initiatives to attract more visitors to its facilities, particularly in the post-pandemic recovery phase [15]. - The Group has recognized impairment losses for its overseas project in Cape Verde due to adverse economic changes caused by the COVID-19 pandemic [58]. - The Group plans to enhance non-gaming tourism activities and facilities, including transforming Legend Boulevard into a leisure avenue with diverse dining and entertainment options [64]. Financial Performance - For the six months ended June 30, 2021, the Group reported total revenue of approximately HK$527.4 million, an increase of approximately HK$163.3 million or 44.9% compared to HK$364.1 million in the same period last year [25]. - The Group's gaming revenue in Macau increased by approximately 64% in the first half of 2021 compared to the same period last year, while the overall gaming revenue in Macau rose by approximately 45% [61]. - Non-gaming revenue for the six months ended June 30, 2021, was approximately HK$106.4 million, an increase of approximately 38.1% from HK$77.0 million in the same period last year [41]. - The Group's total loss for the six months ended June 30, 2021, was approximately HK$688.6 million, compared to a loss of approximately HK$550.2 million in the previous year [58]. - The company reported a significant increase in mass market table revenue, contributing HK$344,574,000 in 2021, compared to HK$207,619,000 in 2020, a rise of 66.0% [183]. - The total comprehensive loss for the period was HK$704,992,000, compared to HK$569,469,000 in the same period last year, indicating a 23.7% increase in total loss [121]. - The company incurred a loss for the period of HK$688,643,000, compared to a loss of HK$550,187,000 in the first half of 2020 [130]. Gaming Operations - The Group's gaming services revenue included service income from SJM for mass market tables, VIP tables, and slot machines, as well as casino operations in Laos [26]. - The total games drop for mass market tables was HK$1,123.0 million, representing a 32.6% increase from HK$846.6 million in the previous year [28]. - The net win from mass market tables was HK$186.1 million, an increase of 11.9% from HK$166.3 million in the previous year [28]. - The Group's net win from VIP tables was HK$59.6 million, up 18.3% from HK$50.3 million in the previous year [28]. - The total turnover for the Babylon Casino was HK$1,282.3 million, a 40.9% increase from HK$909.9 million in the previous year [30]. - The average number of mass market tables increased by 31.3% to 63 from 48 in the previous year [28]. - The Group's hold rate for mass market tables was 16.57%, a decrease of 3.1 percentage points from 19.64% in the previous year [28]. Operational Adjustments - The interim report indicates a focus on enhancing user experience and expanding service offerings in the gaming sector [15]. - The management emphasizes the importance of maintaining a diversified portfolio to mitigate risks associated with market fluctuations [15]. - The interim financial results will be closely monitored to guide future investment decisions and operational adjustments [15]. - The Group has implemented various measures to control operating costs and expenses in response to the ongoing impact of the COVID-19 pandemic [58]. - The Group has obtained a waiver of loan covenant from banks for a period of 12 months up to and including June 30, 2022, allowing it to avoid early repayment demands due to covenant breaches [148]. Corporate Governance - The company has a structured governance framework in place, as evidenced by the registration of interests required under the Securities and Futures Ordinance [102]. - The report highlights the importance of corporate governance and transparency in maintaining shareholder trust and compliance with regulatory requirements [102]. - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2021, except for code provision A.2.1, which stipulates that the roles of chairman and chief executive should be separate [104]. - The company has adopted the Model Code as its code of conduct governing directors' dealings in the company's securities, with all directors confirming compliance during the six months ended June 30, 2021 [108]. - The audit committee, comprising three independent non-executive directors and one non-executive director, reviewed the 2021 Interim Report and unaudited condensed consolidated financial information [109]. Future Outlook - Future outlook includes strategic market expansion and potential acquisitions to strengthen its position in the gaming and entertainment industry [15]. - The Directors expect an increase in the number of tourists traveling to Macau once the border between Hong Kong and Macau reopens, which is anticipated to benefit the Group's business and improve financial performance [151]. - The Group remains optimistic about the recovery of Macau's overall tourism and consumer market as travel restrictions are gradually relaxed [64].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $200 million, representing a 25% growth year-over-year[11]. - For the year ended December 31, 2020, the Group reported total revenue of approximately HK$700.7 million, a decrease of approximately 70.3% compared to HK$2,359.7 million in the previous year[37]. - The total gaming revenue for the year ended December 31, 2020, was HK$1,290,712,000, a decrease of 72.7% compared to HK$4,734,956,000 in 2019[40]. - The Group's gaming revenue decreased by approximately 72.2% to approximately HK$526.8 million compared to the previous year, primarily due to the COVID-19 pandemic[54]. - The total revenue from non-gaming operations was HK$173.9 million, down from HK$438.2 million in the previous year[60]. - The Group's total reported revenue for gaming services was HK$526.8 million, down from HK$1,898.2 million in the previous year[52]. - The total loss attributable to owners of the Company for 2020 was approximately HK$1,635.2 million, compared to a loss of HK$215.1 million in 2019, reflecting a significant increase in losses[67]. - The Group's loss for the year ended December 31, 2020, was approximately HK$1,955.1 million, a significant increase from a loss of approximately HK$190.3 million in the previous year, primarily due to decreased revenue from COVID-19 impacts[75]. User Engagement and Market Expansion - User data showed a rise in active users to 1.5 million, up from 1.2 million, indicating a 25% increase in user engagement[11]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[11]. - New product launches are expected to contribute an additional $30 million in revenue, with anticipated sales of 500,000 units[11]. - The company provided a positive outlook for the next fiscal year, projecting revenue growth of 15% to 20%[11]. Operational Strategies - Cost management strategies have led to a reduction in operational expenses by 5%, improving overall profitability[11]. - The company is investing $10 million in R&D for new technologies aimed at improving user experience and operational efficiency[11]. - The company plans to enhance its digital marketing efforts, allocating an additional $5 million to increase brand visibility and customer acquisition[11]. - Future guidance includes maintaining a gross margin of 40%, with a focus on optimizing product pricing strategies[11]. Impact of COVID-19 - The company faced significant challenges due to COVID-19, leading to a drastic reduction in visitor numbers and revenue, prompting cost control measures[72]. - The Group anticipates a gradual recovery in tourist arrivals to Macau in 2021 as vaccination rates increase and travel restrictions ease[29]. - The Group has undertaken various measures to control operating costs and expenses in response to the COVID-19 pandemic[75]. - The company is actively monitoring the impact of COVID-19 on its operations and has implemented various measures to mitigate the effects[72]. Leadership and Management - Mr. Chan Weng Lin has been the CEO since December 29, 2020, and has over a decade of experience in the gaming industry[110]. - The management team has a strategic focus on resource allocation, financial reporting, and corporate governance[115]. - The Company has a strong leadership team with significant experience in the real estate and gaming sectors, enhancing its operational capabilities[126]. - The Company has a history of leadership in the Macau gaming sector, with key executives holding significant positions in various industry-related organizations[155]. Corporate Governance - The Company emphasizes the importance of good corporate governance practices to maintain investor confidence and ensure sustainable growth[172]. - The Company has complied with the corporate governance code as of December 31, 2020, with exceptions noted regarding the roles of the chairman and CEO[172]. - The Board is responsible for overall management and control, focusing on enhancing shareholder value through strategic policies and plans[176]. - The Board consists of executive and non-executive directors, ensuring a balance of expertise and independent judgment[191].

Financial Performance - For the six months ended June 30, 2020, the Group reported total revenue of approximately HK$364.1 million, a decrease of approximately HK$717.7 million or 66.3% compared to HK$1,081.8 million in the same period last year[29][31]. - Reported revenue for the period was HK$95,403,000, down 69.8% from HK$316,184,000 in the previous year[34]. - The group's gaming revenue decreased by approximately 66.9% to approximately HK$287.1 million for the six months ended June 30, 2020, compared to the same period last year[46]. - Total reported revenue for gaming services was HK$287,056,000, down from HK$867,540,000 in 2019, reflecting a significant decline due to COVID-19[42]. - Non-gaming revenue totaled approximately HK$77.0 million, a decrease of approximately 64.0% from HK$214.2 million in the same period last year[49]. - The Group's loss for the six months ended June 30, 2020, was approximately HK$550.2 million, compared to a loss of approximately HK$107.5 million in the same period last year, primarily due to significant decreases in revenue from COVID-19 related travel restrictions[67]. - Loss before tax for the period was HK$493,558,000, compared to a loss of HK$91,438,000 in the previous year, representing a significant increase in losses[166]. - Total comprehensive loss for the period amounted to HK$569,469,000, compared to HK$91,296,000 in the same period of 2019, indicating a substantial decline in financial performance[166]. Gaming Operations - The Group's revenue from gaming services included service income from SJM for mass market tables, VIP tables, and slot machines, as well as casino operations in Laos[32]. - The Group continues to provide gaming services under a service agreement with SJM for Legend Palace Casino, Babylon Casino, and Landmark Casino[22]. - Total gaming drop for Mass Market Tables decreased by 71.3% to HK$846,615,000 compared to HK$2,948,411,000 in 2019[34]. - Net win for VIP Tables fell by 78.2% to HK$50,346,000 from HK$231,008,000 in 2019[34]. - The average number of gaming tables decreased by 29.8% to 40 from 57 in the previous year[34]. - The number of gaming tables in operation at period end decreased by 29.8% to 40 from 57 in 2019[34]. - The average number of slot machines in operation decreased by 30.3% to 76 from 109 in the previous year[34]. - The net win for mass market tables was HK$16,004,000, down 71.2% from HK$55,504,000 in 2019[46]. - The Group's adjusted EBITDA for gaming services was a loss of approximately HK$59.9 million for the six months ended June 30, 2020, compared to a profit of HK$21.2 million in the previous year[63]. Impact of COVID-19 - The significant decline in revenue is attributed to the impact of the COVID-19 pandemic on the gaming and tourism sectors in Macau[29]. - Future outlook remains cautious due to ongoing uncertainties in the market and potential recovery timelines for tourism and gaming activities[29]. - MFW's gross gaming revenues contracted approximately 67% for the first half of 2020 compared to the same period for the previous year, while the overall gaming market in Macau contracted approximately 77%[77]. - The occupancy rate for Legend Palace Hotel was 44% in 2020, down from 94% in 2019, indicating a significant impact on hotel operations due to the pandemic[54]. - The Group has implemented various mitigating measures, including a cost control program to minimize cash outflow of non-essential items[191]. Cost Control and Financial Management - The management is focused on cost control measures to mitigate the financial impact during this challenging period[29]. - The Group is negotiating for refinancing its existing bank borrowings with a longer-term facility[90]. - The Group is negotiating with banks to restructure existing outstanding bank borrowings into long-term financing, leveraging its good track record and relationships with the banks[191]. - Adjusted EBITDA from operations excluding Savan Legend and unallocated corporate expenses decreased by approximately 238.7% to a loss of approximately HK$181.0 million compared to the last corresponding period[66]. Future Outlook and Expansion - The Group is exploring opportunities for market expansion and potential new projects to enhance its service offerings[29]. - The Directors expect an increase in the number of tourists traveling to Macau due to the resumption of visa applications for residents of Zhuhai, Guangdong, and all travelers from mainland China starting from August 12, August 26, and September 23, 2020, respectively[189]. - The financial performance is expected to improve with the relaxation of travel restrictions between mainland China and Macau[189]. Corporate Governance - The company has complied with the Corporate Governance Code except for provisions A.2.1 and A.4.1 during the six months ended 30 June 2020[145]. - The company has established written guidelines for employees regarding securities transactions, with no incidents of non-compliance noted during the reporting period[155]. - The company believes that good corporate governance practices are essential for maintaining investor confidence and sustainable growth[145]. - The roles of chairman and chief executive are currently held by co-chairmen, ensuring timely and constructive discussions on major issues[147]. Shareholder Information - As of June 30, 2020, Mr. David Chow held a beneficial interest in 1,404,322,826 shares, representing approximately 22.65% of the total issued shares[113]. - The total number of shares held by directors and chief executives amounted to 1,853,708,892 shares, approximately 29.89% of the total issued shares[113]. - The total number of shares held by substantial shareholders amounts to 1,122,647,179, approximately 18.10% of total issued shares[131]. - The company is not aware of any other individuals or corporations with registered interests or short positions as of June 30, 2020[137]. Employee Information - The Group had approximately 4,071 employees as of June 30, 2020, including 1,243 gaming operation employees[105]. - Employee remuneration is based on qualifications, performance, and market trends, with discretionary bonuses granted based on merit[108].