Group 1 - The core viewpoint of the report is that Jefferies has upgraded the rating of MGM China (02282) from "Hold" to "Buy" following its quarterly results, predicting a significant increase in Macau's gaming revenue in 2024 and 2025 [1] - Jefferies forecasts that Macau's gaming revenue will increase by approximately 28% and 2% year-on-year in 2024 and 2025, reaching daily revenues of MOP 640 million and MOP 656 million, which would be about 80% and 82% of the pre-pandemic levels in 2019 [1] - The report highlights that MGM's Q4 2023 earnings and market share reached new highs, exceeding expectations, and this positive trend is expected to continue into 2024, especially as the Lunar New Year gaming performance in Macau has already surpassed 2019 levels [1] Group 2 - Jefferies believes that the fundamental factors for gaming stocks are better than expected, indicating that MGM China is currently undervalued in the mid-term cycle, with an anticipated further increase in market share [1] - The target price for MGM China has been raised by 62.8% from HKD 9.4 to HKD 15.3, reflecting the positive outlook for the company's performance [1]

智通财经APP获悉，瑞银发布研究报告称，予美高梅中国(02282)“买入”评级，目标价14.3港元。管理层预期，公司未来几个季度的毛利将维持稳定，促销费用占收入的比例也将保持稳定。管理层强调，尽管并非旺季，但1月的市场份额高于20%，相对于去年第四季为16.3%，推动EBITDA超过去年10月的水平。 公司去年第四季经调整物业EBITDA为2.81亿美元，按季增长约16%，并为2019年同期约141%水平。经贵宾厅赢率调整后的物业EBITDA约为2.78亿美元，高于市场预期的2.58亿美元。季内整体市场份额按季增长约2个百分点至约16.3%，主要受惠于中场博彩收入强劲增长，约按季升24%，相当于2019年同期的约163%水平。 ...

Financial Performance - MGM China reported entertainment revenue of HKD 9,602,035, a significant increase from HKD 2,752,694 in the previous year, representing a growth of 248.5%[6] - The company achieved an adjusted EBITDA of HKD 3,160,081, recovering from a loss of HKD 336,687 in the same period last year[6] - Operating profit for the period was HKD 1,866,591, compared to an operating loss of HKD 1,524,019 in the previous year[6] - The net profit attributable to shareholders was HKD 820,914, a turnaround from a loss of HKD 2,404,173 in the prior year[6] - Basic earnings per share were HKD 0.216, compared to a loss per share of HKD 0.633 in the same period last year[6] - Adjusted EBITDA for the six months ended June 30, 2023, was HKD 3,160,081, compared to a loss of HKD 336,687 for the same period in 2022, indicating a significant recovery[43] - The company reported a profit attributable to owners of HKD 820,914 for the six months ended June 30, 2023, compared to a loss of HKD 2,404,173 in the same period of 2022[43] - The total comprehensive income for the period was HKD 817,782, reflecting a significant recovery from the previous comprehensive loss of HKD (2,407,978) in the same period last year[190] Gaming Revenue and Market Presence - Macau's gross gaming revenue increased by 205.1% to HKD 77.8 billion for the six months ending June 30, 2023, reflecting a recovery in the tourism sector[14] - The main gaming table business in Macau accounted for 84% of the company's gaming gross revenue for the six months ended June 30, 2023[27] - The company’s total assets as of June 30, 2023, were HKD 3,800,000, with total liabilities amounting to HKD 10,404,469[190] - The company plans to invest a total of MOP 16.7 billion (approximately HKD 16.2 billion) during the concession period, with 90% allocated to developing international markets and non-gaming projects[21] - The company is focusing on enhancing customer experience through improved product and service quality, asset utilization, and operational efficiency[19] - The company aims to diversify its offerings to cater to different market segments and enhance operational scale for optimal financial performance[21] - The company recognizes the long-term growth potential of the Macau market, supported by infrastructure improvements and increasing outbound tourism from mainland China[25] Visitor Statistics and Tourism Impact - The total number of visitors to Macau increased by 236.1% in the first half of 2023 compared to the same period in 2022, with mainland Chinese visitors rising by 141.0%[21] - The easing of COVID-19 travel restrictions has led to a significant increase in visitor numbers to Macau, positively impacting the company's operations[14] - The occupancy rate for hotel rooms was 93.8% for the six months ended June 30, 2023, significantly higher than 59.3% in the same period of 2022, reflecting increased tourism[49] Debt and Financial Position - As of June 30, 2023, the company extended its revolving credit facility's maturity date from May 15, 2024, to May 15, 2026, with an increased borrowing limit of HKD 58.5 billion[16] - The total borrowings as of June 30, 2023, amounted to HKD 26.762 billion, a decrease from HKD 32.725 billion as of December 31, 2022[87] - The company has improved its liquidity position and financial performance, believing it can meet its financial obligations due within the next twelve months[117] - The company reported a foreign exchange loss of HKD (3,132) due to overseas operations[190] - The company incurred a loss of HKD (2,404,173) for the period, a significant improvement from the previous year's loss[190] Operational Developments - MGM China operates two major integrated resorts in Macau, MGM Macau and MGM Cotai, enhancing its market presence and customer experience[10] - The company has signed a service agreement with Mandarin Oriental to provide additional hotel rooms during peak demand periods[11] - MGM Cotai features Asia's first dynamic theater, showcasing advanced and innovative entertainment experiences[12] - The company is expanding its non-gaming offerings, including hotel rooms, dining, retail, and entertainment, to enhance customer experience and brand recognition[31] Employee and Corporate Governance - As of June 30, 2023, the company employed 10,568 full-time and part-time staff, an increase from 9,788 as of December 31, 2022[118] - The company has a competitive and comprehensive compensation system to attract and retain a diverse and skilled workforce[118] - The company has a performance-based incentive plan for all management-level employees since 2011, aimed at enhancing corporate value[118] - The company’s board of directors confirmed compliance with corporate governance codes during the reporting period[171] Shareholder Information - The company holds 380,000,000 shares personally and 474,561,200 shares through a controlled entity, representing 22.49% of the issued share capital[122] - MGM International, LLC and MGM Resorts International collectively hold 2,126,100,001 shares, representing 55.95% of the total shares[141] - The company has not reported any significant changes in shareholdings or interests since the last annual report[142]

Financial Performance - MGM China Holdings Limited reported a significant increase in revenue, with total operating revenue reaching HKD 10,649,439 thousand for the six months ended June 30, 2023, compared to HKD 3,215,856 thousand for the same period in 2022, representing a growth of approximately 231%[2]. - The company achieved an adjusted EBITDA of HKD 3,160,081 thousand, a substantial recovery from a loss of HKD 336,687 thousand in the previous year[2]. - Net profit attributable to shareholders was HKD 820,914 thousand for the six months ended June 30, 2023, compared to a loss of HKD 2,404,173 thousand in the same period of 2022, marking a turnaround of over HKD 3.2 billion[3]. - The basic earnings per share for the period was 21.6 HKD cents, a significant improvement from a loss of 63.3 HKD cents per share in the prior year[5]. - The group reported a pre-tax profit of HKD 828.7 million for the six months ended June 30, 2023, compared to a pre-tax loss of HKD 2.3962 billion in the same period of 2022[17]. - The profit attributable to the owners of the company improved from a loss of HKD 2.4042 billion for the six months ended June 30, 2022, to a profit of HKD 820.9 million for the six months ended June 30, 2023, reflecting improved financial performance[96]. Assets and Liabilities - The total assets of the company decreased to HKD 28,969,049 thousand as of June 30, 2023, down from HKD 31,209,496 thousand at the end of 2022[6]. - The company's total liabilities decreased to HKD 32,130,924 thousand as of June 30, 2023, from HKD 35,205,917 thousand at the end of 2022, reflecting improved financial health[8]. - As of June 30, 2023, the group reported a loss of HKD 3.1619 billion in shareholders' equity, compared to a loss of HKD 3.9964 billion as of December 31, 2022, primarily due to operational losses during the COVID-19 pandemic[13]. - The net debt decreased from HKD 25.05 billion as of December 31, 2022, to HKD 22.57 billion as of June 30, 2023, while total equity improved from a loss of HKD 3.996 billion to a loss of HKD 3.162 billion[98]. Gaming Revenue and Market Performance - Total gaming revenue for the first half of 2023 reached HKD 11.6296 billion, a substantial increase from HKD 3.3945 billion in the first half of 2022, reflecting a recovery in the gaming sector[18]. - The total number of visitors to Macau significantly increased following the relaxation of travel restrictions, contributing to a 242.6% rise in gross gaming revenue to HKD 11.6 billion in the first half of 2023 compared to the same period in 2022[10]. - The main gaming revenue from the Macau market's mass table gaming business accounted for 84% of the company's gaming gross revenue for the six months ended June 30, 2023[66]. - The company's overall gaming market share increased from 9.5% in 2019 to 14.9% in the first half of 2023, following the acquisition of an additional 198 gaming tables[65]. Operational Developments - The company continues to focus on expanding its operations and enhancing its offerings in the Macau gaming and hospitality market[9]. - The group plans to continue expanding its operations in Macau, leveraging the new gaming license and the recovery in tourism[11]. - The company is focusing on high-margin mass gaming operations while targeting ultra-high-end customers through properties like "Yonghua Mansion" and "Yonghua No. 1"[61]. - The company aims to enhance customer experience by improving product and service quality, increasing asset utilization, and maximizing operational efficiency across all business segments[61]. Financial Management and Credit Facilities - The group had cash and cash equivalents totaling HKD 3.5136 billion as of June 30, 2023, down from HKD 6.7066 billion as of December 31, 2022, but still maintains access to significant credit facilities[13]. - The company has a total of HKD 73.2 billion in available but undrawn unsecured credit facilities as of June 30, 2023[39]. - The company has extended the maturity date of its revolving credit facilities from May 15, 2024, to May 15, 2026, allowing for greater financial flexibility[39]. - The company has no secured debt or subordinated debt as of the announcement date, indicating a strong balance sheet position[111]. Future Outlook and Strategic Initiatives - Future guidance indicates a projected revenue growth of 10-12% for the next fiscal year, supported by ongoing recovery trends in Macau[140]. - The company is exploring potential acquisitions to strengthen its market position and diversify its service offerings[138]. - New product offerings, including exclusive gaming experiences, are expected to launch in Q4 2023, aimed at attracting a broader customer base[140]. - MGM China is committed to sustainability initiatives, with plans to reduce operational costs by 5% through energy-efficient practices[139].

Financial Performance - Total revenue for 2022 was HKD 5,268,569, a decrease of 44.5% from HKD 9,410,814 in 2021[7] - The company reported an operating loss of HKD 3,609,542 in 2022, compared to a loss of HKD 2,348,629 in 2021[7] - The company reported a significant increase in revenue, with a year-over-year growth of 15% in Q4 2022, reaching $1.5 billion[25] - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 10% to $1.65 billion[29] - The company reported a net loss attributable to shareholders of HKD 5,231,911 for the year ended December 31, 2022, compared to a loss of HKD 3,846,616 in 2021[72] - The adjusted EBITDA for the year ended December 31, 2022, was a loss of HKD 1,274,355, compared to a profit of HKD 187,176 in 2021, indicating a significant decline[72] Market Trends and Visitor Statistics - The number of visitors to Macau decreased by 26% year-on-year to 5.7 million in 2022, down from 7.7 million in 2021[13] - The gross gaming revenue in Macau fell by 51% to MOP 42.2 billion in 2022, approximately 14% of the pre-pandemic level in 2019[13] - Total inbound visitors and gross gaming revenue in Macau fell by 85.5% and 85.6%, respectively, compared to the pre-pandemic period in 2019[57] - In January 2023, following the easing of travel restrictions, the total number of inbound travelers surged, resulting in a 232.6% increase in Macau's gaming revenue to HKD 11.2 billion compared to December 2022[53] Market Share and Competitive Position - The company's market share increased to 13.7% in 2022, up from 12.5% in 2021 and 9.5% in 2019[14] - MGM China achieved a historical high market share of 16% in January, reflecting strong business performance[18] - The company's overall gaming market share increased from 9.5% as of December 31, 2019, to 13.7% as of December 31, 2022[60] Community Engagement and Sustainability - The company contributed over 32,300 hours of service to the local community through volunteer efforts in 2022[15] - The company is investing in sustainable development initiatives, including human resources and local community support[17] - The board of directors emphasized the importance of sustainable practices, committing to reduce carbon emissions by 25% by 2025[26] Strategic Initiatives and Future Plans - The company plans to enhance its hotel product offerings and marketing activities for non-gaming facilities to attract high-end customers[14] - The company is focused on creating innovative non-gaming experiences to enhance its market influence and support Macau's diversified development[18] - The company aims to solidify Macau's position as a world tourism and leisure center with a 10-year development and investment plan announced in December 2022[69] Operational Efficiency and Technology - The company has been actively involved in technology and business process innovations, leading to improved operational efficiency[35] - The company is investing $50 million in new technology development to enhance customer experience[28] - The company is focused on expanding its digital technology services and security operations within its casino and hotel operations[35] Financial Health and Debt Management - The capital debt ratio increased to 119.0% as of December 31, 2022, compared to 94.6% as of December 31, 2021[90] - The company holds substantial debt, which may hinder its operational flexibility and increase vulnerability to adverse economic conditions[161] - The company has established covenants that limit its ability to engage in certain transactions, including mergers or sales of significant assets[104] Governance and Compliance - The board consists of 12 members, including 4 executive directors, 4 non-executive directors, and 4 independent non-executive directors, ensuring compliance with listing rules[169] - The company has established a corporate governance policy that includes mechanisms to ensure the board receives independent opinions and perspectives[169] - The audit committee monitored the integrity of financial reports and compliance with statutory and listing rules, ensuring robust financial controls and risk management systems[183] Risks and Challenges - The group faces significant risks related to business operations and debt, particularly due to the ongoing impact of the COVID-19 pandemic on financial performance and cash flow[119] - The group anticipates that the recovery of business performance to pre-pandemic levels remains uncertain due to the unpredictable nature of the pandemic's impact[119] - The group faces credit risk when providing loans to customers, particularly in jurisdictions where enforcement of gambling debts is not guaranteed[127] Employee and Labor Relations - The company employed 9,788 full-time and part-time staff as of December 31, 2022, a decrease from 10,117 in 2021[115] - The group relies heavily on attracting and retaining qualified employees, with a limited labor supply in Macau potentially increasing labor costs[134] - The company aims to ensure its compensation system is competitive, comprehensive, objective, and developmental to attract and retain a diverse and skilled workforce[115]

Financial Performance - MGM China Holdings Limited reported a total revenue of HKD 5,268,569,000 for the year ended December 31, 2022, a decrease of 44.5% from HKD 9,410,814,000 in 2021[2]. - The company experienced an operating loss of HKD 3,609,542,000 in 2022, compared to an operating loss of HKD 2,348,629,000 in 2021, reflecting a deterioration in performance due to ongoing COVID-19 impacts[2][3]. - The net loss attributable to shareholders increased from HKD 3,846,616,000 in 2021 to HKD 5,231,911,000 in 2022, representing a 36% increase[3]. - The company's EBITDA adjusted for non-recurring items was reported at HKD (1,274,355,000) for 2022, compared to HKD 187,176,000 in 2021[2]. - Casino revenue for 2022 was HKD 4,438,995,000, down 46.0% from HKD 8,223,054,000 in 2021[4]. - The company did not declare any interim or final dividends for the year ended December 31, 2022[3]. - The company reported a loss attributable to shareholders of HKD 5,231,911 for the year ended December 31, 2022, compared to a loss of HKD 3,846,616 for the year ended December 31, 2021[84]. - The adjusted EBITDA for the year ended December 31, 2022, was a loss of HKD 1,274,355, compared to a profit of HKD 187,176 for the year ended December 31, 2021, indicating a significant decline[84]. Assets and Liabilities - As of December 31, 2022, total assets amounted to HKD 31,209,496,000, an increase from HKD 28,439,575,000 in 2021[6]. - Cash and cash equivalents increased significantly to HKD 6,706,591,000 in 2022 from HKD 3,112,020,000 in 2021, indicating improved liquidity[6]. - Total liabilities rose to HKD 35,205,917,000 in 2022, up from HKD 27,242,659,000 in 2021, reflecting increased borrowing[8]. - The company's total financing costs increased to HKD 1,665,261,000 in 2022 from HKD 1,383,508,000 in 2021, representing a rise of about 20.3%[6]. - The company's trade receivables decreased to HKD 239,522,000 in 2022 from HKD 269,712,000 in 2021, a decline of approximately 11.2%[32]. - The company’s total borrowings as of December 31, 2022, were HKD 32.7251 billion, up from HKD 23.9291 billion as of December 31, 2021[116]. Gaming Operations - The company operates two major integrated resorts in Macau, MGM Macau and MGM Cotai, with a total gaming floor area of approximately 47,832 square meters and over 1,860 gaming machines[55][56]. - The total win from main gaming tables for the year ended December 31, 2022, was HKD 4,472,426, down 40.4% from HKD 7,506,977 for the year ended December 31, 2021[90]. - The total win from VIP gaming tables decreased to HKD 580,773, a decline of 72.5% from HKD 2,112,353 for the year ended December 31, 2021[90]. - The total win from slot machines was HKD 525,152, down 42.5% from HKD 911,598 for the year ended December 31, 2021[90]. - The company's gaming revenue composition shows a shift towards the mid-to-high-end market, with mass market and VIP segments accounting for 90% and 10% of gaming revenue respectively as of December 31, 2022, compared to 80% and 20% in 2021[77]. Market and Strategic Developments - The company is optimistic about long-term growth in the Macau market due to infrastructure improvements and increased tourism from mainland China[71]. - The company has suspended its VIP business with major gaming intermediaries since December 2021, affecting past revenue contributions[75]. - The Macau government is promoting the region as a safe and high-quality travel destination, which is expected to boost tourism[71]. - The company plans to enhance the gaming experience for mid-to-high-end customers through renovations and dedicated gaming areas[73]. - The company aims to redesign and upgrade its facilities to enhance non-gaming offerings in entertainment, arts, gastronomy, and wellness tourism[69]. Regulatory and Compliance - MGM Cotai has been granted a gaming license by the Macau government, effective from January 1, 2023, to December 31, 2032, allowing operation of 750 gaming tables and 1,700 electronic gaming machines[11]. - The minimum capital requirement for gaming operators has increased to MOP 5 billion (approximately HKD 4.85 billion) from MOP 200 million (approximately HKD 194 million)[12]. - The company is required to pay a special gaming tax of 35% on gross gaming revenue and an annual fixed premium of MOP 30 million (approximately HKD 29.1 million) for each reserved gaming table[60]. - The company has complied with all provisions of the corporate governance code as of December 31, 2022[134]. - The company is committed to maintaining compliance with international financial reporting standards in its financial disclosures[142]. Cost Management and Operational Efficiency - The company reduced or postponed several planned capital expenditures and decreased wage expenses in response to COVID-19[18]. - The company achieved a significant reduction in advertising and promotion expenses, which fell to HKD 220,501 thousand in 2022 from HKD 390,970 thousand in 2021[26]. - The company has implemented cost-reduction measures, including deferring capital expenditures and reducing wage expenses, in response to the financial impact of COVID-19[66]. - The company plans to continue focusing on market expansion and new product development to recover from the impacts of COVID-19[85]. Legal Matters - The company is involved in legal proceedings related to cash deposits made by gaming intermediaries, with a total payment obligation of HKD 80 million plus interest of HKD 37 million as of December 31, 2021[52][53]. - The company reached a final settlement regarding several lawsuits related to joint liability with gaming intermediaries, reversing a previously recorded liability of HKD 60.6 million[53]. - The group has estimated a liability of HKD 202.7 million related to ongoing legal claims against it[114]. Future Outlook - The company aims to create a "Cultural and Arts Business Incubation Base" to foster a diverse tourism ecosystem in Macau[80]. - The company is developing a new multimedia space at MGM Cotai that will integrate art and entertainment experiences with extended reality (XR) interactive technology, set to launch in 2024[81]. - The company continues to develop the "MGM 2049" residency show in collaboration with renowned Chinese director Zhang Yimou, with technical upgrades planned for the MGM Theater[81].

Financial Performance - Entertainment revenue for the six months ended June 30, 2022, was HKD 2,752,694, a decrease of 33.4% from HKD 4,133,230 in the same period of 2021[6]. - Total operating revenue for the same period was HKD 3,215,856, down 31.7% from HKD 4,711,057 year-on-year[6]. - Adjusted EBITDA for the first half of 2022 was HKD (336,687), compared to HKD 200,352 in the prior year, indicating a significant decline[6]. - The company reported an operating loss of HKD (1,524,019) for the period, worsening from a loss of HKD (1,049,788) in the previous year[6]. - Loss attributable to shareholders for the period was HKD (2,404,173), compared to HKD (1,733,311) in the same period of 2021[6]. - Basic and diluted loss per share for the first half of 2022 was HKD (63.3 cents), compared to HKD (45.6 cents) in the prior year[6]. - The company reported a significant decrease in operating revenue of 71.5% compared to the same period in 2019, prior to the COVID-19 pandemic[49]. - The company reported a total comprehensive loss of HKD (2,407,978,000) for the six months ended June 30, 2022, compared to a total comprehensive loss of HKD (1,732,681,000) for the same period in 2021, indicating a worsening financial performance[161]. Operational Challenges - The company faced significant operational challenges due to COVID-19, leading to temporary closures and restrictions on operations[10]. - As of July 23, 2022, the gaming operations resumed after a temporary suspension, but several restrictions remained in place[10]. - The company is focused on ensuring the health and safety of employees and customers amid ongoing pandemic challenges[10]. - The company experienced a decline in visitor numbers and business volume due to travel restrictions related to COVID-19, adversely affecting performance for the six months ended June 30, 2022[175]. - The Macau government announced a state of immediate prevention on June 19, 2022, leading to further operational restrictions and temporary closures of entertainment facilities[175]. - As of June 30, 2022, the company faced operational restrictions due to COVID-19, including limited seating at gaming tables and social distancing measures[176]. Market and Visitor Trends - Total visitor numbers to Macau decreased by 11.8% and visitors from mainland China decreased by 12.2% compared to the same period in 2021[13]. - Macau's total gaming revenue dropped by 46.4% to HKD 25.5 billion for the six months ended June 30, 2022[13]. - The overall gaming market share increased from 9.5% in 2019 to 13.6% for the six months ended June 30, 2022[24]. - The company has suspended VIP business with major gaming intermediaries since December 2021 due to reputational and financial risks, resulting in a significant decline in revenue from this segment[35]. Strategic Initiatives - The company aims to enhance customer experience by improving product and service quality and increasing operational efficiency[18]. - The company plans to introduce new attractions and experiences to drive visitor numbers and business growth post-COVID-19[19]. - The company is focusing on high-margin mass gaming operations while attracting ultra-high-end customers through luxury offerings[18]. - The company continues to enhance its online presence and sales through e-commerce channels and social media[19]. - The company plans to enhance the gaming experience for mid-to-high-end customers through renovations and reallocating VIP tables to mass market areas to maximize revenue[30]. Financial Management - The company has implemented cost-reduction measures, including deferring capital expenditures and reducing wage expenses, in response to the impact of COVID-19[13]. - The company has established financial covenant amendments for its revolving credit facility, which are effective until May 15, 2024, to mitigate financial impacts[13]. - The company has a total debt of HKD 30.37 billion as of June 30, 2022, compared to HKD 23.93 billion as of December 31, 2021, representing an increase of approximately 27.5%[89]. - The company has a total of HKD 3.8 billion in undrawn unsecured credit facilities available as of June 30, 2022[96]. - The company has received waivers for all financial covenants until May 15, 2024, in response to the adverse financial impacts of COVID-19[1]. Gaming Law and Regulatory Changes - The new gaming law allows for a maximum of six gaming licenses, with a term not exceeding 10 years, and can be extended for up to 3 years under certain conditions[27]. - The company is required to secure a new gaming license to continue generating revenue from gaming operations, with potential significant adverse effects on financial status if unable to do so[172]. - The company plans to submit a bid for the new gaming licenses, believing it can meet the government's requirements[173]. - MGM Cotai and MGM Macau will transfer ownership of their gaming assets to the Macau government by December 31, 2022, as part of the new gaming law compliance[169]. Employee and Corporate Governance - The company employs 9,851 full-time and part-time staff as of June 30, 2022, a decrease from 10,117 on December 31, 2021[112]. - The company has established a competitive compensation system to attract and retain a diverse and skilled workforce[112]. - The company has implemented a performance-based incentive plan for all management-level employees since 2011, aimed at enhancing corporate value through measurable goals[114]. - The company’s board of directors emphasizes the importance of good corporate governance in managing the group[146].

Financial Performance - In 2021, the total revenue from gaming in Macau increased by 44% year-on-year, exceeding HKD 84 billion[14]. - The company's operating revenue surged by 85% to HKD 9.41 billion in 2021, compared to HKD 5.1 billion in 2020[15]. - Adjusted EBITDA for the company was HKD 187.2 million in 2021, a significant recovery from a loss of HKD 1.37 billion in 2020[15]. - The company reported a net loss attributable to shareholders of HKD 3.85 billion in 2021, an improvement from a loss of HKD 5.2 billion in 2020[8]. - The company reported a significant increase in revenue, with a year-over-year growth of 15% in Q4 2023, reaching $1.2 billion[1]. - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10-12%[1]. - The company reported a notable increase in user data, reflecting a growing customer base and engagement[30]. - The company reported a significant increase in market share, successfully retaining customers through enhanced service and brand marketing strategies[36]. Visitor Trends and Tourism Recovery - The average hotel occupancy rate in Macau rose to 50% in 2021, up from 29% in 2020, reflecting a recovery in tourism[14]. - The number of visitors to Macau increased by 31% year-on-year in 2021, aided by the easing of travel restrictions in several Chinese cities[14]. - The number of visitors from mainland China increased by 30.7% and 48.2% respectively compared to 2020[47]. - Macau's total visitor numbers and visitors from mainland China increased by 30.7% and 48.2% respectively compared to 2020, as of December 31, 2021[53]. Strategic Initiatives and Collaborations - The company launched the Lion's Pavilion in 2021, showcasing its commitment to "original + innovative" service offerings[15]. - The company collaborated with the Macau Government Tourism Office to promote "Macau Weeks" in five cities, attracting nearly 2 million visitors[14]. - The company has committed to supporting local communities, with procurement spending from local businesses increasing by 30%[16]. - The company has collaborated with local artists and institutions to promote cultural awareness through various artistic events[17]. - The company hosted cultural tourism events, including the "Aesthetics Discourse" and "Imagery and Space" exhibitions, to support Macau's diversification goals[63]. Market Position and Competitive Landscape - The company's market share reached a historical high in Q4 2021, achieving a growth of 14% compared to 2020[16]. - The overall gaming market share of the company increased to 12.5% as of December 31, 2021[54]. - The company is expanding its market presence in Asia, targeting a 25% increase in market share by 2025[1]. - The company is closely monitoring the developments regarding gaming license re-tendering or extensions by the Macau government[43]. Operational Efficiency and Cost Management - Cost-cutting measures are projected to save approximately $50 million annually, improving overall profitability[1]. - The company aims to enhance its customer engagement strategies, aiming for a 15% improvement in customer satisfaction scores[1]. - The company has implemented strict protective measures in response to local COVID-19 cases, including medical observation periods for travelers from high-risk areas[47]. - The company provided various rent relief measures to retail tenants during the COVID-19 pandemic to alleviate economic pressure[78]. Regulatory Environment and Compliance - The Macau government announced the extension of the current gaming license contracts until December 31, 2022, allowing for a re-tendering process for new licenses[56]. - The gaming license for the company is set to expire on June 26, 2022, and failure to extend it could result in significant adverse effects on the company's business and financial performance[139]. - The company must comply with any future laws and regulations issued by the Macau government, and failure to do so could negatively impact its ability to operate in Macau[143]. Sustainability and Corporate Responsibility - The company emphasizes sustainable development as a core principle, aiming to positively impact society and the environment through its operations[162]. - The company is committed to responsible corporate governance, social responsibility, and environmental sustainability[163]. - MGM China organized over 120 community activities in 2021, contributing 21,000 hours to volunteer efforts and assisting over 8,000 individuals in need[177]. - The company aims to reduce energy consumption by 13% by 2025 compared to the 2019 baseline[190]. Employee Engagement and Training - Training expenses increased by 27% over the past year, providing approximately 590,000 hours of training for employees[16]. - MGM China provided approximately 590,000 hours of training for team members in 2021, an increase of 27% compared to the previous year[173]. - The company achieved a vaccination rate of over 95% among team members through various outreach vaccination programs and information sessions[179]. - Nearly 92% of the management team consists of local residents from Macau[16]. Financial Health and Debt Management - As of December 31, 2021, the group's total current assets amounted to HKD 131.7 billion, including cash and cash equivalents of HKD 31.1 billion and available borrowings under revolving credit facilities of HKD 100.6 billion[50]. - The company has a total of HKD 23.4 billion in unsecured revolving credit facilities, with a final maturity date of May 15, 2024[98]. - The capital debt ratio increased to 94.6% in 2021 from 78.7% in 2020, reflecting a rise in net debt[84]. - The company believes it has sufficient liquidity to meet its financial obligations for the next twelve months, considering cash and cash equivalents, revolving credit facilities, and internally generated funds[104].

Financial Performance - Entertainment revenue for the six months ended June 30, 2021, was HKD 4,133,230, compared to HKD 2,045,405 for the same period in 2020, representing an increase of 102.5%[7] - Adjusted EBITDA for the first half of 2021 was HKD 200,352, a significant improvement from a loss of HKD 1,008,386 in the first half of 2020[7] - The company reported an operating loss of HKD 1,049,788 for the first half of 2021, compared to a loss of HKD 2,395,901 in the same period of 2020, indicating a reduction in losses[7] - Loss attributable to shareholders for the period was HKD 1,733,311, an improvement from HKD 2,860,430 in the prior year[7] - Basic and diluted loss per share for the first half of 2021 was HKD 0.456, compared to HKD 0.753 for the same period in 2020[7] - Total operating revenue for the six months ended June 30, 2021, was HKD 4.711 billion, representing a 98.7% increase compared to HKD 2.370 billion in the same period of 2020[47] - The company reported a net loss attributable to shareholders of HKD 1,733,311,000 for the six months ended June 30, 2021, an improvement from a loss of HKD 2,860,430,000 in the same period of 2020, reflecting a reduction of approximately 39.4%[158] - The basic and diluted loss per share for the period was HKD 0.456, compared to HKD 0.753 in the previous year, indicating a decrease in loss per share by about 39.5%[158] Visitor and Gaming Revenue - For the six months ending June 30, 2021, total visitor numbers increased by 20.2% year-over-year, while visitors from mainland China rose by 52.3%[13] - Macau's total gaming revenue for the first half of 2021 increased by 45.4% year-over-year to HKD 47.6 billion[13] - The total win amount from mass table games was HKD 3,744,264,000, up from HKD 1,545,386,000 in the previous year[191] - Main table gaming win for the six months ended June 30, 2021, was HKD 3.744 billion, up 142.3% from HKD 1.545 billion in 2020[58] - VIP table gaming win increased by 24.1% to HKD 1.158 billion for the six months ended June 30, 2021, compared to HKD 933.7 million in 2020[59] - Slot machine win rose by 76.5% to HKD 480.6 million for the six months ended June 30, 2021, from HKD 272.2 million in 2020[60] Operational Challenges - The ongoing COVID-19 pandemic has significantly impacted the company's operations, with various health measures still in effect as of the report date[11] - The company resumed operations on February 20, 2020, after a temporary suspension due to COVID-19, with health protection measures implemented[11] - New health and social distancing measures have been implemented to address customer safety concerns and adapt to changing behaviors[24] - The impact of COVID-19 has led to significant operational challenges, with restrictions affecting visitor numbers and overall business performance[175] Cost Management and Financial Flexibility - The company has taken measures to reduce salary expenses, including limiting on-site staff numbers and implementing voluntary unpaid leave[18] - Employee costs decreased by 4.5% to HKD 1.564 billion, reflecting cost management measures during the pandemic[66] - The company has a strong balance sheet and significant financial flexibility, which supports its growth potential[21] - The company has revised its financial covenants for its revolving credit facilities to allow for higher leverage and interest coverage ratios[14] Future Developments and Projects - A new luxury suite project at MGM Cotai is expected to open in the third quarter of 2021, enhancing the company's position in the premium segment[19] - The company plans to develop the MGM Art House Villas with an expected total capital cost of HKD 677 million to strengthen its position in the mid-to-high-end market[24] - The company is focusing on diversifying its services to meet different market segments and enhance financial performance[21] - The company is identifying innovative gaming and non-gaming investment opportunities to drive growth[21] Shareholder and Corporate Governance - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[113] - The company has complied with the corporate governance code as per the listing rules during the period from January 1, 2021, to June 30, 2021[150] - The company has adopted a comprehensive incentive plan allowing the issuance of stock options and other equity awards to eligible directors and employees[122] Debt and Financing - The company issued USD 500 million in 5.25% senior notes due June 18, 2025, to repay part of its revolving credit facilities, increasing available unsecured credit to HKD 83.4 billion[14] - The company has a total borrowing amount of HKD 22.74 billion as of the reporting date, compared to HKD 21.16 billion in the previous period[87] - The company has increased its available undrawn credit facilities to HKD 31.2 billion as of June 29, 2020, following amendments to its revolving credit facilities[186] - The company has drawn HKD 1.76 billion from its unsecured credit facilities as of the reporting date[87] Employee and Management - The company employed 10,065 full-time and part-time employees as of June 30, 2021, a decrease from 10,364 employees on December 31, 2020[108] - The company has shown a strategic focus on managing employee costs while facing rising operational expenses in maintenance and financing[195][196][200]

Financial Performance - Total revenue for the year was HKD 5,095,983, a decrease from HKD 22,765,036 in the previous year, reflecting a significant decline due to the pandemic[8] - Adjusted EBITDA for the year was a loss of HKD 1,371,723, compared to a profit of HKD 6,183,131 in the previous year[8] - The company reported a net loss attributable to shareholders of HKD 5,201,531, compared to a profit of HKD 1,931,228 in the previous year[8] - The total current assets amount to HKD 9.5 billion, including cash, cash equivalents, and unused credit facilities[16] - The company has successfully executed multiple refinancing rounds, including the issuance of senior notes in 2019 and 2020, indicating strong financial management[37] - The company anticipates ongoing adverse impacts on its financial condition due to the pandemic[50] - The company has taken steps to amend financial covenants related to leverage and interest coverage ratios multiple times throughout 2020[52] - As of December 31, 2020, the company's net debt was HKD 18.520 billion, with a capital debt ratio of 78.7%, up from 56.0% in 2019[92] - The total borrowings as of December 31, 2020, amounted to HKD 21,155,040, an increase from HKD 16,604,526 in 2019[101] - The company has issued unsecured senior notes totaling USD 1.5 billion, with maturities in 2024 and 2026, to refinance existing debt and for general corporate purposes[102] Visitor and Market Trends - Visitor numbers to Macau dropped to 5.9 million in 2020, down from 39.4 million in 2019, marking a historic low due to travel restrictions[14] - The total gaming revenue in Macau decreased by 79%, reaching the lowest level in 14 years[14] - The company expects a steady recovery in visitor numbers, indicating a positive outlook for the future[15] - Since the resumption of travel visa issuance by the Chinese mainland and Macau governments, visitor numbers and business volume at MGM Macau and MGM Cotai have steadily increased since the Golden Week in October 2020[44] - The total number of visitors to Macau and visitors from mainland China decreased by 85.0% and 83.0% respectively compared to 2019[51] - The long-term growth outlook for the Macau market remains optimistic due to increasing outbound tourism from mainland China and government efforts to control COVID-19[64] Operational Adjustments - The company has actively reduced operating expenses and postponed non-essential capital expenditures to improve liquidity and prepare for economic recovery due to the severe impact of COVID-19 on operations and financial performance[44] - The company implemented several cost-reduction measures, including limiting on-site staff numbers and postponing capital expenditures[52] - The company has maintained strong cash flow and significant growth potential, supported by a robust balance sheet and financial flexibility[57] - The company aims to enhance operational efficiency and customer experience by improving product and service quality, increasing asset utilization, and streamlining its organizational structure across various business segments[57] Community and Employee Engagement - The company implemented measures to support local SMEs and provided financial assistance during the pandemic[15] - Over 460,000 training hours were provided in 2020, with each team member receiving an average of over 44 hours of training, outperforming peers[16] - The company is focused on community engagement and charitable contributions, aiming to provide innovative services and support local SMEs[125] - The company has established a Sustainability Committee in 2012 to develop policies and programs aimed at achieving sustainability goals[127] - In 2020, the company conducted 96 community activities, contributing 20,000 volunteer hours and assisting over 7,000 individuals in need[127] - The company has maintained a diverse workforce with employees from over 33 different countries, achieving a gender ratio of 52% male and 48% female[140] Sustainability and Environmental Initiatives - The company has committed to conducting annual carbon audits and setting corresponding targets to align with national carbon neutrality goals by 2060[196] - The company achieved a 12% reduction in energy consumption compared to the 2017 baseline, with a total energy consumption of 1,866,696 kWh in 2020[182][183] - Water consumption in 2020 was 1,060,232 cubic meters, a 29% decrease from 2019 and a 65% reduction compared to the 2017 baseline[187] - The company generated 2,013 tons of waste at MGM Macau and 2,506 tons at MGM Cotai in 2020, marking a 51% and 52% reduction year-over-year, respectively[189] - The company has adopted the ISO 50001:2018 Energy Management System certification across all its hotels, emphasizing its focus on energy efficiency[178] Governance and Compliance - The company has a comprehensive code of conduct that addresses anti-corruption, confidentiality, conflicts of interest, and insider trading[132] - The company has established an Anti-Money Laundering Compliance Committee to mitigate risks associated with its operations in the gaming industry[132] - The company has complied with all applicable laws and regulations, with no legal cases related to corruption or fraud in 2020[135] - The company’s senior management is responsible for ensuring effective risk management and internal controls related to sustainability[127] Future Development Plans - The company plans to add more suites to the MGM Lion in mid-2021 and launch new dining, retail, and other improved facilities within the year[17] - The company is developing the South Tower suites at MGM Cotai with an expected total capital cost of HKD 677 million to strengthen its position in the mid-to-high-end market[60] - The company plans to launch new activities and attractions post-COVID-19 recovery, aiming to enhance customer engagement and revenue generation[72]