Investment Rating - The report maintains a "Buy" rating for MGM China (2282.HK) [1] Core Views - The company's total gaming revenue for Q1 2024 reached HKD 9.45 billion, recovering to 140.8% of the same period in 2019, with VIP and mass market revenues at HKD 1.50 billion and HKD 7.95 billion respectively, recovering to 55.8% and 197.6% of 2019 levels [2][3] - The company's overall market share increased from 9.1% in Q1 2019 to 17.0% in Q1 2024, with a slight month-on-month increase in market share noted in March and April 2024 [2] - The adjusted property EBITDA for Q1 2024 was HKD 2.51 billion, exceeding Bloomberg consensus estimates by approximately 14%, and the EBITDA margin improved to 30.3% [3] Summary by Sections Revenue and Profit Forecast - Total revenue for 2023 is projected at HKD 24.68 billion, with a significant increase to HKD 33.40 billion in 2024, representing a year-on-year growth of 369% [2] - The adjusted property EBITDA is expected to rise from HKD 7.24 billion in 2023 to HKD 9.85 billion in 2024, reflecting a 117% increase [2] - The report forecasts earnings per share to increase from HKD 0.69 in 2023 to HKD 1.50 in 2024 [2] Business Expansion - MGM China is focusing on expanding its non-gaming business, including the addition of villas and suites in Macau and new dining services that have been well-received by consumers [3] - The company is collaborating with renowned director Zhang Yimou to create a resident show titled "MGM 2049" and is constructing a world-class museum in Macau to enhance cultural experiences for consumers [3] Market Position and Strategy - The management believes that the introduction of smart gaming tables by other operators will not significantly impact MGM China's competitive advantage, as the company has been utilizing smart tables since 2016 and has accumulated substantial consumer data [3] - The report projects that the company's adjusted property EBITDA margin will remain high, between 27% and 30%, throughout 2024 [3]

Financial Performance - Total revenue for 2023 reached HKD 24,684,210, a significant increase of 368% compared to HKD 5,268,569 in 2022[10] - Adjusted EBITDA for 2023 was HKD 7,235,246, recovering from a loss of HKD 1,274,355 in 2022[10] - The company reported a net profit of HKD 2,638,304 for 2023, compared to a loss of HKD 5,231,911 in the previous year[10] - The total gross gaming revenue for 2023 was MOP 183 billion, an increase of 334% from 2022[20] - The company reported a significant increase in revenue, achieving a total of $X billion, representing a Y% growth compared to the previous year[48] - The company reported a profit attributable to owners of HKD 2.638 billion, a significant recovery from a loss of HKD 5.232 billion in the previous year[153] Market Share and Visitor Statistics - The company’s market share increased from 9.5% in 2019 to 15.2% in 2023[23] - The number of visitors to the company’s hotels in 2023 was 106% of the 2019 levels[23] - In 2023, Macau's gross gaming revenue exceeded MOP 180 billion, with six licensed operators committing to a 20% increase in investment during the concession period[30] - The total number of inbound visitors to Macau increased by 394.9% in 2023 compared to 2022, with visitors from mainland China rising by 273.1%[103] - The company’s market share in Macau's gaming sector increased from 9.5% in 2019 to 15.2% as of December 31, 2023, following the acquisition of an additional 198 gaming tables[107] Operational Capacity and Investments - The company received operating rights for 750 gaming tables, up from 552 previously, enhancing operational capacity[23] - The company has committed to invest a total of MOP 16.7 billion (approximately HKD 16.2 billion) over the contract period, with MOP 15 billion (approximately HKD 14.6 billion) allocated for developing international markets and non-gaming projects, representing about 90% of the total investment[99] - The company has extended its revolving credit facility maturity date from May 15, 2024, to May 15, 2026[93] - The revised second revolving credit facility allows for an increased borrowing limit of HKD 58.5 billion, subject to certain conditions[96] Customer Experience and Non-Gaming Activities - MGM China is committed to enhancing customer experience and introducing more non-gaming activities in Macau[30] - The company aims to attract high-end customers through targeted positioning of luxury offerings such as "Yonghua Mansion" and "Yonghua No. 1" while maintaining focus on high-margin mid-tier gaming operations[101] - The company is focusing on enhancing customer experience through improved operational efficiency and diversified resort products, including innovative entertainment and art attractions[99] - MGM Resorts International's loyalty program, M Life Rewards, was developed under Hornbuckle's leadership, contributing to customer retention[38] Strategic Initiatives and Partnerships - MGM China aims to attract international and diverse visitors by hosting the MGM Macau Tennis Masters in collaboration with IMG, featuring top international tennis players[27] - The company has established a partnership with the Mandarin Oriental Hotel to provide additional rooms during peak demand periods[84] - The company continues to explore new strategies for market expansion and product development in the hospitality and gaming sectors[38] Leadership and Governance - William Joseph Hornbuckle has been the CEO and President of MGM Resorts International since July 29, 2020, overseeing global development and digital gaming strategies[38] - John M. McManus has served as the Chief Legal and Administrative Officer since September 2022, contributing to governance and compliance efforts[40] - The company’s independent directors bring diverse experience from various industries, enhancing governance and oversight[63][67] Financial Health and Debt Management - Cash and cash equivalents stood at HKD 4.230 billion, with available but undrawn unsecured credit facilities of HKD 11.450 billion[154] - Total borrowings as of December 31, 2023, amounted to HKD 24,098,731, a decrease from HKD 32,725,136 as of December 31, 2022[175] - The company has issued unsecured senior notes totaling USD 1.5 billion, with maturities in 2024, 2026, and 2027, to refinance existing debt and for general corporate purposes[176] - The company has established a leverage ratio not exceeding 4.5:1.0 and an interest coverage ratio of at least 2.5:1.0 as of each quarter-end starting from September 30, 2021[191] Challenges and Risks - The company faces challenges from factors such as economic slowdowns in mainland China, regulatory changes, and global trade tensions, which may impact visitor numbers and capital flows[106] - The company anticipates that ongoing legal proceedings related to gaming intermediaries will not have a significant impact on its financial performance or cash flows[171]

Financial Performance - Total revenue for MGM China Holdings Limited reached HKD 24,684,210 thousand in 2023, a significant increase from HKD 5,268,569 thousand in 2022, representing a growth of approximately 368%[2] - The company reported an adjusted EBITDA of HKD 7,235,246 thousand for 2023, compared to a loss of HKD 1,274,355 thousand in 2022, indicating a substantial recovery in operational performance[2] - Net profit attributable to shareholders was HKD 2,638,304 thousand in 2023, a turnaround from a loss of HKD 5,231,911 thousand in the previous year, marking a significant improvement[3] - Operating profit for the year was HKD 4,547,486 thousand, a recovery from an operating loss of HKD 3,609,542 thousand in 2022[5] - The company reported a significant increase in gaming revenue, reaching HKD 21,821,840 thousand in 2023, compared to HKD 4,438,995 thousand in 2022, reflecting a strong recovery in the gaming sector[2] - The group’s financial performance showed significant improvement following the relaxation of travel restrictions in Macau starting December 2022, leading to a substantial increase in visitor numbers[11] - Adjusted EBITDA for 2023 reached HKD 7,235,246, a significant recovery from a loss of HKD 1,274,355 in 2022[18] - Total operating revenue for 2023 was HKD 24,684,210, up from HKD 5,268,569 in 2022, representing a growth of approximately 368%[19] - The company reported a net profit attributable to shareholders of HKD 2,638,304 in 2023, compared to a loss of HKD 5,231,911 in 2022[25] - Basic earnings per share for 2023 were HKD 0.694, recovering from a loss of HKD 1.377 in 2022[25] Dividends and Shareholder Returns - The board declared a special dividend of HKD 0.104 per share, totaling approximately HKD 395,200 thousand, which represents about 15% of the net profit attributable to shareholders for the year[4] - The company plans to pay a final dividend of HKD 0.243 per share, amounting to approximately HKD 923,400 thousand, which constitutes about 35% of the net profit attributable to shareholders[4] Assets and Liabilities - Total assets decreased to HKD 29,181,304 thousand in 2023 from HKD 31,209,496 thousand in 2022, reflecting a reduction in cash and cash equivalents[6] - The company's total liabilities decreased to HKD 30,508,524 thousand in 2023 from HKD 35,205,917 thousand in 2022, indicating improved financial stability[9] - Cash and cash equivalents were HKD 4,231,986 thousand in 2023, down from HKD 6,706,591 thousand in 2022, highlighting a need for cash management strategies[6] - The group had a net current liability of HKD 5.1874 billion as of December 31, 2023, compared to a net current asset of HKD 4.9303 billion as of December 31, 2022, largely due to an unsecured senior note maturing on May 15, 2024[13] Gaming Operations - The group’s gaming license for MGM Cotai was granted for a period of 10 years from January 1, 2023, allowing the operation of a total of 750 gaming tables and 1,700 electronic gaming machines[12] - The mass market gaming segment accounted for 85% of the company's gaming revenue for the year ending December 31, 2023[68] - MGM's gaming operations are supported by a total of 950 slot machines and 351 gaming tables at the Macau MGM, which opened in December 2007[55] - As of December 31, 2023, the total floor area of the MGM Cotai is approximately 24,549 square meters, featuring 901 slot machines and 399 gaming tables[56] Visitor Trends and Market Conditions - The total number of inbound visitors to Macau increased by 394.9% compared to 2022, with total gaming revenue rising by 333.8% to HKD 177.7 billion for the year ending December 31, 2023[64] - The proportion of visitors from mainland China to Macau was approximately 67.5% in 2023, down from 70.9% in 2019, indicating a slight shift in visitor demographics[63] - The overall gaming market share increased from 9.5% in 2019 to 15.2% as of December 31, 2023, driven by additional gaming tables and a focus on the mid-to-high-end market[66] Operational Improvements - 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] - The company has enhanced its marketing efforts and brand recognition through various promotional activities and strategic alliances[71] - The company continues to focus on upgrading its facilities and enhancing customer experience in both gaming and non-gaming areas[71] Financial Obligations and Debt Management - The company believes it can meet its financial obligations due within the next twelve months based on its improved cash flow estimates and financial performance[13] - The company has extended the maturity date of its revolving credit facilities from May 15, 2024, to May 15, 2026[34] - The company has no secured debt or subordinated debt as of the announcement date[38] - The company’s total unsecured borrowings include HKD 21,374.339 million after deducting financing costs[34] Future Growth and Investments - The company has committed to invest MOP 19.7 billion (approximately HKD 19.1 billion) in gaming and non-gaming projects, with MOP 18 billion (approximately HKD 17.5 billion) allocated for non-gaming projects[31] - The company is exploring potential acquisitions to further strengthen its market position, with a budget of $200 million allocated for this purpose[149] - The company plans to expand its market presence in the U.S., targeting a 25% increase in revenue from this region over the next fiscal year[149] Corporate Governance and Compliance - The company has committed to maintaining high ethical standards and compliance with corporate governance codes as of December 31, 2023[135] - The company’s board of directors is composed of three independent non-executive directors and two non-executive directors, overseeing financial reporting and risk management[137]

Investment Rating - The report maintains a "Buy" rating for MGM China (2282 HK) [1] Core Views - MGM China's 4Q23 revenue and profits exceeded expectations, with total revenue reaching HKD 7 68 billion (134 9% of 4Q19 levels) and adjusted property EBITDA of HKD 2 19 billion (140 6% of 4Q19 levels) [2] - The company's gaming revenue recovery outpaced the industry, with mass market (including slots) gaming revenue reaching 163 1% of 4Q19 levels, leading the industry by 59 percentage points [3] - Non-gaming revenue recovered to 159 1% of 4Q19 levels, driven by successful events and concerts [3] - The report raises 2023-2025 revenue forecasts to HKD 24 2 billion, HKD 26 77 billion, and HKD 28 42 billion respectively, with adjusted property EBITDA forecasts of HKD 7 13 billion, HKD 8 13 billion, and HKD 8 76 billion [3] Financial Performance - 4Q23 gaming revenue reached HKD 8 5 billion, recovering to 125 1% of 2019 levels, with VIP and mass market (including slots) gaming revenue at 49 4% and 163 1% of 4Q19 levels respectively [3] - The company's market share increased to 16 3% in 4Q23 from 9 7% in 4Q19, maintaining a full-year 2023 market share of 15 1% despite new property openings by competitors [3] - MGM Macau and MGM Cotai achieved mass market table daily drop of 104 0% and 121 8% of 2019 levels respectively [3] Operational Highlights - The company's operational performance remained strong in early 2024, with January adjusted property EBITDA and market share exceeding October 2023 peak levels [3] - Chinese New Year period saw visitor numbers and gaming volumes significantly surpassing 2019 levels [3] - The company has successfully hosted concerts by international and local artists, boosting non-gaming revenue and driving foot traffic [3] Valuation - The report sets a target price of HKD 16 8, with current EV/adjusted property EBITDA multiples of 10 0x, 8 8x, and 8 1x for 2023-2025 [3] - The stock is trading at HKD 12 58, with a 52-week range of HKD 9 20-12 94 [4]

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].