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]

Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 2,370,394, a decrease of 78.9% compared to HKD 11,296,634 for the same period in 2019[7] - Adjusted EBITDA for the same period was a loss of HKD 1,008,386, compared to a profit of HKD 3,076,803 in 2019[7] - The company reported a net loss attributable to shareholders of HKD 2,860,430, compared to a profit of HKD 1,022,392 in the previous year[7] - Basic and diluted loss per share for the period was HKD 75.3, compared to earnings of HKD 26.9 per share in 2019[7] - The company's operating revenue for the six months ended June 30, 2020, was HKD 2.370 billion, a decrease of 79.0% compared to HKD 11.297 billion for the same period in 2019[49] - The adjusted EBITDA for the company was HKD (1.008) billion for the first half of 2020, down from HKD 3.077 billion in the same period of 2019[48] - The company reported an operating loss of HKD 2,395,901, compared to an operating profit of HKD 1,470,453 in the previous year[167] - The total comprehensive loss for the period was HKD (2,861,725,000), reflecting the impact of COVID-19 on operations[174] Impact of COVID-19 - The COVID-19 pandemic led to the suspension of operations at MGM China from February 5, 2020, for 15 days, significantly impacting business performance[12] - MGM China resumed operations on February 20, 2020, but with health protection measures still in place, including limits on gaming tables and social distancing[12] - Total visitor numbers to Macau and mainland Chinese visitors in the first half of 2020 decreased by 83.9% and 83.7% respectively compared to the same period in 2019[14] - Macau's total gaming revenue in the first half of 2020 fell by 77.4% to HKD 32.7 billion compared to the same period in 2019[14] - The company has implemented new health and social distancing measures to address customer safety concerns during the pandemic[26] - The company is focusing on cost management and operational efficiency to navigate the challenging market conditions[167] - The group has taken measures to mitigate the financial impact of COVID-19, including reducing salary expenses and postponing capital expenditures[182] - The group’s performance for the six months ended June 30, 2020, was significantly impacted by travel and operational restrictions due to COVID-19[182] Operational Adjustments - The company implemented several measures to reduce payroll expenses, including limiting on-site staff, pausing hiring, and introducing voluntary unpaid leave[14] - The company postponed several capital expenditures planned to start in the second quarter of 2020[14] - The company has taken measures to reduce expenses due to the COVID-19 pandemic, including deferring capital expenditures and implementing salary reductions[108] - The company has implemented strategies to attract local residents to its non-gaming facilities amid reduced tourism demand due to COVID-19[41] Gaming Operations - The company holds one of the six gaming licenses in Macau, with its license extended until June 26, 2022[11] - MGM China operates two integrated resorts in Macau, MGM Macau and MGM Cotai, focusing on premium gaming and hospitality experiences[11] - The company's gaming revenue composition as of June 30, 2020, was 66% from mass market and 34% from VIP market, compared to 62% and 38% respectively as of June 30, 2019[38] - The mass market gaming business is identified as the most profitable segment, with a focus on enhancing the gaming experience for high-value customers through dedicated gaming areas[37] - The total win amount for VIP gaming tables decreased by 81.1% to HKD 933.693 million compared to HKD 4.938 billion in the previous year[58] - The total win amount for mass gaming tables decreased by 78.2% to HKD 1.545 billion from HKD 7.076 billion in 2019[59] - The total win amount for slot machines decreased by 75.2% to HKD 272.213 million compared to HKD 1.097 billion in the previous year[59] Financial Position and Liquidity - As of June 30, 2020, the company had cash and cash equivalents of HKD 2.277 billion and undrawn credit facilities of HKD 9.12 billion available for operations and development activities[71] - The capital debt ratio increased to 69.5% as of June 30, 2020, compared to 56.0% as of December 31, 2019, reflecting an increase in net debt[73] - The total borrowings as of June 30, 2020, amounted to HKD 18.9013 billion, an increase from HKD 16.6045 billion as of December 31, 2019[83] - The company issued USD 500 million of 5.25% senior notes due in 2025, with proceeds used to repay part of the outstanding borrowings under revolving credit facilities[88] - The company has a total of HKD 3.75 billion drawn from the revolving credit facilities as of June 30, 2020[91] - The company has significant shareholdings from directors, with various percentages ranging from 0.0054% to 0.7607% across different entities[121] Management and Governance - The company announced the resignation of CEO Grant R. Bowie effective May 31, 2020, with a restructuring of senior executive roles to enhance management expertise[18] - The company appointed Feng Xiaofeng as President, Strategy, and Chief Financial Officer effective June 22, 2020[157] - The company adhered to the corporate governance code during the reporting period from January 1 to June 30, 2020[153] - The company confirmed compliance with its own securities trading code and the standard code during the reporting period[154] Future Outlook - The company is optimistic about long-term growth in the Macau gaming market due to significant investments in new properties and improved infrastructure[28] - The company aims to enhance operational efficiency and customer experience through improved product and service quality, and increased asset utilization[22] - The company plans to attract high-end customers through new offerings and maintain focus on high-margin mass gaming operations[22] - The group anticipates that the ongoing impact of COVID-19 will continue to affect future performance[182]

Financial Performance - Entertainment revenue for the six months ended June 30, 2019, was HKD 10,158,920, an increase of 24.1% from HKD 8,193,851 in the same period of 2018[6] - Adjusted EBITDA for the same period was HKD 3,076,803, representing a 33.3% increase from HKD 2,307,731 in 2018[6] - The company reported a profit attributable to owners of HKD 1,022,392, up 45.0% from HKD 704,580 in the previous year[6] - Basic earnings per share increased to HKD 0.269 from HKD 0.185, reflecting a growth of 45.3%[6] - Total operating revenue for the six months ended June 30, 2019, was HKD 11,296.6 million, up 24.5% from HKD 9,070.034 million in the same period of 2018[31] - For the six months ended June 30, 2019, the total revenue from the casino increased by 24.0% to HKD 10,158.92 million compared to HKD 8,193.85 million in the same period of 2018[39] - The total win from VIP gaming tables grew by 10.5% to HKD 4,938 million, benefiting from the operations of MGM Cotai, which opened in the second half of 2018[44] - The total win from mass gaming tables increased by 35.6% to HKD 7,076 million, with a 10.5% increase in betting volume to HKD 31,611.3 million[45] - Slot machine total win rose by 1.6% to HKD 1,097 million, supported by a 37.9% increase in betting volume to HKD 35,636.6 million[47] - Other revenue, including hotel rooms, dining, retail, and entertainment, increased by 29.8% to HKD 1,137.7 million, primarily due to the opening of MGM Cotai[48] Market Position and Growth - The company's market share increased from 7.6% for the six months ended June 30, 2018, to 9.3% for the same period in 2019, partly due to the opening of MGM Cotai[20] - Visitor arrivals in Macau reached 20.3 million in the first half of 2019, a 20.6% increase compared to the same period in 2018, with 70.6% of visitors coming from mainland China[19] - The mid-market and VIP segments contributed 62% and 38% respectively to the total gaming revenue for the six months ended June 30, 2019[17] - The company aims to enhance customer experience by improving product and service quality, increasing asset utilization, and maximizing operational efficiency[15] - The company is focused on identifying innovative gaming and non-gaming investment opportunities to further strengthen its market position[15] Operational Developments - The company received approval for 100 new gaming tables and 982 slot machines at MGM Cotai, which opened in February 2018[9] - MGM China Holdings Limited is a leading developer and operator of integrated resorts in Macau, with a focus on premium gaming and hospitality experiences[9] - MGM Macau features a gaming floor area of approximately 34,404 square meters, equipped with 1,080 slot machines and 291 gaming tables[10] - MGM Cotai opened on February 13, 2018, featuring a gaming area of approximately 27,696 square meters with 1,203 slot machines and 261 gaming tables[12] - Infrastructure improvements, such as the opening of the Hong Kong-Zhuhai-Macau Bridge, are expected to facilitate easier travel to Macau, supporting long-term growth in the gaming market[19] Financial Management and Capital Structure - The company completed a refinancing transaction by issuing senior notes totaling USD 1.5 billion (approximately HKD 11.7 billion) on May 16, 2019[9] - A revolving credit facility of HKD 9.75 billion was agreed upon with lenders, maturing on May 15, 2024, to support ongoing operational needs[9] - Financing costs increased to HKD 511,190 in 2019 from HKD 265,233 in 2018, reflecting higher debt levels[27] - The company has a leverage ratio of approximately 3.42 as of June 30, 2019, allowing for a maximum dividend payment of HKD 12 billion if the leverage exceeds 4.0 times[84] - The company has maintained compliance with financial covenants, including an interest coverage ratio of no less than 2.5 to 1.0[81] Shareholder Information and Dividends - The board declared an interim dividend of HKD 0.094 per share, totaling approximately HKD 357.2 million, representing 34.9% of the profit attributable to shareholders for the six months ended June 30, 2019[104] - The report highlights the importance of the interim dividend as not being indicative of the full-year profit or dividend levels[104] - The company has sufficient resources post-dividend payment to support its operational and business expansion needs[104] - The interim dividend payment is scheduled for around August 29, 2019, to shareholders listed on August 20, 2019[104] Employee and Corporate Governance - The company employs 10,911 full-time and part-time employees across Macau, Hong Kong, and Zhuhai as of June 30, 2019[102] - The company maintains a competitive compensation system based on market standards to attract and retain a diverse and skilled workforce[102] - The company has implemented a performance-based incentive plan for all management-level employees since 2011 to support its strategic objectives[102] - The company has adopted a more stringent code of conduct for securities trading than the standard code[144] - The company has complied with the corporate governance code during the reporting period from January 1 to June 30, 2019[144] Cash Flow and Liquidity - As of June 30, 2019, cash and cash equivalents were HKD 3.4157 billion, with available credit facilities of HKD 7.0 billion[62] - Net cash generated from operating activities was HKD 2.5434 billion, down from HKD 2.8815 billion in the previous period[67] - Cash used in investing activities was HKD 653.3 million, significantly lower than HKD 2.0659 billion in the prior period, reflecting reduced capital expenditures[68] - The company has sufficient liquidity to meet its financial obligations for the next twelve months, considering its cash, borrowings, and internally generated funds[98] Risks and Legal Matters - The company faces market risks primarily related to foreign currency exchange rates and interest rate fluctuations[95] - The company plans to defend against legal claims related to its operations in Macau, with management believing the outcomes will not significantly impact financial performance[73] Accounting and Reporting Standards - The financial statements were prepared based on the historical cost convention and in accordance with applicable disclosure requirements under the listing rules and international accounting standards[173] - The group has adopted a modified retrospective approach for the application of IFRS 16 without restating comparative information[177] - The group recognized lease liabilities of HKD 2.192 billion and right-of-use assets of HKD 14.095 billion upon the initial application of IFRS 16, which included a reclassification of HKD 11.909 billion related to land use rights[178]

Financial Performance - Total revenue for 2018 reached HKD 19,200,721, an increase of 32.6% compared to HKD 14,480,532 in 2017[7] - Adjusted EBITDA for 2018 was HKD 4,837,180, marking a four-year high[7] - The company reported a net profit attributable to shareholders of HKD 1,068,499, down from HKD 2,320,185 in 2017[7] - Basic earnings per share for 2018 were HKD 0.281, compared to HKD 0.611 in the previous year[7] - Total adjusted EBITDA for the group reached HKD 4,837,180, an increase of 5.4% compared to HKD 4,587,435 in the previous year[56] - Adjusted EBITDA for MGM Macau was HKD 3,983,223, a decrease of 13.2% from HKD 4,587,435 in 2017[56] - The company's profit attributable to owners decreased by 53.9% year-on-year to HKD 1.068 billion, impacted by the operational ramp-up of MGM Cotai and lower gaming win rates[79] Gaming Operations - The total win from table games increased by approximately 34.0%, while slot machine wins grew by 58.8%[15] - The total win for slot machines at MGM Macau was HKD 1,504,785, an increase from HKD 1,406,587 in the previous year[59] - Total gaming revenue for VIP tables increased by 13.0% to HKD 9,682,345,000 in 2018, driven by an 18.2% increase in turnover to HKD 318,195,300,000[66] - Overall casino revenue rose by 26.7% to HKD 17,176,050,000 in 2018, compared to HKD 13,557,440,000 in 2017[64] - The company faced challenges with table win rates and slot machine win rates, which negatively impacted reported gaming revenue despite overall market growth[58] Market Expansion - The company opened its second property, MGM Cotai, in February 2018, which contributed to market share growth[15] - The overall market share of the company increased from 7.0% as of December 31, 2017, to 7.9% as of December 31, 2018[53] - The company plans to continue expanding its market presence and enhance customer experiences through innovative entertainment offerings[15] - The company aims to leverage improved transportation infrastructure to attract more visitors from Guangdong Province and beyond[16] - The opening of the 55-kilometer bridge connecting Hong Kong, Macau, and Zhuhai in October 2018 significantly reduced travel time and is anticipated to boost visitor numbers to Macau[16] Employee and Talent Development - The workforce exceeded 10,000 employees, with nearly 20% having been with the company since its inception, highlighting the importance of employee retention for future success[15] - The company has a strong focus on local talent development to enhance the overall talent pool in the region[16] - The local leadership talent development program has graduated over 160 participants since its launch in 2014, with a retention rate of 90%[116] - The company has provided over 200 training courses and more than 917,000 hours of training in 2018, averaging 85 hours per team member[115] Corporate Governance - The company is committed to maintaining strong corporate governance through its various committees, including audit and remuneration[34] - The board consists of 11 members, including 5 executive directors, 3 non-executive directors, and 3 independent non-executive directors, with no significant relationships among them[175] - The company has established a code of conduct applicable to all employees, covering anti-corruption, confidentiality, and conflict of interest[113] - The company has complied with the covenants in the fifth, fourth, and third supplemental agreements as of the end of 2018[94] Community Engagement and Sustainability - In 2018, the company conducted 106 community activities, contributing over 10,000 hours, marking the highest record in its history[110] - The company is committed to reducing its operational impact on the environment, focusing on areas such as waste management and greenhouse gas emissions[106] - The company aims to align its sustainability goals with the United Nations' Sustainable Development Goals, specifically targeting Goal 8 (Decent Work and Economic Growth), Goal 11 (Sustainable Cities and Communities), and Goal 12 (Responsible Consumption)[109] - The company has committed to providing a quality work environment for employees and actively giving back to the community[106] Environmental Management - The company’s environmental management system complies with ISO 50001, and it was the first integrated resort operator in Macau to receive this certification in 2016[146] - In 2018, MGM China's total greenhouse gas emissions amounted to 159,024.35 tons of CO2 equivalent, an increase of 89% from 2013, primarily due to the addition of MGM Cotai[147] - The company aims to stop using single-use plastics in all dining establishments by early 2019, becoming the first operator in Macau to provide plastic straws only upon request[160] - The waste management strategy focuses on reduction, reuse, and recycling, with new initiatives including a coffee capsule recycling program in partnership with Nespresso[161] Financial Management - As of December 31, 2018, the company had cash and cash equivalents of HKD 3.99 billion and undrawn credit facilities of HKD 2.78 billion available for operations and development activities[80] - The capital debt ratio rose to 62.5% in 2018 from 59.6% in 2017, indicating a higher level of leverage[82] - The company plans to utilize its revolving credit facilities to repay term loans within the next twelve months, with a total of HKD 15.6 billion in term loans fully drawn as of December 31, 2018[91] - The company has significant collateral for its loans, including most of its assets and shares of MGM Cotai and its subsidiaries[95]