Financial Performance - Total gaming revenue for the fiscal year 2024 increased by 5.5% to $542.9 million from $514.8 million in fiscal year 2023[3] - Mass gaming revenue rose by 17.2% to $395 million, up from $337 million in the previous year[3] - The overall gross margin for the mass and premium VIP segments improved to 86% from 84% in the previous fiscal year[3] - Net profit decreased by 38.3% to $109.6 million, primarily due to a non-cash impairment loss of $89.1 million related to the Vladivostok project[3] - Basic earnings per share dropped to 2.48 cents from 4.02 cents in the previous year[3] - EBITDA for the fiscal year 2024 was $202.8 million, down from $295.3 million in fiscal year 2023[3] - Total revenue from casino operations increased to $562.5 million in 2024, up from $533.2 million in 2023, representing a growth of approximately 5.5%[16] - The company reported a pre-tax profit of $109.6 million for 2024, a decrease from $177.7 million in 2023, reflecting a decline of about 38.4%[23] - Casino tax expenses for 2024 amounted to $34.2 million, compared to $31.3 million in 2023, indicating an increase of approximately 9.1%[19] - The company's total assets decreased to $2.3 billion in 2024 from $2.34 billion in 2023, a reduction of about 1.0%[13] - Cash and cash equivalents significantly dropped to $120.4 million in 2024 from $348.4 million in 2023, a decline of approximately 65.4%[13] - The company did not recommend any dividends for the current year, consistent with the previous year[22] - The interest expenses related to preferred notes decreased to $20.5 million in 2024 from $39.7 million in 2023, a reduction of about 48.3%[16] - The company’s net asset value increased to $2.16 billion in 2024 from $2.02 billion in 2023, reflecting a growth of approximately 6.5%[13] - The company’s employee costs rose to $102.0 million in 2024, compared to $87.9 million in 2023, an increase of about 16.1%[17] - The company’s total liabilities decreased significantly, with current liabilities net worth improving to $(35.1) million in 2024 from $(243.7) million in 2023[13] - Total reported segment revenue for the year ending December 31, 2024, is $567,072,000, an increase from $538,339,000 in 2023, representing a growth of approximately 5.6%[30] - The segment profit for the year ending December 31, 2024, is $215,576,000, down from $319,157,000 in 2023, indicating a decline of about 32.5%[28] - Total assets reported as of December 31, 2024, are $2,922,161,000, a decrease from $3,148,339,000 in 2023, reflecting a reduction of approximately 7.2%[28] - Total liabilities as of December 31, 2024, amount to $(680,500,000), slightly up from $(666,021,000) in 2023, showing an increase of about 2.3%[28] - Capital expenditures for the year ending December 31, 2024, are $101,845,000, significantly higher than $39,929,000 in 2023, indicating an increase of approximately 154.5%[28] - Impairment losses on property, plant, and equipment for the year ending December 31, 2024, total $48,852,000, compared to none in 2023[29] - The company has recognized a total of $89,110,000 in impairment losses related to the Vladivostok project in 2024, with no such losses reported in 2023[32] - The company’s non-current assets in Cambodia and Russia as of December 31, 2024, are valued at $2,123,279,000 and $192,576,000 respectively, compared to $2,054,167,000 and $281,582,000 in 2023[30] - The company has no individual customer contributing 10% or more to its revenue in the current or past years[30] Market Trends and Economic Environment - Daily average revenue from the gaming floor grew by 8.2% year-on-year to $10,700,000, recovering to 89.1% of pre-pandemic levels[44] - The number of international visitors arriving in Cambodia via Phnom Penh International Airport recovered to 84.6% of 2019 levels in 2024[44] - The high-end VIP market's daily turnover recovered to 82.5% of pre-pandemic levels, driven by the return of business travelers[44] - The overall financial performance is attributed to stable recovery and growth trends in the business, supported by the resurgence of the Cambodian tourism industry[43] - Total revenue and gross profit contributions from the mass and high-end VIP segments accounted for approximately 88.5% and 94.1%, respectively[44] - Cambodia welcomed approximately 6,700,000 international tourists in 2024, surpassing pre-pandemic levels with a recovery rate of 101.4%, ranking second among major Asian countries in tourist recovery[48] - The Cambodian government approved a budget of $50,000,000 to attract more international tourists over the next two years, focusing on promoting Cambodia as a leading tourism destination[46] - The number of international flights to Cambodia increased by 21.1% to 585 weekly flights as of March 17, 2025, with significant increases from major cities in Greater China and Southeast Asia[49] - Foreign direct investment (FDI) projects in Cambodia reached a total of $6,900,000,000 in 2024, representing a year-on-year growth of 40.2%[50] - China remained the largest source of foreign investment in Cambodia in 2024, with an investment amount of $3,400,000,000, accounting for 49.8% of total foreign investment[50] - The ASEAN region recorded approximately 123,000,000 international tourists in 2024, reflecting a year-on-year growth of 30.6%[48] - The Cambodian Ministry of Tourism partnered with Visa Worldwide to support the development of the tourism industry and enhance its appeal to international visitors[47] - The Cambodian government is focused on promoting all tourist attractions and has implemented measures to reduce e-visa fees to attract more tourists and investors[47] - Moody's upgraded Cambodia's outlook to stable, citing improvements in trade balance, tourism recovery, and foreign direct investment inflows[50] - Cambodia's export market is projected to reach $54.7 billion in 2024, reflecting a year-on-year growth of 16.9%[52] Corporate Social Responsibility and Sustainability - Since 2014, the NagaWorld Kind Hearts initiative has conducted over 730 events, contributing more than 43,000 hours of volunteer service[55] - NagaWorld has donated 55 computers benefiting 3,749 children from 10 NGOs and schools in the current year[56] - NagaWorld planted nearly 3,500 saplings in four provinces this year, with over 400 participants involved[58] - The company received multiple awards for its corporate social responsibility efforts, including the Platinum Award for "Best in Cambodia" at the 16th Global CSR Summit[58] - NagaWorld was recognized as a "Best Honorary Company" in the small-cap category by Institutional Investor magazine in June 2024[59] - The company has voluntarily adopted new climate regulations ahead of their mandatory implementation in January 2025, enhancing its sustainability reporting[84] - The company received the "Environmental Leader" title at the EuroCham Cambodia ESG Contest and Awards 2024 for its environmental efforts[86] - Gender diversity among employees was nearly equal, with women making up 50.2% and men 49.8% of the workforce[87] - The company held two board meetings in 2024 to discuss sustainability-related matters, including progress towards 2030 environmental goals[88] Strategic Initiatives and Future Outlook - The company has entered into an investment agreement to invest at least 11,600,000,000 Russian Rubles (approximately $350,000,000) in the Vladivostok project[34] - The company has no plans to declare a final dividend for the current year, maintaining a focus on reinvestment[95] - The company fully repaid $472,200,000 of outstanding principal on its 2024 senior notes, reflecting strong financial management[96] - The company will publish its annual report on its website and send it to shareholders via mail or electronically[100] - The exchange rate used for conversion is 1.0 USD to 7.75 HKD as of December 31, 2023[100] - The exchange rate for RUB is 1.0 USD to 101.68 RUB as of December 31, 2023[100] - There were no significant investments or acquisitions during the year, and no major updates on the Naga 3 and Vladivostok projects[81] - Despite external challenges from geopolitical tensions and global economic slowdown, Cambodia's economy shows resilience supported by growth in tourism and manufacturing[89] - Cambodia's Royal Government aims to attract 7,500,000 international arrivals by 2025, leveraging the new Phnom Penh International Airport with a capacity of 13,000,000 passengers annually[90] - The bilateral trade goal between Cambodia and Thailand is set at $15,000,000,000 by 2025, supported by the Plus-One strategy to enhance private investment[91] - The National Data Centre of Cambodia is expected to be fully operational by 2025, aimed at improving administrative services and supporting digital innovation[93] - NagaWorld, as the only integrated resort in Phnom Penh, is positioned to thrive by attracting tourists seeking competitive pricing and luxury experiences[94] - The Cambodian government is actively pursuing direct flight routes to enhance tourism, including partnerships with countries like the Philippines, Japan, and Australia[90] - Cambodia is optimistic about increasing Chinese tourist arrivals through the "Ready to Welcome Chinese Visitors" strategy and ASEAN tourism initiatives[92] - The new airport project is part of a long-term strategy to position Cambodia as a world-class tourist destination, enhancing infrastructure and introducing new routes[90] - The government is exploring a multi-country visa proposal to facilitate seamless travel among Cambodia, Brunei, Laos, Malaysia, Vietnam, and Thailand[91]

Financial Performance - NagaCorp reported a net loss of $1,000,000 for the six months ended June 30, 2024, primarily due to a non-cash impairment loss of $89,100,000 related to its Vladivostok project[20]. - Excluding the impairment loss, the company's net profit was $88,100,000, with EBITDA of $144,600,000, reflecting a year-on-year growth of 6.2% and 1.0% respectively[20]. - The company achieved revenue of $130,600,000, representing a 44.6% increase compared to the previous period[15]. - The gross profit was reported at $231,000,000, with a gross margin of 51.8%[15]. - The overall financial performance of the group is attributed to stable recovery and growth, with gaming revenue and gross profit contributing approximately 89.0% and 93.4% respectively[30]. - The company reported a total comprehensive income of $980,000 for the six months ended June 30, 2024, compared to $80.525 million in the same period of 2023[94]. - The company reported a net loss attributable to shareholders of $963,000 for the six months ended June 30, 2024, compared to a profit of $82.974 million in the same period of 2023[93]. - The company reported a pre-tax loss of $846,000 for the six months ended June 30, 2024, compared to a profit of $83,097,000 in the same period of 2023[123]. Tourism and Market Recovery - The number of leisure and business travelers visiting NagaWorld is gradually recovering, contributing to the company's operational performance[20]. - The company continues to benefit from the ongoing recovery in the tourism sector in the region[20]. - The number of international visitors to Cambodia reached 3,200,000 in the first half of 2024, recovering to 94.8% of the 2019 level, with a notable 8% increase compared to the same period in 2019[22]. - The Cambodian government aims to attract 7,000,000 international visitors by 2025, surpassing the pre-pandemic level of 6,600,000 visitors in 2019[22]. - The recovery of direct flights to Cambodia, including new routes from Dubai and Qatar, is expected to further stimulate economic growth and tourism[22]. - The second quarter of 2024 saw the highest revenue for the gaming segment since the property reopened in Q3 2021, indicating a strong recovery in visitor traffic[25]. - The average daily revenue in the mid-market increased by 5.7% year-on-year to $10,500,000, recovering to 87.2% of pre-pandemic levels[30]. - The total number of international visitors to Cambodia reached 3,200,000 in the first half of 2024, recovering to 94.8% of the same period in 2019[31]. Corporate Social Responsibility (CSR) - The company has implemented over 688 community improvement initiatives through its CSR program, with employee participation totaling approximately 37,000 hours[24]. - The company continues to focus on sustainable development and has been recognized for its leadership in corporate social responsibility initiatives[27]. - The company received top honors in the 2024 Asia Corporate Social Responsibility Awards for human capital investment, social empowerment, and green leadership[38]. - The company has recycled over 1,660 kilograms of soap, benefiting 725 families and promoting hygiene awareness[38]. Investment and Financial Position - As of June 30, 2024, the group had cash and deposits amounting to $570.8 million[35]. - The company repaid $472.2 million of outstanding principal on its 7.95% preferred notes due July 6, 2024, after securing a $70 million shareholder loan[35]. - The company’s total liabilities increased to $680.961 million as of June 30, 2024, compared to $653.198 million at the end of 2023[95]. - The company’s total equity remained stable at $2.0 billion as of June 30, 2024, consistent with the end of 2023[51]. - The company’s cash and cash equivalents decreased to $79.674 million as of June 30, 2024, down from $348.381 million at the end of 2023[95]. - The company has drawn $70,000,000 under a loan agreement with CLK Capital at an annual interest rate of 8% for refinancing purposes[133]. Regulatory and Governance - The company has maintained compliance with the corporate governance code as per the listing rules, confirming adherence to all applicable provisions during the period[83]. - The audit committee has reviewed the financial reports and internal control framework, ensuring that the financial statements are prepared in accordance with applicable accounting standards and provide full disclosure[85]. - The company has established a comprehensive risk management framework to identify and assess risks related to its operations, with oversight from the board and audit committee[88]. - An independent review of political and economic risks in Cambodia has been conducted annually, with results disclosed in the company's reports[90]. Future Outlook and Strategic Initiatives - The company maintains an optimistic outlook on long-term growth prospects, driven by the recovery of international tourism[58]. - The company plans to continue its market expansion and investment in new technologies to enhance operational efficiency and drive future growth[104]. - The company is committed to enhancing its environmental, social, and governance (ESG) commitments, including setting environmental targets for carbon emissions, electricity, water usage, and food waste by 2030[55]. - The company is preparing for compliance with new climate-related disclosure regulations effective from January 1, 2025[55].

Financial Performance - Total gaming revenue increased by 12.3% to $283.4 million compared to $252.3 million in the same period last year[4] - Gross profit (after gaming tax) rose by 14.0% to $231.0 million from $202.7 million year-on-year[4] - EBITDA decreased by 61.3% to $55.5 million from $143.2 million in the previous year, primarily due to a non-cash impairment loss of $89.1 million related to the Vladivostok project[4] - The company reported a net loss of $1.0 million, compared to a net profit of $83.0 million in the same period last year, largely due to the aforementioned impairment loss[2] - Total revenue for the six months ended June 30, 2024, was $292.76 million, an increase from $263.03 million in the same period of 2023, representing an 11.4% growth[13] - The company reported a pre-tax loss of $963,000 for the six months ended June 30, 2024, compared to a profit of $82.97 million in the same period of 2023[18] - The company reported a significant increase in impairment losses on trade receivables, rising to $5.51 million from $1.20 million in the previous year[15] - The casino segment reported a profit of $72.91 million for the six months ended June 30, 2024, down from $155.21 million in the same period of 2023[21] - The company reported a pre-tax loss of $846,000 for the six months ended June 30, 2024, compared to a profit of $83,097,000 in the same period of 2023[24] - The company reported a revenue of $659,914,000 for the first half of 2024, representing a 20% increase compared to $549,693,000 in the same period of 2023[46] - The net loss attributable to shareholders was $1,000,000 for the first half of 2024, compared to a net profit of $83,000,000 in the same period of 2023[55] Gaming Revenue Breakdown - The mass market gaming revenue grew by 17.8% to $192.0 million, while VIP market gaming revenue increased by 2.3%[2] - High-limit mass table gaming chips increased by 30.8% year-on-year to $265.6 million, with total gaming revenue from this segment rising by 39.2% to $45.2 million[5] - Casino operations generated $222.06 million from table games, up from $187.41 million, while electronic gaming machine revenue decreased to $61.33 million from $64.90 million[13] - The high-end VIP market saw a decrease in turnover by 11.7% to $1,800,000,000, generating revenue of $60,300,000, a decline of 4.1% year-on-year[48] - The company experienced a 12.6% decrease in non-gaming revenue, primarily due to a decline in hotel occupancy rates[50] Financial Position and Liquidity - The company fully repaid its maturing senior notes of $472.2 million in early July 2024, improving its liquidity position[6] - Total assets decreased to $2,240.1 million from $2,341.3 million as of December 31, 2023[8] - The company’s net cash position improved, with current liabilities net worth at $(82.8) million compared to $(243.7) million previously[8] - The total number of shares held through the Stock Connect program reached 43.3 million, accounting for 0.97% of the total issued shares, indicating increased liquidity and interest from mainland Chinese investors[42] - As of June 30, 2024, the group's cash and bank balances totaled $570,800,000, up from $367,600,000 as of December 31, 2023, indicating a significant increase in liquidity[59] - The net current liabilities decreased to $82,800,000 as of June 30, 2024, compared to $243,700,000 as of December 31, 2023, reflecting improved financial stability[60] Operational Costs and Expenses - The company incurred financing costs of $20.35 million for the six months ended June 30, 2024, slightly up from $19.87 million in the previous year[14] - The casino license premium amortization and depreciation for the six months ended June 30, 2024, was $41.99 million, down from $45.01 million in 2023[15] - Administrative and other operating expenses increased by $23,600,000 or 39% to $84,900,000 during the period[53] - The company’s financing costs for the period amounted to $10,100,000, a slight decrease from $10,900,000 in the previous year[54] Market and Economic Conditions - The average daily revenue for the mid-market increased by 5.7% year-on-year to $10,500,000, recovering to 87.2% of pre-pandemic levels as of FY2019[35] - The number of international visitors to Cambodia reached 3,200,000 in the first half of 2024, recovering to 94.8% of the same period in 2019[37] - High-end VIP customer per capita turnover grew approximately 11.6% year-on-year, with daily turnover recovering to 82.6% of pre-pandemic levels[35] - The average daily turnover for the referral VIP market increased by 17.6% year-on-year, driven by a 3.8% increase in win rate[35] - Business travel in the first half of 2024 reached 93.8% of pre-pandemic levels, largely due to cross-border travel from Vietnam and Thailand[37] - Cambodia's GDP growth remains robust, with a projected increase in foreign direct investment (FDI) leading to a significant rise in approved investment projects, totaling $3.2 billion in the first half of 2024, nearly double the amount from the same period last year[39] - Cambodia's exports reached $16.9 billion in the first half of 2024, reflecting a year-on-year growth of 14.2%, driven by diversified export markets and increased trade agreements[40] Strategic Initiatives and Community Engagement - The company’s loyalty program, NagaWorld Rewards, continues to enhance customer data understanding, leading to targeted marketing efforts[47] - NagaWorld has conducted over 688 community-focused activities since 2014, engaging employees for approximately 37,000 hours in initiatives aimed at education, community involvement, and environmental protection[43] - The company is committed to enhancing its environmental commitments, including setting environmental targets for carbon emissions, electricity, water usage, and food waste by 2030[70] - The company has recycled over 1,660 kilograms of soap through its "Soap Hope" project, benefiting 725 families and promoting sustainability[44] Future Outlook and Developments - The Naga 3 project's structural engineering for the foundation and underground floors is largely completed, with final cleaning and leak work expected to be finished by Q4 2024[71] - The Cambodian government aims to achieve $15 billion in bilateral trade with Thailand by 2025, promoting more business visits and investments[74] - The new Phnom Penh International Airport is expected to be operational by 2025, with a capacity of up to 13 million passengers annually, enhancing tourism and business travel to Cambodia[73] - Cambodia's international arrivals are projected to reach 7 million by 2025, surpassing the pre-pandemic figure of 6.6 million in 2019[73] - The Cambodian government is actively improving infrastructure and hospitality services to attract more tourists, particularly from China[74] - The National Data Centre in Cambodia is expected to be fully operational by 2025, supporting the country's digital economy transformation[74] - The group maintains an optimistic outlook on long-term growth prospects, driven by the recovery of international tourism and political stability in Cambodia[75] - NagaWorld, as the only integrated resort in Phnom Penh, is expected to benefit from attracting more tourists seeking competitive pricing and luxury lifestyle products[75] - The development of Naga 3 aligns with the Cambodian government's vision to support the tourism industry, positioning it as a key contributor to the regional tourism landscape[75]

Revenue Growth and Financial Performance - Revenue increased from $85.4 million in 2006 to $1.7 billion in 2019, a growth of 21 times[8]. - The company reported a net profit of $177.7 million for the fiscal year ending December 31, 2023, representing a 66% increase compared to the previous year[23]. - The company's revenue increased by 7.2% year-on-year to $9,900,000, recovering 82.3% compared to the pre-pandemic peak in FY2019[33]. - Net profit grew by 65.7% to $177,700,000, while EBITDA increased by 20.3% to $295,300,000, reflecting a robust recovery trajectory[33]. - The total revenue for the year was $460.7 million, with a gross profit of $376.0 million, resulting in a gross margin of 82%[49]. - The group recorded a gross profit of $421.6 million for the year, with an overall gross margin of 79%, down from 82% in the previous year[49]. - The company's profit attributable to owners increased to $177.732 million in 2023 from $107.254 million in 2022, representing a growth of approximately 65.4%[53]. - EBITDA for 2023 was reported at $295.338 million, up from $245.416 million in 2022, indicating a year-over-year increase of about 20.3%[53]. Expansion and Development Projects - The company opened its second hotel property, Naga 2, in November 2017, with an investment of $369 million, significantly increasing guest volume in hotel, gaming, and entertainment sectors[8]. - The completion of the Naga 3 project is now expected to be delayed until 2029 due to the global pandemic and supply chain issues[8]. - The Naga 3 project, with a planned area of 3,500,000 square meters, is financed 50% by internal resources, with the remaining through subscription agreements with shareholders[12]. - The total investment for the expansion of NagaWorld, including Naga 1 and Naga 2, is approximately $1.5 billion, enhancing its status as a world-class integrated resort[11]. - The company plans to invest at least $350 million in a project in Vladivostok, Russia, as part of its strategic expansion[12]. Tourism and Market Recovery - The total number of international visitors to Cambodia reached 5.5 million in 2023, recovering to 82.5% of the pre-pandemic levels in 2019[26]. - Cambodia is projected to attract 7 million international tourists by 2025, surpassing the pre-pandemic level of 6.6 million in 2019[25]. - The company benefits from the ongoing recovery of the tourism industry, which is expected to continue driving economic growth in Cambodia[24]. - The number of direct flights to Cambodia is increasing, contributing to the recovery of the tourism sector and overall economic activity[25]. - The Cambodian government is actively promoting initiatives to enhance the tourism sector, which is expected to further boost visitor numbers[26]. Corporate Social Responsibility and Governance - The company has implemented over 660 community-focused initiatives through its corporate social responsibility program, NagaWorld Kind Hearts[26]. - The founder's leadership has left a rich legacy and a strong commitment to corporate social responsibility and good governance practices[8]. - NagaWorld received multiple international awards, including the Gold Stevie® Award for Corporate Social Responsibility in Asia, Australia, and New Zealand[42]. - The company has committed to supporting Cambodian athletes and has been a partner of the National Olympic Committee since 2011, sponsoring various major sporting events[40]. - The company maintains a zero-tolerance policy towards corruption, ensuring integrity and transparency in operations[102]. Environmental Initiatives and Sustainability - The company aims to achieve net-zero emissions by 2050 as part of its long-term carbon neutrality strategy, aligning with Cambodia's national climate plans[67]. - The company has established an environmental policy to guide its management of environmental impacts, approved by the board in February 2024[113]. - The company has committed to reducing grid electricity usage by 25% from the 2018 baseline by 2030, aligning with Cambodia's national energy efficiency policy[123]. - The company achieved a 100% food waste recycling rate in 2023, maintaining its goal for 2030[147]. - The company has recycled various waste types, including food waste, paper, and plastic bottles, with 19% of waste diverted from landfills in 2023[146]. Employee Engagement and Development - The workforce consists of 6,038 full-time employees, with 93% being local hires and 50% female representation[166]. - The company provided over 190,000 training hours to employees, emphasizing skill development and career growth[1]. - The company has launched a series of employee engagement programs focused on inter-departmental interaction and fostering creativity and talent[185]. - The company offers competitive benefits, including 18 days of paid annual leave and 14 days of paid sick leave, contributing to employee well-being[193]. - The company emphasizes a non-discrimination policy regarding union organization and activities, ensuring fair treatment in employment decisions[194].

Gaming Revenue and Market Performance - Gaming revenue increased by 15.5% to $514.8 million in 2023, compared to $445.9 million in 2022[1] - High-end VIP market turnover increased by 46.5% to $4.3 billion in 2023, driven by higher visitor numbers and average turnover per visit[1] - Referral VIP market gaming revenue rose by 67.6% to $44.2 million in 2023, supported by a 52.3% increase in business volume[1] - Mass market daily turnover recovered to 82.3% of pre-pandemic levels, with a 7.2% year-on-year increase in 2023[6] - High-end VIP market daily turnover recovered to 97.7% of pre-pandemic levels, with a 46.2% year-on-year revenue growth in 2023[7] - Referral VIP market revenue grew by 67.6% in 2023, supported by a 52.3% increase in turnover[8] - Casino operations revenue increased to $387.52 million in 2023, up from $321.57 million in 2022, representing a 20.5% growth[18] - Casino segment profit grew to $326.62 million in 2023, up 19.3% from $273.85 million in 2022[30] - Reported segment revenue increased to $538.3 million in 2023, up 15.4% from $466.3 million in 2022[31] - The mid-market segment's daily revenue increased by 7.2% year-on-year to $9,900,000, recovering 82.3% compared to the pre-pandemic peak year of 2019[45] - The high-end VIP market's daily rolling chip turnover grew by 46.5% year-on-year to $11,700,000, recovering 97.7% compared to the pre-pandemic peak year of 2019[45] - The mid-market and high-end VIP market segments contributed approximately 91.4% and 93.9% of the company's total gaming revenue and gross profit, respectively[45] - Mid-market (hall tables and electronic gaming machines) revenue increased by 9.4% and 6.1% respectively, driven by a large expatriate community, ASEAN tourists, and a rebound in Chinese tourists[57] - High-end VIP market turnover increased by 46.5% to $4.3 billion, with a win rate of 3.8%, generating $133.6 million in revenue, a 46.2% year-on-year increase[58] - Referral VIP market turnover grew by 52.3% to $1.9 billion, with a win rate of 2.3%, resulting in $44.2 million in revenue, a 67.6% year-on-year increase[59] - Total gaming revenue reached $514.8 million, with net gaming revenue at $443.45 million, representing a 15% and 13% year-on-year increase respectively[56] - Mid-market contributed 63% of total revenue ($337 million) with a gross margin of 89%, while high-end VIP market contributed 25% ($133.6 million) with a gross margin of 72%[60] - Referral VIP market contributed 8% of total revenue ($44.2 million) with a gross margin of 24%, and non-gaming contributed 4% ($18.4 million) with a gross margin of 84%[60] - Total revenue for the year was $460.7 million, with the mid-market segment contributing $328.1 million (71%) and the high-end VIP market contributing $91.4 million (20%)[61] Financial Performance and Profitability - Net profit surged by 65.7% to $177.7 million in 2023, up from $107.3 million in 2022[1] - EBITDA grew by 20.3% to $295.3 million in 2023, with an EBITDA margin of 55.4%[1] - Revenue for the year 2023 increased to $533.247 million, up from $460.693 million in 2022, representing a growth of approximately 15.7%[11] - Gross profit rose to $421.636 million in 2023, compared to $375.966 million in 2022, reflecting an increase of about 12.1%[11] - Operating profit for 2023 was $198.676 million, a significant increase from $131.722 million in 2022, marking a growth of approximately 50.8%[11] - Net profit attributable to the company's owners reached $177.732 million in 2023, up from $107.254 million in 2022, showing a growth of about 65.7%[11] - Basic earnings per share increased to 4.02 cents in 2023 from 2.42 cents in 2022, reflecting a growth of approximately 66.1%[11] - Total comprehensive income for the year 2023 was $175.319 million, compared to $106.554 million in 2022, indicating a growth of about 64.5%[12] - Pre-tax profit for 2023 was $177.73 million, a significant increase from $107.25 million in 2022, marking a 65.7% growth[25] - Pre-tax profit surged to $178.0 million in 2023, a 65.6% jump from $107.5 million in 2022[31] - Net profit increased by 65.7% to $177,700,000, and EBITDA grew by 20.3% to $295,300,000 in the current year[44] - Net profit attributable to shareholders was $177.7 million, with a net profit margin of 33.3% (2022: 23.3%). Basic earnings per share were 4.02 cents (31.16 HK cents)[63] - Net profit attributable to the company's owners increased to $177,732 thousand in 2023, up from $107,254 thousand in 2022, representing a significant growth[73] - EBITDA for 2023 reached $295,338 thousand, compared to $245,416 thousand in 2022, showing a strong financial performance[73] Cash Flow and Financial Position - Cash and bank balances increased significantly to $367.6 million as of December 31, 2023, up from $175.2 million in 2022[9] - Net debt stood at $103.4 million as of 2023, with a net debt-to-equity ratio of 5.1% and a net debt-to-EBITDA ratio of 0.35x[9] - Current assets increased significantly to $409.531 million in 2023 from $229.964 million in 2022, representing a growth of approximately 78.1%[13] - Total equity rose to $2,024.646 million in 2023, up from $1,849.327 million in 2022, reflecting an increase of about 9.5%[13] - Total assets increased to $3.15 billion in 2023, up 5.4% from $2.99 billion in 2022[30] - Total assets grew to $2.75 billion in 2023, up 6.2% from $2.59 billion in 2022[31] - Cash and bank balances (including restricted bank balances and time deposits) totaled $367.6 million, a significant increase from $175.2 million in 2022[68] - The company's net asset value increased to $2.0 billion (2022: $1.8 billion), and the asset-to-liability ratio improved to 5.1% (2022: 15.9%)[68] - The company's cash and fixed deposits stood at $367.6 million as of December 31, 2023, supported by business recovery and prudent cash management[50] - The company's debt-to-equity ratio improved significantly to 5.1% as of December 31, 2023, compared to 15.9% at the end of 2022[50] - The company secured an $80 million loan at an 8% annual interest rate to refinance and partially repay $472.2 million in 2024 senior notes due in July 2024[50] Capital Expenditures and Investments - Capital expenditures significantly decreased to $39.93 million in 2023 from $243.71 million in 2022, an 83.6% reduction[30] - Property, plant and equipment purchases dropped to $39.9 million in 2023, an 83.6% decrease from $243.8 million in 2022[33] - The company invested at least $350 million in a Russian gaming and resort project through an investment agreement[35] - The Naga 3 project's foundation and underground floors are expected to be fully completed by Q1 2024[74] - The company has indefinitely suspended the development of its Vladivostok gaming and resort project due to force majeure events[74] Dividends and Share Issuance - The company did not declare any interim or final dividends for 2023, compared to $64.35 million in dividends declared for 2022[23][24] - Issued and fully paid ordinary shares increased to 4.42 billion in 2023 from 4.38 billion in 2022[41] - The company issued 40,853,806 shares under the scrip dividend scheme to pay 100% of the 2022 final dividend, with a market value of $0.804 per share (or HK$6.232 per share)[42] - The company issued 40,853,806 new ordinary shares under a scrip dividend scheme to pay 100% of the 2022 final dividend, based on a market price of 80.4 cents per share[67] - No final dividend was recommended for the year, compared to a final dividend of 0.75 US cents per share in 2022[80] Tourism and Economic Recovery - The number of international tourists visiting Cambodia in 2023 reached 5,500,000, recovering 82.5% compared to 2019[46] - As of February 15, 2024, there were 507 weekly direct flights to Cambodia, with 399 from Southeast Asia (including Korea and Japan) and 108 from Greater China[46] - Flight capacity from Southeast Asia (including Korea and Japan) and Greater China to Cambodia has recovered to approximately 83.3% and 26.0%, respectively, compared to pre-pandemic levels[46] - Cambodia is expected to attract 7,000,000 international tourists by 2025, surpassing the pre-pandemic level of 6,600,000 in 2019[46] - Cambodia's foreign direct investment (FDI) reached $4.9 billion in 2023, a 22% year-on-year increase, with China accounting for two-thirds of the total investment[47] - Cambodia's economy is recovering steadily, with tourism identified as a key driver for GDP growth, supported by infrastructure investments and regional trade agreements[75] - The opening of new airports, such as Siem Reap Angkor International Airport and Phnom Penh Techo Takhmao International Airport, is expected to boost international tourism in Cambodia by 2025[75] - Cambodia has implemented the "China Ready" strategy to attract Chinese tourists, including allowing the use of RMB in hotels, restaurants, and tourism services[76] - The company expects a surge in demand driven by the recovery of international tourism and increased flight frequencies, benefiting NagaWorld's property traffic[76] - The company remains optimistic about its long-term prospects, with NagaWorld positioned to benefit from Cambodia's overall economic growth and tourism recovery[77] Corporate Social Responsibility (CSR) and Environmental Initiatives - NagaWorld has organized over 660 corporate social responsibility (CSR) activities since 2014, involving approximately 6,700 employees[52] - The company's fire safety awareness initiative has engaged over 11,000 community participants and donated 28 fire extinguishers[52] - NagaWorld Kind Hearts recycled over 1,600 kg of soap, benefiting nearly 460 families, and recycled over 130 kg of used batteries in 2023[53] - NagaWorld Kind Hearts planted approximately 1,300 trees in Kampong Speu as part of its environmental conservation efforts[53] - NagaWorld received multiple international awards, including the Stevie® Award for Corporate Social Responsibility and the ESG Icon Recognition Award[54] Operational and Administrative Expenses - Administrative and other operating expenses (excluding impairment losses, depreciation, and amortization) decreased by $3.2 million (2.4%) to $134.3 million[62] - The company employed 6,038 staff (2022: 6,398), with total employee costs of $88.4 million (2022: $87.4 million)[69] - The company's financing costs for the year were $20.7 million (2022: $24.3 million), related to interest expenses and transaction costs for the 2024 senior notes[63] - Financing costs decreased to $20.71 million in 2023 from $24.26 million in 2022, a 14.6% reduction[19] Trade Receivables and Other Financial Metrics - Trade receivables (net of impairment) increased to $13.8 million in 2023 from $9.1 million in 2022[36] - Trade receivables increased from $9.1 million to $13.8 million, with no impairment losses recognized during the year (2022: $2.4 million)[71] - The company repurchased $77,845,000 of the 2024 senior notes at a purchase price between 91.83% to 92.10%, resulting in $472,155,000 of the 2024 senior notes remaining outstanding[43] - The company's shares held through the Stock Connect program reached 25.7 million as of February 15, 2024, reflecting increased liquidity and investor interest[51] Non-Gaming Revenue and Other Business Segments - Non-gaming (hotel, dining, and entertainment) revenue increased by 24.5%, benefiting from the reopening of China and other regional countries[60] - Gross profit for the year was $421.6 million, with an overall gross margin of 79% (2022: 82%). The mid-market segment maintained a high gross margin of 89% (2022: 90%)[61] Accounting and Financial Reporting - The company adopted new or amended International Financial Reporting Standards (IFRS) effective from January 1, 2023, which impacted the accounting policy disclosures but did not affect the measurement, recognition, or presentation of any items in the financial statements[15] - Non-current assets decreased slightly to $2,341.325 million in 2023 from $2,359.692 million in 2022, a reduction of approximately 0.8%[13] - Non-current assets in Cambodia decreased slightly to $2.05 billion in 2023 from $2.08 billion in 2022[32] - Intangible assets, including casino license premiums, stood at $123.0 million with accumulated amortization of $63.2 million[34]

Financial Performance - Revenue for the first half of 2023 was $263 million, representing a 25.0% increase compared to the previous year[16]. - Gross profit for the first half of 2023 was $89.8 million, reflecting a 44.3% margin[16]. - The company reported a net profit of $98 million for the first half of 2023, a 37.0% increase year-over-year[16]. - Net profit for the first half of 2023 reached $83,000,000, with EBITDA at $143,200,000, indicating a strong operational and financial performance[21]. - The company recorded a net profit of $83 million, representing a year-on-year increase of 57.4%, and EBITDA of $143.2 million, up 10.1%[29]. - Total revenue for the first half of 2022 was $239.5 million, with a gross profit of $192.2 million, resulting in a gross margin of 80%[44]. - The group recorded a gross profit of $202.7 million for the period, with an overall gross margin of 77.1%, down from 80.3% in the previous period[45]. - The company reported a pre-tax profit of $82,974,000 for the six months ended June 30, 2023, compared to $52,699,000 for the same period in 2022, reflecting a significant increase[118]. - Basic earnings per share for the six months ended June 30, 2023, were $0.018, up from $0.012 for the same period in 2022[118]. User Engagement and Market Expansion - User data indicated a 4.0% increase in active users, totaling 10.7 million[16]. - The company plans to expand its market presence in Southeast Asia, targeting a 10.0% growth in user acquisition[16]. - New product development includes enhancements to the NagaWorld platform, aiming for a 21.6% increase in user engagement[16]. - The NagaWorld Rewards loyalty program enhances customer data understanding, enabling targeted marketing initiatives to boost visitation frequency and gaming expenditure[24]. - The company’s loyalty program, NagaWorld Rewards, continues to drive targeted marketing and customer engagement, increasing visit frequency and gaming spend[41]. Tourism and Economic Impact - Cambodia attracted $1,100,000,000 in foreign direct investment in the first half of 2023, with China contributing nearly two-thirds of this total[22]. - The number of international visitors to Cambodia in the first five months of 2023 was 2,200,000, representing a recovery rate of 75% compared to the same period in 2019[21]. - The company continues to benefit from the ongoing recovery of the tourism industry in Cambodia, with a stable increase in operational performance[21]. - The new Phnom Penh International Airport is expected to enhance tourism and economic growth, with construction approximately 50% complete and set to open in early 2025[25]. - The number of international tourists to Cambodia is expected to reach 5 million in 2023 and 7 million by 2025, surpassing pre-pandemic levels[25]. - The tourism sector contributed approximately 3.6% to Cambodia's GDP in 2022, highlighting its significance to the economy[61]. - The tourism-related services in Cambodia are hindered due to the lack of visitors from mainland China, which was the largest source of tourists before the pandemic[83]. Corporate Social Responsibility - NagaWorld Kind Hearts has conducted over 630 community-focused activities, emphasizing the company's commitment to corporate social responsibility in Cambodia[23]. - The company has engaged in various corporate social responsibility initiatives, impacting over 167,000 students through educational programs[36]. - Over 90 kilograms of waste batteries have been recycled as part of the company's environmental protection efforts[37]. - The company is committed to aligning its sustainability efforts with the United Nations Sustainable Development Goals, aiming to create a better future for all[35]. Future Outlook and Guidance - Future guidance suggests a revenue target of $500 million for the full year 2023, representing a 10% growth[16]. - The company is exploring potential acquisitions to strengthen its market position, with a focus on regional gaming operators[16]. - Ongoing research and development efforts are expected to yield new gaming technologies by Q4 2023[16]. - The company remains optimistic about its long-term prospects, anticipating benefits from the influx of tourists and business travelers to Cambodia[61]. Operational Efficiency and Cost Management - The company is investing in technology upgrades to improve operational efficiency, with a budget allocation of $6.3 million[16]. - The company continues to implement strict cost control measures to improve operational efficiency and profitability[29]. - The group’s cash and bank balances totaled $261.3 million as of June 30, 2023, up from $175.2 million at the end of 2022[52]. - The net current assets of the group increased to $116.2 million as of June 30, 2023, compared to $31.3 million at the end of 2022[52]. Challenges and Risks - The construction date for Naga 3 has been extended from September 2025 to September 2029 due to geopolitical, macroeconomic, and global inflation factors[25]. - Political risks in Cambodia have decreased over the past year, with increased public support for the government due to effective pandemic management[81]. - The banking sector may see an increase in non-performing loan ratios, indicating a decline in credit quality[83]. - The current account deficit remains a significant challenge, although it is expected to decrease from the peak in 2021, it will still be substantial by historical standards[83].

Financial Performance - Total gaming revenue increased from $233.8 million to $252.3 million, representing a growth of 7.5% year-over-year[2] - Net profit rose by 57.4% to $83 million compared to $52.7 million in the same period last year[2] - Basic earnings per share increased to 1.88 cents from 1.19 cents (restated) year-over-year[2] - EBITDA for the period grew by 10.1% to $143.2 million, with an EBITDA margin of 54.4%[2] - Revenue for the six months ended June 30, 2023, was $263,029,000, representing a 9.9% increase from $239,452,000 in the same period of 2022[11] - Operating profit increased to $93,980,000, up from $72,133,000, reflecting a growth of 30.4% year-over-year[11] - The company reported a gross profit of $202,718,000, which is an increase from $192,208,000, reflecting a gross margin improvement[11] - The total comprehensive income for the period was $80,525,000, compared to $55,924,000 in the same period last year, showing a growth of 43.9%[11] - The company's basic earnings per share (EPS) for the six months ended June 30, 2023, was $0.018, compared to $0.012 for the same period in 2022, reflecting a year-over-year increase of 50%[22] - The company reported total revenue of $239.5 million for the first half of 2022, with a gross profit of $192.2 million, resulting in a gross margin of 80%[51] Market Segments - The high-end VIP market turnover increased by 40% to $2.047 billion due to a rise in visitor numbers and average turnover per visit[2] - The mass market segment recorded a quarterly revenue growth of 11.2% in Q2 2023 compared to Q1 2023[6] - The high-end VIP market saw a quarterly revenue increase of 20.2% in Q2 2023 compared to Q1 2023[8] - The referral VIP market revenue grew by 24.5% in Q2 2023, contributing to 10.5% of total gaming revenue in the first half of 2023[9] - The casino segment generated revenue of $252,149,000 for the six months ended June 30, 2023, while the hotel and entertainment segment contributed $12,428,000, leading to a total segment revenue of $264,577,000[25] - Non-gaming revenue surged by 90.3% year-on-year, driven by increased hotel occupancy and property foot traffic following the reopening of China[49] Financial Position - Cash and bank balances increased from $175.2 million at the end of 2022 to $261.3 million by June 30, 2023[10] - The net debt to equity ratio stands at 10.8%, with net debt relative to the last twelve months' EBITDA at 0.81 times[10] - Total assets as of June 30, 2023, were $2,351,931,000, slightly down from $2,359,692,000 at the end of 2022[12] - Current liabilities decreased to $184,428,000 from $198,666,000, indicating improved liquidity management[12] - The company's cash and bank balances totaled $261.3 million as of June 30, 2023, up from $175.2 million at the end of 2022[59] - The net current assets as of June 30, 2023, were $116.2 million, compared to $31.3 million at the end of 2022[59] - The company's asset-liability ratio, calculated as total liabilities minus cash and bank balances divided by equity, improved to 10.8% from 15.9% at the end of 2022[59] Cost Management - The company incurred financing costs of $10,883,000, significantly reduced from $18,148,000 in the previous year, indicating better cost management[17] - Administrative and other operating expenses decreased by $1.6 million or 3% year-on-year to $61.3 million, despite an increase in revenue[52] - The company incurred a total depreciation and amortization expense of $49,233,000 for the six months ended June 30, 2023, down from $57,943,000 in the same period of 2022, indicating a reduction of approximately 15%[27] Tourism and Economic Outlook - Cambodia's GDP is projected to grow by 5.8% in 2023, positioning it as one of the best-performing economies in the East Asia and Pacific region[36] - Cambodia's international tourist arrivals reached 2,200,000 from January to May 2023, representing a recovery rate of 75% compared to 2,900,000 in the same period of 2019[38] - Cambodia is projected to attract up to 5,000,000 international tourists in 2023, including 1,000,000 from China, and aims for 7,000,000 by 2025, exceeding pre-pandemic levels[38] - The new Phnom Penh International Airport is 50% complete and is expected to open in early 2025, which will add new routes and destinations, boosting tourism and economic growth[39] - Cambodia's Regional Comprehensive Economic Partnership and Cambodia-China Free Trade Agreement have significantly contributed to economic recovery post-pandemic[40] - Cambodia was removed from the Financial Action Task Force's "grey list" on February 25, 2023, enhancing its attractiveness to foreign investors[40] Corporate Social Responsibility - NagaWorld has conducted over 630 community-focused activities since 2014, engaging approximately 5,600 employees in efforts to improve education, community participation, and environmental protection[41] Future Prospects - The company remains optimistic about long-term prospects, anticipating increased foreign direct investment and a growing expatriate community in Cambodia[68] - The company continues to focus on sustainable growth and long-term value creation for all stakeholders[43] - The construction of the Naga 3 project is progressing, with all piling works completed and the basement and ground floor slab construction of Building 3 fully finished[66] - The completion date for the design and build agreement for Naga 3 has been extended to September 30, 2029, allowing for careful consideration of revenue versus capital expenditure[66]

Financial Performance - NAGACORP reported a revenue of $1,755.5 million for the year 2022, an increase from $1,474.3 million in 2021, reflecting a growth of approximately 19%[10]. - The company reported a net profit of $107.3 million for the fiscal year ending December 31, 2022, demonstrating a strong recovery in operations and financial performance[13]. - Revenue reached $460.7 million, with a gross profit of $376 million, indicating a solid operational rebound after two years affected by COVID-19[13]. - NAGACORP's total issued shares as of December 31, 2022, were 4,382,136,354 shares[9]. - The company reported a net profit of $107.3 million and an EBITDA of $245.4 million, with net profit and EBITDA increasing by 173.0% and 1,476.6% year-on-year respectively[25]. - The total revenue for the year was $460,700,000, with a gross profit of $376,000,000, resulting in a gross margin of 82%[39][41]. - The group recorded a net profit attributable to shareholders of $107,300,000, with a net profit margin of 23.3%[44]. Market and Economic Context - The number of international visitors to Cambodia surged to 2.28 million in 2022, a 1,059% increase compared to the previous year, positively impacting the company's customer traffic[14]. - Cambodia's GDP grew by 5.5% in 2022, with expectations for continued economic acceleration in 2023, supported by the recovery of the tourism and garment sectors[15]. - Foreign direct investment (FDI) inflows into Cambodia reached $4.7 billion in 2022, a 7.5% increase from 2021, bolstered by investments from China, Japan, and other countries[15]. - The company anticipates continued improvement in the tourism sector in 2023, driven by the ongoing recovery of social and economic activities in Cambodia[15]. - The overall economic outlook for Cambodia is optimistic, with GDP growth projected at 6.2% for 2023, benefiting the company’s operations[24]. Corporate Governance and Leadership - The company emphasizes the importance of maintaining communication with shareholders through annual reports and other disclosures[8]. - NAGACORP's operational leadership includes experienced executives, with Tan Sri Dr Chen Lip Keong serving as the CEO[7]. - Timothy Patrick McNally has been the non-executive chairman since February 2005 and has extensive experience in corporate governance and law enforcement[64]. - The company has a strong leadership team with members holding significant positions in various subsidiaries and related companies[70]. - The board includes independent directors with over 30 years of experience in finance, law, and corporate governance, enhancing oversight and strategic direction[72][73][76]. Sustainability and Corporate Social Responsibility - The company is committed to sustainable development and has included a sustainability report in its annual disclosures[6]. - The company has been recognized with eight regional and international awards for its corporate social responsibility initiatives, including the International Business Awards[16]. - The company has implemented over 620 community-focused programs through its NagaWorld Kind Hearts initiative, emphasizing education and community engagement[15]. - The company aligns its sustainability efforts with 16 of the 17 United Nations Sustainable Development Goals, aiming for long-term carbon neutrality in Cambodia by 2050[85]. - The company is committed to community engagement through its corporate social responsibility initiatives, including support for local charities and skill development programs[96]. Gaming and Non-Gaming Operations - NAGACORP is the largest hotel, gaming, and entertainment operator in Cambodia, having been listed on the Hong Kong Stock Exchange since 2006[6]. - Gaming revenue and gross profit increased by 152.9% and 161.9% year-on-year, reflecting a strong recovery in business operations[25]. - Non-gaming revenue surged by 528.2% year-on-year, attributed to the reopening of operations and increased hotel occupancy rates[19]. - The company’s mid-market business showed stable growth, with gaming table and electronic gaming machine revenues increasing by 147.2% and 220.7% year-on-year respectively[18]. - The Naga 3 development project is progressing well, expected to include approximately 5,000 hotel rooms and 1,300 gaming tables, enhancing the company’s market position[20]. Employee Engagement and Development - The company reported a total of 6,398 employees[81]. - The company emphasizes the importance of employee retention and attraction, which is critical for becoming the employer of choice and involves providing equal opportunities and fair compensation[103]. - The company implemented a comprehensive employee training and development plan to enhance skills and knowledge in response to industry demands[178]. - Total training hours for employees reached 255,013, averaging 40 hours per employee in 2022[185]. - The company offers competitive employee benefits, including 18 days of paid annual leave and 14 days of paid sick leave[195]. Environmental Impact and Management - The company aims to enhance energy efficiency in its buildings to save on electricity costs and reduce carbon emissions, responding to the global decarbonization commitment[100]. - The average monthly carbon emission density decreased by 12% compared to 2021[113]. - The average monthly energy usage intensity was reduced by 38% compared to 2021[80]. - The company has implemented a food waste collection program and initiated battery recycling efforts[114]. - The company is committed to responsible water management, closely monitoring water usage and implementing preventive maintenance to reduce consumption[140].

Financial Performance - For the first half of 2022, the company reported revenue of $243 million, representing a 43% increase compared to the same period in 2021[11]. - Gross profit for the first half of 2022 was $192.2 million, reflecting a 50% increase year-over-year[11]. - EBITDA for the first half of 2022 reached $671.7 million, showing significant growth compared to previous years[11]. - The company achieved a net profit of $521.3 million in the first half of 2022, a substantial increase from prior periods[11]. - The company reported a net profit of $52.7 million and total gaming revenue of $237.4 million for the six months ending June 30, 2022, marking a significant recovery in operations and financial performance[15]. - Revenue for the six months ended June 30, 2022, was $242.98 million, a significant increase from $130.43 million in the same period of 2021, representing an increase of 86%[107]. - Gross profit for the same period was $192.21 million, compared to $68.03 million in 2021, reflecting a gross margin improvement[107]. - Operating profit for the six months was $72.13 million, a turnaround from an operating loss of $50.50 million in the previous year[107]. - Profit attributable to the owners of the company was $52.70 million, compared to a loss of $77.23 million in the same period last year[107]. - Basic and diluted earnings per share for the period were 1.21 cents, compared to a loss of 1.78 cents per share in 2021[107]. Market and Economic Environment - International tourist arrivals in Cambodia increased by 275% year-on-year, totaling 343,464 visitors in the first five months of 2022, with 99,831 being business travelers[16]. - Cambodia achieved a vaccination rate exceeding 91% of its population, contributing to the country's economic recovery and stability[17]. - Foreign direct investment in Cambodia reached $4.35 billion in 2021, a 22% increase from 2020, with China being the largest source of investment at $2.32 billion[17]. - The company anticipates continued improvement in the tourism sector from 2022 to 2023, driven by the steady increase in international visitors[16]. - The overall business environment in Cambodia is expected to benefit from the Regional Comprehensive Economic Partnership, with exports projected to grow by 6.5% year-on-year[17]. - Cambodia's economy is expected to grow by 5.6% in 2022, driven by high vaccination rates and the reopening of borders[62]. - The recovery of the tourism industry is projected to take around four years to return to pre-pandemic levels, with a moderate recovery anticipated in 2022 and stronger growth in 2023[87]. - The Cambodian government is actively managing the COVID-19 pandemic and vaccine rollout, which may positively influence foreign investors' and tourists' perceptions of the country[89]. Business Operations and Strategy - The company plans to expand its market presence and enhance its product offerings in the coming years[5]. - The company is actively pursuing new technology developments to improve customer experience and operational efficiency[5]. - The company’s cost control model and self-sustaining business nature provide a unique competitive advantage in a challenging pandemic environment[19]. - The company remains optimistic about future market prospects, anticipating continued growth in tourism following the lifting of travel restrictions in ASEAN and globally[22]. - The company aims to attract at least 7 million foreign visitors by the end of 2025[62]. - The company is focused on enhancing tourism in Cambodia through the development of Naga 3, aligning with its long-term strategy[64]. Corporate Governance and Investor Relations - The company maintains a strong commitment to corporate governance and investor relations, ensuring transparency and communication with stakeholders[7]. - The company was recognized as an "Honorary Enterprise" in the gaming and hospitality sector by Institutional Investor, winning multiple awards for investor relations and governance[18]. - The company received multiple awards for excellence in investor relations and corporate governance, including recognition as an "Honorary Enterprise" by Institutional Investor magazine[36]. - The company has implemented a comprehensive risk management framework to identify and assess risks related to its operations and business[99]. - The company has established a four-tier anti-money laundering (AML) control framework to maintain high compliance standards[101][102]. Shareholder Information - The company plans to distribute an interim dividend of $0.0073 per share, representing a payout ratio of approximately 60% of net profit for the period[65]. - The interim dividend shares are expected to be issued around September 29, 2022[65]. - The company has no debt repayment obligations until July 2024, allowing for flexible capital expenditure plans to support liquidity[37]. - As of June 30, 2022, Dr. Chen holds 1,943,107,166 shares, representing 44.76% of the total issued shares[71]. - The total issued share capital as of June 30, 2022, is 4,341,008,041 shares[72]. Development Projects - The development of Naga 3 is progressing as planned, expected to include approximately 5,000 hotel rooms and a significant portion dedicated to non-gaming entertainment[21]. - NagaWorld is expected to have around 5,000 hotel rooms, 1,300 gaming tables, and 4,500 electronic gaming machines upon completion[64]. - The overall drilling pile construction is 72% completed, with six drilling machines remaining to finish the remaining work[62]. Challenges and Risks - The rising freight costs and container shortages are increasing operational costs and causing delivery delays, which may impact payment timelines and lead to higher local inflation in 2022[90]. - The financial sector faces challenges with increasing levels of debt distress, particularly in the banking and microfinance systems, which may weaken capital positions and reduce funding availability for economic recovery[90]. - The Cambodian economy's dependence on China for goods, aid, tourists, and direct investment poses risks, especially with potential changes in U.S.-China relations affecting the manufacturing sector[89]. - The Sihanoukville bubble's collapse before the pandemic highlighted the need for better urban planning and stricter enforcement of building regulations[90].

Financial Performance - The adjusted EBITDA for the fiscal year ending December 31, 2021, was $22.4 million, despite operations being limited to approximately six months due to the pandemic[42]. - The company reported a gross revenue of $1,755.5 million in 2019, with a significant decline in 2020 due to the pandemic[36]. - The total gaming revenue for the year was $223,499,000, a significant decrease from $869,628,000 in the previous year, reflecting the impact of the COVID-19 pandemic[2]. - The group recorded a gross profit of $143,500,000 for the year, with an overall gross margin of 64%, up from 49% in 2020[3]. - The company reported a net loss of $147 million for the year, resulting in a net loss margin of 65.1% compared to a profit margin of 11.6% in 2020[70]. - Basic loss per share was $0.0339 (26.27 HK cents), a decline from a basic earnings per share of $0.0236 (18.29 HK cents) in 2020[70]. - The company's net current assets were $42.3 million, a decrease from $107 million in 2020[70]. - The total net asset value of the group was $1.6 billion, down from $1.7 billion in 2020[70]. Visitor Statistics and Tourism Recovery - The company recorded a total of 196,495 international visitors to Cambodia during the fiscal year, with 23.3% of these visitors coming from China[44]. - The total number of international visitors to Cambodia in the year was 196,495, with the highest proportion coming from Thailand (41.7%) and China (23.3%)[52]. - The number of international business travelers to Cambodia was 91,138, with 49.3% originating from China[52]. - The number of international flights to Phnom Penh, Cambodia, reached 58 weekly as of January 27, 2022, indicating a gradual recovery in air travel[52]. - The easing of travel restrictions in October 2021 is expected to support the gradual recovery of the tourism industry in Cambodia[53]. - The Cambodian government lifted quarantine requirements for fully vaccinated business travelers and tourists on November 15, 2021, which is expected to attract more foreign investors and tourists[44]. - The company anticipates that the tourism sector will continue to improve and recover in 2022 and 2023, as vaccination rates in Cambodia are among the highest in Asia[45]. Economic Outlook - The economic growth of Cambodia is projected to recover gradually, with an expected growth of 2.5% in 2021 and 4.7% in 2022, driven by domestic demand and the Cambodia-China Free Trade Agreement[45]. - Cambodia's GDP growth is projected to rebound to 5.5% in 2022, following a 1.9% growth in 2021, supported by a successful vaccination program and external demand recovery[50]. - The Cambodian economy is projected to grow by 5.0% in 2022, with GDP growth expected to reach 6.6% over the next five years, making it the second-fastest growing economy in Southeast Asia[74]. - Fitch Ratings forecasts Cambodia's economy to grow by 2.5% in 2021 and 4.7% in 2022, aided by recovering domestic demand and the Cambodia-China Free Trade Agreement[55]. Corporate Social Responsibility and Community Support - The company has committed $21.123 million to meaningful projects in Cambodia, including food bank operations benefiting around 4,500 families affected by the pandemic[45]. - NagaWorld Kind Hearts donated $100,000 worth of food to support communities affected by COVID-19 during the capital's lockdown on April 15, 2021, aiding 3,500 families[58]. - NagaWorld Kind Hearts has launched over 550 projects focused on education, community engagement, sports development, and environmental care[57]. - NagaWorld Kind Hearts contributed a total of $21,123,000 in charitable donations in 2021, with $3,240,000 allocated to Cambodian public welfare activities[160]. - The company has organized over 570 community improvement activities since 2014, benefiting over 444,000 Cambodians[83]. - The company provided food assistance packages valued at over $88,000 to 702 employees affected by COVID-19 isolation measures[127]. Environmental Sustainability Initiatives - The company aims to reduce greenhouse gas emissions by 18% (equivalent to 38.9 million tons) by 2030 and increase the share of renewable energy in its energy structure to 25%[85]. - The company has implemented a waste management strategy based on the "5R" approach, focusing on reducing resource usage and maximizing recycling efforts[97]. - The company aims to achieve carbon neutrality by 2050, aligning with Cambodia's Clean Air Plan to combat climate change[97]. - The company has set waste reduction goals and implemented measures to minimize waste production[191]. - The company has taken steps to reduce waste generation, including the discontinuation of single-use plastic straws[191]. - The company has implemented water-saving measures, including water-efficient toilets in hotel rooms and a rainwater harvesting system for irrigation[151]. Employee Welfare and Labor Practices - The company has implemented various employee welfare initiatives, including free medical services and subsidized meals through its non-profit supermarket, Nagamart[121]. - Employees received 40% salary payment during business suspension in 2021, with no annual salary increases approved due to economic conditions[115]. - The company has established a training program to raise awareness among suppliers regarding child labor issues[126]. - The company has not identified any instances of child or forced labor within its operations or supply chain during 2021[126]. - The company has implemented a rationalization plan affecting most employees, which included a mutual separation plan that provided additional compensation[107]. - The employee turnover rate increased to 13% in 2021 from 12% in 2020, with 775 employees leaving the company[107]. Governance and Compliance - The company has established a code of conduct that outlines clear standards and principles for employee behavior, emphasizing compliance with anti-corruption and anti-money laundering regulations[153]. - The company has not faced any legal actions related to corruption against itself or its employees in 2021[155]. - The company conducts internal audits every six months on all relevant anti-money laundering and anti-corruption incidents[157]. - The company has implemented a four-tier anti-money laundering monitoring framework to ensure compliance and integrity[156]. - The board reviews the anti-money laundering management committee's work and reports quarterly[157]. Development Projects - The Naga 3 development is progressing well, expected to include approximately 5,000 hotel rooms, 1,300 gaming tables, and 4,500 electronic gaming machines, with 93% of its total area dedicated to non-gaming services[46]. - The main construction work package is scheduled to commence in the first half of 2023, following the completion of the foundation, basement, and ground floor[73]. - Naga 3's design development is fully completed, with construction progress at approximately 50% for the drilling pile work[72]. Health and Safety Measures - NagaWorld has implemented strict health and safety measures, including mandatory temperature checks and mask-wearing since the pandemic began[144]. - The company has implemented COVID-19 prevention measures, requiring all business partners to be fully vaccinated to enter its operational premises[198]. - The company has conducted over 83,000 COVID-19 tests for employees and service providers since the business restart, averaging 6,000 tests weekly[134].