Financial Performance - The company's net revenue for the year ending December 31, 2024, was HKD 36.17 billion, an increase of HKD 6.64 billion or 22.5% compared to HKD 29.53 billion for the same period in 2023[40] - Adjusted EBITDA for the year was HKD 9.03 billion, up from HKD 7.51 billion in the previous year[39] - The loss attributable to the company's owners was HKD 780 million, significantly reduced from HKD 1.74 billion in 2023[39] - Casino revenue rose by 22.2% from HKD 24,090.4 million in 2023 to HKD 29,432.3 million in 2024, with hotel room revenue increasing by 24.5% and food and beverage revenue increasing by 36.4%[106] - Total operating revenue for Melco Resorts increased to $4,640,000,000 in 2024 from $3,780,000,000 in 2023, representing a growth of 22.8%[115] - Adjusted property EBITDA for Melco Resorts reached $1,220,000,000 in 2024, up from $1,040,000,000 in 2023, marking a 17.3% increase[116] - Net income attributable to Melco Resorts was $43,500,000 in 2024, a significant recovery from a net loss of $326,900,000 in 2023[116] Strategic Expansion and Development - The company is set to launch the highly anticipated "The House of Dancing Water" show in May 2025, enhancing the tourism experience at City of Dreams[41] - The company plans to open a new casino at City of Dreams Sri Lanka in Q3 2025, expanding its brand and customer base[41] - The group anticipates the opening of City of Dreams Sri Lanka in Q3 2025, which is expected to be a light capital investment project with significant returns[59] - The group is exploring strategic options for City of Dreams Manila to optimize investments and effectively reallocate resources[59] - The group continues to invest resources to enrich its cultural, leisure, and tourism projects in Macau, including the return of the acclaimed water show "The House of Dancing Water" to enhance the tourism experience[75] Sustainability and Corporate Social Responsibility - The group has received recognition for its community initiatives, winning awards for best corporate social responsibility programs[25] - The group is committed to achieving carbon neutrality and reducing waste and water consumption as part of its sustainability goals[45] - The group made charitable contributions of approximately HKD 135.7 million in 2024, with nearly 3,600 volunteer hours contributed by employees globally[44] - The company was awarded the "ESG Best Performance Award - Merit" and "Theme Award - Merit" at the BDO ESG Awards 2024, recognizing its outstanding performance in sustainability[101] - The group won the "Best Overall Corporate Social Responsibility Program" and "Best Corporate Social Responsibility Initiative" at the IAG Academy IR Awards for its "Small Kindness, Big Love" initiative[98] Operational Improvements and Guest Experience - The gradual improvement in operations is attributed to the recovery of inbound tourists to Macau and the opening of new facilities[40] - The group is focusing on enhancing guest experiences and has introduced new entertainment facilities, including the first Dolby Cinema in Hong Kong and Macau[56] - The upgraded membership program offers exclusive benefits and personalized experiences to guests, aimed at increasing property attractiveness and foot traffic[56] - The group has implemented significant property upgrades that have improved guest satisfaction and overall financial performance[57] - The company continues to enhance guest experiences at Studio City through the addition of new facilities and attractions, including the opening of the first Dolby Cinema in Hong Kong and Macau[67] Environmental Impact - Greenhouse gas emissions increased from 17,688 MtCO2e in 2022 to 20,770 MtCO2e in 2023, and are projected to reach 28,675 MtCO2e in 2024[46] - Total energy consumption rose from 390,278 MWh in 2022 to 470,030 MWh in 2023, with a forecast of 536,449 MWh in 2024[47] - The total amount of waste generated increased from 7,680 tons in 2022 to 15,633 tons in 2023, expected to reach 20,996 tons in 2024[48] Corporate Governance and Leadership - The company emphasizes maintaining high levels of corporate governance to ensure responsible decision-making and improve transparency to shareholders[178] - The corporate governance framework is designed in accordance with applicable laws and listing rules, with regular reviews by the board of directors[179] - The board of directors consists of six members, with three executive directors and three independent non-executive directors, ensuring compliance with independence regulations[192] - The independent non-executive directors play a crucial role in maintaining financial reporting standards and safeguarding shareholder interests[198] - The company has established a code of conduct to ensure the highest ethical standards are upheld across all employees[181] Employee Development and Community Engagement - The company emphasizes the importance of talent and diversity in its workforce, aiming to create a supportive work environment[156] - The group is committed to providing training and development opportunities to enhance employee skills and performance[159] - The company continues to focus on supporting local SMEs through various initiatives, enhancing communication platforms to better understand their needs and services[100] - The company has implemented training programs for new employees to instill its culture and values, with ongoing monitoring of cultural promotion effectiveness[190] Market Performance and Recognition - The group has received eight Michelin stars across its five fine dining establishments, reaffirming its status as a leader in Macau's culinary scene[77] - The group received a record 107 stars in the 2025 Forbes Travel Guide, with 19 properties awarded five-star honors, reinforcing its leadership in the integrated resort sector in Macau and Asia[86] - The group was recognized as one of the top ten best integrated resorts in the Asia-Pacific region by Travel + Leisure in 2024[91] - The group’s City of Dreams Mediterranean won two awards at the 2024 World Luxury Hotel Awards, showcasing its growing influence in the global market[91]

Financial Performance - Net revenue for the year ended December 31, 2024, was HKD 36.17 billion, an increase of HKD 6.64 billion or 22.5% compared to HKD 29.53 billion for the year ended December 31, 2023[2] - Adjusted EBITDA for the year ended December 31, 2024, was HKD 9.03 billion, up from HKD 7.51 billion for the year ended December 31, 2023[2] - Loss attributable to owners for the year ended December 31, 2024, was HKD 780 million, a significant improvement from a loss of HKD 1.74 billion for the year ended December 31, 2023[2] - Basic loss per share attributable to owners for the year ended December 31, 2024, was HKD 0.52, compared to HKD 1.16 for the year ended December 31, 2023[4] - The company reported a total comprehensive loss of HKD 1.51 billion for the year ended December 31, 2024, compared to HKD 3.44 billion for the year ended December 31, 2023[4] - The company reported a net loss of HKD 1,683,737,000 for the year ended December 31, 2024, compared to a net loss of HKD 3,494,121,000 in the previous year, showing an improvement of approximately 51.9%[24][25] - The total income tax expense for the year ended December 31, 2024, was HKD 48,561,000, compared to HKD 98,363,000 for 2023, reflecting a decrease of approximately 50.7%[6] - The company reported a loss attributable to owners of the company of HKD 784,603,000 for the year ended December 31, 2024, a significant improvement from a loss of HKD 1,743,932,000 in 2023, representing a reduction of approximately 55.0%[42] Assets and Liabilities - Total non-current assets as of December 31, 2024, were HKD 73.47 billion, down from HKD 76.68 billion as of December 31, 2023[5] - Current liabilities increased to HKD 18.65 billion as of December 31, 2024, from HKD 8.73 billion as of December 31, 2023[5] - Total equity as of December 31, 2024, was HKD 8.21 billion, a decrease from HKD 10.37 billion as of December 31, 2023[6] - Total assets as of December 31, 2024, amounted to HKD 84,749,503,000, with classified assets of HKD 84,629,880,000[27] - Total liabilities as of December 31, 2024, were HKD 76,542,982,000, with classified liabilities of HKD 71,361,571,000[27] - The company's equity attributable to owners dropped by 93.1%, from HKD 665.0 million in 2023 to HKD 45.9 million in 2024[90] Revenue Breakdown - The increase in net revenue was primarily driven by the recovery of inbound tourists to Macau and the gradual improvement in operations of new developments[2] - The gaming revenue for the year ended December 31, 2024, was HKD 29,432,330,000, up from HKD 24,090,362,000 in 2023, reflecting a growth of 22.0%[33] - Room revenue grew by 24.5% from HKD 2,647.6 million in 2023 to HKD 3,296.6 million in 2024[92] - Non-gaming revenue for City of Dreams Mediterranean and others reached $75,300,000 in 2024, up from $31,800,000 in 2023, marking a significant increase of 136.6%[112] - The total non-gaming revenue for Melco Resorts was $313,700,000 in 2024, compared to $243,700,000 in 2023, indicating a growth of 28.7%[108] Capital Expenditures and Investments - Capital expenditures for the year ended December 31, 2024, were HKD 2,042,744,000, compared to HKD 1,984,670,000 in 2023, reflecting a growth of 2.9%[30] - The company plans to implement significant capital expenditures for new projects in the coming years, seeking various financing methods[127] Debt and Financing - The company’s interest-bearing borrowings as of December 31, 2024, totaled HKD 60,687,698,000, a decrease of 4.4% from HKD 63,557,455,000 in 2023[47] - The company issued new interest-bearing borrowings of HKD 6,651,509,000 in 2024, down from HKD 9,811,171,000 in 2023, representing a decline of 32.5%[48] - The company repaid interest-bearing borrowings amounting to HKD 9,144,543,000 in 2024, a significant decrease of 50.0% compared to HKD 18,633,784,000 in 2023[48] - The group had available undrawn borrowing capacity totaling HKD 17,160,000,000 as of December 31, 2024, compared to HKD 8,250,000,000 in 2023, representing an increase of 107.0%[113] Operational Highlights - The group reported a strong recovery in tourism in Macau, with visitor numbers approaching 2019 levels, indicating a positive market trend[61] - The performance of City of Dreams Manila remained robust in 2024, benefiting from increased international visitor numbers and government support for tourism development[61] - The anticipated opening of City of Dreams Sri Lanka's casino in Q3 2025 is expected to enhance the brand and expand the customer base[63] - The return of the water show "The House of Dancing Water" in May 2025 is expected to elevate the cultural and artistic offerings in Macau[68] Corporate Governance and Social Responsibility - The company emphasizes the importance of high-quality performance and rewards based on performance, responsibilities, and contributions to the group's development[131] - The group won the "Best Overall Corporate Social Responsibility Program" and "Best Corporate Social Responsibility Initiative" at the IAG Academy IR Awards in 2024, reflecting its commitment to social responsibility[85] - The group was recognized as an "Industry Mover" in the 2025 S&P Global Sustainability Yearbook, indicating its progress in sustainable development within the gaming and entertainment sector[87] Employee and Training Initiatives - The total employee count increased to 21,795 as of December 31, 2024, up from 20,220 in 2023, with total employee costs amounting to HKD 6,972,000,000[128] - The company provides employee training to enhance performance and personal growth, aligning training goals with individual and company needs[132]

Financial Performance - The group's net revenue for the six months ended June 30, 2024, was HKD 17,770,000,000, an increase of 36.3% compared to HKD 13,040,000,000 for the same period in 2023[4]. - The group reported a loss of HKD 443,600,000 for the six months ended June 30, 2024, significantly reduced from a loss of HKD 1,400,000,000 in the same period of 2023[4]. - The company's net revenue increased by 36.3% to HKD 17,765.6 million for the six months ended June 30, 2024, compared to HKD 13,038.4 million in the same period of 2023[25]. - Adjusted EBITDA rose by 40.2% to HKD 4,489.3 million for the six months ended June 30, 2024, from HKD 3,202.6 million in the previous year[27]. - The company reported a loss attributable to shareholders of HKD 253.2 million, a 65.5% improvement from a loss of HKD 733.2 million in the same period last year[28]. - The total comprehensive loss for the period was HKD 579,122,000, compared to a loss of HKD 1,556,816,000 in the previous year, showing an improvement[61]. - Basic and diluted loss per share for the period was HKD 0.17, compared to HKD 0.49 in the same period last year[61]. Operational Highlights - The opening of the Dolby Cinema at Studio City in June 2024 marks a significant investment in enhancing entertainment experiences[3]. - The group announced a strategic partnership with John Keells Holdings PLC to establish the first integrated resort in Sri Lanka, City of Dreams Sri Lanka, with a 20-year gaming license granted[3]. - The average operation for City of Dreams Manila included approximately 430 gaming tables and 624 gaming machines in the first half of 2024[5]. - Mocha Entertainment, the largest non-casino electronic gaming operation in Macau, averaged about 905 gaming machines in the first half of 2024[8]. - The average operation for Studio City included approximately 249 gaming tables and 656 gaming machines in the first half of 2024[6]. - City of Dreams Mediterranean opened in July 2023, becoming the largest integrated resort in Europe with 500 rooms and over 8,000 square meters of meeting space[10]. - In the first half of 2024, the average operation of gaming facilities in Cyprus included approximately 103 tables and 890 slot machines, while City of Dreams Mediterranean operated about 99 tables and 730 slot machines[10]. Guest Experience and Investments - The group continues to enhance guest experiences in Macau through significant investments in staff and property optimization[3]. - The flagship integrated resort, City of Dreams, aims to attract high-end travelers and is set to feature the return of the acclaimed show "The House of Dancing Water" in early 2025[5]. - The company is investing in diverse cultural tourism projects to support Macau's "1+4" diversification strategy, enhancing its position as a dynamic entertainment hub[12]. - The opening of the Marcos Baghdatis Tennis Academy at City of Dreams Mediterranean aims to provide a top-tier tennis experience, contributing to property optimization[11]. Tourism and Visitor Trends - Visitor numbers to Macau increased by 43.6% compared to the same period in 2023, reaching 82.4% of pre-pandemic levels from the first half of 2019[11]. - The Philippines saw a 13.7% increase in foreign tourist arrivals in the first half of 2024 compared to the previous year, indicating strong demand in the tourism market[12]. - Cyprus recorded over 1.65 million inbound tourists in the first half of 2024, a 2.4% increase from the same period in 2023[12]. Awards and Recognition - The company received multiple awards for excellence in corporate governance and investor relations, including being named "Best Investor Relations Company" for the 13th time in the Asia Excellence Awards[15]. - The group received 16 five-star honors in the 2024 Forbes Travel Guide, maintaining its leading position among integrated resort operators in Macau and Asia[16]. - The group’s properties, including City of Dreams and Studio City, won a total of eight stars in the 2024 Hong Kong and Macau Michelin Guide, with the Cantonese restaurant Yu Long Xuan receiving three Michelin stars for six consecutive years[17]. - The group was awarded the "2024 Best Learning Organization Award" by the Association for Talent Development (ATD) for the third consecutive year, recognizing its commitment to talent development[18]. Community Engagement and Sustainability - The group launched the "Small Dreams, Big Love" initiative to support local communities, including food donations of 500 food baskets to the Macau Caritas[20]. - The group organized the first "Business Exchange" event to support local SMEs, providing a platform for marketing and sales exposure[21]. - The "RISE" sustainability strategy led to the group receiving the Asia Sustainability Award for its commitment to integrating sustainability into business operations[22]. - City of Dreams Mediterranean won the "International Best Sustainable Business Development Project" and "European Best Sustainable Business Development Project" awards in 2024[22]. Financial Position and Liabilities - Total assets decreased by 3.3% to HKD 86,495.6 million as of June 30, 2024, compared to HKD 89,411.4 million at the end of 2023[24]. - Total liabilities also decreased by 3.0% to HKD 76,650.2 million as of June 30, 2024, from HKD 79,038.2 million[24]. - The company's cash and bank balances amounted to HKD 9,199,700,000, a decrease from HKD 10,765,500,000 as of December 31, 2023[45]. - The total available undrawn borrowing capacity as of June 30, 2024, was HKD 15,220,000,000, significantly increased from HKD 8,250,000,000 as of December 31, 2023[45]. - The capital-to-debt ratio as of June 30, 2024, was 71.2%, slightly up from 71.1% as of December 31, 2023[48]. - The group repaid a total of HKD 1,170,000,000 in principal and accrued interest under a credit facility agreement on March 28, 2024[46]. Employee and Operational Costs - As of June 30, 2024, the total number of employees in the group was 20,686, an increase from 19,676 as of June 30, 2023[55]. - Employee costs for the six months ended June 30, 2024, amounted to HKD 3,324,400,000, compared to HKD 2,991,700,000 for the same period in 2023, representing an increase of approximately 11.1%[55]. - Total operating costs and expenses for the six months ended June 30, 2024, were HKD 15,945,436,000, compared to HKD 12,403,304,000 in 2023, indicating an increase of about 28.5%[60]. Shareholder Information - The company has not declared an interim dividend for the six months ended June 30, 2024, consistent with the decision made in May 2020 to suspend the interim dividend plan[90]. - The total number of issued shares as of June 30, 2024, is 1,516,683,755 shares[167]. - Major shareholders holding 5% or more of the issued shares are recorded as of June 30, 2024[165]. Corporate Governance - The company has established various board committees to maintain high corporate governance standards[170]. - The company has complied with the corporate governance code as of June 30, 2024, except for certain deviations[170]. - Deloitte has been appointed as the new auditor of the company effective June 28, 2024, following the resignation of Ernst & Young[175].

Financial Performance - For the six months ended June 30, 2024, net revenue was HKD 17.77 billion, an increase of HKD 4.73 billion or 36.3% compared to HKD 13.04 billion for the same period in 2023, driven by the recovery of inbound tourist numbers in Macau[3]. - Adjusted EBITDA for the six months ended June 30, 2024, was HKD 4.49 billion, up from HKD 3.20 billion for the same period in 2023[3]. - The after-tax loss for the six months ended June 30, 2024, was HKD 440 million, significantly improved from a loss of HKD 1.40 billion for the same period in 2023[3]. - Basic loss per share attributable to owners for the six months ended June 30, 2024, was HKD 0.17, compared to HKD 0.49 for the same period in 2023[3]. - The company reported a loss attributable to owners of HKD 5,400,984,000 for the period ending June 30, 2024, compared to a loss of HKD 5,036,855,000 for the same period in 2023[10]. - The company reported a net loss of HKD 443,629 for the six months ended June 30, 2024, compared to a net loss of HKD 1,402,622 for the same period in 2023, indicating an improvement in performance[17][18]. - The company reported a loss attributable to shareholders of HKD 253,216,000 for the six months ended June 30, 2024, compared to a loss of HKD 733,248,000 for the same period in 2023, indicating a significant improvement[29]. Revenue and Expenses - The total operating costs and expenses for the six months ended June 30, 2024, were HKD 15.95 billion, compared to HKD 12.40 billion for the same period in 2023[4]. - The company recorded operating income of HKD 1.82 billion for the six months ended June 30, 2024, compared to HKD 635 million for the same period in 2023[4]. - Total revenue for the six months ended June 30, 2024, was HKD 17,765,628,000, a 36.1% increase from HKD 13,038,389,000 in the same period of 2023[21]. - Entertainment revenue reached HKD 14,516,622,000, up 35.5% from HKD 10,723,324,000 year-over-year[22]. - Customer contract revenue for the six months ended June 30, 2024, was HKD 17,543,106,000, compared to HKD 12,844,373,000 in the prior year, reflecting a 36.5% increase[23]. - Depreciation and amortization expenses totaled HKD 2,250,395,000 for the six months ended June 30, 2024, compared to HKD 2,099,709,000 in 2023, an increase of 7.2%[24]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled HKD 75.31 billion, a decrease from HKD 76.68 billion as of December 31, 2023[7]. - Current assets as of June 30, 2024, amounted to HKD 11.18 billion, down from HKD 12.73 billion as of December 31, 2023[7]. - The total assets as of June 30, 2024, amounted to HKD 86,495,623, a decrease from HKD 89,411,449 as of December 31, 2023, indicating a reduction of approximately 3.2%[19]. - The total liabilities as of June 30, 2024, were HKD 76,650,186, down from HKD 79,038,242 as of December 31, 2023, showing a decrease of about 3.0%[19]. - The company's equity as of June 30, 2024, was HKD 9,845,437,000, down from HKD 10,373,207,000 at the end of 2023[10]. - The total current liabilities amounted to HKD 16,317,284,000 as of June 30, 2024, significantly higher than the previous figure of HKD 8,726,114,000[10]. Cash and Borrowings - The company's cash and bank balances stood at HKD 9,199,738,000, with available undrawn borrowing capacity of HKD 15,217,857,000, subject to certain conditions[10]. - The total interest-bearing borrowings were HKD 61,566,991,000 as of June 30, 2024, down from HKD 63,557,455,000 as of December 31, 2023, showing a reduction in debt levels[35]. - The group's available undrawn borrowing capacity as of June 30, 2024, was HKD 15,217,857,000, up from HKD 8,246,959,000 as of December 31, 2023[43]. - The debt-to-capital ratio was 71.2% as of June 30, 2024, slightly up from 71.1% as of December 31, 2023[93]. Operational Highlights - The company operates integrated resort facilities in Asia and Europe, with significant investments in Macau and the Philippines[9]. - The company plans to continue expanding its operations in Macau and other jurisdictions, focusing on enhancing customer experience and service offerings[26]. - The group continues to maintain strong performance in its Philippine operations, particularly at City of Dreams Manila and City of Dreams Mediterranean in Cyprus[49]. - Macau's visitor numbers increased by 43.6% compared to the same period in 2023, reaching 82.4% of the pre-pandemic levels in the first half of 2019[58]. - The group is expanding globally with a partnership with John Keells Holdings PLC to develop Sri Lanka's first integrated resort, expected to open in Q4 2024, featuring hotels, restaurants, and banquet facilities[59]. Strategic Initiatives - The company continues to focus on environmental sustainability through its "RISE" strategy, which includes investments in renewable energy and sustainable practices[68]. - The company has actively supported local SMEs by organizing promotional events and training workshops to enhance their market presence and competitiveness[67]. - The group announced a strategic partnership with John Keells Holdings PLC to establish the first integrated resort in Sri Lanka, named City of Dreams Sri Lanka[49]. Employee and Governance - The total number of employees in the group was 20,686, an increase from 19,676 as of June 30, 2023[98]. - Employee costs for the six months ended June 30, 2024, amounted to HKD 3,324,400,000, compared to HKD 2,991,700,000 for the same period in 2023[98]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim results for the six months ended June 30, 2024[102]. - Deloitte has been appointed as the new auditor following the resignation of Ernst & Young, effective June 28, 2024[104].

Financial Performance - The group's net revenue increased by 179.5% year-on-year to HKD 29.53 billion, driven by the early lifting of COVID-19 restrictions in Macau and the openings of City of Dreams Mediterranean and the second phase of Studio City[13]. - Adjusted EBITDA rose to HKD 7.51 billion, compared to a negative adjusted EBITDA of HKD 362 million in 2022, indicating a significant recovery in operational performance[13]. - The group reported a loss of HKD 3.49 billion for the year, a substantial improvement from the loss of HKD 9.99 billion in 2022, reflecting the positive business momentum[13]. - The net revenue for the year ended December 31, 2023, was HKD 29.53 billion, a 179.5% increase compared to HKD 10.57 billion in the same period of 2022[23]. - The company reported a loss of HKD 3.49 billion for the year, significantly reduced from a loss of HKD 9.99 billion in 2022[23]. - The company's gaming revenue for 2023 reached HKD 24,090.4 million, a 185.9% increase from HKD 8,426.0 million in 2022[51]. - Adjusted EBITDA for the year ended December 31, 2023, was HKD 7,510 million, compared to a negative adjusted EBITDA of HKD 362 million in 2022[52]. - The net loss attributable to the company's owners for 2023 was HKD 1,740 million, significantly improved from a loss of HKD 5,110 million in 2022[53]. Expansion and Development - The opening of the City of Dreams Mediterranean in July 2023 marks a significant milestone in the group's expansion strategy, positioning Cyprus as a top tourist destination[6]. - The group is actively developing new concepts and strategies, including the construction of a Cineplex at Studio City and the anticipated return of the popular water show "The House of Dancing Water" by the end of 2024[13]. - The company has strategically launched a series of acclaimed experiences, including the indoor water park and the W Hotel in Macau, to attract high-end travelers[21]. - The flagship property, City of Dreams Mediterranean, opened in July 2023, featuring 500 rooms and over 8,000 square meters of meeting and exhibition space[32]. - The new indoor water park at Studio City opened in 2023, featuring multiple thrilling water slides and attractions, enhancing family entertainment options year-round[26]. Corporate Social Responsibility and Sustainability - The group has been recognized for its corporate social responsibility efforts, winning multiple awards including the "Best Overall Corporate Social Responsibility Program" at the 2023 IAG Academy IR Awards[14]. - The group aims to achieve its ambitious sustainability goals by 2030 through its "RISE" sustainability strategy, demonstrating a commitment to positive community impact[14]. - The company made over HKD 130,300,000 in donations and charitable contributions in 2023[16]. - The company aims to reduce waste and conserve water as part of its sustainability initiatives[17]. - The total greenhouse gas emissions increased from 17,688 MtCO2 in 2022 to 20,770 MtCO2 in 2023, reflecting a significant rise[18]. - Total energy consumption rose from 390,278 MWh in 2022 to 470,030 MWh in 2023[18]. - The total waste generated increased from 7,680 tons in 2022 to 15,633 tons in 2023, indicating a substantial increase in waste footprint[18]. - The company is committed to achieving carbon neutrality across its properties globally and implementing energy-saving measures[17]. - The company aims to achieve carbon neutrality and zero waste resorts by 2030, with progress updates provided to the board[157]. Governance and Leadership - The company has received multiple awards recognizing its leadership and contributions to the tourism industry, including the "Asian Best CEO" award in 2023[81]. - The company maintains a high level of corporate governance, focusing on responsible decision-making and improving transparency to shareholders[89]. - The corporate governance code has been established to guide and manage business affairs, ensuring compliance with the Hong Kong Stock Exchange's standards[90]. - The company has a written code of conduct to set ethical standards for all employees, ensuring the highest standards of integrity in business operations[91]. - The board of directors includes members with extensive experience in investment banking and corporate finance, contributing to informed decision-making[82][83]. - The company has established a governance policy for ESG matters to ensure sustainable operations and compliance with updated listing rules[145]. Employee Engagement and Diversity - The company believes that talent is key to its success and fosters a diverse and inclusive work environment, providing equal opportunities in all areas[80]. - The company has a structured approach to employee engagement, fostering a sense of belonging through recognition and participation[80]. - In 2023, 47% of the company's employees were women, with 17% of board members being female, reflecting a commitment to diversity and inclusion[161]. - The company aims to maintain at least 50% of management positions held by women by 2030[123]. - Employee training programs are systematically aligned with both personal and company needs, regularly reviewed for effectiveness[79]. Community Engagement - The company actively participates in community programs, contributing to the growth and future of the communities in which it operates[96]. - The company has initiated various community support programs, including charitable donations and volunteer activities, to address local needs and challenges[163]. - The company has strengthened cooperation with local businesses, creating economic opportunities for SMEs and micro-enterprises through various promotional events[164]. Risk Management - The Risk Management and Internal Control System aims to protect assets from misappropriation and unauthorized disposal, managing operational risks including environmental, social, and governance risks[134]. - The Audit Committee reviews the effectiveness of the risk management and internal control systems biannually[134]. - The company’s management is responsible for implementing strategies set by the board and ensuring cultural alignment across all levels[124]. Shareholder Engagement - The company encourages shareholder participation in the annual general meeting, aligning with corporate governance principles[150]. - The company’s articles of association allow shareholders to nominate candidates for the board at the annual general meeting, promoting shareholder involvement[148]. - Shareholders holding at least 5% of total voting rights can request the board to convene a meeting, ensuring their rights are protected[152].

Financial Performance - Net revenue for the year ended December 31, 2023, was HKD 29.53 billion, a 179.5% increase from HKD 10.57 billion in the previous year[3] - Adjusted EBITDA for the year ended December 31, 2023, was HKD 7.51 billion, compared to a negative HKD 362 million in the previous year[3] - Post-tax loss for the year ended December 31, 2023, was HKD 3.49 billion, a significant improvement from the HKD 9.99 billion loss in the previous year[3] - Basic loss per share attributable to the company's owners was HKD 1.16, compared to HKD 3.40 in the previous year[3] - Net asset value per share attributable to the company's owners was HKD 0.4 as of December 31, 2023, down from HKD 1.2 in the previous year[3] - The company reported a net loss of HKD 3.49 billion for 2023, an improvement from the net loss of HKD 9.99 billion in 2022[17][18] - Net revenue for 2023 was HKD 29,531.6 million, a year-on-year increase of 179.5%[80] - Adjusted EBITDA for 2023 was HKD 7,505.1 million, compared to a loss of HKD 362.0 million in 2022, representing a 2,173.4% improvement[80] - The company's attributable loss to owners was HKD 1,743.9 million, a 65.9% reduction compared to 2022[80] - Net revenue increased by 179.5% from HKD 10.57 billion in 2022 to HKD 29.53 billion in 2023, driven by the early relaxation of COVID-19 restrictions in Macau and the opening of City of Dreams Mediterranean and Studio City Phase 2[82] - Casino revenue surged by 185.9% to HKD 24.09 billion in 2023, compared to HKD 8.43 billion in 2022[83] - Adjusted EBITDA improved significantly to HKD 7.51 billion in 2023 from a negative HKD 362 million in 2022, primarily due to the relaxation of COVID-19 restrictions and the opening of Studio City Phase 2[84] - The company's attributable loss narrowed to HKD 1.74 billion in 2023 from HKD 5.11 billion in 2022, despite increased net interest expenses and impairment losses[85] Expenses and Costs - Gaming tax and license fees increased to HKD 11.66 billion from HKD 3.83 billion in the previous year[4] - Employee benefit expenses rose to HKD 6.17 billion from HKD 5.19 billion in the previous year[4] - Depreciation and amortization expenses decreased slightly to HKD 4.45 billion from HKD 4.59 billion in the previous year[4] - Operating costs and expenses for 2023 included depreciation and amortization of HKD 4.45 billion, share-based compensation of HKD 356.3 million, and pre-opening costs of HKD 327.9 million[17] - Non-operating expenses for 2023 included interest expenses of HKD 4.30 billion, other financing costs of HKD 38.0 million, and exchange gains of HKD 51.2 million[17] - The company's total non-operating expenses for 2023 were HKD 4.11 billion, compared to HKD 3.18 billion in 2022[17][18] - The company's income tax expense for 2023 was HKD 98.4 million, compared to HKD 5.6 million in 2022[17][18] - Impairment of non-financial assets increased from HK$568.25 million in 2022 to HK$1.11 billion in 2023, a growth of 96.0%[25] - Advertising and promotion expenses increased from HK$243.30 million in 2022 to HK$1.15 billion in 2023, a growth of 373.1%[25] - Employee-related costs for the year ended December 31, 2023, were HKD 6,171,200,000, up from HKD 5,187,000,000 in 2022[109] Assets and Liabilities - Total non-current assets as of December 31, 2023, were HKD 76.68 billion, down from HKD 79.79 billion in the previous year[6] - Cash and bank balances as of December 31, 2023, were HKD 10.77 billion, down from HKD 14.32 billion in the previous year[6] - Total current liabilities increased to 8,726,114 thousand HKD as of December 31, 2023, compared to 7,276,784 thousand HKD in 2022[7][8] - Net current assets decreased significantly to 4,003,439 thousand HKD in 2023 from 10,027,168 thousand HKD in 2022[8] - Total assets minus current liabilities stood at 80,685,335 thousand HKD as of December 31, 2023, down from 89,814,834 thousand HKD in 2022[8] - Non-current liabilities totaled 70,312,128 thousand HKD in 2023, a decrease from 76,428,769 thousand HKD in 2022[8] - The company's cash and bank balances amounted to 10,765,478 thousand HKD as of December 31, 2023, with unused borrowing capacity of 8,246,959 thousand HKD[11] - Total assets decreased from HK$97.09 billion in 2022 to HK$89.41 billion in 2023, a decline of 7.9%[19] - Total liabilities decreased from HK$83.71 billion in 2022 to HK$79.04 billion in 2023, a decline of 5.6%[19] - The company's equity attributable to owners decreased by 62.9% to HKD 665.0 million in 2023[81] - The company's total intangible assets and financial liabilities as of December 31, 2023, amounted to HKD 2,487,693,000, with a net book value of HKD 2,040,079,000[33] - The company's accumulated amortization of intangible assets as of December 31, 2023, was HKD 447,614,000[33] - Trade receivables as of 2023 amounted to HK$1,868,898,000, with HK$1,315,768,000 overdue by more than six months[42] - Trade payables as of 2023 totaled HK$91,807,000, with HK$58,397,000 due within one month[43] - Other payables, accrued expenses, and deposits received amounted to HK$7,982,093,000 in 2023, including HK$1,244,304,000 in gaming taxes and license fees[44] - Non-current liabilities included HK$2,203,552,000 in grants and license liabilities[45] - Total interest-bearing borrowings as of December 31, 2023, amounted to HKD 63,557,455,000, a decrease from HKD 72,211,007,000 in 2022[46] - New interest-bearing borrowings obtained in 2023 were HKD 9,811,171,000, compared to HKD 14,466,499,000 in 2022[47] - Repayments of interest-bearing borrowings in 2023 were HKD 18,633,784,000, significantly higher than HKD 215,474,000 in 2022[47] - Unsecured notes as of December 31, 2023, were HKD 47,496,913,000, slightly down from HKD 48,252,118,000 in 2022[46] - Unsecured bank loans decreased to HKD 8,222,000,000 in 2023 from HKD 14,831,845,000 in 2022[46] - Secured bank loans stood at HKD 5,135,975,000 in 2023, down from HKD 6,433,806,000 in 2022[46] - Fixed-rate borrowings were HKD 50,199,479,000 in 2023, compared to HKD 50,945,355,000 in 2022[46] - Floating-rate borrowings decreased to HKD 13,357,976,000 in 2023 from HKD 21,265,652,000 in 2022[46] - The company's borrowings denominated in USD were HKD 55,333,455,000 in 2023, down from HKD 63,780,960,000 in 2022[47] - The company repurchased USD 100,000,000 (approximately HKD 780,372,000) of 6.000% senior notes due 2025, resulting in a debt repayment gain of HKD 11,661,000[48] - The company secured a $1,000,000,000 five-year secured credit facility in 2021, consisting of a $688,000,000 term loan and a $312,000,000 revolving credit facility[51] - As of December 31, 2023, the outstanding principal amount of the restated 2021 credit facility was $658,600,000 (approximately HKD 5,144,830,000), down from $837,480,000 (approximately HKD 6,540,308,000) in 2022[53] - The company issued $350,000,000 (approximately HKD 2,733,499,000) of 7.00% senior secured notes due 2027, with net proceeds used for capital expenditures of Studio City's remaining development projects and general corporate purposes[53] - As of December 31, 2023, the company's total available and unused borrowing capacity was HKD 8,246,959,000, a significant increase from HKD 561,019,000 in 2022[54] - The company prepaid $165,120,000 (approximately HKD 1,296,147,000) of outstanding principal under the 2021 credit facility's term loan on April 26, 2023, resulting in a loss on debt modification of HKD 82,222,000 for the year ended December 31, 2023[52] - The interest rate for USD-denominated borrowings under the 2021 credit facility was revised to SOFR plus a credit spread adjustment of 0.06% and a margin of 2.35% per annum, effective June 19, 2023[52] - As of December 31, 2023, HKD 7,880,949,000 of the company's borrowings were secured by certain assets, down from HKD 9,275,637,000 in 2022[54] - The company extended the availability period of an unsecured credit facility of PHP 2,350,000,000 (approximately HKD 330,370,000) to April 30, 2024, with no material changes to terms and conditions[54] - The company's secured bank loans bear interest at HIBOR plus a margin ranging from 1.00% to 4.00% per annum or SOFR plus a credit spread adjustment of 0.06% and a margin of 2.35% per annum, denominated in HKD or USD[51] - The company received waivers for financial covenants under the 2020 credit facility for all relevant periods up to and including March 31, 2024[51] - The capital-to-debt ratio as of December 31, 2023, was 71.1%, a decrease from 74.4% in 2022[104] - The company repaid HKD 1,170,000,000 of outstanding principal under the 2020 credit facility along with accrued interest on March 28, 2024[103] - The total amount of loans secured by the company's assets as of December 31, 2023, was HKD 7,880,900,000, down from HKD 9,275,600,000 in 2022[104] - The company settled a tender offer for USD 100,000,000 (approximately HKD 780,400,000) of 2025 senior notes on November 28, 2023[103] - The company extended the availability period of an unsecured credit facility amounting to PHP 2,350,000,000 (approximately HKD 330,400,000) to April 30, 2024[103] Operations and Projects - City of Dreams Mediterranean, a new integrated resort in Cyprus, commenced operations in 2023 but has been negatively impacted by geopolitical conflicts[11] - The company implemented cost-cutting measures and rationalized capital expenditure plans to preserve cash[11] - The company believes it has sufficient resources to support operations and capital expenditures for at least the next 12 months[11] - The second phase of Studio City's expansion was completed in 2023, with the first stage opening in April and the second stage in September[11] - The company's operating segments are divided into "Casino and Hotel" and "Other," with segment performance evaluated based on Adjusted EBITDA, which excludes interest, taxes, depreciation, amortization, and other non-operating items[16] - The "Casino and Hotel" segment generated net revenue of HKD 29.55 billion in 2023, with Adjusted EBITDA of HKD 7.51 billion, compared to net revenue of HKD 10.57 billion and Adjusted EBITDA loss of HKD 356.8 million in 2022[17][18] - Total assets and liabilities are managed on a group basis, with deferred tax assets and liabilities, as well as other unallocated corporate assets and liabilities, excluded from segment reporting[16] - Net revenue from external customers in the casino and hotel segment increased from HK$6.71 billion in 2022 to HK$24.41 billion in 2023, a growth of 263.8% in Macau[22] - Non-current classified assets in Macau decreased from HK$71.88 billion in 2022 to HK$69.66 billion in 2023, a decline of 3.1%[22] - Capital expenditure in the casino and hotel segment decreased from HK$4.67 billion in 2022 to HK$1.98 billion in 2023, a decline of 57.6%[20] - Customer contract revenue increased from HK$10.22 billion in 2022 to HK$29.12 billion in 2023, a growth of 184.9%[24] - Rental income included in entertainment, retail, and other increased from HK$342.48 million in 2022 to HK$410.41 million in 2023, a growth of 19.8%[24] - Loss from joint ventures and associates decreased from HK$6.59 million in 2022 to HK$6.45 million in 2023, a decline of 2.1%[20] - The impairment of the cash-generating unit of Altira Macau was calculated based on the estimated recoverable amount of HKD 875,115,000 as of December 31, 2022, using a pre-tax discount rate of 14.11%[26] - The company's income tax expense for 2023 was HKD 98,363,000, compared to HKD 5,634,000 in 2022, with significant increases in Hong Kong profits tax and Macau supplementary tax on dividends[27] - Altira Macau was granted an extension of the exemption from Macau supplementary tax on gaming profits from January 1, 2023, to December 31, 2027[28] - Altira Macau entered into agreements with the Macau government for payments in lieu of Macau supplementary tax on dividends from gaming profits, totaling HKD 44,165,000 for 2023[29] - The company did not recommend any dividends for the years ended December 31, 2023, and 2022[30] - The company's basic and diluted loss per share attributable to owners was HKD 1,743,932,000 for 2023, compared to HKD 5,115,881,000 in 2022[31] - Intangible assets increased to HKD 19,357,150,000 in 2023 from HKD 17,319,114,000 in 2022, primarily due to gaming concessions and licenses[32] - The company confirmed intangible assets and financial liabilities of MOP 1,934,035,000 (approximately HKD 1,877,704,000) related to the use and operation rights of reversionary assets and the obligation to pay fixed and floating gaming premiums under the concession[35] - The company was granted a 10-year gaming concession by the Macau government, effective from January 1, 2023, to December 31, 2032, with an annual fixed gaming premium of MOP 30,000,000 (approximately HKD 29,126,000) and additional floating premiums based on the number and type of gaming tables and machines[34] - The company's gaming concession includes the operation of five entertainment venues in Macau, with a minimum requirement of 500 gaming tables and 1,000 gaming machines[34] - The company's intangible assets related to the gaming concession are amortized on a straight-line basis over the 10-year concession period[35] - The company's subsidiary in Cyprus was granted a 30-year gaming license, with an initial annual license fee of EUR 2,500,000 (approximately HKD 21,618,000) for the first four years, increasing to EUR 5,000,000 (approximately HKD 43,236,000) for the subsequent four years[36] - The Cyprus gaming license requires the opening of the City of Dreams Mediterranean by June 30, 2023, with the possibility of termination by the Cyprus government if this deadline is not met[36] - The company's gaming concession in Macau includes the transfer of reversionary assets from the Macau government, with concession fees ranging from MOP 750 (approximately HKD 730) per square meter for the first three years to MOP 2,500 (approximately HKD 2,400) per square meter for the remaining seven years[34] - The company recognized intangible assets of €68,031,000 (approximately HK$579,505,000) and financial liabilities of €67,

Financial Performance - The group's net revenue for the six months ended June 30, 2023, was HKD 13,040 million, an increase of 116.4% compared to HKD 6,030 million in the same period of 2022[4]. - The group reported a loss of HKD 1,400 million for the six months ended June 30, 2023, significantly reduced from a loss of HKD 4,580 million in the same period of 2022[4]. - Adjusted EBITDA surged by 1,804.6%, reaching HKD 3,202.6 million compared to HKD 168.2 million in the same period last year[27]. - The loss attributable to the company's owners decreased by 69.1%, from HKD 2,374.6 million to HKD 733.2 million[28]. - The basic loss per share improved from HKD 1.58 to HKD 0.49, reflecting a 69.1% reduction in losses[29]. - Total operating revenue for the company's gaming operations rose by 118.6%, from HKD 4,904.9 million to HKD 10,723.3 million[26]. - The total comprehensive loss for the six months ended June 30, 2023, was HKD 1,556,816, down from HKD 5,186,383 in the same period of 2022, reflecting a 70.0% reduction[64]. - The total loss before tax for the six months ended June 30, 2023, was HKD 1,414,071, compared to a loss of HKD 4,555,942 in 2022, showing an improvement of 69.0%[63]. Operational Developments - The second phase of Studio City and the indoor water park opened in April 2023, contributing to the recovery of the group's operations[4]. - The City of Dreams Mediterranean in Cyprus officially opened in July 2023 after a successful trial operation in June 2023[3]. - The flagship integrated resort, City of Dreams, has approximately 430 gaming tables and 637 gaming machines as of the first half of 2023[6]. - The new hotel, Starry Suites, featuring 338 luxurious suites, was launched in April 2023, showcasing the group's commitment to providing exceptional service[7]. - The "Exclusive Series Concert" featuring numerous superstars commenced in April 2023, with a total of 90 performances planned over three years[8]. - The group plans to open the Macau Studio City W Hotel in September 2023, adding approximately 560 rooms and several new non-gaming attractions[14]. - The group continues to operate three satellite casinos in Cyprus, contributing to the expansion of its business in the region[12]. Visitor Trends - In the first half of 2023, the number of visitors to Macau increased by 236.1% year-on-year to 11.65 million, with an average of over 64,000 daily visitors, reaching 59.6% of pre-pandemic levels[14]. - Macau's total gaming revenue increased by 205% year-on-year in the first half of 2023, with the group's direct VIP room business surpassing the performance of the same period in 2019[3]. Sustainability Initiatives - The group aims to replace single-use plastic bottles with reusable glass bottles across all operations, having already reduced over 1.4 million single-use plastic bottles in Macau and Manila[22]. - The group has committed to sourcing only cage-free eggs by 2025, with 100% of eggs supplied at City of Dreams Manila already being cage-free since March 2022[22]. - The group received the "Best Environmental Responsibility Award" at the Asia Excellence Awards 2023, highlighting its commitment to environmental sustainability[22]. Awards and Recognition - The group achieved 97 stars in the Forbes Travel Guide 2023, maintaining its leading position among integrated resort operators in Macau and Asia[18]. - The group’s properties received a total of 17 five-star honors in the Forbes Travel Guide, with the Macau property, Studio City, winning five-star recognition for 14 consecutive years[18]. - The group’s restaurants earned seven stars in the Hong Kong Macau Michelin Guide 2023, making it one of the operators with the most Michelin stars in Macau[19]. - The City of Dreams Mediterranean project in Europe won the "Best Hotel Architecture in Cyprus" and "Best New Hotel Construction and Design in Cyprus" at the 2023 European Real Estate Awards[19]. Employee and Talent Development - The total number of employees as of June 30, 2023, was 19,676, up from 17,270 in 2022, representing an increase of 13.9%[58]. - The group’s "Career Advancement Program" was awarded the ATD Excellence in Practice Award 2023, reflecting its commitment to talent development[20]. - The group’s "Reach! New Macau Sports Elite Training Program" encourages employees to adopt healthier lifestyles through sports and physical activities[20]. Financial Position and Debt Management - The total assets decreased by 3.2% from HKD 97,091.6 million to HKD 93,946.1 million[24]. - The total liabilities also decreased by 2.2%, from HKD 83,705.6 million to HKD 81,840.6 million[24]. - The capital debt ratio improved to 71.2% as of June 30, 2023, compared to 74.4% at the end of 2022[51]. - The group has available undrawn borrowing capacity of HKD 4.84 billion as of June 30, 2023, significantly up from HKD 0.56 billion at the end of 2022[48]. - The group repaid principal amounts of HKD 5.31 billion and USD 1.12 billion during the reporting period[49]. Corporate Governance - The company has established a corporate governance code to ensure high transparency and accountability to shareholders[182]. - The audit committee consists of one non-executive director and two independent non-executive directors, responsible for reviewing financial reports and risk management[185]. - The company has complied with its corporate governance code throughout the six months ending June 30, 2023, except for certain deviations[182]. Future Outlook - The company provided an optimistic outlook for the second half of 2023, projecting a revenue growth of 20% to 30%[188]. - New product launches are expected to contribute an additional HKD 1 billion in revenue by the end of 2023[188]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2025[188].

Financial Performance - For the six months ended June 30, 2023, net revenue was HKD 13.04 billion, an increase of HKD 7.01 billion or 116.4% compared to HKD 6.03 billion for the same period in 2022[3]. - Adjusted EBITDA for the six months ended June 30, 2023, was HKD 3.20 billion, compared to HKD 168.2 million for the same period in 2022[3]. - The after-tax loss for the six months ended June 30, 2023, was HKD 1.40 billion, a significant improvement from an after-tax loss of HKD 4.58 billion for the same period in 2022[3]. - Basic loss per share attributable to owners of the company for the six months ended June 30, 2023, was HKD 0.49, compared to HKD 1.58 for the same period in 2022[3]. - The company reported a loss attributable to owners of HKD 4,197,202,000 for the period[8]. - The group reported a pre-tax loss of HKD 733,248,000 for the six months ended June 30, 2023, compared to a loss of HKD 2,374,583,000 for the same period in 2022, indicating a significant improvement[32]. - The company reported a net loss of HKD 1,402,622,000 for the six months ended June 30, 2023, compared to a net loss of HKD 4,579,376,000 for the same period in 2022, showing a reduction in losses[21][22]. Assets and Liabilities - Non-current assets as of June 30, 2023, totaled HKD 79.88 billion, slightly up from HKD 79.79 billion as of December 31, 2022[7]. - Current assets as of June 30, 2023, amounted to HKD 14.07 billion, down from HKD 17.30 billion as of December 31, 2022[7]. - As of June 30, 2023, the total current liabilities amounted to HKD 8,310,183,000, an increase of 14.2% from HKD 7,276,784,000 as of December 31, 2022[8]. - The net current assets decreased to HKD 5,755,960,000 from HKD 10,027,168,000, reflecting a decline of 42.6%[8]. - Non-current liabilities totaled HKD 73,530,401,000, down 3.7% from HKD 76,428,769,000[8]. - The company's equity decreased to HKD 12,105,562,000 from HKD 13,386,065,000, representing a decline of 9.5%[8]. - The total assets as of June 30, 2023, amounted to HKD 93,946,146,000, while total liabilities were HKD 81,840,584,000, reflecting a stable financial position[23]. Revenue Sources - The revenue from external customers in Macau for the six months ended June 30, 2023, was HKD 10,619,906,000, up from HKD 4,147,205,000 in the same period of 2022, marking an increase of approximately 156.5%[25]. - Customer contract revenue for the six months ended June 30, 2023, reached HKD 12,844,373,000, compared to HKD 5,843,392,000 for the same period in 2022, indicating a growth of approximately 119.5%[28]. - Casino revenue surged by 118.6% to HKD 10,723.3 million, up from HKD 4,904.9 million in the prior year[78]. - Non-gaming revenue for the six months ended June 30, 2023, totaled USD 127.2 million, compared to USD 62.1 million in the same period of 2022, indicating a strong recovery in this segment[83]. Operational Developments - The first phase of the City of Dreams Mediterranean opened on June 12, 2023, with full public access starting July 10, 2023[11]. - The second phase of the Studio City development is expected to open in September 2023[11]. - The company opened the Starry Sky and indoor water park in April 2023, contributing to improved operational performance[77]. - The group launched the second phase of Studio City and the first concert series featuring Asian superstars, enhancing market share growth[58]. - The group is upgrading facilities at Studio City, with the return of the show "The House of Dancing Water" expected in 2024[61]. Corporate Governance and Strategy - The board of directors recommended not to declare an interim dividend for the six months ended June 30, 2023[3]. - The company has established various board committees to maintain high corporate governance standards, including an Executive Committee and an Audit Committee[109]. - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the six months ended June 30, 2023[112]. - The company has not conducted any foreign exchange hedging transactions for operational cash flows during the review period[102]. Market and Economic Conditions - The impact of the COVID-19 pandemic and geopolitical tensions continues to create uncertainty for future operational performance[11]. - Macau's tourism saw a significant recovery, with visitor numbers increasing by 236.1% year-on-year to 11.65 million in the first half of 2023, reaching an average of over 64,000 daily visitors[67]. - The Philippines' tourism industry is also recovering strongly, with over 3.2 million inbound travelers recorded in the first seven months of 2023[67]. Sustainability and Social Responsibility - The company aims to eliminate 14.8 million plastic bottles annually by fully implementing the NORDAQ filtration system across all properties in Macau[74]. - The company has committed to sourcing 100% cage-free eggs by 2025, with current operations in Manila already achieving this goal[75]. - The company received the "Best Environmental Responsibility Award" at the Asia Excellence Awards 2023, highlighting its commitment to sustainability[75]. Employee and Workforce - The total number of employees as of June 30, 2023, was 19,676, an increase from 17,270 as of June 30, 2022[105]. - Employee costs for the six months ended June 30, 2023, were HKD 2,991,700,000, compared to HKD 2,606,700,000 for the same period in 2022[105].

Financial Performance - Net revenue decreased by 32.4% to HKD 10.57 billion, compared to HKD 15.64 billion for the year ended December 31, 2021[11]. - Adjusted EBITDA was negative HKD 362 million, down from HKD 1.54 billion for the year ended December 31, 2021[11]. - Net loss after tax was HKD 9.99 billion, compared to a net loss of HKD 7.94 billion for the year ended December 31, 2021[11]. - The group's net revenue for the year ended December 31, 2022, was HKD 10.57 billion, a decrease of 32.4% compared to HKD 15.64 billion in the same period of 2021[27]. - The group reported a loss of HKD 9.99 billion for the year, compared to a loss of HKD 7.94 billion in 2021[27]. - The loss attributable to shareholders increased by 34.2% to HKD 5,110 million in 2022 from HKD 3,810 million in 2021[54]. - Casino revenue fell by 35.3% to HKD 8,426 million in 2022, down from HKD 13,030 million in 2021[52]. - Hotel room revenue decreased by 25.5% to HKD 912.7 million in 2022 compared to HKD 1,224.6 million in 2021[52]. - Total operating revenue for Melco Resorts and Entertainment was $559.7 million for the year ended December 31, 2022, down from $1,146.9 million in 2021, representing a decrease of 51.1%[58]. - Adjusted property EBITDA for Melco Resorts was negative $32.2 million in 2022, compared to positive $202 million in 2021[58]. Operational Developments - The gaming revenue in the Philippines has rebounded to near pre-pandemic levels, while Cyprus's gaming revenue exceeded pre-pandemic levels in Q4 2022[12]. - The opening of the second phase of Studio City and City of Dreams Mediterranean in Cyprus is expected in 2023, aiming to meet pent-up travel demand[12]. - The company reported a significant increase in visitor numbers to Macau since the easing of social distancing measures on January 8, 2023, indicating a positive outlook for the region[24]. - The company anticipates strong performance during the upcoming Spring Festival, with both foot traffic and revenue maintaining substantial levels[24]. - The first phase of the new Studio City Phase 2 is set to open in Q2 2023, featuring a new hotel and an all-weather water park, aimed at attracting more visitors[24]. - The company is optimistic about its Cyprus operations, which have shown improved profitability as pandemic restrictions are lifted, with the City of Dreams Mediterranean set to open in Q2 2023[24]. - The group’s gaming operations in the Philippines have fully reopened since March 1, 2022, with gaming volumes recovering towards pre-pandemic levels[26]. - The total operating revenue for City of Dreams Manila increased to $396.4 million in 2022, up from $268.6 million in 2021, marking a growth of 47.5%[66]. - Cyprus operations generated total revenue of $91.3 million in 2022, an increase from $52.6 million in 2021, representing a growth of 73.5%[68]. Sustainability and Corporate Social Responsibility - The company is committed to sustainable development and has received recognition for its efforts in corporate social responsibility and sustainability initiatives[13]. - The total greenhouse gas emissions increased to 17,688 MtCO2e in 2022 from 15,387 MtCO2e in 2021[16]. - Total energy consumption rose to 390,278 MWh in 2022, up from 383,628 MWh in 2021[17]. - Charitable contributions exceeded HKD 63.88 million in 2022, with over 22,000 volunteer hours logged[14]. - The company aims for carbon neutrality and zero waste at its resorts by 2030[48]. - The company is committed to supporting sustainable and diversified development in Macau's tourism and leisure industry, backed by a new ten-year gaming license[36]. - The company has implemented various community support initiatives, including volunteer activities and charitable donations, to address the needs of vulnerable community members[158]. Corporate Governance - The company has maintained a high level of corporate governance, focusing on responsible decision-making and improving transparency to shareholders[93]. - The board includes experienced independent non-executive directors with backgrounds in law, finance, and media, enhancing the company's governance structure[89][90]. - The company emphasizes risk management and aims to enhance overall performance through improved governance practices[93]. - The audit committee and remuneration committee are composed of independent directors, ensuring unbiased oversight of financial reporting and executive compensation[88][89]. - The company has established a governance policy for environmental, social, and governance (ESG) matters to ensure sustainable operations and compliance with listing rules[138]. - The company has established its own corporate governance code to ensure high transparency and accountability to shareholders[94]. - The board of directors regularly reviews and updates the governance guidelines, policies, and procedures in accordance with applicable laws and market practices[95]. Employee Engagement and Development - The company emphasizes the importance of talent and aims to create a supportive work environment, promoting diversity and equal opportunities across all areas[81]. - The company is committed to providing employee training to enhance skills necessary for business development, aligning training goals with desired outcomes[83]. - The company has established a strong learning and development culture to support the holistic development of its employees, offering competitive compensation and wellness programs[156]. - The company expanded its mental health program "Feel Better" and launched the "Reach! Elite Sports Talent Development Program" to promote employee well-being[152]. - The company’s training completion rate for occupational safety and health measures reached 99.5% in 2022, indicating significant progress in enhancing employee safety awareness[41]. Market Position and Competitive Advantage - The company has established a competitive advantage in the high-end mass market segment, which is expected to drive overall market recovery in Macau[25]. - The company has successfully positioned itself as a leader in the entertainment and leisure industry, with a focus on innovative products and services[20]. - The company is focused on expanding its market presence and enhancing its operational capabilities through strategic initiatives and potential acquisitions[79]. Shareholder Communication and Rights - The company has a framework for effective communication with shareholders, ensuring their rights are upheld[145]. - The company held its 2022 Annual General Meeting in a hybrid format, allowing shareholders to participate both in-person and online, addressing public health concerns during the COVID-19 pandemic[147]. - Shareholders holding at least 5% of total voting rights can request a special meeting, and those with at least 2.5% can propose resolutions at the annual general meeting[143]. Awards and Recognition - The company received the "Corporate Social Responsibility Award" at the 2022 Asia Global Gaming Awards for its community contributions[7]. - Melco International received multiple awards for outstanding corporate governance, including being named "Best Investor Relations Company" for the 11th time by Asia Corporate Governance Magazine in 2022[40]. - The company was awarded the "Best Responsible Gaming Program" at the 2023 Asia Gaming Awards, further validating its efforts in promoting responsible gaming culture[46]. - Melco International achieved 97 Forbes stars in 2023, including 17 five-star awards, showcasing its commitment to high-quality service[47].

Financial Performance - Net revenue for the year ended December 31, 2022, was HKD 10.57 billion, a decrease of HKD 5.07 billion or 32.4% compared to HKD 15.64 billion for the year ended December 31, 2021[3]. - Adjusted EBITDA for the year ended December 31, 2022, was a negative HKD 362 million, down from positive HKD 1.54 billion for the year ended December 31, 2021[3]. - The net loss attributable to shareholders for the year ended December 31, 2022, was HKD 9.99 billion, compared to a net loss of HKD 7.94 billion for the year ended December 31, 2021[3]. - Basic loss per share attributable to shareholders for the year ended December 31, 2022, was HKD 3.40, compared to HKD 2.52 for the year ended December 31, 2021[3]. - The company recorded a total comprehensive loss of HKD 10.26 billion for the year ended December 31, 2022, compared to HKD 8.48 billion for the year ended December 31, 2021[6]. - The company reported a loss before tax of HKD 9,981,683 for the year ended December 31, 2022, compared to a loss of HKD 7,899,979 for the year ended December 31, 2021, reflecting an increase in losses of approximately 26.1%[22][23]. - The company reported a loss attributable to owners of the company of HKD 5,113,127 thousand for 2022, compared to a loss of HKD 3,808,968 thousand in 2021, representing an increase in loss of approximately 34.1%[40]. Assets and Liabilities - Total non-current assets as of December 31, 2022, amounted to HKD 79.79 billion, an increase from HKD 78.98 billion as of December 31, 2021[7]. - Current assets as of December 31, 2022, totaled HKD 17.30 billion, compared to HKD 15.21 billion as of December 31, 2021[7]. - Total assets as of December 31, 2022, amounted to HKD 97,091,618, an increase from HKD 94,193,277 in 2021, representing a growth of approximately 3.0%[24]. - Total liabilities increased to HKD 83,705,553 in 2022 from HKD 71,725,269 in 2021, reflecting a rise of about 16.6%[24]. - The company's equity decreased to HKD 13,386,065 from HKD 22,468,008, a decline of 40.3%[8]. - The company reported a significant drop in total equity attributable to owners, down to HKD 1,791,305 from HKD 6,862,667, a decrease of 73.9%[8]. Operational Challenges - The impact of COVID-19 continued to significantly affect the company's operations, particularly in Macau due to travel restrictions[11]. - The company faced a 12-day mandatory closure of its casinos in Macau during July 2022, which impacted revenue generation[11]. - The company experienced a significant decrease in gaming tax and license fees, which were HKD 3.83 billion for the year ended December 31, 2022, down from HKD 6.55 billion in the previous year[4]. Strategic Developments - The company is actively expanding its operations in Cyprus with the development of City of Dreams Mediterranean, which is expected to enhance its market presence in Europe[9]. - The group anticipates the opening of the first phase of City of Dreams Mediterranean in the second quarter of 2023, with the second phase expected in the third quarter of 2023[13]. - The Macau government has granted a ten-year gaming concession to Melco Resorts (Macau) Limited, effective from January 1, 2023, to December 31, 2032[15]. Cost Management - The group has implemented cost-cutting measures to mitigate challenges posed by the COVID-19 pandemic, including postponing and reducing capital expenditures[14]. - The company incurred total operating expenses of HKD 4,586,000, with significant costs attributed to depreciation and amortization, share-based compensation, and other operational expenditures[22]. Corporate Governance and Compliance - The audit committee held three meetings during the year to review the financial reporting process and monitor risk management and internal control systems[140]. - The company has established various board committees to maintain high corporate governance standards[138]. - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors as of the announcement date[144]. Sustainability and Community Engagement - The company aims to achieve carbon neutrality and zero waste in its resorts by 2030 or earlier[104]. - The company received the "Sustainable Development Award" at the International Gaming Awards in 2022 for its commitment to sustainability[104]. - Over 20,000 volunteer hours were contributed by the company in 2022, participating in more than 2,200 volunteer activities[101]. Future Outlook - Visitor numbers to Macau surged following the easing of social distancing measures on January 8, 2023, indicating a positive outlook for the region[83]. - The company aims to leverage its competitive advantages in the high-end mass market segment to drive overall recovery in the Macau market[84]. - The company plans to enhance its entertainment experiences with a series of exciting projects, including concerts featuring major superstars starting in April 2023[83].