Financial Performance - For the six months ended June 30, 2024, adjusted property EBITDA was $1,170,000,000, an increase of 24.7% compared to $939,000,000 for the same period in 2023[4]. - Net revenue for the six months ended June 30, 2024, was $3,550,000,000, up 22.7% from $2,900,000,000 in the same period of 2023[4]. - Profit for the six months ended June 30, 2024, was $541,000,000, a significant increase of 209.1% compared to $175,000,000 in the same period of 2023[4]. - The total net revenue from the Macau Venetian reached $1,194 million, an increase of 23.2% compared to $969 million in the same period last year[11]. - The total revenue from slot machines was $3,038 million, reflecting a 27.6% increase from $2,380 million[11]. - The total revenue from shopping centers was $231 million, up 3.1% from $224 million, primarily due to increased occupancy rates and base rents[15]. - The total revenue from the Macau Parisian was $3,170 million, reflecting a 51.9% increase from $2,087 million[11]. - The total net revenue from the Macau Palace was $248 million, a decrease of 4.2% from $259 million[11]. - The company reported a significant increase in user data engagement, with a 15% rise in customer visits across its properties compared to the previous year[90]. - The company reported a significant recovery in performance post-COVID-19, with a year-on-year increase in revenue of 45% for the first half of 2024[126]. Visitor Statistics - The total number of visitors from mainland China to Macau for the six months ended June 30, 2024, was 11,500,000, representing an increase of approximately 52.9% year-over-year[6]. - User data indicated a 30% increase in the number of visitors to the integrated resorts compared to the previous year, reflecting a strong rebound in tourism[127]. - The company reported a significant increase in visitor numbers, with a total of 1.5 million entries recorded in the last quarter, representing a 25% increase year-over-year[132]. Capital Expenditures and Investments - The company plans to invest MOP 35,800,000,000 (approximately $4,450,000,000) in capital and operational projects until 2032, including MOP 33,360,000,000 (approximately $4,150,000,000) for non-gaming projects[7]. - The ongoing development of The Londoner Macao Phase II includes renovations and upgrades, with an estimated total cost of $1,200,000,000, expected to be completed by early 2025[7]. - Total capital expenditures for the six months ended June 30, 2024, amounted to $218 million, a significant increase from $79 million in the same period of 2023[32]. - The company is investing $200 million in new technology for gaming operations, aiming to improve customer engagement and streamline services[128]. - The company plans to allocate $102 million to statutory reserves, which is 10% of the after-tax profit for the year ended December 31, 2023[82]. Revenue Segments - The company’s net revenue from gaming for the six months ended June 30, 2024, was $2,700,000,000, a 24.8% increase from $2,160,000,000 in the same period of 2023[10]. - The revenue from the gaming segment for the six months ended June 30, 2024, was $2,698 million, up from $2,161 million in the same period of 2023, representing a growth of 24.9%[90]. - Restaurant revenue increased to $135 million, a 29.8% rise from $104 million, driven by higher business volume in dining and banquet services[18]. - Retail and other revenue reached $94 million, a 38.2% increase from $68 million, driven by increased visitor demand[18]. Operating Expenses - Operating expenses totaled $2.863 billion, a 16.3% increase from $2.462 billion, primarily due to increased visitor volume in Macau[19]. - Gaming expenses rose to $1.75 billion, a 23.2% increase from $1.42 billion, attributed to higher gaming tax from increased revenue[20]. Debt and Financing - Net financing costs for the six months ended June 30, 2024, were $220 million, down 23.3% from $287 million in the same period in 2023[25]. - The company repurchased $175 million of its 5.125% senior notes due August 8, 2025, resulting in a gain of approximately $1 million from early debt repayment[27]. - The capital debt ratio decreased to 92.2% as of June 30, 2024, down from 100.1% at the end of 2023, primarily due to the repurchase of $175 million in outstanding principal of 2025 senior notes[39]. - The net debt as of June 30, 2024, was $6.213 billion, a decrease from $6.809 billion at the end of 2023[39]. Corporate Governance - The company has established principles and guidelines to ensure high standards of corporate governance, which are crucial for creating shareholder value and managing stakeholder interests[44]. - The board of directors has confirmed compliance with the company's code of conduct and standard code throughout the reporting period ending June 30, 2024[46]. - The company has adopted several best practices in corporate governance as per the code, ensuring investor confidence in management responsibilities[44]. Shareholder Information - As of June 30, 2024, major shareholder VVDI (II) holds 5,748,281,984 shares, representing approximately 71.02% of the company's issued share capital[60]. - The company has no knowledge of any major shareholders holding any short positions in the company's shares as of June 30, 2024[60]. - The company did not declare an interim dividend for the six months ended June 30, 2024[35]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance customer experience and operational efficiency[92]. - Future guidance includes a target of achieving $1.5 billion in total revenue for the fiscal year 2024, reflecting a robust recovery trajectory[127]. - The company is exploring potential acquisitions to further strengthen its market position and diversify its offerings[132].

Financial Performance - For the six months ended June 30, 2024, the adjusted property EBITDA was $1,170,000,000, an increase of 24.7% compared to $939,000,000 for the same period in 2023[2] - The total net revenue for the six months ended June 30, 2024, was $3,550,000,000, representing a 22.7% increase from $2,900,000,000 in the prior year[2] - The profit for the six months ended June 30, 2024, was $541,000,000, a significant increase of 209.1% compared to $175,000,000 in the same period of 2023[2] - The net revenue for the six months ended June 30, 2024, was $3,551 million, an increase of 22.7% compared to $2,895 million for the same period in 2023[31] - The operating profit for the same period was $688 million, up from $433 million, reflecting a significant increase in profitability[31] - The company reported a profit attributable to equity holders of $541 million for the six months ended June 30, 2024, significantly up from $175 million in the same period of 2023, representing a growth of about 209.1%[41] - Basic earnings per share for the six months ended June 30, 2024, were 6.69 cents, compared to 2.16 cents for the same period in 2023[31] - The company recorded a tax benefit of $43 million for the six months ended June 30, 2024, compared to $2 million in the same period of 2023[45] Visitor Statistics - The total number of visitors from mainland China to Macau for the six months ended June 30, 2024, was 11,500,000, an increase of approximately 52.9% year-over-year[3] - The number of visitors from mainland China to Macau increased by approximately 52.9% to 11.5 million for the six months ended June 30, 2024, compared to the same period in 2023[36] Gaming Revenue - The gross gaming revenue in Macau for the same period was MOP 113,800,000,000 (approximately $14,140,000,000), up about 41.9% from the previous year[3] - The net revenue from gaming operations for the six months ended June 30, 2024, was $2,700,000,000, reflecting a 24.8% increase from $2,160,000,000 in the prior year[6] - The gross gaming revenue for the same period was approximately $14.14 billion, an increase of about 41.9% compared to the previous year[36] Revenue Breakdown - Room revenue for the same period was $393,000,000, a 16.3% increase from $338,000,000 in the previous year[8] - The company reported a 29.8% increase in food and beverage revenue, reaching $135,000,000 compared to $104,000,000 in the previous year[5] - Total room revenue for The Venetian Macao reached $102 million, a 17.2% increase from $87 million[9] - Total shopping center revenue increased to $231 million, a 3.1% rise from $224 million, driven by higher rental rates[10] - Total shopping center revenue for The Venetian Shopping Center was $108 million, a 4.9% increase from $103 million[11] - Total room revenue for The Londoner Macao reached $166 million, a 23.0% increase from $135 million[9] - Total revenue from meetings, ferries, retail, and other services was $94 million, a 38.2% increase from $68 million, driven by increased visitor demand[13] - The Macau Venetian generated net revenue of $1,457 million for the six months ended June 30, 2024, up from $1,211 million in the same period of 2023, reflecting a growth of approximately 20.3%[39] - The Macau Londoner reported net revenue of $1,006 million for the six months ended June 30, 2024, compared to $685 million in the same period of 2023, marking an increase of around 46.8%[39] - The EBITDA for the Macau Parisian was $154 million for the six months ended June 30, 2024, compared to $120 million in the same period of 2023, showing an increase of approximately 28.3%[41] - The company’s revenue from ferry and other businesses was $55 million for the six months ended June 30, 2024, compared to $41 million in the same period of 2023, indicating an increase of approximately 34.1%[39] Capital Expenditures and Investments - The company plans to invest MOP 35,800,000,000 (approximately $4,450,000,000) in capital and operational projects until 2032, including MOP 33,360,000,000 (approximately $4,150,000,000) for non-gaming projects[4] - The ongoing development of The Londoner Macao Phase II is expected to cost approximately $1,200,000,000 and is anticipated to be completed by early 2025[4] - Capital expenditures for the six months ended June 30, 2024, amounted to $218,000,000, compared to $79,000,000 in the same period of 2023[24] - The company has contracted but unrecognized capital expenditures of $710,000,000 as of June 30, 2024, compared to $510,000,000 as of December 31, 2023[25] - The company is continuing the Phase II development of The Londoner Macao, with an estimated total cost of $1,200,000,000, expected to be completed in early 2025[26] Debt and Financing - Net financing costs for the six months ended June 30, 2024, were $220,000,000, down from $287,000,000 in the same period of 2023, reflecting a decrease in interest and other financing costs by $65,000,000[17] - The capital debt ratio decreased to 92.2% as of June 30, 2024, down from 100.1% at the end of 2023, primarily due to the repurchase of $175 million in outstanding preferred notes and an increase in total equity by $531 million[29] - The total liabilities as of June 30, 2024, were $10,028 million, down from $10,262 million at the end of 2023, indicating a reduction in overall debt levels[34] - The total borrowings amount to $8,153 million as of June 30, 2024, compared to $8,328 million as of December 31, 2023, indicating a decrease of approximately 2.1%[53] - The company repurchased $1.8 billion of outstanding principal amount of 5.125% senior notes due August 8, 2025, resulting in a gain of approximately $1 million from early debt repayment[54] - The available borrowing limit under the 2018 SCL credit facility is $2.5 billion as of June 30, 2024, slightly up from $2.49 billion as of December 31, 2023[55] - The company has complied with all debt covenants under the 2018 SCL credit facility as of June 30, 2024[55] - The company’s credit rating was upgraded to BBB- by Fitch on February 1, 2024, leading to a 0.25% reduction in the annual interest rate on outstanding senior notes[54] Corporate Governance and Compliance - The company has maintained a high level of corporate governance, adhering to all code provisions and adopting several best practice recommendations[56] - The audit committee reviewed the accounting policies and the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[59] - The company adopted revised international financial reporting standards with no significant impact on its operating performance and financial position[37] Dividends - The board of directors did not recommend an interim dividend for the six months ended June 30, 2024[27] - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, nor an interim dividend for the six months ended June 30, 2024[48] Assets and Equity - The total assets as of June 30, 2024, amounted to $10,555 million, compared to $10,258 million at the end of 2023, indicating growth in the asset base[34] - The total equity attributable to the company's shareholders was $527 million as of June 30, 2024, compared to a loss of $4 million at the end of 2023[34] - Trade receivables as of June 30, 2024, were $160 million, down from $222 million as of December 31, 2023[49] - Trade payables and other payables as of June 30, 2024, totaled $1,294 million, slightly down from $1,299 million as of December 31, 2023[51] - As of June 30, 2024, the company's trade payables aging analysis shows $40 million in the 0 to 30 days category, up from $39 million as of December 31, 2023[53]

Investment Rating - The report maintains a "Buy" rating for Sands China with a target price of HKD 24.25, corresponding to a 14x EV/EBITDA for 2024 [2][4]. Core Insights - Sands China's Q2 2024 performance met expectations, with net revenue increasing by 8.0% year-on-year to USD 1.75 billion, recovering to 82% of 2019 levels [1][2]. - The VIP segment saw a significant quarter-on-quarter growth of 40.4%, while the mass market segment experienced a decline of 3.4% [1]. - The report highlights the ongoing renovations at The Londoner, which are expected to enhance profitability post-completion, despite short-term impacts [2][4]. Summary by Relevant Sections Financial Performance - Q2 2024 net profit decreased by 17.2% to USD 246 million, with adjusted EBITDA down 8.0% to USD 561 million, recovering to 73% of 2019 levels [1][2]. - The hotel occupancy rate was reported at 95%, with an average room rate of USD 201 [1]. - For the fiscal year ending December 31, 2024, revenue is projected to reach USD 7.30 billion, with a year-on-year growth of 11.7% [3][4]. Operational Highlights - The report details the performance of various properties, with revenue recovery rates for The Venetian, The Londoner, and others ranging from 50% to 119% of 2019 levels [1]. - The renovation budget for The Londoner Phase II is set at USD 1.2 billion, with completion expected to enhance the competitive edge and profit margins of Sands China [2][4]. Market Position - Sands China is positioned as the largest integrated resort operator in Macau, holding a leading position in both mass and non-gaming segments [2][4]. - The report expresses confidence in the long-term growth prospects of the company, driven by strategic renovations and market recovery [2].

Investment Rating - The report maintains a "Buy" rating for Sands China Limited, with a target price adjusted from HKD 28.5 to HKD 19.5, corresponding to a 10x EV/EBITDA for 2025 [10]. Core Insights - Sands China's Q2 2024 net revenue was USD 1,754 million, reflecting a year-on-year increase of 7.7% but a quarter-on-quarter decrease of 3.1%. Adjusted EBITDA was USD 561 million, up 3.7% year-on-year but down 8% quarter-on-quarter, recovering to 73.3% of 2019 levels [1][9]. - The company's gaming revenue forecasts for 2024, 2025, and 2026 have been revised downwards to HKD 535 billion, HKD 604 billion, and HKD 693 billion, respectively, indicating recoveries to 80%, 90%, and 103% of 2019 levels [9][10]. - The report highlights that the recovery of VIP and mass market gaming revenues is lagging behind the industry, with VIP revenue at USD 179 million, recovering to 32% of 2019 levels, compared to the industry average of 38% [2][3]. Summary by Sections Financial Performance - Q2 2024 adjusted EBITDA margin was 32%, lower than the margins of 36.1%, 33.2%, and 33.7% in Q2 2019, Q2 2023, and Q1 2024, respectively [1][9]. - The company did not declare dividends for Q2 2024 due to ongoing performance challenges [9]. Revenue Breakdown - Q2 2024 gaming revenue was USD 1,710 million, a year-on-year increase of 13.8% and flat quarter-on-quarter, recovering to 81.2% of Q2 2019 levels, surpassing the industry recovery of 77% [2]. - Mass market gaming revenue was USD 1,365 million, recovering to 98% of 2019 levels, while slot machine revenue reached USD 166 million, recovering to 103.3% of 2019 levels [2]. Operational Challenges - The ongoing property renovations are expected to impact revenue in the short term, with the Venetian's performance being notably affected [3][10]. - The company plans to invest at least USD 4.5 billion in Macau by 2032, with 93% allocated to non-gaming projects [3]. Visitor Trends - Visitor numbers to Macau in the first half of 2024 exceeded expectations, reaching 16.72 million, which is 82.4% of 2019 levels, with mainland tourists being the primary contributors [4]. Future Projections - The report projects that the gaming gross revenue (GGR) for the industry is expected to recover to 79% and 86% of 2019 levels in 2024 and 2025, respectively [4]. - Sands China's EBITDA is forecasted to recover to 75%, 85%, and 100% of 2019 levels in 2024, 2025, and 2026, respectively [10].

Investment Rating - The report maintains a "Buy" rating for Sands China Limited with a target price of HKD 30.7 [4] Core Views - Sands China achieved total gaming revenue of USD 1.71 billion in Q1 2024, recovering to 73.2% of the same period in 2019 [2] - The company's net revenue for Q1 2024 was USD 1.81 billion, slightly below Bloomberg consensus of USD 1.86 billion, with a quarter-on-quarter decline of 2.8% [3] - Adjusted property EBITDA for Q1 2024 was USD 610 million, also below Bloomberg consensus of USD 640 million, with a quarter-on-quarter decline of 6.7% [3] - The report anticipates that the renovation of the Londoner Phase II and the Galaxy Macau will impact the company's performance in 2024 [3] Financial Forecasts - The projected total revenue for Sands China is USD 7.95 billion in 2024, USD 8.52 billion in 2025, and USD 9.02 billion in 2026, reflecting year-on-year growth rates of 307.1%, 21.7%, and 7.1% respectively [2][4] - Adjusted property EBITDA is expected to be USD 2.77 billion in 2024, USD 3.03 billion in 2025, and USD 3.30 billion in 2026 [4] - The earnings per share (EPS) forecast is USD 0.18 for 2024, USD 0.22 for 2025, and USD 0.26 for 2026 [4] Market Data - The closing price of Sands China shares is HKD 18.88, with a one-year low of HKD 18.54 and a high of HKD 31.45 [5] - The company has a market capitalization of HKD 152.8 billion [5]

Financial Performance - Total net revenue for the year ended December 31, 2023, was $6,530,000,000, an increase of 307.1% compared to $1,610,000,000 for the year ended December 31, 2022[6]. - The profit for the year ended December 31, 2023, was $692,000,000, a turnaround from a loss of $1,580,000,000 for the year ended December 31, 2022[6]. - Adjusted property EBITDA for the year ended December 31, 2023, was $2,230,000,000, compared to an adjusted property EBITDA loss of $323,000,000 for the year ended December 31, 2022[6]. - Casino revenue reached $4,840,000,000, up 411.2% from $947,000,000 in the previous year, driven by increased visitor numbers[74]. - Room revenue increased to $761,000,000, a rise of 313.6% from $184,000,000, primarily due to higher occupancy rates and revenue per available room[77]. - The shopping center revenue was $513,000,000, reflecting a growth of 44.9% compared to the previous year[73]. - The total revenue from food and beverage services was $240,000,000, marking an increase of 258.2% year-over-year[73]. - Total operating expenses rose to $5.31 billion, reflecting a 91.8% increase from the prior year[83]. - The company reported a total unrestricted cash and cash equivalents of $1.36 billion and available borrowing capacity of $2.49 billion as of December 31, 2023[69]. Visitor Statistics and Tourism Initiatives - Approximately 90,000,000 visitors were received at the properties in 2023, reflecting a strong recovery in tourism and travel consumption[7]. - In 2023, Sands China properties attracted a total of 90 million visitors, averaging approximately 245,000 visitors per day[10]. - The company hosted over 70 live performance events in 2023, attracting more than 560,000 visitors[11]. - The company supported the Macao SAR government's "Tourism + MICE" strategy by hosting the "Discover Macao" event, attracting 200 MICE professionals from over 13 countries[7]. - The 2023 Sands Macao Carnival attracted over 420,000 visitors since its inception in 2020, showcasing the company's successful event strategy[8]. Market Position and Competitive Advantage - Sands China ranked first in market share for room sales and non-room revenue on major travel platforms in Macau, including Ctrip, Alibaba's Fliggy, Meituan, and Agoda[8]. - The company has a strong focus on corporate governance with experienced independent non-executive directors[26][27]. - The company holds a significant market share in the overall Macau gaming market, particularly in the mass gaming segment, which accounted for 75% of market revenue in 2023[39]. - The company benefits from operational scale efficiencies, which help maintain a cost advantage, including lower energy costs and effective staff allocation[38]. Leadership and Governance - The company has a board of directors consisting of eight members, including four independent non-executive directors[19]. - Robert Glen Goldstein serves as the Chairman of the Board and Non-Executive Director since January 2024[20]. - The company appointed Wilfred Wang as Executive Vice Chairman and Executive Director effective January 24, 2024[21]. - The company has a strong leadership team with extensive experience in various sectors, including finance and property development[21][22][24]. - The company is committed to maintaining high standards of financial reporting and compliance[27]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable practices through its "Green Meetings" initiative, part of the Sands Eco 360 global sustainability program[12]. - The company emphasizes its commitment to sustainable development and will publish an independent environmental, social, and governance report for the fiscal year ending December 31, 2023[136]. - The company achieved a 58% reduction in Scope 1 and 2 absolute greenhouse gas emissions compared to the 2018 baseline[138]. - The company has set a target to use 100% cage-free eggs by 2028[138]. - The company was included in the Dow Jones Sustainability World Index for the second consecutive year and ranked in the top 1% for ESG ratings in the S&P Global Sustainability Yearbook 2023[139]. Risks and Challenges - The company's business is particularly sensitive to economic downturns, affecting consumer discretionary spending on luxury facilities and services[107]. - The company faces risks related to compliance with anti-corruption laws, such as the FCPA, which could have a significant negative impact on its financial condition if violated[109]. - The company is exposed to risks from natural disasters, pandemics, and political instability, which could significantly disrupt operations and visitor numbers[107]. - The company faces significant competition from other casinos in Macau, with competitors announcing additional facilities, leading to increased market competition[114]. - The company is subject to extensive regulations and licensing requirements across multiple jurisdictions, which could adversely impact its operations if licenses are not obtained or renewed[109]. Investment and Development Plans - The company has invested over $15 billion to support Macau's economic diversification and enhance its status as a leading leisure and business travel destination[32]. - A new investment of $1.2 billion is planned for the Londoner Macao, expected to be completed by early 2025[33]. - The investment plan commits to a minimum investment of MOP 30,240,000,000 (approximately USD 3,760,000,000) in Macau, with MOP 27,800,000,000 (approximately USD 3,450,000,000) allocated for non-gaming projects, to be completed by December 2032[52]. - The company is required to invest in non-gaming projects if the gross gaming revenue exceeds MOP 180,000,000,000 (approximately USD 22,360,000,000) annually[52]. Corporate Structure and Shareholder Information - The company has a total issued share capital of 8,093,379,566 shares, with a statutory capital of 16,000,000,000 shares[128]. - The shareholder distribution shows that 64.65% of shareholders hold between 1-1,000 shares, while 99.976% of the issued shares are held by two shareholders with over 1,000,000 shares[129]. - Venetian Venture Development Intermediate II holds 69.91% of the company's shares, indicating a significant institutional investment[131]. - The company has entered into a shareholder dividend tax agreement with the Macau government, effective from the 2023 tax year until the 2025 tax year[118]. Operational Highlights - The company operates approximately 12,392 luxury suites and hotel rooms across its properties[34]. - The company operates several major integrated resorts in Cotai, featuring world-class hotel brands such as Four Seasons, St. Regis, Conrad, and Sheraton[35]. - The total number of restaurants and dining establishments across properties is 154, providing a wide range of culinary experiences[61]. - The company operates a fleet of over 100 luxury cars for its "Sands Limousine" service, providing 24/7 service for VIP clients[46]. Legal and Compliance Matters - The company is exposed to litigation, investigations, and enforcement actions that could result in substantial fines or penalties, impacting its financial performance[126]. - The company is required to allocate 5% of its gross gaming revenue to designated entities by the Macau government, including 2% for a public fund and 3% for urban development and tourism promotion[58]. - The company must maintain compliance with the Macau gaming authority's regulations regarding shareholder qualifications and financial reporting[54].

Investment Rating - Buy rating maintained for Sands China Ltd (1928 HK) with a market price of HKD 23 5 [1] Core Views - Sands China's performance turned profitable in 2023, in line with expectations The company is still in the recovery phase and is expected to benefit significantly from the strong rebound in Macau's tourism and gaming industry [3] - The recovery trend is evident, with performance meeting expectations In 2023, Sands China's net profit reached USD 692 million, and adjusted EBITDA was USD 2 225 billion, with Q4 EBITDA at USD 654 million and a margin of 35 1%, recovering to 80 6% of the same period in 2019 [4] - The high-end mass market led the recovery, and non-gaming businesses showed significant improvement In 2023, Sands China's total net revenue was USD 6 53 billion, with gaming revenue accounting for 74% (USD 4 84 billion) and non-gaming revenue contributing 26% (USD 1 81 billion) [4] - Sands China is the leader in Macau's gaming industry, with the largest supply of gaming tables, hotels, and shopping malls The company is expected to continue benefiting from the industry's recovery in 2024 [4] Financial Performance and Forecasts - Revenue in 2023 was USD 6 534 billion, a 307% YoY increase, and is expected to grow to USD 8 82 billion in 2024, USD 9 492 billion in 2025, and USD 9 573 billion in 2026 [2][4] - Net profit in 2023 was USD 692 million, a 144% YoY increase, and is forecasted to reach USD 2 049 billion in 2024, USD 2 424 billion in 2025, and USD 2 575 billion in 2026 [2][4] - EPS in 2023 was USD 0 09, and is expected to grow to USD 0 25 in 2024, USD 0 30 in 2025, and USD 0 32 in 2026 [2][4] - ROE in 2023 was -17,300%, but is expected to recover to 100 2% in 2024, 54 2% in 2025, and 36 6% in 2026 [2][4] Industry Recovery - Macau's gaming gross revenue in 2023 was MOP 183 1 billion, recovering to 63% of 2019 levels Quarterly breakdown shows recovery rates of 45% in Q1, 62% in Q2, 69% in Q3, and 75% in Q4 [4] - Visitor arrivals to Macau in 2023 reached 28 21 million, recovering to 72% of 2019 levels Quarterly recovery rates were 48% in Q1, 68% in Q2, 84% in Q3, and 90% in Q4 [4] Business Segments - Gaming: High-end mass market recovery led the way, with mass market table games revenue at USD 1 42 billion in Q4 2023, recovering to 97% of 2019 levels High-end mass contributed USD 685 million (101% of 2019), while regular mass contributed USD 732 million (93% of 2019) Slot machine revenue was USD 163 million, recovering to 101% of 2019 levels VIP gaming revenue was USD 130 million, recovering to 24% of 2019 levels [4] - Non-gaming: Significant recovery in non-gaming businesses, with hotel occupancy reaching 97 2% and average room rate at USD 197 Retail revenue was USD 156 million, recovering to 96% of 2019 levels [4] Future Outlook - Sands China's parent company, LVS, is increasing investment in Macau, with the Londoner Phase 2 project starting in November 2023, with an investment increase from USD 1 billion to USD 1 2 billion This will further optimize Sands China's supply and enhance customer spending [4] - The parent company plans to reduce leverage in the future, preparing for the resumption of dividends [4]

Financial Performance - The total net revenue for the year ended December 31, 2023, was $6,530,000,000, an increase of 307.1% compared to $1,610,000,000 for the year ended December 31, 2022[3]. - The profit for the year ended December 31, 2023, was $692,000,000, recovering from a loss of $1,580,000,000 in the previous year[3]. - Adjusted property EBITDA for the year ended December 31, 2023, was $2,230,000,000, compared to an adjusted property EBITDA loss of $323,000,000 for the year ended December 31, 2022[3]. - The company's total net revenue for the year ended December 31, 2023, was $6,534,000,000, an increase of 307.1% compared to $1,610,000,000 for the year ended December 31, 2022[11]. - The gaming segment generated net revenue of $4,840,000,000, up 411.2% from $947,000,000 in the previous year, driven by increased visitor numbers[12]. - The company’s revenue from the hotel segment reached $761,000,000, reflecting a 313.6% increase from $184,000,000 in the previous year[11]. - The shopping mall segment reported revenue of $513,000,000, a 44.9% increase from $354,000,000 year-over-year[11]. - The company’s food and beverage revenue was $240,000,000, which is a 258.2% increase from $67,000,000 in the previous year[11]. - The total net revenue from the Macau Venetian casino reached $2,151 million, a significant increase of 391.1% compared to $438 million in the previous year[13]. - The total revenue from slot machines was $5,066 million, reflecting a 347.5% increase from $1,132 million[13]. - For the fiscal year ending December 31, 2023, the company reported a profit of $692 million, compared to a loss of $1.58 billion for the fiscal year ending December 31, 2022[26]. - The total assets as of December 31, 2023, amounted to USD 10,258 million, a decrease from USD 10,562 million in the previous year[40]. - The total liabilities decreased to USD 10,262 million as of December 31, 2023, from USD 11,262 million in the previous year[41]. - The company did not recommend a final dividend for the year ending December 31, 2023[37]. - Basic and diluted earnings per share for the year ending December 31, 2023, are USD 8.56, compared to a loss of USD 19.55 in 2022[60]. Visitor and Market Trends - Visitor numbers to Macau exceeded 28,000,000 in 2023, a significant increase from approximately 6,000,000 in 2022 following the lifting of COVID-19 travel restrictions[4]. - The total gross gaming revenue in Macau increased by approximately 333.8% compared to 2022, although it decreased by about 37.4% compared to 2019[3]. - The total number of visitors from mainland China to Macau increased by approximately 273.1% compared to 2022 and decreased by about 31.8% compared to 2019[43]. - The company remains optimistic about future growth driven by rising demand for travel and entertainment in Asia[6]. Investments and Future Plans - The company has invested over $15,000,000,000 to support Macau's economic diversification and enhance its status as a leading leisure and business travel destination[5]. - A new investment of $1,200,000,000 has been announced for The Londoner Macao, expected to be completed by early 2025, aimed at enhancing customer experience[6]. - The company plans to increase capital and operational investments in Macau by $4,500,000,000 by 2032[6]. - The business strategy focuses on leveraging a convention-based integrated resort model to support Macau's diversification efforts[6]. - VML is required to invest at least MOP 30,240,000,000 (approximately USD 3,760,000,000) in Macau by December 2032, including MOP 27,800,000,000 (approximately USD 3,450,000,000) in non-gaming projects[36]. - VML must increase its investment in non-gaming projects by 20%, resulting in an additional investment of MOP 5,560,000,000 (approximately USD 691,000,000) due to Macau's total gaming gross revenue exceeding MOP 180,000,000,000 (approximately USD 22,360,000,000) for the year ending December 31, 2023[36]. - The company plans to expand its conference capabilities by constructing a new state-of-the-art venue covering approximately 18,000 square meters, aimed at making Macau a preferred destination for international corporate gatherings[36]. Operational Metrics - The company reported a total of 12,050 hotel rooms and suites across its properties as of December 31, 2023[9]. - The number of gaming tables operated by the company is currently permitted to be up to 1,680, with 3,700 slot machines available[10]. - The average daily room rate at the Venetian Macau increased by 45.5% to $208 from $143[16]. - The occupancy rate at the Londoner Macau reached 80.4%, up 53.5 percentage points from 26.9%[16]. - The total revenue for the Venetian Shopping Center reached $227 million, a 47.4% increase from $154 million in the previous year[18]. - The total revenue for the Londoner Shopping Center was $66 million, reflecting a 40.4% increase from $47 million[18]. - The total revenue for the Parisian Shopping Center amounted to $32 million, up 28.0% from $25 million[18]. - The company operates a total of 722 retail outlets across its properties[9]. Financial Position and Cash Flow - The company has a strong balance sheet with total unrestricted cash and cash equivalents of $1,360,000,000 and available borrowings of $2,490,000,000[3]. - The net cash generated from operating activities for the fiscal year ending December 31, 2023, was $2.29 billion, a significant increase from a net cash used of $473 million in the previous year[31]. - The company incurred a net cash outflow of $180 million from investing activities, primarily due to capital expenditures of $231 million[32]. - The net cash used in financing activities for the fiscal year was $2.45 billion, mainly due to the repayment of $1.95 billion under the 2018 SCL credit facility[33]. - Total capital expenditures for the year amounted to $231 million, with significant investments in properties such as the Londoner Macao ($131 million) and Venetian Macao ($71 million)[34]. - As of December 31, 2023, the total amount available under the revised and restated financing agreement was $2.49 billion after repayments of $1.95 billion[28]. - The company believes that its cash flow from operations, along with available credit, will be sufficient to meet its financial covenants and capital expenditure commitments[29]. - The company has contracted but not yet recognized liabilities for capital expenditures totaling $510 million as of December 31, 2023[35]. Governance and Compliance - The company has adhered to all provisions of the corporate governance code during 2023, ensuring high standards of corporate governance[78]. - The role of Chairman and CEO was held by Robert Glen Goldstein until January 24, 2024, when a separation of roles occurred, with Zheng Junuo appointed as CEO[79]. - The Audit Committee has reviewed the annual performance for the year ending December 31, 2023, and confirmed compliance with applicable accounting standards and regulations[83]. - The annual report for the year ending December 31, 2023, will be sent to shareholders and published on the stock exchange and the company's website[84]. - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[86].

Financial Performance - For the six months ended June 30, 2023, Sands China Ltd. reported an adjusted property EBITDA of $939 million (HK$7.36 billion), a significant recovery from an adjusted property EBITDA loss of $120 million (HK$942 million) in the same period of 2022[5]. - The total net revenue for the first half of 2023 was $2.9 billion (HK$22.69 billion), representing an increase of 216.4% compared to $915 million (HK$7.18 billion) in the first half of 2022[5]. - The company achieved a profit of $175 million (HK$1.37 billion) in the first half of 2023, a turnaround from a loss of $760 million (HK$5.96 billion) in the same period of 2022[5]. - Casino revenue for the six months ended June 30, 2023, was $2,161 million, up 280.5% from $568 million for the same period in 2022[16]. - The company reported a profit attributable to equity holders of $175 million, compared to a loss of $760 million in the prior year[83]. - Basic and diluted earnings per share for the current period were 2.16 cents, recovering from a loss of 9.39 cents per share in the previous year[82]. - The company reported a total comprehensive income of $171 million for the period, compared to a total comprehensive loss of $762 million in the previous year[83]. Revenue Breakdown - Room revenue increased to $338 million for the six months ended June 30, 2023, a 244.9% increase from $98 million for the same period in 2022[19]. - The total revenue from the shopping mall segment was $224 million, reflecting a 16.1% increase from $193 million in the previous year[15]. - The food and beverage segment generated $104 million, which is an increase of 181.1% compared to $37 million in the same period last year[15]. - The total revenue from meetings, ferries, retail, and other services was $68 million, marking a 257.9% increase from $19 million in the previous year[15]. - The Venetian Macao's casino revenue was $969 million, a 290.7% increase from $248 million in the same period last year[17]. - The Londoner Macao's casino revenue reached $479 million, up 295.9% from $121 million in the previous year[17]. - The Parisian Macao's casino revenue was $311 million, reflecting a 314.7% increase from $75 million in the same period last year[17]. Visitor Statistics - Macau's gross gaming revenue for the first half of 2023 reached MOP 80.1 billion (approximately $9.93 billion), an increase of 205.1% compared to the same period in 2022[9]. - The total number of visitors to Macau for the first half of 2023 was 11.6 million, reflecting a 236.1% increase compared to the same period in 2022[9]. - The Macau government reported that the total number of visitors from mainland China increased by approximately 141.0% compared to the same period in 2022 and decreased by about 47.3% compared to 2019[8]. Financial Position - The company has a strong balance sheet with total cash and cash equivalents of $1.23 billion and available borrowings of $1.74 billion under the 2018 SCL credit facility[8]. - As of June 30, 2023, the company held cash and cash equivalents totaling $1,230,000,000, primarily in HKD, USD, and MOP[33]. - The company reported a decrease in cash and cash equivalents of $468,000,000 for the six months ended June 30, 2023, compared to an increase of $91,000,000 in the same period in 2022[35]. - The company has capital commitments of $60,000,000 as of June 30, 2023, compared to $72,000,000 as of December 31, 2022[40]. - As of June 30, 2023, the net debt amounted to $7,654 million, a decrease of $526 million from December 31, 2022[45]. - The total capital as of June 30, 2023, was $7,128 million, down from $7,645 million as of December 31, 2022[45]. - The capital-to-debt ratio improved to 107.4% as of June 30, 2023, compared to 109.2% at the end of 2022[45]. Operational Developments - The construction of Phase II of The Londoner Macao is expected to commence in November 2023, with a target completion date before 2026[7]. - Sands China Ltd. continues to focus on reinvesting in its property portfolio to maintain high-quality offerings and competitiveness in the market[6]. - The company has committed to invest at least MOP 30,240,000,000 (approximately $3,750,000,000) in non-gaming projects in Macau by December 2032[41]. - The company successfully extended the maturity of its 2018 SCL credit facility from July 31, 2023, to July 31, 2025[8]. Expenses and Costs - Operating expenses rose by 65.3% to $2.46 billion from $1.49 billion, attributed to increased business volume across all categories[25]. - Casino expenses increased by 136.8% to $1.42 billion from $600 million, mainly due to higher gaming tax from increased casino revenue[26]. - General and administrative expenses were $301,000,000, an increase of 9.5% from $275,000,000 in the previous year, mainly due to higher marketing, utility, and wage expenses[27]. - The company incurred financing costs of $287 million for the six months ended June 30, 2023, compared to a loss of $189 million in the same period of 2022[97]. Governance and Compliance - The company has maintained compliance with corporate governance codes throughout the reporting period[52]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards[61]. - The company has five board committees: Audit Committee, Remuneration Committee, Nomination Committee, Capital Expenditure Committee, and Environmental, Social and Governance Committee[59]. Strategic Initiatives - The company plans to continue focusing on market expansion and new product development to drive future growth[87]. - The company is investing $500 million in technology development to enhance user experience and operational efficiency[132]. - Market expansion plans include entering two new regions by Q4 2023, aiming for a 5% market share in those areas[132]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $1 billion allocated for potential deals[132]. Environmental and Social Responsibility - The company aims to enhance its environmental, social, and governance (ESG) initiatives, with a commitment to reduce carbon emissions by 25% by 2025[132]. - The company plans to enhance its environmental, social, and governance (ESG) initiatives, allocating $50 million towards sustainability projects in 2023[139].

Financial Performance - For the six months ended June 30, 2023, the adjusted property EBITDA was $939 million, compared to a loss of $120 million for the same period in 2022, indicating a significant recovery[2]. - The total net revenue for the six months ended June 30, 2023, was $2.9 billion, an increase of 216.4% from $915 million in the same period of 2022[4]. - The company's profit for the six months ended June 30, 2023, was $175 million, a turnaround from a loss of $760 million in the same period of 2022[2]. - The net revenue from the gaming segment was $2.16 billion, up 280.5% from $568 million in the previous year[5]. - The total comprehensive income for the period was $171 million, a significant recovery from a loss of $762 million in the previous year[40]. - The company reported a net profit attributable to equity holders of $175 million for the six months ended June 30, 2023, compared to a loss of $760 million in the same period of 2022[50]. - The company reported a basic and diluted earnings per share of 2.16 cents for the period, a recovery from a loss of 9.39 cents per share in the previous year[39]. Visitor and Revenue Growth - The total number of visitors to Macau increased by approximately 141.0% compared to the same period in 2022, contributing to improved business performance[3]. - The company anticipates continued improvement in visitor numbers and revenue as travel restrictions have been lifted, although future impacts remain uncertain[3]. - The Venetian Macao generated $1.211 billion in net revenue, up from $377 million in the prior year, reflecting a growth of approximately 221%[48]. - The Londoner Macao reported net revenue of $685 million, an increase of 242% compared to $200 million in the same period last year[48]. - The Parisian Macao's net revenue was $413 million, up from $116 million, marking a growth of approximately 256%[48]. Operational Metrics - Hotel revenue reached $338 million, a 244.9% increase from $98 million in the same period of 2022, driven by higher occupancy rates and revenue per available room[8]. - The occupancy rate for The Venetian Macao improved to 90.4%, up 50.5 points from 39.9%[9]. - The average daily room rate (ADR) for The Venetian Macao increased by 42.5% to $208 from $146[9]. - Food and beverage revenue surged by 181.1% to $104 million from $37 million in the previous year[14]. - Total shopping center revenue increased by 16.1% to $224 million from $193 million year-over-year[11]. Financial Position and Liquidity - The company reported a strong balance sheet with cash and cash equivalents totaling $1.23 billion and available borrowings of $1.74 billion as of June 30, 2023[3]. - Cash and cash equivalents totaled $1.23 billion as of June 30, 2023, primarily held in HKD, USD, and MOP[20]. - Cash used in investing activities for the six months ended June 30, 2023, was $51 million, primarily due to capital expenditures of $79 million[24]. - The company has a strong balance sheet with total cash and cash equivalents of $1,230 million and available borrowings of $1,740 million as of June 30, 2023[45]. - The company’s total current borrowings decreased to $14 million as of June 30, 2023, from $1,974 million as of December 31, 2022, reflecting a significant reduction[69]. Debt and Financing - The company successfully extended the maturity of its 2018 SCL credit facility from July 31, 2023, to July 31, 2025, enhancing financial flexibility[3]. - Net financing costs for the six months ended June 30, 2023, were $287 million, up from $189 million in the same period in 2022, representing a 51.9% increase[18]. - The weighted average interest rate for the six months ended June 30, 2023, was approximately 6.0%, up from 4.5% in the same period in 2022[18]. - The company has a borrowing capacity of $1,740 million under the 2018 SCL credit facility, which includes $1,570 million in HKD and $166 million in USD[72]. - The non-current portion of financial liabilities related to the gaming concession is recorded under "Trade payables and other payables - non-current" in the consolidated balance sheet[60]. Capital Expenditures and Investments - Total capital expenditure for the six months ended June 30, 2023, was $79 million, a decrease of 49.4% compared to $156 million in the same period of 2022[26]. - The company has committed to invest at least $3.75 billion in Macau by December 2032, including $3.44 billion in non-gaming projects[27]. - The company continues to support ongoing major construction projects and fulfill contractual obligations[45]. Compliance and Governance - The audit committee reviewed the accounting policies and interim financial statements for the six months ended June 30, 2023, confirming compliance with applicable accounting standards[38]. - The company believes it has complied with all covenants of the 2018 SCL credit facility as of June 30, 2023[21]. - The board of directors did not recommend an interim dividend for the six months ended June 30, 2023[28]. Risks and Challenges - The company continues to face various financial risks, including market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since December 31, 2022[46]. - The company has applied for an extension of tax exemptions for its gaming operations, which may affect future tax liabilities[56].