Core Viewpoint - Citi's research report expresses optimism regarding the acquisition of approximately 7,504 square meters of floor space in the Lisboa Hotel by SJM Holdings from its controlling shareholder, which will be converted into a new gaming area [1] Group 1: Acquisition Details - The acquisition price for the Lisboa Hotel space is set at HKD 529 million [1] - Over 110 gaming tables are expected to be redeployed from closed satellite casinos to this new gaming area, which is anticipated to generate higher EBITDA [1] Group 2: Financial Projections - Citi has raised its earnings forecast for SJM Holdings for the years 2026 to 2027 by 34% to 50% [1] - The target price for SJM Holdings has been increased from HKD 2.3 to HKD 2.8 [1] Group 3: Market Share and Debt Concerns - The report maintains a "Sell" rating due to expectations that market share will be difficult to recover in the short term [1] - The acquisition of the Grand Lisboa and the Lisboa Palace will inevitably increase the company's debt ratio, indicating limited opportunities for dividend recovery in the short term [1]

Core Viewpoint - The performance of 澳博控股 in 2Q25 fell short of market expectations, with a net income of HKD 7.16 billion, reflecting a 4% year-on-year growth but a 4% quarter-on-quarter decline, returning to 85% of the level seen in 2Q19 [1] Financial Performance - The adjusted EBITDA for the company was HKD 688 million, down 21% year-on-year and 28% quarter-on-quarter, recovering to 69% of the level in 2Q19, and was below Bloomberg's consensus estimate of HKD 939 million [1] - Daily operating costs increased by HKD 900,000, representing a 9.9% year-on-year growth and a 4.4% quarter-on-quarter growth, with management expecting future daily operating costs to continue rising by HKD 100,000 to HKD 200,000 [1] Development Trends - 澳博 signed an agreement with 澳娱综合 to acquire 7,504 square meters of space in the 澳门葡京酒店 for HKD 539 million, which is expected to allow the allocation of 25-35% of the satellite gaming tables (458 tables) in the newly acquired area, potentially doubling the number of gaming tables at the 澳门葡京酒店 [1] - Management plans to increase marketing rebate expenditures to compete with peers in Macau [1] - The company is seeking to raise funds through mortgage loans for the acquisition of 澳门凯旋门 and 十六浦 properties by the end of 2025, and will refinance a USD 500 million bond maturing in January 2026 through bank loans [1] Earnings Forecast and Valuation - The adjusted EBITDA forecasts for 2025 and 2026 remain unchanged, with the company's stock price corresponding to a 10x adjusted EV/EBITDA for 2025 [2] - The target price has been raised by 19% to HKD 2.50, corresponding to an 8x adjusted EV/EBITDA for 2H25e+1H26e, indicating a 25% downside potential from the current stock price [2]

Core Viewpoint - 澳博控股 reported a significant increase in losses for the first half of the year, leading to a decline in stock price and the decision not to distribute an interim dividend [1] Financial Performance - Total revenue from gaming, hotel, dining, retail, leasing, and related services reached HKD 14.639 billion, an increase of 6.07% year-on-year [1] - Shareholders' attributable loss amounted to HKD 1.82 billion, representing a year-on-year increase of 12.19% [1] - Basic loss per share was HKD 0.026 [1] - Adjusted EBITDA decreased by 5.1% to HKD 1.646 billion, with an adjusted EBITDA margin dropping by 1.4 percentage points to 11.2% [1] Strategic Developments - 澳博控股 announced the acquisition of part of the Lisboa Hotel from its controlling shareholder for HKD 5.29 billion [1] - The company anticipates that this property will allow for the expansion of existing business at the Lisboa Casino, including the addition of new facilities and gaming areas [1] - 澳博控股 plans to support the gaming operations at this property with certain gaming tables and slot machines from a satellite casino expected to cease operations by the end of 2025 [1]

Core Viewpoint - 澳博控股 reported a mixed performance in its interim results, with revenue growth but increased losses, leading to a significant drop in stock price [1] Financial Performance - Total revenue from gaming, hotel, dining, retail, leasing, and related services reached HKD 14.639 billion, representing a year-on-year increase of 6.07% [1] - The company reported a shareholder loss of HKD 1.82 billion, which is a year-on-year increase of 12.19% [1] - Basic loss per share was HKD 0.026 [1] - Adjusted EBITDA decreased by 5.1% to HKD 1.646 billion, with the adjusted EBITDA margin declining by 1.4 percentage points to 11.2% [1] Strategic Developments - 澳博控股 announced the acquisition of part of the Lisboa Hotel property from its controlling shareholder for HKD 529 million [1] - The company anticipates that this property will allow for the expansion of existing business at the Lisboa Casino, including the addition of new facilities and gaming areas [1] - 澳博控股 plans to support the gaming operations at this property with several gaming tables and slot machines from a satellite casino expected to cease operations by the end of 2025 [1]

澳博控股(00880)发布截至2025年6月30日止六个月中期业绩，博彩、酒店、餐饮、零售、租赁及相关服 务收益146.39亿港元，同比增加6.07%;股东应占亏损1.82亿港元，同比扩大12.19%;每股基本亏损2.6港 仙。 公告称，收益增幅主要是由博彩收益所致。 公司的附属公司澳娱综合度假股份有限公司(澳娱综合)于2025年上半年的博彩净收益为136.28亿港元， 2024年上半年则为128.97亿港元。 澳娱综合占澳门博彩毛收益的12.9%，当中包括占中场赌枱博彩毛收益的16.1%及占贵宾博彩毛收益的 3.7%。 上葡京综合度假村的毛收益为36.26亿港元，包括博彩毛收益29.36亿港元及非博彩收益6.90亿港元，而 2024年上半年则取得博彩毛收益23.25亿港元及非博彩收益6.31亿港元。上葡京综合度假村的经调整物业 EBITDA为8,200万港元，而2024年上半年则为1.92亿港元。 新葡京的毛收益为37.60亿港元，包括博彩毛收益35.82亿港元及非博彩收益1.78亿港元，而2024年上半 年则取得博彩毛收益36.60亿港元及非博彩收益1.40亿港元。新葡京的经调整物业EBITDA为8.63 ...

Core Viewpoint - The acquisition of a property by 澳博控股 (00880) through its subsidiary 澳娱综合 is aimed at expanding its operations and enhancing its competitive position in the Macau gaming market, with a purchase price of HKD 5.29 billion [1] Group 1: Acquisition Details - 澳博控股 announced an agreement to acquire a property that is part of the葡京酒店, with the transaction set to be completed by August 28, 2025 [1] - The agreed purchase price for the property is HKD 5.29 billion [1] - The acquisition will allow 澳娱综合 to expand its existing operations by an additional 7,504 square meters, including former gaming areas and new facilities [1] Group 2: Strategic Implications - The property acquisition is expected to support the relocation of several gaming tables and slot machines from a satellite casino that is set to cease operations by the end of 2025 [1] - The integration of the property with the new葡京酒店 will create the largest integrated resort on the Macau Peninsula [1] - The board believes that this acquisition will strengthen 澳娱综合's footprint and competitive position in the Macau market, aligning with its long-term strategy to optimize operational synergies and capitalize on growth opportunities in the Macau gaming sector [1]

Core Viewpoint - 澳博控股 announced the acquisition of a property from its controlling shareholder, 澳娱, for 529 million HKD, aimed at expanding its gaming operations and enhancing its competitive position in the Macau market [1] Group 1: Acquisition Details - The property, part of the葡京酒店, has a total usable area of approximately 7,504 square meters, representing 100/1,617 of the total area of the hotel [1] - The acquisition price is set at 529 million HKD, with plans to utilize the property to expand existing gaming operations [1] Group 2: Strategic Implications - The acquisition will allow 澳娱综合 to further scale and integrate its operations in the Macau Peninsula, enhancing its brand presence and service offerings to VIP and mass market customers [1] - The board believes this acquisition will strengthen 澳娱综合's footprint and competitive position in the Macau market, aligning with its long-term strategy to optimize operational synergies and capitalize on growth opportunities in the gaming sector [1]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group's total net revenue grew 6.1% to HKD 14.639 billion, but adjusted EBITDA declined 5.1% to HKD 1.646 billion, and loss attributable to owners expanded to HKD 182 million Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | 2025 (Million HKD) | 2024 (Million HKD) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Group Total Net Revenue | 14,639 | 13,801 | 6.1% | | Gaming Net Revenue | 13,628 | 12,897 | 5.7% | | Adjusted EBITDA | 1,646 | 1,734 | (5.1%) | | Loss Attributable to Owners of the Company | (182) | (162) | NM | | Basic Loss Per Share (HK cents) | (2.6) | (2.3) | NM | [Interim Dividend](index=2&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare an **interim dividend** for the six months ended **June 30, 2025** (2024: nil)[5](index=5&type=chunk) [Operations Summary](index=2&type=section&id=Operations%20Summary) SJM Resorts' gaming net revenue grew to HKD 13.628 billion, Grand Lisboa Palace Resort's total revenue increased 22.7%, while Grand Lisboa's total revenue slightly declined - SJM Resorts' gaming net revenue for the first half of 2025 was **HKD 13.628 billion**, an increase from **HKD 12.897 billion** in the first half of 2024[6](index=6&type=chunk) - SJM Resorts accounted for **12.9%** of Macau's gross gaming revenue, with mass market table gross gaming revenue at **16.1%** and VIP gross gaming revenue at **3.7%**[6](index=6&type=chunk) Key Property Operating Data (H1 2025 vs H1 2024) | Property | Indicator | 2025 (HKD) | 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | :--- | | **Grand Lisboa Palace Resort** | Gross Revenue | 3.626 billion | 2.956 billion | +22.7% | | | Adjusted Property EBITDA | 82 million | 192 million | -57.3% | | | Occupancy Rate | 98.1% | 94.8% | +3.3 percentage points | | | Average Daily Room Rate | 1,221 | 1,155 | +5.7% | | **Grand Lisboa** | Gross Revenue | 3.760 billion | 3.800 billion | -1.1% | | | Adjusted Property EBITDA | 863 million | 1.010 billion | -14.6% | | | Occupancy Rate | 98.6% | 98.5% | +0.1 percentage points | | | Average Daily Room Rate | 1,398 | 1,226 | +14.0% | - As of June 30, 2025, the Group's cash, bank balances, short-term bank deposits, and pledged bank deposits totaled **HKD 3.335 billion**, with debt at **HKD 27.257 billion**[6](index=6&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section provides the condensed consolidated statements of profit or loss and financial position, detailing the Group's financial performance and position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group reported total revenue of HKD 14.639 billion, with a loss for the period of HKD 138 million and basic and diluted loss per share of 2.6 HK cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD) | 2024 (Million HKD) | | :--- | :--- | :--- | | Revenue from Gaming, Hotel, F&B, Retail, Leasing and Related Services | 14,639.3 | 13,801.3 | | Gaming Revenue | 13,627.5 | 12,897.0 | | Special Gaming Tax and Special Levy | (5,928.1) | (5,516.7) | | Hotel, F&B, Retail, Leasing and Related Services Income | 1,011.8 | 904.3 | | Marketing and Promotion Expenses | (2,634.9) | (2,422.9) | | Operating and Administrative Expenses | (5,098.8) | (4,772.8) | | Finance Costs | (847.1) | (975.8) | | Loss Before Tax | (107.1) | (85.2) | | Loss for the Period | (138.1) | (108.6) | | Loss Attributable to Owners of the Company | (182.2) | (162.4) | | Basic Loss Per Share (HK cents) | (2.6) | (2.3) | | Diluted Loss Per Share (HK cents) | (2.6) | (2.3) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group reported total non-current assets of HKD 45.306 billion, net current liabilities of HKD 10.359 billion, and total equity of HKD 14.024 billion Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property and Equipment | 37,839.1 | 37,566.4 | | Gaming Concession Rights | 1,906.6 | 2,097.7 | | Total Non-Current Assets | 45,306.4 | 45,463.4 | | **Current Assets** | | | | Bank Balances and Cash | 2,103.1 | 1,992.9 | | Total Current Assets | 3,634.4 | 3,261.5 | | **Current Liabilities** | | | | Trade and Other Payables | 4,641.8 | 4,743.5 | | Bank Loans Due Within One Year | 3,424.0 | 1,729.5 | | Unsecured Notes | 5,492.5 | — | | Total Current Liabilities | 13,993.9 | 6,933.4 | | Net Current Liabilities | (10,359.5) | (3,671.9) | | **Non-Current Liabilities** | | | | Bank Loans Due After One Year | 10,891.7 | 11,769.7 | | Unsecured Notes | 3,799.8 | 9,349.9 | | Total Non-Current Liabilities | 20,922.2 | 27,615.5 | | Net Assets | 14,024.7 | 14,176.0 | | Equity Attributable to Owners of the Company | 13,728.7 | 13,924.1 | | Total Equity | 14,024.7 | 14,176.0 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering accounting policies, segment performance, and financial details [General Information and Basis of Preparation](index=6&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Company, a Hong Kong-registered investment holding company, presents its HKD financial statements in accordance with HKAS 34 and Listing Rules, consistent with prior accounting policies - The Company is a public limited company registered in **Hong Kong**, primarily engaged in the development and operation of casinos and related facilities, hotels, food and beverage, retail, leasing, and related services in **Macau**[10](index=10&type=chunk) - The condensed consolidated financial statements are presented in **Hong Kong Dollars (HKD)** and prepared in accordance with **Hong Kong Accounting Standard 34** and **Appendix D2** of the Listing Rules of The Stock Exchange of Hong Kong Limited[11](index=11&type=chunk) - The accounting policies for the six months ended **June 30, 2025**, are consistent with those applied in the annual consolidated financial statements for the year ended **December 31, 2024**, with no significant impact on financial position or performance from the application of revised Hong Kong Financial Reporting Standards[13](index=13&type=chunk)[14](index=14&type=chunk) [Operating Segments](index=7&type=section&id=Operating%20Segments) The Group operates in two segments: gaming, with revenue of HKD 13.628 billion, and hotel/related businesses, reporting HKD 1.0118 billion in external sales - The Group is currently divided into two reporting segments: **Gaming Operations** (operating casinos and related facilities) and **Hotel, Food and Beverage, Retail, and Leasing Operations** (operating hotels, food and beverage, retail, leasing, and related services)[15](index=15&type=chunk) Segment Revenue and Results Analysis (For the Six Months Ended June 30) | Segment | 2025 Revenue (Million HKD) | 2024 Revenue (Million HKD) | 2025 Results (Million HKD) | 2024 Results (Million HKD) | | :--- | :--- | :--- | :--- | :--- | | Gaming Operations | 13,627.5 | 12,897.0 | 120.7 | 78.6 | | Hotel, F&B, Retail & Leasing Operations (External Sales) | 1,011.8 | 904.3 | (169.3) | (103.7) | | Total (from Customer Contracts and Operating Leases) | 14,639.3 | 13,801.3 | (48.6) | (25.1) | Segment Assets and Liabilities Analysis (As of June 30, 2025) | Segment | 2025 Assets (Million HKD) | 2024 Assets (Million HKD) | 2025 Liabilities (Million HKD) | 2024 Liabilities (Million HKD) | | :--- | :--- | :--- | :--- | :--- | | Gaming Operations | 35,398.2 | 35,117.6 | 32,887.7 | 32,483.8 | | Hotel, F&B, Retail & Leasing Operations | 10,502.6 | 10,460.4 | 1,399.3 | 1,439.3 | | Total Group | 48,940.8 | 48,724.9 | 34,916.1 | 34,548.9 | [Gaming Revenue](index=11&type=section&id=Gaming%20Revenue) Total gross gaming revenue reached HKD 14.8206 billion, with non-rolling chip gaming revenue as the largest component, resulting in net gaming revenue of HKD 13.6275 billion Composition of Gaming Revenue (For the Six Months Ended June 30) | Item | 2025 (Million HKD) | 2024 (Million HKD) | | :--- | :--- | :--- | | Rolling Chip Gross Gaming Revenue | 1,099.4 | 1,177.7 | | Non-Rolling Chip Gross Gaming Revenue | 12,302.0 | 11,489.6 | | Electronic Gaming Gross Revenue | 1,419.2 | 1,124.0 | | **Gross Gaming Revenue** | **14,820.6** | **13,791.3** | | Less: Commissions and Incentives | (1,193.1) | (894.3) | | **Net Gaming Revenue** | **13,627.5** | **12,897.0** | [Items Deducted From/Credited to Loss Before Tax](index=12&type=section&id=Items%20Deducted%20From%2FCredited%20to%20Loss%20Before%20Tax) Total staff costs were HKD 3.3212 billion, with depreciation of property and equipment at HKD 786.9 million, and bank interest income at HKD 32.1 million Items Deducted From/Credited to Loss Before Tax (For the Six Months Ended June 30) | Item | 2025 (Million HKD) | 2024 (Million HKD) | | :--- | :--- | :--- | | Total Staff Costs | 3,321.2 | 3,132.4 | | Amortisation of Gaming Concession Rights | 127.0 | 130.7 | | Depreciation of Property and Equipment | 786.9 | 742.5 | | Depreciation of Right-of-Use Assets | 70.3 | 60.3 | | Bank Interest Income | 32.1 | 59.5 | | Dredging Service Income | 81.8 | 99.3 | [Taxation](index=13&type=section&id=Taxation) Total tax for the period was HKD 31 million, with SJM Resorts exempt from complementary tax on gaming income, but shareholders liable for a special complementary tax Composition of Taxation (For the Six Months Ended June 30) | Item | 2025 (Million HKD) | 2024 (Million HKD) | | :--- | :--- | :--- | | Current Tax—Macau SAR Complementary Tax | 25.2 | 23.4 | | Deferred Tax | 5.8 | — | | **Total** | **31.0** | **23.4** | - SJM Resorts has been exempted from complementary tax on income derived from gaming operations for the period from **January 1, 2023, to December 31, 2027**[26](index=26&type=chunk) - SJM Resorts' shareholders are required to pay a special complementary tax at the applicable rate on gross gaming revenue for the period from **January 1, 2023, to December 31, 2025**[26](index=26&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare an **interim dividend** for the six months ended **June 30, 2025** (2024: nil)[28](index=28&type=chunk) [Loss Per Share](index=14&type=section&id=Loss%20Per%20Share) Loss attributable to owners was HKD 182.2 million, resulting in basic and diluted loss per share of 2.6 HK cents, an increase from 2.3 HK cents Loss Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/HK cents) | 2024 (Million HKD/HK cents) | | :--- | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share (Loss attributable to owners of the Company) | (182.2) | (162.4) | | Weighted Average Number of Ordinary Shares | 7,101,805,366 | 7,101,805,366 | | Basic Loss Per Share | (2.6) HK cents | (2.3) HK cents | | Diluted Loss Per Share | (2.6) HK cents | (2.3) HK cents | [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables increased to HKD 1.0913 billion, with net advances to gaming customers rising to HKD 215.2 million Trade and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | Advances to Gaming Customers (Net) | 215.2 | 153.9 | | Lease Receivables | 270.4 | 213.4 | | Prepayments | 280.0 | 231.8 | | Other Miscellaneous Receivables | 325.7 | 268.5 | | **Total** | **1,091.3** | **867.6** | - As of **June 30, 2025**, the gross carrying amount of advances to gaming customers of **HKD 85 million** was overdue, of which **HKD 68.4 million** was overdue by **90 days or more** but still considered recoverable[35](index=35&type=chunk) Aging Analysis of Advances to Gaming Customers (As of End of Reporting Period) | Aging | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | 0 to 30 Days | 87.9 | 30.0 | | 31 to 60 Days | 45.8 | 99.3 | | 61 to 90 Days | 13.1 | 16.1 | | Over 90 Days | 68.4 | 8.5 | | **Total** | **215.2** | **153.9** | [Trade and Other Payables](index=17&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased to HKD 6.6412 billion, including HKD 924 million for special gaming tax and HKD 2.3375 billion for gaming concession Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | Trade Payables | 331.3 | 395.6 | | Special Gaming Tax Payable | 924.0 | 955.1 | | Chips in Circulation | 376.9 | 386.7 | | Chips and Deposits Held for Gaming Customers and Promoters | 584.2 | 502.4 | | Amounts Payable for Gaming Concession | 2,337.5 | 2,493.4 | | Other Miscellaneous Payables and Accrued Expenses | 887.7 | 813.2 | | **Total** | **6,641.2** | **7,022.2** | | Less: Non-Current Portion | (1,999.4) | (2,278.7) | | **Current Portion** | **4,641.8** | **4,743.5** | Aging Analysis of Trade Payables (As of End of Reporting Period) | Aging | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | 0 to 30 Days | 306.0 | 363.1 | | 31 to 60 Days | 22.4 | 29.3 | | 61 to 90 Days | 1.9 | 2.5 | | Over 90 Days | 1.0 | 0.7 | | **Total** | **331.3** | **395.6** | - The average credit period for trade payables is **90 days**, and the Group has financial risk management policies in place to ensure all payables are settled within credit terms[39](index=39&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) The Group's total net revenue grew 6.1% to HKD 14.639 billion, driven by gaming, but adjusted EBITDA declined 5.1%, with varied property performance [Group Operating Results](index=19&type=section&id=Group%20Operating%20Results) Total net revenue grew 6.1% to HKD 14.639 billion, but adjusted EBITDA decreased 5.1% to HKD 1.646 billion, with the margin declining to 11.2% Group Operating Results (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD) | 2024 (Million HKD) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Total Net Revenue | 14,639 | 13,801 | 6.1% | | Gaming Net Revenue | 13,628 | 12,897 | 5.7% | | Loss Attributable to Owners of the Company | (182) | (162) | NM | | Adjusted EBITDA | 1,646 | 1,734 | (5.1%) | | Adjusted EBITDA Margin | 11.2% | 12.6% | (1.4) percentage points | Composition of Gross Gaming Revenue (For the Six Months Ended June 30) | Item | 2025 (Million HKD) | 2024 (Million HKD) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Rolling Chip Gross Gaming Revenue | 1,100 | 1,178 | (6.6%) | | Non-Rolling Chip Gross Gaming Revenue | 12,302 | 11,489 | 7.1% | | Electronic Gaming Gross Revenue | 1,419 | 1,124 | 26.2% | | **Gross Gaming Revenue** | **14,821** | **13,791** | **7.5%** | | Less: Commissions and Incentives | (1,193) | (894) | 33.4% | | **Gaming Net Revenue** | **13,628** | **12,897** | **5.7%** | [Property Statistics](index=20&type=section&id=Property%20Statistics) This section details operating data for Grand Lisboa Palace Resort, Grand Lisboa, other self-promoted casinos, and satellite casinos, including revenue and EBITDA [Grand Lisboa Palace Resort Statistics](index=20&type=section&id=Grand%20Lisboa%20Palace%20Resort%20Statistics) Grand Lisboa Palace Resort's total revenue grew 22.7% to HKD 3.626 billion, but adjusted property EBITDA declined 57.3% to HKD 82 million, despite improved occupancy Grand Lisboa Palace Resort Statistics (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/%) | 2024 (Million HKD/%) | Change (Million HKD/percentage points) | | :--- | :--- | :--- | :--- | | Total Revenue | 3,626 | 2,956 | +670 (+22.7%) | | Casino (Gross Gaming Revenue) | 2,936 | 2,325 | +611 (+26.3%) | | Adjusted Property EBITDA | 82 | 192 | (110) (-57.3%) | | Rolling Chip Turnover | 25,326 | 18,524 | +6,802 (+36.7%) | | Non-Rolling Chip Drop | 9,821 | 7,892 | +1,929 (+24.4%) | | Electronic Gaming Win | 12,808 | 9,245 | +3,563 (+38.5%) | | Hotel Occupancy Rate | 98.1% | 94.8% | +3.3 percentage points | | Average Daily Room Rate | HKD 1,221 | HKD 1,155 | +HKD 66 (+5.7%) | [Grand Lisboa Statistics](index=21&type=section&id=Grand%20Lisboa%20Statistics) Grand Lisboa's total revenue slightly declined 1.1% to HKD 3.760 billion, with adjusted property EBITDA down 14.6% to HKD 863 million, despite strong hotel performance Grand Lisboa Statistics (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/%) | 2024 (Million HKD/%) | Change (Million HKD/percentage points) | | :--- | :--- | :--- | :--- | | Total Revenue | 3,760 | 3,800 | (40) (-1.1%) | | Casino (Gross Gaming Revenue) | 3,582 | 3,660 | (78) (-2.1%) | | Adjusted Property EBITDA | 863 | 1,010 | (147) (-14.6%) | | Rolling Chip Turnover | 11,021 | 14,334 | (3,313) (-23.1%) | | Non-Rolling Chip Drop | 14,916 | 14,223 | +693 (+4.9%) | | Electronic Gaming Win | 7,772 | 4,848 | +2,924 (+60.3%) | | Hotel Occupancy Rate | 98.6% | 98.5% | +0.1 percentage points | | Average Daily Room Rate | HKD 1,398 | HKD 1,226 | +HKD 172 (+14.0%) | [Other Self-Promoted Casinos, Artyzen Grand Lapa Macau, Kam Pek Paradise Casino and Sofitel Macau At Ponte 16 Statistics](index=22&type=section&id=Other%20Self-Promoted%20Casinos%2C%20Artyzen%20Grand%20Lapa%20Macau%2C%20Kam%20Pek%20Paradise%20Casino%20and%20Sofitel%20Macau%20At%20Ponte%2016%20Statistics) Other self-promoted casinos and hotels saw total revenue grow 5.4% to HKD 2.799 billion, with adjusted property EBITDA up 0.3% to HKD 651 million, and electronic gaming win up 42.9% Other Self-Promoted Casinos and Hotels Statistics (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/%) | 2024 (Million HKD/%) | Change (Million HKD/percentage points) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,799 | 2,655 | +144 (+5.4%) | | Casino (Gross Gaming Revenue) | 2,656 | 2,521 | +135 (+5.4%) | | Adjusted Property EBITDA | 651 | 649 | +2 (+0.3%) | | Non-Rolling Chip Drop | 16,164 | 16,501 | (337) (-2.0%) | | Electronic Gaming Win | 200 | 140 | +60 (+42.9%) | | Artyzen Grand Lapa Macau Average Daily Room Rate | HKD 245 | HKD 210 | +HKD 35 (+16.7%) | | Sofitel Macau At Ponte 16 Occupancy Rate | 86.3% | 84.9% | +1.4 percentage points | [Satellite Casinos Statistics](index=23&type=section&id=Satellite%20Casinos%20Statistics) Satellite casinos' gross gaming revenue grew 6.8% to HKD 5.647 billion, with adjusted property EBITDA significantly improving to a profit of HKD 153 million Satellite Casinos Statistics (For the Six Months Ended June 30) | Indicator | 2025 (Million HKD/%) | 2024 (Million HKD/%) | Change (Million HKD/%) | | :--- | :--- | :--- | :--- | | Casino Revenue (Gross Gaming Revenue) | 5,647 | 5,285 | +362 (+6.8%) | | Adjusted Property EBITDA | 153 | (29) | +182 (NM) | - SJM Resorts operated **nine satellite casinos** as of **June 30, 2025**, with Casino Grandview ceasing operations by the end of **July 2025**[48](index=48&type=chunk) [Recent Developments and Outlook](index=24&type=section&id=Recent%20Developments%20and%20Outlook) The Group is pursuing strategic expansions in Hengqin, restructuring satellite casinos, acquiring Grand Lisboa Hotel property, and developing F&B, MICE, sports, and cultural tourism facilities [Hengqin Strategic Expansion](index=24&type=section&id=Hengqin%20Strategic%20Expansion) The Group acquired a 19,781 sqm property in Hengqin for RMB 724 million to develop a 250-room three-star hotel, targeting mid-range accommodation demand - The Group acquired approximately **19,781 square meters** of property at Hengqin "Shun Tak Port Business Centre" for approximately **RMB 724 million**[49](index=49&type=chunk) - The property will be converted into a **three-star hotel** with approximately **250 rooms**, expected to be completed within approximately **24 months** after obtaining construction permits[49](index=49&type=chunk) - This initiative aims to capture the rising demand for **mid-range accommodation** and achieve synergies with SJM Resorts' other tourism projects through its geographical advantage[49](index=49&type=chunk) [Restructuring of Satellite Casino Operations](index=24&type=section&id=Restructuring%20of%20Satellite%20Casino%20Operations) The Group plans to cease operations of seven satellite casinos by end-2025, evaluating property acquisitions, to redeploy resources, enhance brand experience, and optimize costs - The Group will orderly cease operations of **seven satellite casinos** by the end of **2025**, with Casino Grandview having exited by the end of **July 2025**[50](index=50&type=chunk) - The Group is evaluating the possibility of acquiring the properties where **Casino L'Arc Macau** and **Ponte 16 Casino** are located[50](index=50&type=chunk) - The restructuring aims to concentrate resources on the Group's **self-managed core venues**, create a consistent "**Grand Lisboa**" brand experience, expand operational scale, optimize cost structure, and enhance earnings quality[50](index=50&type=chunk) [Acquisition of Designated Property Floors of Grand Lisboa Hotel](index=25&type=section&id=Acquisition%20of%20Designated%20Property%20Floors%20of%20Grand%20Lisboa%20Hotel) The Group plans to acquire 7,504 sqm of former gaming area in Grand Lisboa Hotel for HKD 529 million to expand Casino Grand Lisboa, redeploy resources, and strengthen its market position - The Group plans to acquire approximately **7,504 square meters** of former gaming area within the **Grand Lisboa Hotel** from its controlling shareholder for **HKD 529 million**[51](index=51&type=chunk) - Following the acquisition, the relevant floor area will be integrated into the existing operations of **Casino Grand Lisboa**, and some gaming tables and slot machines from satellite casinos ceasing operations by year-end will be redeployed[51](index=51&type=chunk) - This move aims to consolidate the Group's **leading position** in the **Peninsula market**, enhance non-gaming consumption and customer dwell time, and strengthen its positioning for **VIP and premium mass markets**[51](index=51&type=chunk) [Food and Beverage and MICE](index=25&type=section&id=Food%20and%20Beverage%20and%20MICE) SJM Resorts has completed new F&B and MICE facilities at Grand Lisboa Palace Resort and Grand Lisboa Hotel, awaiting licenses to drive revenue growth and expand customer base - **Grand Lisboa Palace Resort** has completed **seven new F&B projects**, offering diverse cuisines and a modern food court[52](index=52&type=chunk) - The newly established "**Grand Lisboa Palace Garden Hall**" and the **2,900 square meter** "**Grand Lisboa Palace Grand Theatre**" at Grand Lisboa Palace Resort have been completed and are awaiting license approval[52](index=52&type=chunk) - **Grand Lisboa Hotel** will also introduce new meeting rooms and renovated ballrooms to enhance event hosting capabilities and attract more **high-end and business travelers**[52](index=52&type=chunk) [Sports and Cultural Tourism](index=26&type=section&id=Sports%20and%20Cultural%20Tourism) SJM Resorts promotes "Tourism + Culture" with art exhibitions and will support international sports events in H2 to attract diverse visitors and drive business growth - In the first half of **2025**, the **Grand Lisboa Palace Art and Culture Exhibition Hall** opened, hosting "**Grand Lisboa: A Macau Story**" and the world premiere "**Picasso: The Passion for Beauty**," attracting family travelers, student groups, and cultural enthusiasts[53](index=53&type=chunk) - Looking ahead to the second half of the year, **SJM Resorts** will support several iconic international sports events in Macau, including the **China Tennis Tour**, **Macau Golf Open**, and **Macau Grand Prix**[54](index=54&type=chunk) - These events are expected to attract widespread international and regional participation, driving additional visitor traffic and enhancing Macau's appeal to **sports enthusiasts** and **high-end travelers**[54](index=54&type=chunk) [Financial Review](index=27&type=section&id=Financial%20Review) As of June 30, 2025, cash and bank balances were HKD 2.326 billion, total drawn bank loans were HKD 14.316 billion, and the gearing ratio increased to 52.5% [Liquidity, Financial Resources and Capital Structure](index=27&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, bank balances and cash were HKD 2.326 billion, total drawn bank loans were HKD 14.316 billion, and 32.7% of borrowings are due within one year - As of **June 30, 2025**, the Group's bank balances and cash were **HKD 2.326 billion** (excluding **HKD 1.009 billion** in pledged bank deposits), representing a **5.3% increase** from **December 31, 2024**[55](index=55&type=chunk) - The total drawn outstanding bank loan balance was **HKD 14.316 billion**, and the total amount of issued senior notes and convertible bonds was **HKD 10.935 billion**[55](index=55&type=chunk) Debt Maturity Profile (As of June 30, 2025) | Within 1 Year | 1 to 2 Years | 3 to 5 Years | Over 5 Years | Total | | :--- | :--- | :--- | :--- | :--- | | 32.7% | 12.3% | 55.0% | 0% | 100% | [Gearing Ratio](index=27&type=section&id=Gearing%20Ratio) The Group's gearing ratio increased to **52.5%** as of June 30, 2025, up from **51.1%** at December 31, 2024 - The Group's **gearing ratio** was **52.5%** as of **June 30, 2025**, an increase from **51.1%** as of **December 31, 2024**[56](index=56&type=chunk) [Contracted Capital Commitments](index=27&type=section&id=Contracted%20Capital%20Commitments) Contracted capital commitments were HKD 445 million as of June 30, 2025, with HKD 288 million for Macau government tender projects - As of **June 30, 2025**, the Group's **contracted capital commitments** amounted to **HKD 445 million**, of which **HKD 288 million** was for tender projects committed to the Macau government[57](index=57&type=chunk) [Pledge of Assets](index=27&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, property and equipment (HKD 33.739 billion) and right-of-use assets (HKD 1.662 billion) were pledged to banks, along with HKD 1.009 billion in pledged bank deposits - As of **June 30, 2025**, property and equipment with a carrying value of **HKD 33.739 billion** and right-of-use assets with a carrying value of **HKD 1.662 billion** were pledged to banks[58](index=58&type=chunk) - Pledged bank deposits amounted to **HKD 1.009 billion**[58](index=58&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025, and 2024 - The Group had **no significant contingent liabilities** as of **June 30, 2025, and 2024**[59](index=59&type=chunk) [Financial Risks](index=28&type=section&id=Financial%20Risks) The Group employs prudent financial management to minimize currency and interest rate risks, with primary operations in HKD and no speculative trading - The Group employs **prudent financial management policies** to minimize **currency and interest rate risks**[60](index=60&type=chunk) - Primary operations are conducted and accounted for in **Hong Kong Dollars (HKD)**, incurring minimal **foreign exchange fluctuation risk**[60](index=60&type=chunk) - The Group's policy is **not to engage in speculative trading activities**[60](index=60&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section covers non-financial information, including no significant acquisitions/disposals, stable human resources, listed securities repurchases, and corporate governance compliance [Significant Acquisitions and Disposals](index=28&type=section&id=Significant%20Acquisitions%20and%20Disposals) The Group made no significant acquisitions or disposals of subsidiaries and associates during the reporting period - During the reporting period, the Group made **no significant acquisitions or disposals** of subsidiaries and associates[61](index=61&type=chunk) [Human Resources](index=28&type=section&id=Human%20Resources) As of June 30, 2025, the Group had 20,300 full-time employees, with low turnover, and provides remuneration and development opportunities based on performance and market trends - As of **June 30, 2025**, the Group had approximately **20,300 full-time employees**, with a **low employee turnover rate** in the first half of the year[62](index=62&type=chunk) - Employee remuneration is determined with reference to **job performance, professional qualifications, relevant work experience, and market trends**, including salaries, allowances, medical insurance, and provident funds[62](index=62&type=chunk) - The Group encourages employees to participate in **business-related training courses**, sponsors further education, and awards scholarships to employees' children[62](index=62&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=29&type=section&id=Purchase%20Sale%20or%20Redemption%20of%20Listed%20Securities) A wholly-owned subsidiary repurchased and cancelled **USD 8 million** of 4.85% Senior Notes due 2028; no other listed securities were repurchased, sold, or redeemed - A wholly-owned subsidiary of the Company repurchased and cancelled **USD 8 million** principal amount of **4.85% Senior Notes due 2028**[63](index=63&type=chunk) - As of **June 30, 2025**, **USD 482 million** of the 2028 USD Senior Notes remained outstanding[63](index=63&type=chunk) - Save as disclosed above, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of its **listed securities**[63](index=63&type=chunk) [Corporate Governance Code](index=29&type=section&id=Corporate%20Governance%20Code) The Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 Part 2 of the Listing Rules for H1 2025 - The Company complied with all code provisions in the **Corporate Governance Code** as set out in **Appendix C1 Part 2** of the Listing Rules for the period from **January 1, 2025, to June 30, 2025**[64](index=64&type=chunk) [Review of Interim Report and Unaudited Condensed Consolidated Financial Statements](index=29&type=section&id=Review%20of%20Interim%20Report%20and%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The interim report and unaudited condensed consolidated financial statements for H1 2025 were reviewed by the Audit Committee and the Company's auditors - The Company's **interim report** for the six months ended **June 30, 2025**, has been reviewed by the Company's **Audit Committee**[65](index=65&type=chunk) - The **condensed consolidated financial statements** have been reviewed by the Audit Committee in conjunction with the Company's auditors in accordance with **Hong Kong Standard on Review Engagements 2410**[65](index=65&type=chunk)

有關收購位於葡京酒店的該物業的 關連交易 董事會欣然宣佈，於2025年8月28日，承兌買方澳娛綜合（為本公司附屬公司）與 承兌賣方澳娛（為本公司控股股東）訂立承兌協議，據此，承兌賣方承諾出售而承 兌買方承諾收購該物業（為葡京酒店一部分）（不附帶任何押記或留置權）。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 該物業的代價已協定為5.29億港元。於完成後，澳娛綜合擬利用該物業將葡京娛 樂場的現有業務擴展額外7,504平方米，當中將包括前博彩區域及擴張新設施。在 預期將重新分配計劃於2025年底前停止營運的衛星娛樂場的若干賭枱及角子機的 支持下，澳娛綜合預計於該物業內開展博彩業務。 由於葡京酒店與新葡京相鄰並無縫連接，兩者合併已經成為澳門半島最大的綜合 度假村。收購事項將令澳娛綜合能夠進一步擴大規模及整合其於澳門半島的葡京 品牌業務，服務貴賓及中場市場客戶。董事會認為收購事項將加強澳娛綜合在澳 門半島的版圖及競爭地位，且符合澳娛綜合利用其傳承品牌的長期 ...

Core Viewpoint - The Chinese Gaming Services Index (CESG10) has shown significant growth, reflecting a positive trend in the gaming sector listed on the Hong Kong Stock Exchange [1] Group 1: Index Performance - The CESG10 index opened high and fluctuated, increasing by 0.8% to 3281.67 points with a trading volume of 898 million [1] - Over the past month, the CESG10 index has risen by 4.64%, and over the last three months, it has increased by 26.89% [1] - Year-to-date, the CESG10 index has gained 21.09% [1] Group 2: Index Composition - The CESG10 index is compiled by China Securities Index Co., Ltd. on behalf of China Trading Services, with the index design jointly determined by both entities [1] - The index is a securities price index aimed at reflecting the overall performance of the top ten gaming securities listed on the Hong Kong Stock Exchange [1] - The base date for the CESG10 index is March 4, 2011, with a base point of 3000.0 [1] Group 3: Market Segmentation - The CESG10 index has a 100% allocation to the Hong Kong Stock Exchange [1] - The index's holdings are entirely within the consumer discretionary sector, indicating a focus on optional consumption [1]