GALAXY ENT(00027)2023-04-19 08:49Business Strategy and Market Position - Galaxy Entertainment Group aims to become Asia's leading gaming and entertainment company, leveraging its deep understanding of local markets and Chinese culture as a competitive advantage[5]. - The company operates three flagship projects in Macau, including the Galaxy Macau™ integrated resort, which spans 1 million square meters and features approximately 3,600 hotel rooms across five world-class hotels[11][12]. - The company has a clear positioning as a leading operator of integrated gaming and leisure facilities, focusing on delivering shareholder returns through careful capital expenditure plans[5]. - The company’s vision includes creating award-winning projects and services that consistently outperform the Macau market[11]. - Galaxy Entertainment Group emphasizes a demand-driven strategy, closely monitoring market developments to respond prudently[5]. Financial Performance - The group's net revenue for 2022 was HKD 11.5 billion, a decrease of 42% year-on-year[19]. - Adjusted EBITDA for 2022 was a loss of HKD 600 million, compared to HKD 3.5 billion in 2021[19]. - Shareholders' attributable loss was HKD 3.4 billion, compared to a profit of HKD 1.3 billion in 2021[19]. - The group maintained high liquidity with cash and liquid investments amounting to HKD 26.4 billion as of December 31, 2022[19]. - The total assets decreased to HKD 80.961 billion from HKD 85.243 billion[26]. Gaming and Non-Gaming Revenue - The net win rate for the gaming business was 3.0%, down from 3.4% in the previous year[25]. - Non-gaming revenue decreased by 24% to HKD 2.021 billion[24]. - The average hotel occupancy rate for Galaxy Macau was 31% in 2022[20]. - The group reported a loss attributable to shareholders of HKD (3.434) billion, compared to a profit of HKD 1.326 billion in the previous year[26]. - The total gaming revenue for 2022 was HKD 6.3 billion, down from HKD 12.9 billion in 2021[52]. Development Projects - The Galaxy International Convention Center (GICC) will feature a total exhibition space of 40,000 square meters, accommodating up to 8,500 for banquet events[15]. - The Galaxy Arena can host up to 16,000 spectators, designed for world tours and major sporting events[16]. - The group confirmed the near completion of Phase 3 of the Cotai project and is working on Phase 4, with plans to launch the Galaxy International Convention Center and Galaxy Arena in Q2 2023[33]. - The group plans to invest approximately HKD 28.4 billion over the next ten years to enhance its integrated resort facilities, with over 96% allocated to non-gaming projects and overseas market development[33]. - The new Andaz Macau hotel will offer over 700 rooms and suites, enhancing the local hospitality landscape[17]. Corporate Governance and Compliance - The company is committed to maintaining a strong governance structure, with a dedicated board and various committees overseeing operations and compliance[8][9]. - Galaxy Entertainment maintains a zero-tolerance policy towards bribery and corruption, ensuring compliance with all applicable laws and regulations[97]. - The company has implemented a comprehensive anti-money laundering policy to uphold high ethical standards in gaming-related transactions[97]. - The company has established cybersecurity guidelines in compliance with privacy laws in Hong Kong, Macau, and mainland China[104]. - The group maintains close communication with regulatory bodies to ensure compliance with the latest regulations[98]. Corporate Social Responsibility and Sustainability - The group established the Galaxy Entertainment Group Foundation with an investment of HKD 1.3 billion to support youth education and development in Macau and mainland China[18]. - The company is committed to corporate social responsibility, aiming to promote sustainable development through responsible and transparent practices[69]. - Galaxy Entertainment Group installed solar panels generating 630 kWh of renewable energy monthly, saving 7,560 kWh annually[126]. - The company received multiple awards in 2022 for its environmental performance, including the Green Key certification and the EarthCheck certification for sustainable tourism practices[153]. - The company aims to promote green living habits among its team members through various initiatives, including a coastal cleanup that collected approximately 250 kilograms of waste[158]. Employee Engagement and Well-being - The total number of employees for the group in 2022 was 16,953, a decrease of 4.4% from 17,743 in 2021[174]. - The group offers competitive benefits including medical benefits, maternity leave, and training allowances to attract and retain talent[170]. - In 2022, Galaxy Entertainment Group implemented various mental health and flexible work initiatives, focusing on employee well-being and inclusivity[182]. - The employee turnover rate in Macau was 7.81% in 2022, compared to 7.99% in 2021, indicating a slight improvement[174]. - The company organized various activities to promote team spirit and well-being, including yoga workshops and festive celebrations for employees and their families[181]. Environmental Impact and Resource Management - The total energy consumption for the group was 3,523,759 GJ, a decrease of 33% compared to the previous year[131]. - The total water consumption for the group was 2,903,234 cubic meters, a reduction of 9% from the previous year[136]. - The group generated a total of 21,242 tons of waste, which is a decrease of 25% compared to the previous year[141]. - The company has committed to developing an environmentally responsible workplace culture and exceeding regulatory standards[150]. - The company aims to reduce energy consumption by 3% in 2022 compared to the 2016 baseline, with the same target maintained for 2023[129].