Financial Performance - For the six months ended June 30, 2023, the Group reported total revenue of approximately HKD 420.2 million, a decrease of approximately HKD 123.6 million or about 22.7% compared to approximately HKD 543.8 million in the same period last year[21] - The Group reported total revenue of approximately HK$420.2 million for the six months ended June 30, 2023, a decrease of approximately HK$123.6 million or 22.7% compared to HK$543.8 million in the same period last year[23] - The company reported a basic loss per share of HK$2.94, compared to HK$7.83 for the same period in 2022, showing a 62.5% improvement[133] - The company incurred a loss for the period of HK$182,498,000, compared to a loss of HK$485,508,000 in the prior year, indicating an improvement of 62.4%[133] - Total comprehensive loss for the period was HK$189,145,000, down from HK$487,820,000 in the previous year, reflecting a significant reduction in losses[133] - The Group's loss before tax for the six months ended June 30, 2023, was HK$176,020,000, compared to a loss of HK$449,004,000 in the prior year[193] - The Group's loss for the six months ended June 30, 2023, was approximately HK$182.5 million, compared to a loss of approximately HK$485.5 million in the corresponding period in 2022, representing a significant recovery[66] - The adjusted EBITDA for the six months ended June 30, 2023, was a profit of approximately HK$103.8 million, an improvement of approximately HK$264.3 million compared to a loss of approximately HK$160.5 million in the same period of 2022[52] - The adjusted EBITDA for gaming operations improved from a loss of HK$37.2 million in the first half of 2022 to a profit of HK$33.3 million in the first half of 2023[72] - The adjusted EBITDA for non-gaming operations improved from a loss of HK$117.5 million in the first half of 2022 to a profit of HK$28.7 million in the first half of 2023[73] Gaming Operations - The net win from mass market tables at Legend Palace Casino increased by 58.9% to HK$261.3 million from HK$164.4 million year-on-year[25] - The Group's gaming services revenue from mass market tables and VIP tables totaled HK$163.0 million and HK$39.2 million respectively, compared to HK$374.3 million and HK$68.5 million in the previous year[29] - For the six months ended June 30, 2023, the Group's gaming revenue decreased by approximately 49.2% to approximately HK$228.2 million compared to the same period in 2022[41] - The total gaming revenue from mass market tables in Legend Palace Casino and Savan Legend Casino increased by approximately 62.1% to approximately HK$163.0 million during the same period[41] - The average number of gaming tables in operation decreased to 145 from 146, while the number of slot machines decreased to 33 from 59 year-on-year[32] - The Group operated 33 gaming tables in Macau as of June 30, 2023, down from 190 tables a year earlier[32] - The Group ceased operations at Babylon Casino and VIP tables in Legend Palace Casino since January 1, 2023, resulting in no reported revenue from these sources for the current period[38] - The average net win per table per day for mass market tables increased by 181.3% to HK$45 from HK$16 year-on-year[25] - The hold rate for mass market tables was 15.21%, a decrease from 16.10% in the previous year[25] - The Group's casino operations in Laos contributed to the overall revenue, with a notable increase in net win and turnover compared to the previous year[28] Non-Gaming Operations - Non-gaming revenue for the six months ended June 30, 2023, was approximately HK$192.0 million, representing an increase of approximately 103.2% compared to approximately HK$94.5 million in the previous year[43] - The increase in non-gaming revenue was primarily due to higher hotel room income resulting from increased tourist visitation following the relaxation of travel restrictions[48] - The occupancy rate for Legend Palace Hotel was 90% and for Harbourview Hotel was 95% for the six months ended June 30, 2023[50] - Average Daily Rate (ADR) for Legend Palace Hotel was HK$1,044 and for Harbourview Hotel was HK$828 for the same period[50] - Revenue per available room (REVPAR) for Legend Palace Hotel was HK$941 and for Harbourview Hotel was HK$787 for the six months ended June 30, 2023[50] - Non-gaming performance in Macau showed recovery rates of 89.5% and 98.3% for the first and second quarters of 2023, respectively, compared to 2019[66] - Revenue from hotel rooms and building management services was HK$117,805,000, compared to HK$27,997,000 in the previous year, indicating a substantial increase[166] - Food and beverage revenue increased to HK$46,932,000 from HK$39,940,000, reflecting a growth of approximately 17.5%[166] Market Strategy and Outlook - The Group's business strategy aligns with the Macau government's policy on "Leisure, Tourism, Economic and Multi-Cultural Diversification"[17] - Future outlook includes potential market expansion and new product offerings to enhance revenue streams[21] - The Group is focused on enhancing its integrated gaming and entertainment offerings to attract more visitors[21] - The management team emphasizes the importance of adapting to market trends and consumer preferences in their strategic planning[21] - The Group continues to explore opportunities for acquisitions and partnerships to strengthen its market position[21] - The Group remains optimistic about the recovery of the tourism industry in the second half of 2023[75] - The Group plans to enhance dining and entertainment offerings at MFW to attract visitors from Mainland China and Southeast Asia[73] Financial Position - As of June 30, 2023, the consolidated net assets attributable to owners decreased to approximately HK$3,519.1 million from HK$3,708.2 million as of December 31, 2022, primarily due to a loss of approximately HK$182.5 million during the period[79] - The Group held cash and bank balances of approximately HK$96.4 million as of June 30, 2023[79] - The Group's outstanding secured and guaranteed bank borrowings amounted to approximately HK$2,132.8 million as of June 30, 2023[79] - The Group's net gearing ratio increased to 71.5% from 66.6% as of December 31, 2022, primarily due to a decrease in consolidated net assets[81] - The company expects its net asset value to fall below HK$5,500,000,000 after the current loan covenant revisions expire on December 31, 2023, and is in discussions with banks for favorable amendments[156] - The company received a waiver from banks regarding a covenant breach related to net asset value, which was reduced from HK$5,500,000,000 to HK$2,800,000,000 until December 31, 2023[156] Employee and Corporate Governance - The Group had a total of approximately 2,226 employees as of June 30, 2023, an increase from 1,966 employees as of December 31, 2022, including approximately 280 gaming operation employees[85] - The Group's employee remuneration is based on personal qualifications, work performance, and market trends, with discretionary bonuses granted based on merit[86] - The company has established rigorous employee guidelines to regulate securities trading by employees with insider information, with no known violations reported during the period[127] - The company has complied with the Corporate Governance Code except for code provision C.2.1, where the roles of chairman and CEO are held by the same individual[125] Shareholder Information - Mr. Chan Weng Lin holds a substantial interest of 2,051,485,252 shares, representing approximately 33.08% of the total issued shares[108] - Elite Success holds 1,012,599,750 shares, accounting for 16.33% of the total issued shares[108] - As of June 30, 2023, Mr. Li Chi Keung has a beneficial interest in 109,326,429 shares, which is 1.76% of the total issued shares[108] - Ms. Chan Un Chan's controlled corporation, Earth Group Ventures Ltd., holds 934,269,609 shares, representing 15.07% of the total issued shares[108] - Mr. David Chow has a beneficial interest in 483,781,402 shares, which is 7.80% of the total issued shares[108] - The total number of shares held by substantial shareholders as of June 30, 2023, indicates a concentration of ownership among a few key individuals and entities[110] Other Information - The Group has entered into a letter of intent to dispose of its operations in Lao PDR to reallocate resources to its Macau operations[74] - The Group did not engage in any significant investments, acquisitions, or disposals of subsidiaries during the six months ended June 30, 2023, except for a letter of intent to dispose of operations in Lao PDR[81] - There were no significant litigations or claims of material importance pending or threatened against the Group as of June 30, 2023[81] - The Group has a funding and treasury policy to monitor funding requirements and maintain a healthy financial position throughout the period[81] - The Group reimbursed SJM for the salaries and benefits of gaming operation employees, reflecting its oversight role under the New Service Agreement[85] - The Group's share option plan, adopted on June 5, 2013, had 623,217,787 options available for grant as of January 1 and June 30, 2023[99] - No share options have been granted since the adoption of the share option plan[100] - As of June 30, 2023, the number of share options available for grant under the Share Option Scheme was 623,217,787, with no options granted since its adoption[103] - The Share Option Scheme expired on July 4, 2023, and no further options can be granted[103] - There were no changes in the Directors' information required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules, except for the appointment of Mr. Wang Hongxin[116] - The company has terminated its indirect participation in the gaming promotion business in Macau through New Legend VIP Club Limited effective January 1, 2023[148] - The company is currently working on a loan restructuring arrangement with banks, which has been preliminarily agreed upon in August 2023[156]
澳门励骏(01680) - 2023 - 中期财报