银河娱乐(00027) - 2023 - 年度财报

Corporate Vision and Strategy - Galaxy Entertainment Group's vision is to become Asia's premier gaming and entertainment enterprise, leveraging deep insights into local markets and Chinese culture to maintain a competitive edge[2] - The company's vision is to become "Asia's leading gaming and entertainment enterprise" and it aims to achieve this through its operational philosophy outlined in the annual report[70] - The company successfully launched Phase 3 projects in 2023, including the Galaxy International Convention Center, Galaxy Arena, Andaz Macau, and Raffles at Galaxy Macau, focusing on non-gaming elements to align with Macau's government policies[70] - Phase 4 projects have commenced, further expanding the company's non-gaming facilities to attract a more diverse customer base and support Macau's vision as a "World Center of Tourism and Leisure"[70] Macau Operations and Facilities - The company operates three flagship projects in Macau, including the "Macau Galaxy™" integrated resort, which spans 1.4 million square meters and features seven world-class hotels with approximately 4,750 rooms[6][7] - "Macau Galaxy™" includes the Galaxy International Convention Center, offering 40,000 square meters of event space, capable of hosting up to 16,000 guests for cocktail events[7] - The Galaxy Arena, part of "Macau Galaxy™," is Macau's largest indoor arena, accommodating up to 16,000 guests and equipped with advanced audiovisual technology[8] - The resort's "Sky Wave" water park covers 75,000 square meters, featuring a 575-meter-long "Sky River" and a wave pool with artificial waves up to 1.5 meters high[7] - Galaxy Fashion Mall, within "Macau Galaxy™," spans over 100,000 square meters and houses more than 200 international luxury and lifestyle brands[7] - The resort offers over 120 dining options, ranging from Michelin-starred restaurants to local culinary experiences[7] - The Galaxy Cinema, equipped with 3D and 4K laser projection systems, provides an unparalleled movie experience across 10 independent theaters[7] - The company's third phase expansion, including the Galaxy International Convention Center and Raffles at Galaxy Macau, opened in 2023, further enhancing its offerings[7] - The company is advancing the development of Phase 4 in Cotai, which will expand its footprint by 600,000 square meters and add approximately 7,500 hotel rooms and suites upon completion[11] - The company completed several development projects in 2023, including the opening of Raffles at Galaxy Macau, the Sky Club high-limit gaming area, and the Galaxy International Convention Center[25] - The company plans to expand its international presence with new offices in Tokyo, Seoul, and Bangkok, aiming to attract high-end international tourists[25] - The company's properties, including Banyan Tree Macau, Galaxy Hotel, Okura Macau, and The Ritz-Carlton Macau, received Forbes Travel Guide Five-Star awards[27] - Galaxy Macau was ranked second in the Asia-Pacific region for Best Integrated Resort and third for Best Hotel in Macau by Travel + Leisure[29] - The company's properties received multiple sustainability awards, including the EarthCheck Gold Certification for Banyan Tree Macau and the Macau Environmental Protection Hotel Award - Gold Award for several properties[29] - Galaxy Entertainment Group's restaurants, including 8½ Otto e Mezzo Bombana and Lai Heen, received Michelin stars and Forbes Travel Guide Five-Star awards[31] - The company's resorts feature over 120 restaurants, offering the widest variety of Pan-Asian and international cuisine in Macau[30] Financial Performance - Net revenue for the group increased by 211% year-on-year to HKD 35.7 billion[14] - Adjusted EBITDA for the group reached HKD 10 billion, compared to a loss of HKD 600 million in 2022[14] - Shareholders' profit attributable was HKD 6.8 billion, compared to a loss of HKD 3.4 billion in 2022[14] - Cash and liquid investments stood at HKD 25 billion, with net cash of HKD 23.5 billion and liabilities of HKD 1.5 billion as of December 31, 2023[14] - "Galaxy Macau™" net revenue increased by 274% year-on-year to HKD 27.7 billion, with adjusted EBITDA of HKD 9.1 billion[15] - "StarWorld Macau" net revenue surged by 343% year-on-year to HKD 4.6 billion, with adjusted EBITDA of HKD 1.3 billion[16] - The group's total gaming revenue increased from HKD 7.5 billion in 2022 to HKD 31.7 billion in 2023, driven by a significant rise in mass market gaming turnover[18] - Total gaming revenue increased significantly from HKD 6,258 million in 2022 to HKD 26,657 million in 2023, reflecting a strong recovery in the gaming sector[21] - Adjusted EBITDA for 2023 was HKD 1,278 million, compared to a negative HKD 527 million in 2022, with an adjusted EBITDA margin of 28%[22] - The company's cash and liquid investments totaled HKD 25 billion as of December 31, 2023, with net cash of HKD 23.5 billion[24] - Galaxy Entertainment Group announced a special dividend of HKD 0.30 per share, expected to be paid on April 26, 2024[24] - Group net revenue increased by 211% year-on-year to HKD 35.7 billion, with adjusted EBITDA reaching HKD 10 billion, compared to HKD (6) billion in 2022[33] - Galaxy Macau™ adjusted EBITDA was HKD 9.1 billion, up from HKD 295 million in 2022, with normalized adjusted EBITDA at HKD 9.3 billion, a 2,739% increase year-on-year[39] - Total gaming revenue for 2023 was HKD 317 billion, a 322% increase year-on-year, with mass market gaming revenue up 328% to HKD 265 billion[33] - StarWorld Hotel recorded net revenue of HKD 4.6 billion, a 343% increase year-on-year, with adjusted EBITDA of HKD 1.3 billion, compared to HKD (527) million in 2022[41] - Group cash and liquid investments stood at HKD 25 billion, with net cash of HKD 23.5 billion and liabilities of HKD 1.5 billion as of December 31, 2023[37] - The company declared a special dividend of HKD 0.20 per share on October 27, 2023, and announced another special dividend of HKD 0.30 per share to be paid around April 26, 2024[37] - Average hotel occupancy rate across seven hotels was 87% in 2023, with StarWorld Hotel achieving a 99% occupancy rate[40][41] - Mass market gaming turnover increased by 328% year-on-year to HKD 265 billion, while VIP gaming turnover rose by 273% to HKD 34 billion[33] - Slot machine gaming revenue increased by 340% year-on-year to HKD 1.8 billion, with a consistent net win rate of 3.5%[33] - Galaxy Macau™ mass market gaming turnover reached HKD 80.8 billion in 2023, with a net win rate of 27%, contributing HKD 21.8 billion in gaming revenue[40] - Macau StarWorld Hotel's total net revenue for Q4 2023 was HKD 1,255 million, with adjusted EBITDA of HKD 353 million and a margin of 28%[42] - Macau Broadway's net revenue in 2023 increased by 72% year-on-year to HKD 103 million, with adjusted EBITDA improving from HKD (62) million in 2022 to HKD (36) million[43] - City Clubs' net revenue in 2023 surged by 264% year-on-year to HKD 222 million, with adjusted EBITDA turning positive at HKD 15 million compared to HKD (21) million in 2022[44] - Galaxy Entertainment Group's construction materials business achieved adjusted EBITDA of HKD 698 million in 2023, up 23% year-on-year[45] - The company's net cash position remains strong at HKD 23.5 billion, with minimal debt[49] - During the Lunar New Year, the company's mid-mass gaming turnover and revenue reached 120% of 2019 levels, with total visitor arrivals to Macau reaching 1.4 million over 8 days[49] - The company announced a special dividend of HKD 0.30 per share, payable around April 26, 2024[48] - Total equity attributable to the company's shareholders increased to HKD 70.759 billion as of December 31, 2023, up 11% from HKD 63.914 billion as of December 31, 2022[51] - Total assets of the group increased to HKD 87.215 billion as of December 31, 2023, compared to HKD 80.961 billion as of December 31, 2022[51] - The group's investment in listed debt securities decreased significantly from HKD 9.019 billion as of December 31, 2022, to HKD 6.787 billion as of December 31, 2023[51] - The group holds 5,200,000 shares of Wynn Resorts, representing approximately 4.7% of its issued share capital, with a fair value of HKD 3.7 billion as of December 31, 2023[52] - The group's cash and bank balances (including time deposits) totaled HKD 14.5 billion as of December 31, 2023, compared to HKD 14.011 billion as of December 31, 2022[53] - Total debt of the group decreased to HKD 1.453 billion as of December 31, 2023, from HKD 7.505 billion as of December 31, 2022[53] - The group employed approximately 20,400 employees in Hong Kong, Macau, and Mainland China as of December 31, 2023, with employee costs (excluding director remuneration) amounting to HKD 7.049 billion[57] - The group provided guarantees of HKD 4.77 billion for credit facilities granted to subsidiaries, of which HKD 596 million was utilized as of December 31, 2023[56] - The company paid a special dividend of HKD 0.20 per share for the year ended December 31, 2023, totaling HKD 0.20 per share for the year (2022: HKD 0.30 per share)[111] - The company announced a special dividend of HKD 0.30 per share, totaling approximately HKD 1.31 billion, to be paid around April 26, 2024[111] - The distributable reserves of the company as of December 31, 2023, were HKD 83,340,567,000 (2022: HKD 84,224,270,000)[112] - The company's main business includes investment holding, casino operations, hotel services, and the manufacturing, sales, and distribution of construction materials in Hong Kong, Macau, and Mainland China[110] - The company voluntarily publishes unaudited quarterly financial data to allow stakeholders to better assess its performance[104] - The company has established various communication channels with shareholders and investors, including electronic delivery of company communications[104] - Shareholders holding at least 5% of the total voting rights can request the board to convene a general meeting[106] - Shareholders holding at least 2.5% of the total voting rights or at least 50 shareholders can request the company to circulate a statement of no more than 1,000 words regarding matters to be discussed at a general meeting[107] - The company's board of directors has the discretion to decide on dividend payments based on financial conditions, economic climate, and future expectations[111] - The company's distributable reserves decreased from HKD 84,224,270,000 in 2022 to HKD 83,340,567,000 in 2023[112] - The company achieved its annual environmental targets for 2023, reducing energy and water consumption by 3% and increasing waste diversion rate by 4-5%[114] - The company's local suppliers accounted for 62% of its total suppliers in 2023[118] - The company issued a total of 780,453 new ordinary shares due to the exercise of share options and allocated 3,894,565 new ordinary shares to satisfy share awards under the share incentive plan[119] - The trustee of the 2021 Share Incentive Plan purchased a total of 504,488 shares on the Hong Kong Stock Exchange at a total cost of approximately HKD 25.83 million[120] - The trustee of the 2014 Share Incentive Plan sold 320,216 forfeited shares, generating HKD 16.52 million[120] - The total remuneration for the Board of Directors is HKD 430,000 for the Chairman and HKD 390,000 for members[122] - The total remuneration for the Audit Committee is HKD 210,000 for the Chairman and HKD 170,000 for members[122] - The total remuneration for the Corporate Governance Committee is HKD 110,000 for the Chairman and HKD 85,000 for members[122] - The total remuneration for the Nomination Committee is HKD 110,000 for the Chairman and HKD 85,000 for members[122] - The total remuneration for the Remuneration Committee is HKD 110,000 for the Chairman and HKD 85,000 for members[122] - Lui Che Woo holds 1,770,199,554 shares, representing 40.47% of the issued shares[125] - Lui Yiu Tung holds 1,814,384,709 shares, representing 41.49% of the issued shares[125] - Tang Lui Wai Yu holds 1,376,508,478 shares, representing 31.47% of the issued shares[125] - City Lion Profits Corp. holds 973,282,206 shares, representing 22.25% of the issued shares[128] - CWL Assets (PTC) Limited holds 1,362,225,231 shares, representing 31.15% of the issued shares[128] - Galaxy Entertainment Group adopted a new share option plan (2023 Share Option Plan) on May 22, 2023, replacing the 2021 Share Option Plan, which was terminated on the same day[130] - A total of 11,194,000 share options were granted under the 2023 Share Option Plan since its adoption[130] - The total number of shares that can be issued under the 2023 Share Option Plan and other share incentive plans, including the 2023 Share Award Scheme, is 436,914,130 shares, representing 10% of the issued shares as of May 22, 2023[131] - The maximum number of shares that can be issued to service providers under the 2023 Share Option Plan and other share incentive plans is 43,691,413 shares, representing 10% of the total authorized limit[131] - As of the annual report date, 11,169,000 share options granted under the 2023 Share Option Plan remain unexercised, representing approximately 0.26% of the issued shares[133] - A total of 3,035,500 share awards granted under the 2023 Share Award Scheme remain unvested, representing approximately 0.07% of the issued shares[133] - The total number of shares that can be issued under the 2023 Share Option Plan and the 2023 Share Award Scheme is 422,709,630 shares, representing approximately 9.67% of the issued shares[133] - Each participant can be granted share options and other incentives up to 1% of the total issued shares within any 12-month period[134] - The exercise period for share options must not exceed 10 years from the date of grant[134] - The 2023 Share Option Plan will be effective for 10 years from May 22, 2023, and will expire on May 22, 2033[135] - The total number of stock options granted in 2023 was 11,194,000, with a total of 7,668,000 options granted on December 29, 2023, at an exercise price of HKD 43.75[137] - The weighted average closing price of shares before the exercise date in 2023 was HKD 49.41[137] - The fair value of stock options granted during the year was calculated using the Black-Scholes model[140] - The total number of stock options held as of December 31, 2023, was 43,769,061, with 34,477,497 options held at the beginning of the year[137] - The exercise price for options granted on October 7, 2022, was HKD 48.65, with a vesting period of 50% on the first and second anniversaries of the grant date[140] - The weighted average closing price of shares before the exercise date in 2023 for certain options was HKD 52.90[139] - The total number of stock options exercised during the year was 780,453, while 1,121,983 options expired[137] - The vesting period for most stock options is one-third on each of the first, second, and third anniversaries of the grant date[140] - The total number of stock options granted to directors and their associates in 2023 was 281,000, with 276,000 granted to Lui Wai Ling on December 29, 2023[139] - The total number of stock options held by directors and their associates as of December 31, 2023, was 1,440,780[139] - 11,194,000 share options were granted on December 29, 2023, with an expected stock return standard deviation of 40.0% to 41.1% and an expected duration of 3.5 to 4.5 years[141] - The closing price of the company's shares on December 28, 2023, was HK$43.75, and the share options granted on December 29, 2023, had no performance targets or clawback mechanisms[142] - A total of 3,036,900 share awards were granted under the 2023 Share Award Plan, which was adopted on May 22, 2023, and will be effective for ten years[143] - The 2021 Share Award Plan was suspended on May