MELCO INT'L DEV(00200)2024-04-26 10:57Financial Performance - The group's net revenue increased by 179.5% year-on-year to HKD 29.53 billion, driven by the early lifting of COVID-19 restrictions in Macau and the openings of City of Dreams Mediterranean and the second phase of Studio City[13]. - Adjusted EBITDA rose to HKD 7.51 billion, compared to a negative adjusted EBITDA of HKD 362 million in 2022, indicating a significant recovery in operational performance[13]. - The group reported a loss of HKD 3.49 billion for the year, a substantial improvement from the loss of HKD 9.99 billion in 2022, reflecting the positive business momentum[13]. - The net revenue for the year ended December 31, 2023, was HKD 29.53 billion, a 179.5% increase compared to HKD 10.57 billion in the same period of 2022[23]. - The company reported a loss of HKD 3.49 billion for the year, significantly reduced from a loss of HKD 9.99 billion in 2022[23]. - The company's gaming revenue for 2023 reached HKD 24,090.4 million, a 185.9% increase from HKD 8,426.0 million in 2022[51]. - Adjusted EBITDA for the year ended December 31, 2023, was HKD 7,510 million, compared to a negative adjusted EBITDA of HKD 362 million in 2022[52]. - The net loss attributable to the company's owners for 2023 was HKD 1,740 million, significantly improved from a loss of HKD 5,110 million in 2022[53]. Expansion and Development - The opening of the City of Dreams Mediterranean in July 2023 marks a significant milestone in the group's expansion strategy, positioning Cyprus as a top tourist destination[6]. - The group is actively developing new concepts and strategies, including the construction of a Cineplex at Studio City and the anticipated return of the popular water show "The House of Dancing Water" by the end of 2024[13]. - The company has strategically launched a series of acclaimed experiences, including the indoor water park and the W Hotel in Macau, to attract high-end travelers[21]. - The flagship property, City of Dreams Mediterranean, opened in July 2023, featuring 500 rooms and over 8,000 square meters of meeting and exhibition space[32]. - The new indoor water park at Studio City opened in 2023, featuring multiple thrilling water slides and attractions, enhancing family entertainment options year-round[26]. Corporate Social Responsibility and Sustainability - The group has been recognized for its corporate social responsibility efforts, winning multiple awards including the "Best Overall Corporate Social Responsibility Program" at the 2023 IAG Academy IR Awards[14]. - The group aims to achieve its ambitious sustainability goals by 2030 through its "RISE" sustainability strategy, demonstrating a commitment to positive community impact[14]. - The company made over HKD 130,300,000 in donations and charitable contributions in 2023[16]. - The company aims to reduce waste and conserve water as part of its sustainability initiatives[17]. - The total greenhouse gas emissions increased from 17,688 MtCO2 in 2022 to 20,770 MtCO2 in 2023, reflecting a significant rise[18]. - Total energy consumption rose from 390,278 MWh in 2022 to 470,030 MWh in 2023[18]. - The total waste generated increased from 7,680 tons in 2022 to 15,633 tons in 2023, indicating a substantial increase in waste footprint[18]. - The company is committed to achieving carbon neutrality across its properties globally and implementing energy-saving measures[17]. - The company aims to achieve carbon neutrality and zero waste resorts by 2030, with progress updates provided to the board[157]. Governance and Leadership - The company has received multiple awards recognizing its leadership and contributions to the tourism industry, including the "Asian Best CEO" award in 2023[81]. - The company maintains a high level of corporate governance, focusing on responsible decision-making and improving transparency to shareholders[89]. - The corporate governance code has been established to guide and manage business affairs, ensuring compliance with the Hong Kong Stock Exchange's standards[90]. - The company has a written code of conduct to set ethical standards for all employees, ensuring the highest standards of integrity in business operations[91]. - The board of directors includes members with extensive experience in investment banking and corporate finance, contributing to informed decision-making[82][83]. - The company has established a governance policy for ESG matters to ensure sustainable operations and compliance with updated listing rules[145]. Employee Engagement and Diversity - The company believes that talent is key to its success and fosters a diverse and inclusive work environment, providing equal opportunities in all areas[80]. - The company has a structured approach to employee engagement, fostering a sense of belonging through recognition and participation[80]. - In 2023, 47% of the company's employees were women, with 17% of board members being female, reflecting a commitment to diversity and inclusion[161]. - The company aims to maintain at least 50% of management positions held by women by 2030[123]. - Employee training programs are systematically aligned with both personal and company needs, regularly reviewed for effectiveness[79]. Community Engagement - The company actively participates in community programs, contributing to the growth and future of the communities in which it operates[96]. - The company has initiated various community support programs, including charitable donations and volunteer activities, to address local needs and challenges[163]. - The company has strengthened cooperation with local businesses, creating economic opportunities for SMEs and micro-enterprises through various promotional events[164]. Risk Management - The Risk Management and Internal Control System aims to protect assets from misappropriation and unauthorized disposal, managing operational risks including environmental, social, and governance risks[134]. - The Audit Committee reviews the effectiveness of the risk management and internal control systems biannually[134]. - The company’s management is responsible for implementing strategies set by the board and ensuring cultural alignment across all levels[124]. Shareholder Engagement - The company encourages shareholder participation in the annual general meeting, aligning with corporate governance principles[150]. - The company’s articles of association allow shareholders to nominate candidates for the board at the annual general meeting, promoting shareholder involvement[148]. - Shareholders holding at least 5% of total voting rights can request the board to convene a meeting, ensuring their rights are protected[152].