GALAXY ENT(HK:00027)2021-09-03 08:45Corporate Strategy and Market Position - Galaxy Entertainment Group aims to be recognized as Asia's leading gaming and entertainment corporation, leveraging local market insights and a deep understanding of Asian customer preferences[5][11]. - The company emphasizes a demand-driven strategy, closely monitoring market developments to expand prudently and in a timely manner[9][12]. - Galaxy Entertainment Group focuses on return on investment (ROI) with a prudent capital expenditure (CAPEX) plan and controlled development to enhance shareholder value[7][12]. - The company is committed to delivering high-quality experiences, with state-of-the-art facilities such as the Galaxy Cinema, which includes 10 independent theaters equipped with advanced 3D and 4K laser projection technology[24]. - Galaxy Entertainment Group's strategic focus includes continuous innovation in product offerings and services to maintain a competitive edge in the market[6][8]. Development Projects and Expansion - The company operates three flagship projects in Macau, including the Galaxy Macau, which spans 1 million square meters and features approximately 3,600 hotel rooms across five world-class hotels[23][24]. - The development plan for the Galaxy Entertainment Group will expand its footprint by 1 million square meters in the Cotai area over the next few years[26]. - The new "Galaxy Macau™" will feature the "Raffles" hotel with approximately 450 suites, enhancing luxury offerings in Macau[27]. - The Galaxy International Convention Center (GICC) will provide a total exhibition space of 40,000 square meters, including a 10,000 square meter column-free exhibition hall[27]. - The Galaxy Arena will accommodate 16,000 guests, designed for world-class events and performances[27]. - The company is pursuing a world-class resort development on a 2.7 square kilometer site in Hengqin, complementing its high-density projects in Macau[28]. - The company continues to advance the development of Phase 3 and 4 in Cotai, focusing on non-gaming business[31]. Financial Performance - Net revenue increased by 71% year-on-year to HKD 10.661 billion[29]. - Adjusted EBITDA grew by 283% year-on-year to HKD 1.991 billion[29]. - Shareholders' profit increased by 133% year-on-year to HKD 947 million[29]. - Non-gaming revenue rose by 121% year-on-year to HKD 1.272 billion[29]. - The group reported a net revenue of HKD 5.6 billion for Q2 2021, an improvement from HKD 1.2 billion in the same period last year and HKD 5.1 billion in Q1 2021[43]. - Adjusted EBITDA for Q2 2021 was HKD 1.1 billion, a significant increase from a loss of HKD 1.4 billion in Q2 2020, representing a 32% quarter-over-quarter improvement[43]. - Total gaming revenue for the first half of 2021 was HKD 2.3 billion, compared to HKD 1.3 billion in the first half of 2020, indicating a recovery trend[40]. Community and Social Responsibility - The company 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[28]. - The company committed HKD 10 million to support flood relief efforts in Henan Province, China[44]. - The company donated a total of MOP 100 million to support COVID-19 prevention efforts in mainland China and Macau[94]. - The company provided 1 million masks and funding for deep cleaning services in Macau schools as part of its community support efforts[94]. - Galaxy Entertainment Group actively engages in corporate social responsibility projects to foster community relationships and support local development[100]. Environmental Initiatives - The company is committed to enhancing its environmental performance and regularly reviews measures to reduce its environmental impact[108]. - Galaxy Entertainment launched a coffee capsule recycling initiative at "Galaxy Macao" and "Broadway Macau" to improve resource conservation[108]. - In the first half of 2021, Galaxy Entertainment Group recycled approximately 340.6 tons of cardboard and paper, 19.6 tons of plastic, 9.2 tons of metal, 20.4 tons of glass bottles, 23.7 tons of waste oil, and 0.9 tons of ink cartridges[109]. - The construction materials business installed 500 solar panels at its Hong Kong Eco-Park, generating 240,000 kWh of electricity annually[111]. Employee Engagement and Development - In the first half of 2021, the company conducted 636 training programs, providing over 413,300 hours of training to more than 17,300 team members[96]. - Nearly 60,200 participants engaged in various sports and recreational activities organized by the company for team members and their families[95]. - The company launched the "IR-LEAD" development program to enhance the skills of voluntary participants from the gaming operations team, combining coursework and practical experience[96]. - The company awarded long service certificates and gifts to nearly 5,000 team members who have served for ten years or more[95]. Shareholder and Capital Management - The company decided not to declare dividends due to the ongoing impact of the COVID-19 pandemic[29]. - The market capitalization increased from HKD 228.708 billion in 2020 to HKD 270.495 billion in 2021[35]. - The group maintained a strong balance sheet with cash and liquid investments reaching HKD 43 billion and net cash of HKD 31.6 billion as of June 30, 2021[43]. - The company reported a total comprehensive income for the period was HKD 1,434,154 thousand, compared to a loss of HKD (5,522,833) thousand in 2020[118]. Governance and Compliance - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors for the six months ending June 30, 2021[189]. - The company has complied with the corporate governance code as per the listing rules, except for a specific provision regarding the rotation of directors[189]. - The chairman's leadership and vision are considered valuable assets for the company, and his continued tenure is deemed beneficial[189].