Business Operations - The Group operates the Macau Fisherman's Wharf, a waterfront integrated gaming, hotel, convention, and entertainment complex, aligning with the Macau government's policy on leisure and tourism[17]. - The Group provides gaming services to SJM in the Legend Palace Casino, Babylon Casino, and Landmark Casino under a service agreement[17]. - The Group also operates a casino within the Savan Legend Resorts Hotel and Entertainment Complex in Laos[17]. - The Group's business strategy includes expanding its entertainment and leisure facilities within its properties[17]. - The Group is one of the leading owners of entertainment and casino gaming facilities in Macau, emphasizing its market position[17]. - The Group's operations contribute to the diversification of the Macau economy through tourism and entertainment[17]. - The Group aims to leverage its existing assets to capture growth opportunities in the gaming and entertainment sectors[16]. - The Group is actively improving facilities and increasing events at MFW to attract more well-known brands[25]. - The Group plans to continue seeking overseas projects with good development potential, focusing on Southeast Asia and Portuguese-speaking countries[28]. Financial Performance - The Group's total reported revenue for 2018 was approximately HK$1,865.4 million, an increase of about 1.6% from HK$1,836.1 million in 2017[33]. - Adjusted EBITDA for the year was approximately HK$359.8 million, reflecting a 29.4% increase compared to the previous year[24]. - The Group's gaming services revenue totaled approximately HK$1,357.9 million in 2018, up from HK$1,210.1 million in 2017[34]. - For the year ended 31 December 2018, gaming revenue increased by approximately 12.2% to approximately HK$1,357.9 million, while non-gaming revenue decreased by approximately 18.9% to approximately HK$507.4 million[40]. - The increase in gaming revenue was primarily due to the reported revenue from Legend Palace Casino rising to approximately HK$682.5 million, offset by decreases from Savan Legend Casino and Landmark Casino[40]. - The non-gaming revenue decline was mainly due to the cessation of consolidation of The Landmark Macau's revenue, resulting in a decrease of approximately 67.0%[41]. - Profit attributable to owners of the Company was HK$1,942.7 million, compared to a loss of HK$532.8 million in the previous year[44]. - The Group's profit for the year ended 31 December 2018 was approximately HK$1,966.1 million, a significant increase from a loss of approximately HK$507.3 million in the previous year[53]. Impairments and Economic Factors - Impairments were made on certain individual VIP gaming patrons and VIP rooms operators amounting to approximately HK$85.9 million, goodwill of approximately HK$682.0 million, and other intangible assets of approximately HK$97.4 million due to economic uncertainties[57]. - The impairment loss on goodwill related to the acquisition of Macau Fisherman's Wharf Group in 2012, driven by a reassessment of future cash flow forecasts[58]. - The expected future growth in revenue from MFW Group's operation is anticipated to be slower than previously expected, necessitating the impairment[63]. - The management has reassessed the recoverability of certain VIP gaming clients and operators due to uncertainties arising from the trade war and its impact on Macau's economy[57]. Shareholder and Corporate Governance - The Chairman's statement highlights the Group's commitment to enhancing shareholder value through strategic initiatives[20]. - The Board declared a special dividend of HK8 cents per share, totaling approximately HK$501.4 million, payable on 12 July 2018[67]. - The company has complied with the Corporate Governance Code during the year ended December 31, 2018, except for code provision A.2.1, which requires the roles of chairman and chief executive to be separate[161]. - The Board is responsible for the overall management and control of the company's business, focusing on enhancing shareholder value[162]. - The Board reserves the decision-making power for all major matters, including financial information and significant transactions[163]. - The Board composition includes executive directors, non-executive directors, and independent non-executive directors, ensuring a diverse governance structure[167][169]. Leadership and Community Involvement - Mr. David Chow has been actively involved in community service and has held various significant positions in Macau's tourism and hospitality sectors since 1996[113]. - Madam Lam Fong Ngo has over 30 years of experience in the Macau gaming industry and has been a director since December 2006, becoming an executive director and vice chairman in May 2012[116]. - The company has been recognized for its contributions to the tourism industry, with Mr. David Chow receiving the Order of Merit for Tourism from the Macau government[113]. - The company has a strong leadership team with familial ties, including Mr. David Chow as CEO and Madam Lam as his mother, highlighting a legacy of involvement in the business[117]. - The company is actively involved in community service, reflecting its commitment to corporate social responsibility[126]. Operational Metrics - As of 31 December 2018, the Group had a total of 194 gaming tables in Macau, with 177 in operation, compared to 165 in operation as of 31 December 2017[73]. - The Group's mass market tables generated a games drop of HK$5,058,386, a 52.9% increase from HK$3,307,454 in 2017[76]. - The net win from mass market tables was HK$1,002,894, reflecting a 103.1% increase from HK$493,904 in 2017[76]. - The total gaming turnover for Legend Palace Casino reached HK$19,297,580, an increase of 377.0% compared to HK$4,046,000 in 2017[78]. - The average occupancy rate for Legend Palace Hotel was 95.7%, up from 84.0% in 2017[87]. Future Outlook and Investments - The Group is working towards the introduction of a virtual reality experience centre, a wax museum, and new dining facilities at MFW in the second half of 2019[101]. - The Group has completed the superstructure work of the office building in Cape Verde and is revisiting the overall construction plan of the hotel and casino complex[101]. - The Group's investment in Cape Verde is expected to amount to approximately €250 million (equivalent to approximately HK$2,150 million)[97]. - The Group's investment in Hengqin is approximately HK$84 million[99].
澳门励骏(01680) - 2018 - 年度财报