Business Operations - The Group is one of the leading owners of entertainment and casino gaming facilities in Macau, operating the Macau Fisherman's Wharf[41]. - The Group's businesses include providing gaming services to SJM in three casinos and operating a casino in Laos[42]. - The Group completed the disposal of New Macau Landmark for a consideration of HK$4,600 million on April 27, 2018[43]. - The Group's operations align with the Macau government's policy on leisure, tourism, and economic diversification[41]. - The interim report indicates ongoing investments in enhancing entertainment and leisure facilities within its properties[39]. - The Group's financial performance is supported by its diversified business model across gaming and hospitality sectors[41]. - The management emphasizes future growth opportunities in the Macau gaming market[39]. - The Group is focused on expanding its market presence through strategic partnerships and operational improvements[39]. - The interim report highlights the importance of maintaining high service standards in its gaming operations[39]. - The Group aims to leverage its unique location and offerings to attract more visitors to its facilities[41]. Financial Performance - The Group reported total revenue of approximately HK$1,081.8 million for the six months ended June 30, 2019, an increase of approximately HK$130.2 million or about 13.7% compared to HK$951.6 million in the same period last year[47]. - Revenue from gaming services included service income from SJM for mass market tables, VIP tables, and slot machines, as well as casino operations in Laos[48]. - The total games drop for mass market tables was HK$2,948.4 million, representing a 20.1% increase from HK$2,454.7 million in the previous year[50]. - The net win from mass market tables increased by 24.4% to HK$564.3 million from HK$453.5 million year-on-year[50]. - The average hold rate for mass market tables was 19.14%, up from 18.47%[50]. - The number of gaming tables in operation at the end of the period was 316,184, a 24.3% increase from 254,281[50]. - The total games drop for VIP tables was HK$6,620.2 million, a decrease of 39.6% from HK$10,960.2 million[50]. - The net win from VIP tables decreased by 33.1% to HK$231.0 million from HK$345.5 million[50]. - The number of slot machines in operation at the end of the period was 3,188, an increase of 17.6% from 2,711[50]. - The Group's revenue from Babylon Casino showed a significant increase in games drop by 51.8% to HK$604.5 million compared to HK$398.2 million in the previous year[52]. - For the six months ended June 30, 2019, the Group's gaming revenue increased by approximately 28.7% to approximately HK$867.5 million compared to the same period last year[62]. - The increase in gaming revenue was primarily due to contributions from Legend Palace Casino (HK$98.9 million), Babylon Casino (HK$19.5 million), and Landmark Casino (HK$85.5 million), offset by a decrease from Savan Legend Casino (HK$10.6 million)[62]. - Total reported revenue for gaming services was HK$867.5 million, with Mass Market Tables contributing HK$697.2 million, VIP Tables contributing HK$122.9 million, and Slot Machines contributing HK$47.4 million[58]. - Non-gaming revenue for the six months ended June 30, 2019, was approximately HK$214.2 million, a decrease of approximately 22.8% from HK$277.4 million in the previous year[64]. - The average number of gaming tables in operation decreased by 17.8% for the Group's operations in Laos, with 55 tables in operation compared to 63 the previous year[63]. - The net win per table per day for Mass Market Tables was HK$41, an increase of 36.7% from HK$30 in the previous year[1]. - The net win per slot machine per day was HK$0.6, remaining unchanged from the previous year[1]. - The Group's hold rate for Mass Market Tables increased to 22.94%, up from 18.34% in the previous year[1]. - The average revenue per available room (REVPAR) for Legend Palace Hotel was HK$1,512 in 2019, down from HK$1,556 in 2018[69]. - Profit attributable to owners of the Company for the six months ended June 30, 2019, was a loss of HK$128,326,000, compared to a profit of HK$20,829,000 in the same period of 2018[73]. - The Group's loss for the six months ended June 30, 2019 was approximately HK$107.5 million, compared to a profit of approximately HK$2,853.7 million in the same period last year[80]. Operational Challenges - The decrease in non-gaming revenue was primarily due to a reduction of approximately HK$69.2 million from The Landmark Macau after its disposal[68]. - The second half of the year may be affected by uncertainties in the regional economic situation and global trade disputes[88]. - The Group will closely monitor Macau Government policy developments regarding gaming licenses expiring in 2022 to ensure continued participation in the gaming business[88]. Corporate Governance - The Company has maintained a consistent governance structure with no new share options issued since the scheme's inception[120]. - The controlling shareholders are required to hold at least 51% of the issued share capital of the company[141]. - The Company has complied with the Corporate Governance Code except for provisions A.2.1 and A.4.1 during the six months ended 30 June 2019[144]. - The roles of chairman and chief executive are currently held by co-chairmen, ensuring a balance of power and authority within the Board[144]. - The Company has adopted the Model Code for directors' dealings in the Company's securities, with all directors confirming compliance during the six months ended 30 June 2019[148]. - The company disclosed the interests and short positions of its directors and chief executives as required by the relevant regulations[139]. Shareholder Information - Mr. David Chow holds 319,696,000 shares, representing 5.11% of the total issued shares[122]. - Ms. Melinda Chan has an interest of 1,724,018,826 shares through her spouse, accounting for 27.57% of the total issued shares[122]. - The total beneficial ownership of Mr. Chow and Ms. Chan combined is 1,853,708,892 shares, which is 29.64% of the total issued shares[122]. - Elite Success International Limited, controlled by Mr. Li Chi Keung and Ms. Wong Hoi Ping, holds 1,012,599,750 shares, representing 16.19% of the total issued shares[126]. - Ms. Chan Un Chan, as the founder of a discretionary trust, holds 934,269,609 shares, which is 14.94% of the total issued shares[128]. Financial Reporting and Compliance - The Group's financial statements for the six months ended June 30, 2019, are prepared in accordance with Hong Kong Accounting Standard 34, reflecting compliance with applicable disclosure requirements[171]. - The Group's accounting policies and methods of computation for the interim period are consistent with those used in the preparation of the annual consolidated financial statements for the year ended December 31, 2018[174]. - The application of new and amendments to Hong Kong Financial Reporting Standards has had no material impact on the Group's financial performance and positions for the current and prior periods[175]. - The financial statements are presented in Hong Kong dollars (HK$), which is the functional currency of the Company[171]. - The Group applied HKFRS 16 for the first time in the current interim period, replacing HKAS 17 "Leases" and related interpretations[177]. - The Group has adopted HKFRS 16 "Leases," resulting in significant changes in accounting policies, particularly regarding lease liabilities and right-of-use assets[188]. Employee Information - The Group employed approximately 4,104 employees as of June 30, 2019, including approximately 1,140 gaming operation employees[96]. - Employee remuneration is determined based on personal qualifications, work performance, industry experience, responsibilities, and relevant market trends[99]. Cash Flow and Assets - As of June 30, 2019, bank balances and cash held by the Group amounted to approximately HK$999.0 million, including pledged bank deposits of approximately HK$1.7 million[90]. - The net cash used in investing activities was HK$246,729,000, compared to a net inflow of HK$3,342,739,000 in the same period of 2018[167]. - The company experienced a net decrease in cash and cash equivalents of HK$452,070,000 for the period[167].
澳门励骏(01680) - 2019 - 中期财报