Financial Performance - For the six months ended June 30, 2020, the Group reported total revenue of approximately HK$364.1 million, a decrease of approximately HK$717.7 million or 66.3% compared to HK$1,081.8 million in the same period last year[29][31]. - Reported revenue for the period was HK$95,403,000, down 69.8% from HK$316,184,000 in the previous year[34]. - The group's gaming revenue decreased by approximately 66.9% to approximately HK$287.1 million for the six months ended June 30, 2020, compared to the same period last year[46]. - Total reported revenue for gaming services was HK$287,056,000, down from HK$867,540,000 in 2019, reflecting a significant decline due to COVID-19[42]. - Non-gaming revenue totaled approximately HK$77.0 million, a decrease of approximately 64.0% from HK$214.2 million in the same period last year[49]. - The Group's loss for the six months ended June 30, 2020, was approximately HK$550.2 million, compared to a loss of approximately HK$107.5 million in the same period last year, primarily due to significant decreases in revenue from COVID-19 related travel restrictions[67]. - Loss before tax for the period was HK$493,558,000, compared to a loss of HK$91,438,000 in the previous year, representing a significant increase in losses[166]. - Total comprehensive loss for the period amounted to HK$569,469,000, compared to HK$91,296,000 in the same period of 2019, indicating a substantial decline in financial performance[166]. Gaming Operations - The Group's 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[32]. - The Group continues to provide gaming services under a service agreement with SJM for Legend Palace Casino, Babylon Casino, and Landmark Casino[22]. - Total gaming drop for Mass Market Tables decreased by 71.3% to HK$846,615,000 compared to HK$2,948,411,000 in 2019[34]. - Net win for VIP Tables fell by 78.2% to HK$50,346,000 from HK$231,008,000 in 2019[34]. - The average number of gaming tables decreased by 29.8% to 40 from 57 in the previous year[34]. - The number of gaming tables in operation at period end decreased by 29.8% to 40 from 57 in 2019[34]. - The average number of slot machines in operation decreased by 30.3% to 76 from 109 in the previous year[34]. - The net win for mass market tables was HK$16,004,000, down 71.2% from HK$55,504,000 in 2019[46]. - The Group's adjusted EBITDA for gaming services was a loss of approximately HK$59.9 million for the six months ended June 30, 2020, compared to a profit of HK$21.2 million in the previous year[63]. Impact of COVID-19 - The significant decline in revenue is attributed to the impact of the COVID-19 pandemic on the gaming and tourism sectors in Macau[29]. - Future outlook remains cautious due to ongoing uncertainties in the market and potential recovery timelines for tourism and gaming activities[29]. - MFW's gross gaming revenues contracted approximately 67% for the first half of 2020 compared to the same period for the previous year, while the overall gaming market in Macau contracted approximately 77%[77]. - The occupancy rate for Legend Palace Hotel was 44% in 2020, down from 94% in 2019, indicating a significant impact on hotel operations due to the pandemic[54]. - The Group has implemented various mitigating measures, including a cost control program to minimize cash outflow of non-essential items[191]. Cost Control and Financial Management - The management is focused on cost control measures to mitigate the financial impact during this challenging period[29]. - The Group is negotiating for refinancing its existing bank borrowings with a longer-term facility[90]. - The Group is negotiating with banks to restructure existing outstanding bank borrowings into long-term financing, leveraging its good track record and relationships with the banks[191]. - Adjusted EBITDA from operations excluding Savan Legend and unallocated corporate expenses decreased by approximately 238.7% to a loss of approximately HK$181.0 million compared to the last corresponding period[66]. Future Outlook and Expansion - The Group is exploring opportunities for market expansion and potential new projects to enhance its service offerings[29]. - The Directors expect an increase in the number of tourists traveling to Macau due to the resumption of visa applications for residents of Zhuhai, Guangdong, and all travelers from mainland China starting from August 12, August 26, and September 23, 2020, respectively[189]. - The financial performance is expected to improve with the relaxation of travel restrictions between mainland China and Macau[189]. Corporate Governance - 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 2020[145]. - The company has established written guidelines for employees regarding securities transactions, with no incidents of non-compliance noted during the reporting period[155]. - The company believes that good corporate governance practices are essential for maintaining investor confidence and sustainable growth[145]. - The roles of chairman and chief executive are currently held by co-chairmen, ensuring timely and constructive discussions on major issues[147]. Shareholder Information - As of June 30, 2020, Mr. David Chow held a beneficial interest in 1,404,322,826 shares, representing approximately 22.65% of the total issued shares[113]. - The total number of shares held by directors and chief executives amounted to 1,853,708,892 shares, approximately 29.89% of the total issued shares[113]. - The total number of shares held by substantial shareholders amounts to 1,122,647,179, approximately 18.10% of total issued shares[131]. - The company is not aware of any other individuals or corporations with registered interests or short positions as of June 30, 2020[137]. Employee Information - The Group had approximately 4,071 employees as of June 30, 2020, including 1,243 gaming operation employees[105]. - Employee remuneration is based on qualifications, performance, and market trends, with discretionary bonuses granted based on merit[108].
澳门励骏(01680) - 2020 - 中期财报