MGM CHINA(HK:02282)2021-04-13 08:30Financial Performance - Total revenue for the year was HKD 5,095,983, a decrease from HKD 22,765,036 in the previous year, reflecting a significant decline due to the pandemic[8] - Adjusted EBITDA for the year was a loss of HKD 1,371,723, compared to a profit of HKD 6,183,131 in the previous year[8] - The company reported a net loss attributable to shareholders of HKD 5,201,531, compared to a profit of HKD 1,931,228 in the previous year[8] - The total current assets amount to HKD 9.5 billion, including cash, cash equivalents, and unused credit facilities[16] - The company has successfully executed multiple refinancing rounds, including the issuance of senior notes in 2019 and 2020, indicating strong financial management[37] - The company anticipates ongoing adverse impacts on its financial condition due to the pandemic[50] - The company has taken steps to amend financial covenants related to leverage and interest coverage ratios multiple times throughout 2020[52] - As of December 31, 2020, the company's net debt was HKD 18.520 billion, with a capital debt ratio of 78.7%, up from 56.0% in 2019[92] - The total borrowings as of December 31, 2020, amounted to HKD 21,155,040, an increase from HKD 16,604,526 in 2019[101] - The company has issued unsecured senior notes totaling USD 1.5 billion, with maturities in 2024 and 2026, to refinance existing debt and for general corporate purposes[102] Visitor and Market Trends - Visitor numbers to Macau dropped to 5.9 million in 2020, down from 39.4 million in 2019, marking a historic low due to travel restrictions[14] - The total gaming revenue in Macau decreased by 79%, reaching the lowest level in 14 years[14] - The company expects a steady recovery in visitor numbers, indicating a positive outlook for the future[15] - Since the resumption of travel visa issuance by the Chinese mainland and Macau governments, visitor numbers and business volume at MGM Macau and MGM Cotai have steadily increased since the Golden Week in October 2020[44] - The total number of visitors to Macau and visitors from mainland China decreased by 85.0% and 83.0% respectively compared to 2019[51] - The long-term growth outlook for the Macau market remains optimistic due to increasing outbound tourism from mainland China and government efforts to control COVID-19[64] Operational Adjustments - The company has actively reduced operating expenses and postponed non-essential capital expenditures to improve liquidity and prepare for economic recovery due to the severe impact of COVID-19 on operations and financial performance[44] - The company implemented several cost-reduction measures, including limiting on-site staff numbers and postponing capital expenditures[52] - The company has maintained strong cash flow and significant growth potential, supported by a robust balance sheet and financial flexibility[57] - The company aims to enhance operational efficiency and customer experience by improving product and service quality, increasing asset utilization, and streamlining its organizational structure across various business segments[57] Community and Employee Engagement - The company implemented measures to support local SMEs and provided financial assistance during the pandemic[15] - Over 460,000 training hours were provided in 2020, with each team member receiving an average of over 44 hours of training, outperforming peers[16] - The company is focused on community engagement and charitable contributions, aiming to provide innovative services and support local SMEs[125] - The company has established a Sustainability Committee in 2012 to develop policies and programs aimed at achieving sustainability goals[127] - In 2020, the company conducted 96 community activities, contributing 20,000 volunteer hours and assisting over 7,000 individuals in need[127] - The company has maintained a diverse workforce with employees from over 33 different countries, achieving a gender ratio of 52% male and 48% female[140] Sustainability and Environmental Initiatives - The company has committed to conducting annual carbon audits and setting corresponding targets to align with national carbon neutrality goals by 2060[196] - The company achieved a 12% reduction in energy consumption compared to the 2017 baseline, with a total energy consumption of 1,866,696 kWh in 2020[182][183] - Water consumption in 2020 was 1,060,232 cubic meters, a 29% decrease from 2019 and a 65% reduction compared to the 2017 baseline[187] - The company generated 2,013 tons of waste at MGM Macau and 2,506 tons at MGM Cotai in 2020, marking a 51% and 52% reduction year-over-year, respectively[189] - The company has adopted the ISO 50001:2018 Energy Management System certification across all its hotels, emphasizing its focus on energy efficiency[178] Governance and Compliance - The company has a comprehensive code of conduct that addresses anti-corruption, confidentiality, conflicts of interest, and insider trading[132] - The company has established an Anti-Money Laundering Compliance Committee to mitigate risks associated with its operations in the gaming industry[132] - The company has complied with all applicable laws and regulations, with no legal cases related to corruption or fraud in 2020[135] - The company’s senior management is responsible for ensuring effective risk management and internal controls related to sustainability[127] Future Development Plans - The company plans to add more suites to the MGM Lion in mid-2021 and launch new dining, retail, and other improved facilities within the year[17] - The company is developing the South Tower suites at MGM Cotai with an expected total capital cost of HKD 677 million to strengthen its position in the mid-to-high-end market[60] - The company plans to launch new activities and attractions post-COVID-19 recovery, aiming to enhance customer engagement and revenue generation[72]