Visitor and Gaming Revenue Growth - In 2024, the total number of visitors to Macau reached approximately 34.9 million, an increase of 23.8% compared to 28.2 million in 2023[14]. - Macau's total gaming revenue increased to MOP 226.8 billion in 2024, up 23.9% from MOP 183.1 billion in 2023[14]. - The contribution of the live mixed gaming machine system to Macau's gaming revenue totaled MOP 4.3 billion in 2024, a 48.3% increase from MOP 2.9 billion in 2023[14]. - The share of live mixed gaming machine system revenue in total gaming revenue rose from 1.6% in 2023 to 1.9% in 2024[14]. - The increase in visitor numbers to Macau has significantly boosted customer traffic at the Golden Diamond Casino, enhancing demand for the company's electronic gaming products[22]. Company Financial Performance - The reported total revenue for the year ending December 31, 2024, was HKD 1,084,900,000, an increase of 71.0% compared to HKD 634,300,000 for the year ending December 31, 2023[23]. - Adjusted EBITDA for the year ending December 31, 2024, was HKD 453,000,000, reflecting a significant increase of 239.1% from HKD 133,600,000 in the previous year[23]. - The company recorded a profit of HKD 381,900,000 for the year ending December 31, 2024, a remarkable increase of 527.1% compared to HKD 60,900,000 in the previous year[23]. - The group's profit for the year was HKD 381.9 million, up from HKD 60.9 million in the previous year[27]. - The adjusted EBITDA from the Macau-managed casino segment was HKD 310.4 million, a 90.7% increase from HKD 162.8 million in the previous year, driven by increased customer numbers and gaming revenue[31]. Revenue Sources and Growth - Revenue from the management services of the gaming venue, specifically the Golden Diamond Casino, increased by 27.2% from HKD 564,800,000 in 2023 to HKD 718,300,000 in 2024[23]. - Revenue from the sale/rental of electronic gaming equipment and systems surged by 539.8%, rising from HKD 57,100,000 in 2023 to HKD 365,300,000 in 2024[17]. - Revenue from the sale/rental of electronic gaming equipment and systems in Macau was HKD 363 million for the year ended December 31, 2024, a significant increase of 539.1% from HKD 56.8 million in 2023[38]. - The group sold 1,461 gaming machines in Macau during the year ended December 31, 2024, compared to 260 machines in 2023, contributing HKD 316.4 million to revenue[38]. Strategic Focus and Market Expansion - The strategic shift towards the mass market segment has positively impacted the company's performance in the competitive landscape of Macau[14]. - The company is expanding into rapidly growing Asian gaming markets, including the Philippines, Vietnam, Cambodia, and Sri Lanka, as well as the North American market[19]. - The strategic focus for 2025 and beyond includes innovation, market expansion, and enhancing operational efficiency to adapt to the evolving demands of the gaming industry[19]. - The group plans to expand its electronic gaming equipment supply business to other Asian markets, particularly the Philippines and North America[40]. Technological Advancements and Innovation - The company continues to invest in the development of electronic gaming equipment and systems to enhance operational efficiency and customer experience[10]. - The group launched a new version of its live mixed gaming machine system, enhancing operational efficiency and cost-effectiveness for casino operators[47]. - The group introduced innovative entertainment products, including the new "Speedwave" gaming machine and groundbreaking electronic table games like "Mori Dice" during the "Echo Insight" event on November 26, 2024[47]. - The company is focused on leveraging technology and innovation in its operations, particularly in software and project development[75]. Corporate Governance and Management - The board believes that corporate governance is key to the company's success and has adopted various measures to ensure high levels of governance[140]. - The company has a strong management team with extensive experience in various sectors, including technology, finance, and gaming[70][74][75]. - The board has established three committees: audit, remuneration, and nomination, to assist the board in overseeing specific matters[175]. - The company has adopted a board diversity policy, ensuring a balanced mix of skills, experience, and diverse perspectives among board members[186]. Shareholder Engagement and Dividends - The board declared an interim dividend of HKD 0.05 per share for the six months ending June 30, 2024, and proposed a final dividend of HKD 0.11 per share for the year ending December 31, 2024, subject to shareholder approval[84]. - The total amount of the proposed final dividend is HKD 115,700,000, based on 1,052,185,315 shares issued as of December 31, 2024[84]. - The company has mechanisms in place to seek independent professional advice to ensure the board can exercise independent judgment[160]. - The company emphasizes shareholder privacy and will not disclose shareholder information without consent unless legally required[158]. Financial Management and Risk - The group maintains a cautious financial management approach, ensuring healthy liquidity to meet operational funding needs[51]. - The group has capital commitments of HKD 7,800,000 for the acquisition of properties, plants, and equipment as of December 31, 2024, compared to HKD 5,500,000 in 2023[59]. - The group faces net foreign exchange risk due to certain borrowings and bank deposits denominated in RMB, which are monitored closely[60]. - The group has not utilized any financial instruments for hedging purposes as of December 31, 2024[56]. Employee and Social Responsibility - The total employee costs, including director remuneration, amounted to HKD 238,600,000 for the year ended December 31, 2024, an increase from HKD 228,700,000 in 2023[65]. - The company is actively involved in social welfare activities, with executives participating in charitable organizations focused on caring for the elderly, women, and children[68]. - The gender ratio of employees, including senior management, as of December 31, 2024, is 55:45, with a goal to maintain this ratio without any single gender exceeding 70%[189]. - The company has a commitment to quality care and holistic development in its community service initiatives[68].
汇彩控股(01180) - 2024 - 年度财报