GALAXY ENT(HK:00027)2022-03-28 09:19Business Strategy and Market Position - Galaxy Entertainment Group aims to become Asia's leading gaming and entertainment company, leveraging deep understanding of local markets and Chinese cultural preferences as a competitive advantage[2]. - The company emphasizes a prudent capital expenditure plan and strict monitoring of development projects to ensure shareholder returns[2]. - The group is focused on market-driven strategies, closely monitoring market developments to respond swiftly and prudently[2]. - Galaxy Entertainment Group's vision includes a commitment to delivering exceptional service, encapsulated in their motto "Pride of the World, Connected to Asia"[6]. - The company is dedicated to expanding its integrated resort offerings and enhancing customer experiences through innovative entertainment options[6]. - The group plans to continue development in Hengqin and expand into mainland China, especially the Greater Bay Area[14]. - The company is considering strategic acquisitions to strengthen its market position, with a budget of $100 million allocated for potential deals[175]. Financial Performance - The group's net revenue for 2021 was HKD 19.7 billion, a 53% increase year-on-year[13]. - Adjusted EBITDA for 2021 was HKD 3.54 billion, compared to a loss of HKD 1.02 billion in 2020[15]. - Shareholders' profit for 2021 was HKD 1.33 billion, recovering from a loss of HKD 3.97 billion in 2020[17]. - Non-gaming revenue increased to HKD 2.66 billion in 2021, a 69% increase from HKD 1.57 billion in 2020[15]. - The group maintained a strong balance sheet with cash and liquid investments of HKD 33.39 billion as of December 31, 2021[17]. - The total gaming revenue for the group was HKD 17.3 billion in 2021, a 51% increase year-on-year, with mass gaming revenue up 83%[34]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[177]. Development Projects - The group plans to expand its footprint in Macau with a development plan for phases three and four in Cotai, covering an area of 1 million square meters[8]. - The new hotel, Macau Galaxy Raffles, will feature approximately 450 suites, enhancing luxury offerings in Macau[10]. - The Galaxy International Convention Center (GICC) will provide a world-class exhibition space totaling 40,000 square meters, including a 10,000 square meter column-free exhibition hall[11]. - The Galaxy Arena will accommodate 16,000 guests, designed for various events including concerts and combat sports, offering a 360-degree audiovisual experience[12]. - The Andaz Macau hotel will open alongside GICC and Galaxy Arena, featuring over 700 rooms and advanced facilities[12]. Sustainability and Corporate Social Responsibility - The group is committed to sustainable development in Macau and has established a fund of HKD 1.3 billion to support youth education and development in Macau and mainland China[12]. - The company was recognized with the "Green Key" award for the Galaxy Hotel, highlighting its commitment to environmental sustainability[27]. - Galaxy Entertainment Group invested RMB 100 million in the first "biodiversity" themed green bond issued in Asia[87]. - The company has implemented a waste management and recycling program as part of its environmental initiatives[83]. - The company aims to support the sustainable development of the Macau gaming and tourism industry through regular communication with industry groups[81]. Employee Engagement and Training - The total number of employees at Galaxy Entertainment Group in 2021 was 8,745, showing a slight decrease from 8,998 in 2020[129]. - The company provided over 1,050,630 hours of training through various development programs in 2021[146]. - The company emphasizes the importance of team members as valuable assets and actively encourages their participation to create a healthy and inclusive work environment[80]. - The company has conducted nearly 80 responsible gaming training sessions and workshops since 2009, with approximately 130,000 team members participating[105]. - The company organized various activities to promote team cohesion and family relationships, including parent-child baking workshops and educational courses[131]. Awards and Recognition - The company received multiple awards in 2021, including the Michelin One Star for the restaurant 8½ Otto e Mezzo BOMBANA and the Forbes Travel Guide Five-Star Restaurant for the restaurant Lai Heen[29]. - The company was awarded the "Outstanding Corporate Social Responsibility Award" at the 9th Outstanding Corporate Social Responsibility Awards Ceremony[27]. - The company received the "Traveler's Choice 2021" award from Hotels.com for multiple hotels including The Ritz-Carlton, Macau[29]. - The company has been a long-term sponsor of two major international sports events in Macau and has won over 60 awards across various sports disciplines[125]. Governance and Compliance - Galaxy Entertainment emphasizes high standards of corporate governance and risk management to protect shareholder interests[188]. - The company has a zero-tolerance policy towards bribery and corruption, ensuring compliance with applicable laws and regulations[161]. - The compliance committee was established to oversee adherence to anti-money laundering and counter-terrorism financing policies[164]. - The board has delegated responsibilities to specific committees to enhance corporate governance and efficiency[200]. - The company maintains close communication with regulatory authorities, meeting at least once a quarter[164].