Core Viewpoint - Sands China Limited reported a strong financial performance for 2024, with total revenue reaching $7.08 billion, an increase of 8.4% from $6.534 billion in 2023, and net profit attributable to shareholders rising significantly from $692 million to $1.045 billion. However, the company faces liquidity challenges, as its current ratio dropped from 1.23 in 2023 to 0.76 in 2024, indicating potential risks in cash flow management [1]. Debt Structure and Financial Pressure - The debt structure of Sands China deteriorated significantly in 2024, with short-term debt skyrocketing from $16 million in 2023 to $1.639 billion, a more than 100-fold increase, primarily due to the reclassification of notes maturing in 2025. Long-term debt decreased from $8.312 billion to $6.520 billion, but total liabilities still reached $10.138 billion, maintaining a high debt-to-asset ratio of 90.77% [3]. - Current liabilities surged from $1.372 billion in 2023 to $2.993 billion, while current assets only amounted to $2.285 billion, resulting in a net current liability of $708 million. Despite cash and cash equivalents increasing from $1.361 billion to $1.970 billion, this remains insufficient against the large short-term debt [3]. - The accounts receivable conversion cycle extended from 8 days to 10 days, while the accounts payable conversion cycle remained unchanged at 2 days, exacerbating cash flow management issues. Operating cash flow per share decreased from $0.28 in 2023 to $0.26 in 2024, indicating a decline in cash generation capability from operations [3]. Capital Expenditure Impact - Sands China committed to investing approximately $4.5 billion during the gaming license period from 2023 to 2032, significantly impacting cash flow. The investment cash flow per share for 2024 was negative $0.10, worsening from negative $0.02 in 2023, reflecting increased spending on infrastructure and equipment upgrades [4]. - The completion of the Londoner Macao project is expected in the second quarter of 2025, indicating continued substantial capital expenditures in the coming quarters. Additionally, renovations at the Galaxy Macau and phased updates at the Sheraton Hotel in Macau are expected to affect revenue generation in the short term [4]. - The company has invested approximately $17 billion in the development of integrated resorts in Macau, including over 10,000 hotel rooms and significant retail and convention space. While these investments may enhance long-term competitiveness, they currently serve as a major drag on cash flow [4]. Market Recovery and Profitability Concerns - Although the number of visitors to Macau increased to approximately 35 million in 2024 from 28 million in 2023, the quality of earnings for the company remains concerning. The gross profit margin declined from 61.88% in 2023 to 60.69%, indicating that intense market competition is compressing profit margins [6]. - Administrative expenses slightly increased from $1.970 billion to $1.977 billion, suggesting a need for improved cost control despite revenue growth. Adjusted property EBITDA rose from $2.23 billion to $2.33 billion, but the growth rate of 4.7% lagged behind the revenue growth of 8.4%, reflecting a decline in operational efficiency [6]. - The return on equity reached an unusually high 201.93%, primarily due to a low net asset base of $1.031 billion compared to total assets of $11.169 billion. The total asset return improved from 6.65% to 9.75%, but this improvement is more indicative of leverage effects rather than genuine operational enhancement [6]. - The net cash flow per share improved from negative $0.04 in 2023 to $0.07 in 2024, yet it remains at a relatively low level, indicating limited cash generation capacity [6].