Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited t ake no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or i n reliance upon the whole o r any part of the contents of this announcement. INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board of directors (the ‘‘Board ’’) of SJM Holdings Limited (the ‘‘Company ’’) hereby announces the unaudited consolidated interim results of the Company and its subsidiaries (collectively the ‘‘Group ’’) for the six months ended 30 June 2026. FINANCIAL HIGHLIGHTS For the six months ended 30 June 2026 2025 HK$ million HK$ million Increase/ (Decrease)(unaudited) (unaudited) T o t a lG r o u pn e tr e v e n u e 11,590 14,639 (20.8%) Net gaming revenue 10,560 13,628 (22.5%) Adjusted EBITDA * 1,701 1,646 3.3% Loss attributable to owners of the Company (295) (182) 61.7% Loss per share — basic HK(4.1) cents HK(2.6) cents 57.7% — diluted HK(4.1) cents HK(2.6) cents 57.7% * Adjusted EBITDA is earnings or losses after adjustment for non-controlling inter ests and before accounting for interest income and expense, tax, depreciation and amortisation, donations, los s on disposal/write-off of property and equipment, bank charges for bank loan s, gain on modification of bank loans, gain on early repurchase of unsecured notes, gain on fair value changes of financial asset at fair value through profit or loss and pre-opening expenses. – 1 –
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INTERIM DIVIDEND Pursuant to the Company ’s dividend policy, the Board has resolve d not to declare any interim dividend for the six months ended 30 June 2026 (six months ended 30 June 2025: nil). OPERATING HIGHLIGHTS . Net gaming revenue earned by SJM Resorts, S.A. ( ‘‘SJM’’), a subsidiary of the Company, was HK$10,560 million in the first half of 2026, as co mpared with HK$13,628 million in the first half of 2025. . Adjusted EBITDA of the Group was HK$1,701 million, as compared with HK$1,646 million in the first half of 2025. . Loss attributable to owners of the Company wa s HK$295 million, as compared with a loss of HK$182 million in the first half of 2025. . SJM had a 9.8% share of Macau ’s gross gaming revenue, includi ng 12.3% of mass market table gross gaming revenue and 4.2% of VIP gross gaming revenue. . Grand Lisboa Palace Resort Macau ’s gross revenue was HK$3,938 million, including gross gaming revenue of HK$3,315 million and non-gaming reve nue of HK$623 million, as compared with gross gaming revenue of HK$2,936 million and non-gami ng revenue of HK$690 million in the first half of 2025. Grand Lisboa Palace Resort Macau ’s Adjusted Property EBITDA was HK$22 million, as compared with HK$82 million in the first half of 2025. . Grand Lisboa Macau ’s gross revenue was HK$4,010 million, including gross gaming revenue of HK$3,838 million and non-gaming revenue of HK$172 million, as compared with gross gaming revenue of HK$3,582 million and non-gaming reve nue of HK$178 million in the first half of 2025. Grand Lisboa Macau ’s Adjusted Property EBITDA was HK$860 million, as compared with HK$863 million in the first half of 2025. . Grand Lisboa Palace Resort Macau ’s occupancy rate decreased by 5.2% from the first half of 2025 to 92.9%. Average daily room rate increased during the period by 2.0% to HK$1,245. . Grand Lisboa Macau hotel ’s occupancy rate decreased by 0.6% from the first half of 2025 to 98.0%. Average daily room rate decreased during the period by 1.6% to HK$1,376. . The Group had HK$3,486 million of cash, bank ba lances, short-term bank deposits and pledged bank deposits and HK$30,217 mill ion of debt as at 30 June 2026. . The Group ’s syndicated banking facilities consis t of a HK$10.9 billion term loan and a HK$11.5 billion revolving credit, of which HK $2.35 billion is available as of 30 June 2026. – 2 –
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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended 30 June 2026 Six months ended 30 June 2026 2025 Notes HK$ million HK$ million (unaudited) (unaudited) Gaming, hotel, catering, retail, leasing and related services revenues 11,589.8 14,639.3 Gaming revenue 4 10,559.9 13,627.5 Special gaming tax and special levy (4,832.9) (5,928.1) 5,727.0 7,699.4 Hotel, catering, retail, leasing and related services income 1,029.9 1,011.8 Cost of sales and services on hotel, catering, retail, leasing and related services (431.9) (376.4) Other income, gains and losses 216.9 136.8 Impairment loss on trade and other receivables under expected credit loss ( ‘‘ECL’’) model (30.0) — Marketing and promotional expenses (508.5) (2,634.9) Operating and administrative expenses (5,376.7) (5,098.8) Finance costs (917.6) (847.1) Share of loss of an associate (0.9) (1.9) Share of profit of a joint venture 3.8 4.0 Loss before taxation 5 (288.0) (107.1) Taxation 6 (27.4) (31.0) Loss for the period (315.4) (138.1) Other comprehensive expense: Item that will not be reclassified to profit or loss: Change in fair value of investments in equity instruments desig nated at fair value through other comprehensive income (5.8) (13.2) Total comprehensive expense for the period (321.2) (151.3) (Loss) profit for the period attributable to: — owners of the Company (294.7) (182.2) — non-controlling interests (20.7) 44.1 (315.4) (138.1) Total comprehensive (expe nse) income for the period attributable to: — owners of the Company (300.5) (195.4) — non-controlling interests (20.7) 44.1 (321.2) (151.3) Loss per share: — Basic 8 HK(4.1) cents HK(2.6) cents — Diluted 8 HK(4.1) cents HK(2.6) cents – 3 –
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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 30 June 2026 At 30 June At 31 December Notes 2026 HK$ million (unaudited) 2025 HK$ million (audited) Non-current assets Property and equipment 39,614.7 40,021.1 Right-of-use assets 2,427.7 2,485.3 Gaming concession right 1,662.4 1,792.0 Art works and diamonds 281.7 281.7 Interest in an associate 39.2 40.1 Interest in a joint venture 69.8 66.0 Loan to a director 181.8 177.5 Investments in equity instruments designated at fair value through other comprehensive income 324.9 330.7 Pledged bank deposit 970.9 970.9 Other assets 1,179.2 1,275.8 46,752.3 47,441.1 Current assets Inventories 147.2 147.0 Trade and other receivables 9 1,585.5 1,540.2 Pledged bank deposits 183.8 38.1 Financial asset at fair va lue through profit or loss 40.7 40.0 Short-term bank deposits 223.1 225.9 Bank balances and cash 2,108.1 1,775.1 4,288.4 3,766.3 Current liabilities Trade and other payables 10 4,563.2 5,122.0 Taxation payable 20.6 48.7 Bank loans — due within one year 2,920.6 3,445.1 Lease liabilities 73.7 80.0 Unsecured notes — 5,498.2 Convertible bond 1,806.0 — 9,384.1 14,194.0 Net current liabilities (5,095.7) (10,427.7) Total assets less current liabilities 41,656.6 37,013.4 – 4 –
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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued) At 30 June 2026 At 30 June 2026 At 31 December 2025 Notes HK$ million HK$ million (unaudited) (audited) Non-current liabilities Other payables 10 1,746.4 1,951.9 Bank loans — due after one year 15,426.7 12,776.9 Unsecured notes 8,057.3 3,803.0 Lease liabilities 582.5 601.2 Amount due to non-controlling interests of as u b s i d i a r y 341.9 341.9 Loan from ultimate holding company 2,006.6 2,006.8 Deferred taxation 24.5 17.7 Convertible bond — 1,722.1 28,185.9 23,221.5 Net assets 13,470.7 13,791.9 Capital and reserves Share capital 14,415.1 14,415.1 Reserves (1,246.8) (946.3) Equity attributable to owners of the Company 13,168.3 13,468.8 Non-controlling interests 302.4 323.1 Total equity 13,470.7 13,791.9 – 5 –
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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. CORPORATE INFORMATION The Company is a public limited company incor porated in Hong Kong Special Administrative Region of the People ’s Republic of China ( ‘‘Hong Kong ’’) and acts as an investment holding company. The Company ’s ordinary shares are listed on the M ain Board of The Stock Exchange of Hong Kong Limited (the ‘‘Stock Exchange ’’). Its subsidiaries are principally engaged in the development and operations of casinos and related facilities, and hote l, catering, retail, leasing and related services in Macau Special Administrative Region of the People ’s Republic of China (‘‘Macau ’’ or ‘‘Macau SAR ’’). Its immediate and ultimate holding company is Sociedade de Turismo e Diversões de Macau, S.A., a company e stablished in Macau SAR. The address of the registered office and principal place of busin ess of the Company is 18th Floor, China Merchants Tower, Shun Tak Centre, Nos. 168 –200 Connaught Road Central, Hong Kong. 2. BASIS OF PREPARATION The condensed consolidated financial state ments for the six months ended 30 June 2026 are presented in Hong Kong dollars ( ‘‘HK$’’), which is also the functional currency of the Company, and have been prepared in accordance with Hong Kong Accounting Standard ( ‘‘HKAS ’’)3 4 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants (‘‘HKICPA ’’) as well as the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on the Stock Exchange (the ‘‘Listing Rules ’’) and should be read in conjunction with annual consolidated finan cial statements for the year ended 31 December 2025, which have been prepared in accor dance with HKFRS Accounting Standards. The financial information relating to the year ended 31 December 2025 that is included in these condensed consolidated financial statements as c omparative information does not constitute the Company ’s statutory annual consolidated financial s tatements for that year but is derived from those financial statements. Further information r elating to these statutory financial statements is as follows: The Company has delivered the annual consolida ted financial statements for the year ended 31 December 2025 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance (Cap. 622). The Company ’s auditor has reported on these consolid ated financial state ments. The auditor ’s report was unqualified; did not include a refe rence to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections 406(2), 407(2) or 407(3) of the Ho ng Kong Companies Ordinance (Cap. 622). Accounting Policies The condensed consolidated financial stateme nts for the six months ended 30 June 2026 have been prepared on the historical cost basis except for cer tain financial instruments, which are measured at fair values. Other than changes in accounting policies r esulting from applicat ion of amendments to HKFRS Accounting Standards, the accounting po licies and methods of computation used in the condensed consolidated financial statements f or the six months ended 30 June 2026 are the same as those presented in the Group ’s annual consolidated financial statements for the year ended 31 December 2025. – 6 –
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2. BASIS OF PREPARATION (Continued) Application of amendments to HKFRS Accounting Standards In the current interim period, the Group ha s applied the following amendments to HKFRS Accounting Standards issued by t he HKICPA, for the first time, which are mandatorily effective for the Group ’s annual period beginning on 1 January 2026 for the preparation of the Group ’s condensed consolidated financial statements: Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to HKFRS 9 and HKFRS 7 Contracts Ref erencing Nature-dependent Electricity Amendments to HKFRS Accounting Standards Annual Improvements to HKFRS Accounting Standards — Volume 11 The application of the amendments to HKFRS Acco unting Standards in the current interim period has had no material impact on the Group ’s financial positions and perf ormance for the current and prior periods and/or on the disclosures set out in th ese condensed consolidat ed financial statements. 3. OPERATING SEGMENTS The Group is currently organised into two reportable segments — gaming operations, and hotel, catering, retail and leasing operations. Principa l activities of these two reportable segments are as follows: (i) Gaming operations — operation of casinos and related facilities (ii) Hotel, catering, retail and leasing operations — operation of hotel, caterin g, retail, leasing and related services Reportable segments are reported in a manner consist ent with the internal reporting provided to the chief operating decision maker (the ‘‘CODM ’’). CODM, who is responsible for allocating resources and assessing performance of the reporta ble segments, has been identified as a group of senior management that makes strategic decisions. The CODM regularly analyses gaming operations i n terms of rolling revenue, non-rolling revenue and electronic gaming revenue, and the relevant r evenues and operating re sults are reviewed as a whole for resources allocation and performance asse ssment. For hotel, catering, retail and leasing operations, the CODM regularly reviews the perf ormance on the basis of the individual hotel. For segment reporting under HKFRS 8 Operating Segments , financial information of the Group ’s hotels with similar economic characteristics has been aggregated into a single reportable segment named ‘‘hotel, catering, retail and leasing operations ’’. – 7 –
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3. OPERATING SEGMENTS (Continued) Segment information about these businesses is presented below: (a) An analysis of the Group ’s revenue and results by reportable segments is as follows: Segment revenue Segment results Six months ended 30 June 2026 2025 2026 2025 HK$ million HK$ million HK$ million HK$ million (unaudited) (unaudited) (unaudited) (unaudited) Gaming operations: recognised at a point in time 10,559.9 13,627.5 137.6 120.7 Hotel, catering, retail and leasing operations: — External sales: Catering and retail operations: recognised at a point in time 424.3 385.3 Hotel operations: recognised over time 520.7 519.2 Leasing operations: revenue from operating leases 84.9 107.3 1,029.9 1,011.8 — Inter-segment sales: Catering and retail operations: recognised at a point in time 129.7 126.6 Hotel operations: recognised over time 94.6 68.4 224.3 195.0 1,254.2 1,206.8 (366.2) (169.3) Eliminations (224.3) (195.0) 1,029.9 1,011.8 Total: Revenue from contracts with customers: recognised at a point in time 10,984.2 14,012.8 recognised over time 520.7 519.2 11,504.9 14,532.0 Revenue from operating leases: lease payments 84.9 107.3 11,589.8 14,639.3 Reconciliation from segment results to loss before taxation: (228.6) (48.6) Unallocated corporate income 4.8 8.4 Unallocated corporate expenses (67.1) (69.0) Share of loss of an associate (0.9) (1.9) Share of profit of a joint venture 3.8 4.0 Loss before taxation (288.0) (107.1) – 8 –
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3. OPERATING SEGMENTS (Continued) Segment information about these businesses is presented below: (Continued) (a) An analysis of the Group ’s revenue and results by reportable segments is as follows: (Continued) The accounting policies of the reporta ble segments are the same as the Group ’s accounting policies. Segment results represent the los s before taxation from each segment without allocation of corporate income and expenses and share of loss of an associate and share of profit of a joint venture. This is the measu re reported to the CODM for the purposes of resources allocation and performance assessment. Inter-segment sales are charged at a price mutually agreed by both parties. Six months ended 30 June 2026 HK$ million (unaudited) 2025 HK$ million (unaudited) Revenue excluding inter-segment sales: Gross gaming revenue (note 4) 12,084.1 14,820.6 Hotel, catering, retail, leasing and related services income 1,029.9 1,011.8 13,114.0 15,832.4 – 9 –
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3. OPERATING SEGMENTS (Continued) Segment information about these businesses is presented below: (Continued) (b) An analysis of the Group ’s assets and liabilities by reportable segments is as follows: At 30 June 2026 At 31 December 2025 HK$ million HK$ million (unaudited) (audited) Assets Segment assets: — gaming operations 36,782.4 37,129.9 — hotel, catering, retail and leasing operations 12,354.4 12,265.1 49,136.8 49,395.0 Interest in an associate 39.2 40.1 Interest in a joint venture 69.8 66.0 Unallocated bank deposits, bank balances and cash 224.0 111.1 Other unallocated assets 1,570.9 1,595.2 Group ’st o t a l 51,040.7 51,207.4 Liabilities Bank loans: — gaming operations 17,992.5 15,857.3 — hotel, catering, retail and leasing operations 354.8 364.7 18,347.3 16,222.0 Unsecured notes: — gaming operations 8,057.3 9,301.2 Convertible bond: — gaming operations 1,317.0 1,255.9 — hotel, catering, retail and leasing operations 489.0 466.2 1,806.0 1,722.1 Other segment liabilities: — gaming operations 8,082.9 8,836.7 — hotel, catering, retail and leasing operations 624.6 677.9 8,707.5 9,514.6 Total segment liabilities 36,918.1 36,759.9 Unallocated liabilities 651.9 655.6 Group ’st o t a l 37,570.0 37,415.5 – 10 –
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3. OPERATING SEGMENTS (Continued) Segment information about these businesses is presented below: (Continued) (b) An analysis of the Group ’s assets and liabilities by reportable segments is as follows: (Continued) For the purposes of monitoring segment p erformances and allocating resources between segments: (i) other unallocated assets include mainly certain property and equipment, certain right-of-use assets, certain deposits made on acquisiti ons of property and equipment, art works and diamonds, loan to a director, amounts due from an associate/a joint venture/an investee company, investments in equity instrument s designated at fair value through other comprehensive income and financial ass et at fair value through profit or loss ( ‘‘FVTPL ’’). (ii) unallocated liabilities include mainly certain c onstruction payables, cer tain lease liabilities and amount due to non-controlling interests of a subsidiary. (iii) all assets are allocated to reportable segm ents, other than interest in an associate/a joint venture, unallocated bank deposits, bank balances and cash and those mentioned in above (i). (iv) all liabilities are allocated to reportable seg ments, other than liabili ties not attributable to respective segments as mentioned in above (ii). 4. GAMING REVENUE Six months ended 30 June 2026 2025 HK$ million HK$ million (unaudited) (unaudited) Gaming revenue comprises of: Rolling gross gaming revenue 1,460.8 1,099.4 Non-rolling gross gaming revenue 9,616.9 12,302.0 Electronic game gross gaming revenue 1,006.4 1,419.2 Gross gaming revenue 12,084.1 14,820.6 Less: commissions and incentives (1,524.2) (1,193.1) 10,559.9 13,627.5 – 11 –
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5. LOSS BEFORE TAXATION Six months ended 30 June 2026 2025 HK$ million HK$ million (unaudited) (unaudited) Loss before taxation has been arrived at after charging: Directors ’ remuneration 26.5 23.7 Retirement benefits scheme co ntributions for other staff 112.5 111.1 Less: Forfeited contributions (6.9) (4.5) 105.6 106.6 Other staff costs 3,293.9 3,190.9 Total employee benefit expenses 3,426.0 3,321.2 Amortisation of gaming concession right (included in operating and administrative expenses) 127.6 127.0 Depreciation of property and equipment 954.7 787.1 Less: capitalised in construction in progress — (0.2) 954.7 786.9 Depreciation of right-of-use assets 70.8 70.3 Loss on disposal/write-off of property and equipment 3.9 1.5 and after crediting: Bank interest income 32.7 32.1 Dredging services income 71.2 81.8 Gain on fair value changes of financial asset at FVTPL 0.7 0.4 Gain on early repurchase of unsecured notes 0.1 2.4 – 12 –
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6. TAXATION Six months ended 30 June 2026 2025 HK$ million HK$ million (unaudited) (unaudited) Current tax — Macau SAR Complementary Tax ( ‘‘CT’’) 20.6 25.2 Deferred taxation charge 6.8 5.8 27.4 31.0 No provision for CT on gaming related income has been made for SJM. SJM has applied for an approval from the Financial Services Bureau of t he Macau SAR Government for the exemption of CT from 1 January 2023 to 31 December 2032. Pur suant to the approval notice issued by the Macau SAR Government dated 29 January 2024, SJM has been exempted from CT for income generated from gaming operations for the p eriod from 1 January 2023 to 31 December 2027. In addition, for approval for the dividend tax whic h the shareholders are obligated to pay to the Macau SAR Government for dividend distribution (the ‘‘Special Complementary Tax ’’)f r o mt h e Financial Services Bureau of the Macau SAR Gove rnment, SJM is in the progress of obtaining the extension of approval from the Financial Services Bureau of the Macau SAR Government for the period starting from 1 January 2026. Regarding other Macau SAR subsidiaries, CT is calculated at the CT rate of 12% on the estimated assessable profit f or both periods. No provision for taxation in other jurisdictions (including Hong Kong) is made as the Group ’s operations outside Macau SAR have no asse ssable taxable profits arising from the respective jurisdictions. 7. DIVIDENDS The Board has resolved not to declare the paym ent of an interim dividend for the six months ended 30 June 2026 (six months ended 30 June 2025: nil). – 13 –
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8. LOSS PER SHARE The calculation of the basic and diluted loss per share attributable to owners of the Company is b a s e do nt h ef o l l o w i n gd a t a : Six months ended 30 June 2026 2025 HK$ million HK$ million (unaudited) (unaudited) Loss Loss for the purposes of basi c and diluted loss per share (loss for the period attributable to owners of the Company) (294.7) (182.2) Six months ended 30 June 2026 2025 (unaudited) (unaudited) Number of shares Weighted average number of ordinary shares for the purpose of basic and diluted loss per share (Note) 7,101,805,366 7,101,805,366 Six months ended 30 June 2026 2025 (unaudited) (unaudited) Loss per share — Basic HK(4.1) cents HK(2.6) cents — Diluted HK(4.1) cents HK(2.6) cents Note: For the six months ended 30 June 2025 and 2026, the diluted loss per share does not assume the conversion of the Company ’s convertible bond because the assumed exercise would result in a decrease in loss per share and the exercise of the Company ’s share options because the exercise price of the share options was higher than the average market price for shares for both periods. – 14 –
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9. TRADE AND OTHER RECEIVABLES At 30 June 2026 At 31 December 2025 HK$ million HK$ million (unaudited) (audited) Advances to gaming patrons 591.3 341.4 Less: Allowance for credit losses (30.0) — 561.3 341.4 Lease receivables 173.9 193.3 Other receivables from service providers, net 189.7 391.7 Prepayments 324.2 303.4 Other sundry receivables 336.4 310.4 1,585.5 1,540.2 Advances to gaming patrons mainly include pre-appr oved interest-free re volving credit lines and short-term temporary interest-free advances. All advances to gaming patrons are unsecured, repayable on demand at discretio n of the Group and generally requ ire cheques and guarantees. As at 30 June 2026, the Group ’s advances to gaming patrons with aggregate carrying amount of HK$340.6 million (31 December 2025: HK$156.3 mil lion) were past due as at the reporting date. Out of the past due balances, HK$180.3 million ( 31 December 2025: HK$ 81.8 million) has been past due 90 days or more and is not considered as in default as there has not been a significant change in credit quality and the amounts are still considered recoverable. – 15 –
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9. TRADE AND OTHER RECEIVABLES (Continued) The following is the aged analysis of advances to ga ming patrons net of allowance for credit losses at the end of the reporting period bas ed on the date of credit granted: At 30 June 2026 At 31 December 2025 HK$ million HK$ million (unaudited) (audited) Age 0t o3 0d a y s 169.5 158.3 31 to 60 days 130.3 33.1 61 to 90 days 37.0 27.9 Over 90 days 224.5 122.1 561.3 341.4 The lease receivables arose partly from ren t-free periods provided to the tenants. As at 30 June 2026, other receivables from servic e providers represent certain costs to be reimbursed from service providers. With the conse nt of service providers, the Group can offset the outstanding balances against commission and servi ce fee payables to, or deposits from, the relevant service providers. In the event that a service p rovider fails to repay, the Group has the right, pursuant to the relevant service provider agreement, to offset or withhold the payables to that service provider, realise cheques, and e xecute any related guarantees, if any. Other sundry receivables mainly include deposits pa id for rentals and operating supplies, interest receivables and credit card receivables. – 16 –
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10. TRADE AND OTHER PAYABLES At 30 June 2026 At 31 December 2025 HK$ million HK$ million (unaudited) (audited) Trade payables 110.0 207.4 Special gaming tax payable 792.7 873.3 Chips in circulation 354.4 310.3 Chips in custody and deposits received from gaming patrons and gaming promoters 543.9 573.9 Payable for acquisition of property and equipment 366.4 448.9 Construction payables 78.4 78.5 Accrued staff costs 952.4 1,183.3 Accrued operating expenses 77.3 73.7 Payable for gaming concession right 2,113.1 2,366.1 Withholding tax payable 28.8 23.2 Other sundry payables and accruals 892.2 935.3 6,309.6 7,073.9 Less: Non-current portion of other payables and payable for gaming concession right (Note) (1,746.4) (1,951.9) 4,563.2 5,122.0 Note: As at 30 June 2026, non-current portion of other payables comprises deposit s received for rentals of HK$60.0 million (31 December 2025: HK$24.7 mil lion) and payable for gaming concession right of HK$1,686.4 million (31 December 2025: HK$1,927.2 million). The amounts are classified as non-current portion of other payables based on the contractual or scheduled repayment terms. – 17 –
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10. TRADE AND OTHER PAYABLES (Continued) The following is the aged analysis of trade payabl es at the end of the reporting period based on the invoice date: At 30 June 2026 At 31 December 2025 HK$ million HK$ million (unaudited) (audited) Age 0t o3 0d a y s 75.0 179.8 31 to 60 days 33.6 25.5 61 to 90 days 0.8 1.4 Over 90 days 0.6 0.7 110.0 207.4 The average credit period on trade payables is 90 d ays. No interest is charged on trade payables. The Group has financial risk management policies i n place to ensure that all payables are settled within the credit time frame. – 18 –
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BUSINESS REVIEW Group Operating Results The Group ’s results, Net Revenue, Adjusted EBITDA and Adjusted EBITDA Margin for the six months ended 30 June 2026 and for the year-earlier period are shown below: For the six months ended 30 June Group operating results 2026 HK$ million 2025 HK$ million Increase/ (Decrease) Total net revenue 11,590 14,639 (20.8%) Net gaming revenue 10,560 13,628 (22.5%) Loss attributable to owners of the Company (295) (182) 61.7% Adjusted EBITDA Note 1 1,701 1,646 3.3% Adjusted EBITDA Margin Note 2 14.7% 11.2% 3.5 ppts Notes: 1 Adjusted EBITDA is earnings or losses after adjustment f or non-controlling interests and before accounting for interest income and expense, tax, depreci ation and amortisation, donations, loss o n disposal/write-off of property and equipment, bank charges for bank loans , gain on modification of bank loans, gain on early repurchase of unsecured notes, gain on fair value changes of financial asset at fair value through profit or loss and pre-opening expenses. 2 Adjusted EBITDA Margin is Adjusted EBITDA divided by total net revenue. ppts = percentage points Total net revenue was HK$11,590 million for the six months ended 30 June 2026, a decrease of 20.8%, compared to HK$14,639 million for the six month s ended 30 June 2025. The decrease was driven by gaming revenue. The following tables summarise th e results of Self-promoted Casino, Satellite Casino and hotel room activities: For the six months ended 30 June 2026 HK$ million 2025 HK$ million Increase/ (Decrease) Rolling Gross Gaming Revenue 1,461 1,100 32.9% Non-Rolling Gross Gaming Revenue 9,617 12,302 (21.8%) Electronic Game Gross Gaming Revenue 1,006 1,419 (29.1%) Gross Gaming Revenue ( ‘‘GGR’’) 12,084 14,821 (18.5%) Less: Commissions and incentives (1,524) (1,193) 27.8% Net Gaming Revenue 10,560 13,628 (22.5%) – 19 –
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BUSINESS REVIEW (Continued) Property Statistics For the six months ended 30 June Grand Lisboa Palace Resort Macau 2026 2025 Variance Statistics HK$ million HK$ million HK$ million %/ppts Revenues: Casino (GGR) 3,315 2,936 379 12.9% Hotel 370 372 (2) (0.5%) Food and Beverage, Mall and Other 253 318 (65) (20.4%) Total Revenue 3,938 3,626 312 8.6% Adjusted Property EBITDA Note 1 22 82 (60) (73.2%) Gaming Statistics Rolling Chip Volume 29,598 25,326 4,272 16.9% Rolling Revenue 1,087 712 375 52.7% Rolling Chip Win % 3.7% 2.8% — 0.9 ppts Non-Rolling Volume 9,309 9,821 (512) (5.2%) Non-Rolling Revenue 1,844 1,846 (2) (0.1%) Non-Rolling Chip Win % 19.8% 18.8% — 1.0 ppts Electronic Game Handle 12,788 12,808 (20) (0.2%) Electronic Game Revenue 383 378 51 . 3 % Electronic Game Hold % 3.0% 2.9% — 0.1 ppts Hotel Statistics Note 2 HK$ HK$ HK$ Occupancy % 92.9% 98.1% — (5.2) ppts Average Daily Rate (ADR) 1,245 1,221 24 2.0% Revenue per Available Room (RevPAR) 1,157 1,199 (42) (3.5%) Notes: 1 Adjusted Property EBITDA is earnings or losses before accounting for interest in come and expense, tax, depreciation and amortisation, donations, loss on disposal/write-off of property and equipment, bank charges for bank loans, gain on modification of bank loans, gain on ear ly repurchase of unsecured notes, gai n on fair value changes of financial asset at fair value through profit or loss, pre-opening expenses and corporate costs, and before elimination of inter-company consumption. 2 Grand Lisboa Palace Resort Macau included three hotel towers — Grand Lisboa Palace, THE KARL LAGERFELD and Palazzo Versace Macau. ppts = percentage points – 20 –
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BUSINESS REVIEW (Continued) Property Statistics (Continued) For the six months ended 30 June 2026 2025 Variance Grand Lisboa Macau Statistics HK$ million HK$ million HK$ million %/ppts Revenues: Casino (GGR) 3,838 3,582 256 7.1% Hotel 87 97 (10) (10.3%) Food and Beverage, Mall and Other 85 81 44 . 9 % Total Revenue 4,010 3,760 250 6.6% Adjusted Property EBITDA 860 863 (3) (0.3%) Gaming Statistics Rolling Chip Volume 13,017 11,021 1,996 18.1% Rolling Revenue 373 343 30 8.7% Rolling Chip Win % 2.9% 3.1% — (0.2) ppts Non-Rolling Volume 15,048 14,916 132 0.9% Non-Rolling Revenue 3,103 2,940 163 5.5% Non-Rolling Chip Win % 20.6% 19.7% — 0.9 ppts Electronic Game Handle 10,988 7,772 3,216 41.4% Electronic Game Revenue 362 299 63 21.1% Electronic Game Hold % 3.3% 3.8% — (0.5) ppts Hotel Statistics HK$ HK$ HK$ Occupancy % 98.0% 98.6% — (0.6) ppts Average Daily Rate (ADR) 1,376 1,398 (22) (1.6%) Revenue per Available Room (RevPAR) 1,348 1,378 (30) (2.2%) ppts = percentage points – 21 –
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BUSINESS REVIEW (Continued) Property Statistics (Continued) For the six months ended 30 June 2026 2025 Variance Other Properties * Statistics HK$ million HK$ million HK$ million %/ppts Revenues: Casino (GGR) 4,931 2,656 2,275 85.7% Hotel 97 72 25 34.7% Food and Beverage, Mall and Other 138 71 67 94.4% Total Revenue 5,166 2,799 2,367 84.6% Adjusted Property EBITDA 939 651 288 44.2% Gaming Statistics Non-Rolling Volume 31,264 16,164 15,100 93.4% Non-Rolling Revenue 4,669 2,456 2,213 90.1% Non-Rolling Chip Win % 14.9% 15.2% — (0.3) ppts Electronic Game Handle 8,386 5,794 2,592 44.7% Electronic Game Revenue 262 200 62 31.0% Electronic Game Hold % 3.1% 3.5% — (0.4) ppts Hotel Statistics HK$ HK$ HK$ Jai Alai Hotel: Occupancy % 99.7% 98.9% — 0.8 ppts Average Daily Rate (ADR) 243 245 (2) (0.8%) Revenue per Available Room (RevPAR) 242 242 —— % Sofitel Macau at Ponte 16: Occupancy % 80.0% 86.3% — (6.3) ppts Average Daily Rate (ADR) 887 1,031 (144) (14.0%) Revenue per Available Room (RevPAR) 709 889 (180) (20.2%) L’Arc Hotel: Occupancy % 100.0% — % NM NM Average Daily Rate (ADR) 1,151 — NM NM Revenue per Available Room (RevPAR) 1,151 — NM NM * Casino Lisboa, Casino Oceanus at Jai Alai (including the gaming area in the Jai Alai building), Jai Alai Hotel, Kam Pek Market, L ’Arc Hotel (including Casino L ’Arc Macau, which was acquired in December 2025), share of Ponte 16 and other non-gaming area. NM = not meaningful ppts = percentage points – 22 –
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BUSINESS REVIEW (Continued) Property Statistics (Continued) For the six months ended 30 June 2026 2025 Variance Satellite Casino Statistics HK$ million HK$ million HK$ million % Casino Revenue (GGR) — 5,647 NM NM Adjusted Property EBITDA * — 153 NM NM * As at 30 June 2025, SJM operated nine sat ellite casinos. SJM had no satellite casi no operations during the six months ended 30 June 2026. On 30 December 2025, Casino L ’Arc Macau became one of the self-promoted casinos under SJM, while the other eight satellite casi nos ceased opera tions during 2025. NM = not meaningful – 23 –
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RECENT DEVELOPMENTS AND PROSPECTS Portfolio Enhancement and Direct Operating Model During the first half of 2026, the Group advanced a c oordinated programme of enhancements across its gaming, hospitality and no n-gaming experiences. Following the successful completion of the transition to a direct operating model, management ’s focus has shifted towards opt imising asset productivity, strengthening the premium customer prop osition and further enhancing the Group ’so v e r a l l competitiveness and ope rational resilience. Macau Peninsula Developments On the Macau Peninsula, the expansion of capacity and enhancement of the product offering are intended to reinforce the com petitiveness of the Group ’s established downtown portfolio. At Hotel Lisboa Macau, the second phase of Crystal Palac e gaming area opened on 1 0 August 2026, further expanding gaming capacity and customer choice. The refurbishment of approximately 400 hotel rooms owned by the Company ’s controlling shareholder has also be en completed. Subject to statutory inspection and approval, the availability of ref urbished rooms to the Group under its existing hotel accommodation continuing conne cted transaction arrangements is expected to strengthen the accommodation offering of the Pen insula portfolio. At Grand Lisboa Macau, the refurbishment of the deluxe villas and mansion is expected to be comple ted ahead of the 2027 Lunar New Year. Meanwhile, the opening of Lisboa Square in April 2026 introdu ced five new dining concepts with a strong Asian focus, while the renovation of the Grand Ballroom has also been completed. Collectively, these initiatives are expected to enhance the overall guest experience, increase cro ss-property visitation and strengthen the Peninsula portfolio ’s ability to capture a greater share of customer spending. Grand Lisboa Palace Resort Macau At Grand Lisboa Palace Resort Macau, the Group remains focused on enhancing gaming mix, optimising floor utilisation and improving returns o n invested capital. Follow ing the redeployment of resources from the former satellite casinos, table capacity was increased and new gaming areas were introduced, including the Sky Phoenix West Tower VI P area. Dragon Pavilion was also reconfigured to support premium-mass operation s. Further enhancement works to the main gaming floor have been rolled out progressively, with the objective of furthe r improving productivity, i ncreasing the property ’s contribution to the Group ’s earnings and boosting o verall property yields. Culinary, MICE and Brand Recognition The Group continues to differentiate itself thr ough its commitment to gastronomy, luxury hospitality and service excellence, strengthe ning its appeal among premium customers while supporting growth in non-gaming revenue. During the six months ended 30 June 2026 (the ‘‘Reporting Period ’’), Grand Lisboa Palace Resort Macau launched The Garden House, a new MICE venue featuring a distinctive immersive indoor-outdoor dual- garden concept, bringing a fresh experience to Macau ’sM I C Em a r k e t . – 24 –
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RECENT DEVELOPMENTS AND PROSPECTS (Continued) Culinary, MICE and Brand Recognition (Continued) In the MICHELIN Guide Hong Kong & Macau 2026, Palace Garden and Don Alfonso 1890 at Grand Lisboa Palace Resort Macau each attained One MICHELIN Star, bringing the Group ’s total to eight MICHELIN Stars. Grand Lisboa Palace Resort Maca u also received a record fourteen Forbes Travel Guide Five-Star ratings, remaining the world ’s only integrated resort with every hotel and three spas awarded Five-Star status. It was further named the Best Integrated Resort in Asia-Pacific at the Travel + Leisure Luxury Awards Asia Pacific 2026. Thes e international accolades reinforce the Group ’s market positioning and enhance its ability to attract hi gh-value leisure, business a nd lifestyle travellers and drive non-gaming revenue. Market Diversification and Events Diversifying visitor source markets remains a key st rategic priority. During the Reporting Period, the Group participated alongside the Ma cao Government Tourism Office in the ‘‘Experience Macao ’’ roadshow in Madrid, Spain, made its debut at ILTM Asia Pacific in Singapore and supported the 55th Skål International Asia Congress in Mac au. These initiatives expanded the Group ’s visibility in European and Southeast Asian markets and strengthe ned engagement with inter national, corporate and premium leisure travel segments, supporting Macau ’s efforts to diversify its visitor base. Beyond its core gaming and hospitality offerings, t he Group continued to leverage signature events and cultural programming to drive vis itation and deepen customer enga gement. During the Reporting Period, the Group presented internationally renow ned illusionist Drummo nd Money-Coutts at Grand Lisboa Palace Resort Macau and G rand Lisboa Macau, hosted the ‘‘Vivienne Westwood & Jewellery Exhibition 2026 Macau ’’, and title-sponsored the TVB TV Awards Pre sentation for a third consecutive year. It also title-sponsored the SJM Macao Intern ational Dragon Boat Races f or a fourth consecutive year and supported the Feast of the Drunken Drag on. These initiatives further enrich Macau ’s tourism offering, generate incr emental visitation and reinforce the Group ’s alignment with the Macau SAR Government ’s tourism and economic diversification objectives. Outlook Looking ahead, while continuing to execute its portf olio enhancement programme, the Group is placing equal emphasis on converting revenue growth into sustainable earnings. A comprehensive cost management and operational effic iency programme has been implemented across the Group to optimise resource allocation, improve productivity and en hance operating leverage while maintaining high service standards and guest satisfaction. T ogether with the ongoing enhancement of the Group ’sp r o d u c t offerings, these initiatives are expected to support operating efficiency and the Group ’s objective of improving profitability and creat ing long-term shareholder value. – 25 –
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FINANCIAL REVIEW Liquidity, Financial Resources and Capital Structure The Group had bank balances and cash amounting t o HK$2,331 million (not including pledged bank deposits of HK$1,155 million) as at 30 June 2026. This represented an increase of 16.5% as compared with the position as at 31 December 2025 of HK$2,001 million. Total outstanding balances of bank loans drawn by the Group as at 30 June 2026 amounted to HK$18,347 million (as at 31 December 2025: HK$16,222 million). Total senior notes and convertible bond issued by the Group as at 30 June 2026 amounted t o HK$9,863 million (as at 31 December 2025: HK$11,023 million). Loan from ultimate holding company as at 30 June 2026 amounted to HK$2,007 million (as at 31 December 2025: HK$2,007 million). The maturity of the Group ’s borrowings as at 30 June 2026 is as follows: Maturity Profile Within 1 year 1 to 2 years 3 to 5 years Over 5 years Total 15.6% 63.7% 20.7% 0% 100% Gearing Ratio The Group ’s gearing ratio (defined as the ratio of total out standing bank loans, convertible bond, senior notes less pledged bank deposits, short-term bank deposits, bank b alances and cash to total assets (excluding pledged bank deposits, short-term bank deposits, bank balances and cash)) was 56.2% at the end of the Reporting Period (as at 31 December 2025: 54.4%). Contractual Capital Expenditure Commitments Contractual capital expenditure commitments by the Group amounted to HK$504 million as at 30 June 2026 (as at 31 December 2025: HK$427 million), of whi ch HK$279 million were f or tendering projects committed to the Macau Government. Pledge of Assets As at 30 June 2026, certain of the Group ’s property and equipment and right-of-use assets with carrying values of HK$34,037 million and HK$1,618 mi llion, respectively (as at 31 December 2025: HK$34,303 million and HK$1,640 mill ion, respectively), were pledged to banks for loan facilities. In addition, the Group had pledged bank depos its of HK$1,155 million as at 30 June 2026 (as at 31 December 2025: HK$1,009 million). Contingent Liability The Group had no significant contingent liab ility as at 30 June 2026 and 31 December 2025. – 26 –
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FINANCIAL REVIEW (Continued) Financial Risk The Group follows a conservative policy in financi al management with minimal exposure to the risks of currency and interest rate. The Group does not currently hedge its interest rate exposure, although it may consider doing so in the future. The Group ’s principal operations are primarily conducted and recorded in Hong Kong dollars resulting in minimal e xposure to foreign exchange fluctuations. All of the Group ’s bank deposits are denominated in Hong Kong dollars, United States dollars or Macau patacas. It is the Group ’s policy to avoid speculative trading activity. Material Acquisitions and Disposals The Group made no material acquisiti ons or material disposals of subsidi aries and associated companies during the Reporting Period. Human Resources As at 30 June 2026, the Group had approximate ly 19,400 full-time employees. The Group ’s employee turnover rate was minimal in the first half of 2026. Staff remuneration of the Group is determined by reference to their working performance, professional qualification, relevant working experience and mark et trends, and includes salary, allowances, medical insurance and provident fund. The management of the Group regularly review s the remuneration polic y and evaluates staff performance. Staff are encouraged to attend training classes that are related to the Group ’sb u s i n e s s . The Group provides training for ca reer enhancement in the form of internal courses and workshops for staff, subsidies for education of staff at Macau M illennium College, and awards scholarships to children of staff to study at institutions of their choice. – 27 –
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PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES As at 1 January 2026, the aggregate principal amount of US$500 million of 4.50% senior notes due 2026 ( ‘‘2026 US$ Senior Notes ’’) issued by Champion Pa th Holdings Limited ( ‘‘Champion Path ’’), a wholly-owned subsidiary of the Company, rema ined outstanding. On 5 January 2026, Champion Path offered to purchase (the ‘‘Offer ’’) for cash any and all outstanding 2026 US$ Senior Notes validly tendered at a purchase price of US$1,000 per US $1,000 principal amount of the 2026 US$ Senior Notes pursuant to the terms and conditions set out in the Offer to Purchase. On 19 January 2026, Champion Path accepted and repurchased US$170 ,115,000 in aggregate principal amount of the 2026 US$ Senior Notes validly tende r e dp u r s u a n tt ot h eO f f e ra n dt h erepurchased 2026 US$ Senior Notes were subsequently cancelled. Further details of the Offer were set out in the announcements of the Company dated 5, 13 and 19 January 2026. The remai ning outstanding US$32 9,885,000 in aggregate principal amount of 2026 US$ Senior Notes matured on 27 January 2026. Save as disclosed above, neither the Company, nor an y of its subsidiaries purchased, sold or redeemed any of its listed securities during the six months ended 30 June 2026. CORPORATE GOVERNANCE CODE The directors of the Company recognise the im portance of good corporate governance in the management of the Group. During the period fro m 1 January 2026 to 30 June 2026, the Company has complied with all the code provisions of the Cor porate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules. REVIEW OF INTERIM REPORT AND UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The interim report of the Company for the six months ended 30 June 2026 has been reviewed by the Audit Committee of the Company. The Group ’s unaudited condensed consolid ated financial statements for the six months ended 30 June 2026 have been re viewed by the Audit Committee of the Company and by the Company ’s auditor in accordance with Hong Kong St andard on Review Engagements 2410 Review of Interim Financial Information Perf ormed by the Independent Auditor of the Entity as issued by the HKICPA. By order of the Board SJM Holdings Limited Ho Chiu Fung, Daisy Chairman and Executive Director Hong Kong, 25 August 2026 As at the date of this announcement, the executive directors of the Company are Ms. Ho Chiu Fung, Daisy, Dr. Fok Tsun Ting, Timothy, Deputada Leong On Kei, Angela, Dr. Chan Un Chan and Mr. Shum Hong Kuen, David; the non-executive director of the Company is Mr. Tsang On Yip, Patrick; and the independent non-executive directors of the Company are Mr. Ho Hau Chong, Norman, Ms. Wong Yu Pok, Marina and Mr. Yeung Ping Leung, Howard. – 28 –