Sands China (01928): Macau's rebound after the epidemic has exceeded expectations, and six major gaming enterprises are actively promoting diversification.

On May 12th, the Asia INT'L ENT Expo and the Asia Comprehensive Resort and Leisure Industry Expo opened in Macau. Mr. Zheng Junnuo, the CEO and Executive Director of Sands China (01928), delivered the opening keynote speech, stating that the COVID-19 pandemic brought a very challenging period for Macau. However, Macau has overcome this challenging period and rebounded in a way that exceeded expectations. The entire industry, not just Sands, but all six casino operators in Macau, are actively promoting diversification. Zheng Junnuo pointed out that there are three key factors to Macau's diversification, including political stability, demand potential, and unparalleled resort product supply. In terms of political stability, the "One Country, Two Systems" policy provides a very strong environment for investors and operators to develop demand in this uncertain environment. He also mentioned that China's economy has seen strong growth over the years and is now the world's second-largest economy. Regarding resort product supply, Macau's Cotai Strip has over 10 world-class integrated resorts, including Sands. Macau has an unbeatable advantage in supply, and developing non-gaming industries requires a combination of excellent hardware, software, and investment in human resources and talent. All of these factors are crucial in transforming these buildings into truly diversified industries. He also mentioned that in the past, Macau has diversified into various industries such as entertainment, retail, and the convention and exhibition industry. Macau has become an important market for global luxury goods, especially ultra-luxury brands. Conventions and exhibitions attract international visitors, resulting in longer stays and higher tourist spending. International attendees also positively promote Macau when they return to their home countries.