Dear Valued Shareholders,

On behalf of the board of directors of Success Universe Group Limited (the “Company”, together with its subsidiaries, the “Group”), I would like to present the annual report of the Company for the year ended 31 December 2023.

2023 witnessed a robust recovery in the entertainment and hospitality industries in Macau, as well as for the Group’s business. With the receding of the COVID-19 pandemic, global economic activities and cross-country travel resumed, playing a vital role in revitalising both international and domestic tourism. Driven by the reopening of borders with Mainland China and Hong Kong, Macau experienced a substantial boost in its entertainment and hospitality sectors, leading to a strong return to nearly pre-pandemic levels.

Notably, in recent years, Macau has transformed into an unparalleled travel destination, offering an extraordinary array of entertainment options. This transformation has been facilitated by the visionary measures implemented by the Macau government to position the city as a premier World Center of Tourism and Leisure. These measures have laid a solid foundation for businesses and contributed to the thriving development of Macau. The Group is delighted to witness this remarkable post-pandemic rebound and has demonstrated its well-diversified business composition continued to seize the opportunities arising from the recovery.

UNLEASHING POTENTIALS TO CAPTURE OPPORTUNITIES

The entertainment and hospitality industries in Macau emerged with a remarkable resurgence in 2023 after three years of the pandemic. Macau’s gross gaming revenue surged by approximately 334% year-on-year in 2023, surpassing market expectations and reaching approximately MOP183.1 billion, while the visitor number reached a new post-pandemic record high of approximately 28.2 million. In alignment with Macau’s continuous drive to rejuvenate its tourism appeal, Macau set off waves of world-class events and concerts and drew a significant influx of visitors from both Mainland China and international locales in 2023. Ponte 16, our flagship investment project, further enhanced its hospitality and entertainment offerings to cater to the needs of its valued tourists and guests. Moreover, Ponte 16 actively supported initiatives that promote local art and cultural events, contributing to the Macau’s community. Ponte 16 also collaborated closely with the Macau government to organise various relevant events that further contribute to the development of Macau’s tourism industry.

Thanks to the Macau government’s dedicated efforts to enhance its infrastructure network and improve accessibility for tourists from various regions, Macau now offers diverse transportation options, including the Hong Kong-Zhuhai-Macau Bridge and cross-boundary direct bus services connecting to Hong Kong International Airport. Furthermore, Macau is actively promoting “tourism+“ cross-sector integration and crafting innovative “multi stop“ thematic tourism routes in collaboration with other regions. These initiatives, including offering tourists discounted transportation fares to travel between Macau and nearby cities, have been effectively attracting more visitors to the region. Ponte 16 benefits from its strategic location that connects the cities seamlessly through multiple border crossings, and provides convenient experiences for Mainland China and Hong Kong tourists visiting Macau.

Additionally, Macau stands out for its unique blend of cultural heritage, and the government is proactively working with concessionaires to revitalise old districts. Ponte 16, strategically situated in the Inner Harbour area, is deeply engaged in the local urban renewal plans, and is in discussions with the Macau government regarding its Phase 3 development project, which could encompass the integration of Inner Harbour development with the local community. This might include plans for a late-night food street and the infusion of cultural and artistic elements, such as collaborations with local designers to create a harmonious blend of old and new cultural experiences in the Inner Harbour. As a world-class integrated casino entertainment resort, Ponte 16 continues to enhance its offerings by partnering with local retailers and attractions so as to ensure that visitors have a unique and unforgettable experience.

POISED TO SET SAIL ON THE NEW JOURNEY

The global tourism industry experienced a vigorous rebound in 2023 which demonstrates significant progress as international arrivals reached 1.3 billion, equivalent to 88% of pre-pandemic levels. The United Nations World Tourism Organization (UNWTO) anticipated a complete recovery on global tourism industry by the end of 2024, fuelled by pent-up demand and the resurgence of Asian markets. Concurrently, Mainland China has introduced more traveller-friendly policies to the world, including simplified visa rules to enhance travel accessibility. Jade Travel Ltd. (“Jade Travel”) is strategically poised to capture this expanding Asian market by leveraging its strong partnerships with online travel portals, agencies and airlines. Expansions of product and service offerings are also underway to accommodate the growing travel demand. With the tourism industry projected to recover even stronger in 2024, Jade Travel anticipates a promising future.

Hong Kong has demonstrated its strength and resilience amid economic challenges, geopolitical tensions and interest rate hikes. The Group remains committed to a prudent approach and will regularly assess its investment strategy in Hong Kong’s commercial property market. Our goal is to maintain a balanced investment portfolio, ensuring consistent returns while mitigating risks.

APPRECIATION

I would like to take this opportunity to express my heartfelt gratitude to our esteemed shareholders, customers and business partners for their unwavering support and trust. I am also deeply grateful to my fellow board members for their invaluable advice and guidance, and to our entire staff for their tremendous effort and commitment. Having successfully navigated through the most challenging time, the Group will harness its expertise and accumulated experience to seize the opportunities presented by the global and industry rebound. We remain vigilant of market dynamics and potentials, and we are committed to creating substantial and enduring value for our shareholders as a sincere expression of gratitude for their unwavering faith and confidence in the Company.

 

Yeung Hoi Sing, Sonny
Chairman

Hong Kong
27 March 2024