Chairman's Statement
Yeung Hoi Sing, Sonny Chairman

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 31December 2021. The business environment of 2021 was still challenging as the COVID-19 pandemic continued to bring about great disruptions to many industries. Despite rising vaccination coverage, many countries kept their border closed and social distancing measures during 2021 and industries that rely on international travelling and close human contact, including tourism, hospitality and retail, continued to face huge pressure. However, China exhibited again strong economic resilience and achieved sustainable growth in 2021 amidst the ongoing pandemic and other external challenges. In terms of taming the pandemic, China and Macau have also delivered exemplary results, and their borders have largely remained opened since September 2020. Although sporadic outbreaks of COVID-19 during the year triggered the implementation of targeted travel restrictions, the gross gaming revenue and visitation of Macau for 2021 have improved significantly as compared to 2020, which showed that Macau remained an attractive tourist destination for Chinese tourists. In addition, the lack of tourists from Hong Kong posed an obstacle to Macau’s full recovery, the recent outbreak of the Omicron variant will undoubtedly delay reopening the border between Mainland China, Hong Kong and Macau. However, based on the success of the Mainland China and Macau on containing the pandemic, we are confident that with the assistance provided by the Central Government, Hong Kong will soon tame this new wave of pandemic, which would facilitate the lifting of travel restrictions and quicken the recovery of the regions.

STRENGTHENING CAPABILITIES IN PREPARATION OF MARKET RECOVERY

Thanks to diligent and collective efforts by the Central Government and Macau Government, increased visitation and improving gaming performance in Macau have reflected the effectiveness of anti-epidemic strategy. Although there have been occasional outbreaks during 2021 in Mainland China and Macau, the decisive responses from the governments helped to contain these flare-ups swiftly. Even facing the highly transmissible Omicron variant, Mainland China and Macau stood strong and no widespread outbreaks had occurred.

The announcement of the “Master Plan of the Development of the Guangdong-Macao Intensive Cooperation Zone in Hengqin” in September 2021 provided clear targets to induce an in-depth degree of interconnectedness between Macau and Guangdong, which could drive the growth and diversification of Macau’s tourism and economy. Some of the most notable developments include the extension of Macau’s Light Rail Transit to link up Hengqin and the high-speed rail system in Mainland China. Macau has been actively enhancing its infrastructure network to align with the Central Government’s focus on developing the Greater Bay Area, as well as to expedite interconnectedness within Macau to drive local tourism and retail. The Group foresees greater convenience for Chinese tourists to visit Macau and is confident regarding Macau’s rebound from the pandemic and its long-term development in the future. The Group’s flagship investment project, Ponte 16, is committed to the continual enhancement of its product and service offering to welcome this long-term development, leveraging its unique cultural resources of the Inner Harbour area and its collaboration with local retailers and tourist attractions to offer both returning tourists and local patrons the most premium of entertainment experiences.

Towards the end of 2021, many junkets have ceased operations in the Macau gaming industry and many VIP rooms have closed down. This trend will accelerate the shift of focus of the industry towards the mass market. Ponte 16 has been catering its services to the mass market even prior to the start of the pandemic with its comprehensive facilities. Ponte 16 will be well-positioned to leverage the established advantage. With regard to the ongoing legislation update to the Gaming Law 16/2001, Ponte 16 will remain attentive and keep closely communicating with the Macau Government to facilitate a positive development in compliance with regulatory changes.

It is expected that the COVID-19 pandemic will continue for a period of time and the recent outbreak of the Omicron variant posed concern as well. Ponte 16 will remain vigilant in health and safety measures, exercising utmost caution and prioritising the wellbeing of the patrons.

UPHOLD ATTENTIVENESS AND AGILITY TO WEATHER THE UNKNOWN

The global tourism industry was still largely halted in 2021, but as vaccination rates increases, we are grateful to learn that various countries are gradually relaxing social distancing measures and border policies. The Government of Canada has announced the border will be open to all fully vaccinated travelers effective from 1 April 2022. The World Travel & Tourism Council recently projected that benefited from the protection offered by effective vaccination and follow-up boosters, travel and tourism in the United States of America could rebound strongly and would reaching almost USD2 trillion. The Group will prioritise maintaining the highest degree of flexibility and financial prudence, while being attentive to market trend changes and identifying the best opportunities to facilitate sustainable development.

The commercial property market in Hong Kong remained in slump for most of 2021. However, taken into consideration of Hong Kong’s strong fundamentals as a global trading hub, the Group is of the belief that the pandemic will be tamed eventually, and that longterm prospects for the commercial property market is still splendid. Having been battling with the pandemic for almost two years, worldwide inflation has been elevated mainly due to the fiscal and monetary policy stimulus and supply chain disruptions. This situation threatens to erode capital value quickly, and necessitates the Group to seek for additional investment options including equities and cryptocurrencies to ensure capital value appreciation, diversification of investment risks and to hedge against inflation.

ESTABLISH ROBUST FOOTHOLD TO FACE FUTURE CHALLENGES

As affected by the recent spread of more transmissible variants of the COVID-19 pandemic including Omicron and Delta, the Group will remain steadfast in maintaining financial prudence. However, recent scientific research suggests that even the Omicron variant is more transmissible, it causes much milder symptoms. Furthermore, the progress in vaccine and booster rollout has been accelerated, we are confident that the epidemic will eventually be contained and the economy will be back on the right track. The Group will maintain its attentiveness in the face of this pandemic and its impact on our businesses, and will respond quickly to market challenges should the situation changes.

APPRECIATION

I would like to take this opportunity to express my sincere gratitude to our shareholders, customers and business partners for their trust and support, and extend my heartfelt thanks and appreciation to our fellow directors for their guidance, to all staff for their hard work and dedication during such a challenging time. Looking ahead, we will strive to overcome future challenges, remain attentive to market changes, and continuously improve our operational capabilities to bring sustainable long-term returns to our shareholders.

 

Yeung Hoi Sing, Sonny
Chairman

Hong Kong
30 March 2022