1.

Sands China background（邱佳墚）

1.1 Sands China Limited is an integrated resort developer and

operator in Macau and a majority-owned subsidiary of Las Vegas

Sands Corporation

Sands China is the leading developer, owner and operator of multi-

use integrated resorts and casinos in Macao. Macao is the largest

gaming market in the world as measured by casino gaming revenue

and is the only location in China offering legalized casino gaming

Sands China own Sands® Macao, The Venetian® Macao, The

Plaza® Macao, The Parisian Macao, and The Londoner® Macao. We

also own Cotai Expo, one of the largest convention and exhibition

halls in Asia; Macao's largest entertainment venue, the Cotai Arena.

1.2 Cotai Strip History

The story of the Cotai Strip began in 2004, when the Macau

government completed the task of uniting two islands (Taipa and

Coloane) into one connected land mass. The area was originally

earmarked for industrial purposes and residential redevelopment.

,but those plans were quickly shelved after the gambling industry

exploded in the mid 2000’s. the government designated Cotai as

the future home for all Macau gaming moving forward. Macau

government decided to offer it to LVS and its aspirational CEO

Sheldon Adelson .
Covering almost one million square meters of land. The fifth largest

building of any kind in the world when it eventually opened on 28

August 2007, the Venetian Macao’s 3,000 guest rooms just about

tripled the amount found in the biggest resorts of the time while

also adding the 15,000 seat Cotai Arena, 111,500 square meters of

MICE space, 150,000 square meters of retail and a monstrous casino

housing 878 gaming tables and room for 3,300 slot machines.

Adelson recalled, “When they brought me out to see the land, I

asked them, ‘Where is it?’ This place was all under water.”

According to the interview ,he said that ,"No casino had ever been

built on that scale and we had no idea what was going to hit us, but

in the end the Venetian changed Macau. To this day one out of every

two people that visits Macau, visits the Venetian.”

2. technological（邱佳墚）

2.1.Machine Learning-Google Marketing Platform's

Sands China has always been well-known in the Macao hospitality

market, but with the array of resort options available today, staying

top of mind with different consumer segments (budget travelers,

luxury travelers, tourists, business executives, live entertainment

fans, gourmet foodies, to name a few) is increasingly important.

What’s more, the brand found its consumer data scattered across

multiple channels and platforms, making it difficult to reach its

target audience of potential travelers at the right time, right place,

and, most importantly, right stage of their decision journeys.

Looking to gain a more accurate, holistic view of its customer, Sands

China set out to unify existing consumer data and break down its

siloed approach to digital campaigns.

Using Google Marketing Platform's unified, end-to-end solution,

Sands China was able to deliver rich media ads across search,

display, and video that featured relevant, personalized messaging

based on the user’s data signals. For example, a user in China

searching for “suites in Macao” was served an ad that showcased

the brand’s luxury suites.

2.2.Smart Stage hybrid studio

Sands China has launched Macau’s first venue-based hybrid

meetings space featuring an Extended Reality studio Utilizing

cutting-edge technology, including professional broadcast quality

live-streaming capability and hologram functionality, the Macao

audience was able to interact in real-time with panelists and

attendees in other country. This immersive experience provided

them with an excellent platform to learn from the industry's

brightest minds and keep abreast of the latest trends.

Smart Stage provides live-streaming and hologram capability. Unlike

the classic ‘green screen’ environment, its XR functions allow

presenters to interact with real-time visual markers to deliver a

“more authentic experience”.

It is also a project of the Sands MICE Academy, a new sub-academy

of the Sands China Academy established in March 2023. Supporting

the Macao Government Tourism Office's 'tourism + MICE' initiative,

Sands MICE Academy aims to enhance the overall competitiveness

of the Greater Bay Area as a preferred international MICE

destination by utilising the company's resources, thereby

contributing to the nation's economic development.

2.3.Low-Cabron Transition Technology

Sands China using cutting-edge building technology for energy

savings, focused on low-carbon transition strategy on reducing

climate impact through energy efficiency, renewable energy and

transportation

The three ways they are prioritizing to increase resorts renewable

energy usage are (a) to maximize on-site renewable generation

where feasible at their existing properties and any new

developments, (b) execute power purchase agreements (PPAs) in

regions where Sands China operate and (c) purchase renewable

energy credits (RECs) to support the broader transition to zero-

carbon grids.

2.4.Supply Chain technology

RFID Technology: Sands China utilizes Radio Frequency Identification

(RFID) technology for various purposes, such as tracking and

managing inventory, enhancing security， RFID tags can be used for

access control, asset tracking, and cashless payment systems.

To ensure suppliers meet Sands China standards, some suppliers are

considered for additional performance evaluations and business

reviews. Suppliers in selected regions and categories based on

criteria such as type of product or service, region and spend may be

required to undergo additional desktop or on-site assessments. the

supplier management systems or third-party auditor performs on-

site visits to review performance and detect signs of violations. The

quality control team and technology systems conducts audits of

qualifications, on- site facilities, factories and project sites, data

security, and other relevant areas for selected business sectors such

as construction, furniture, gaming, food supply and technology.

2.5.Surveillance and Security Systems:

To ensure the safety and security of guests and employees, Sands

China employs state-of-the-art surveillance and security systems,

including CCTV cameras, access control systems, and advanced

monitoring technologies.

In 2022, Sands China achieved ISO/IEC

27001 Certification for Global Cyber Security Operations and

Vulnerability Management. The cyber security team using the

Security systems continually aims to improve our services to meet

and exceed the needs and expectations of our customers, while

complying with relevant information security legislation and

regulations.

3. Target Customer(傅辰雪)

Sands China's target customers are primarily affluent travelers and

high-end tourists, particularly those from mainland China and other

Asian countries.

Sands China's properties, such as The Venetian Macao, The Parisian

Macao, and The Londoner Macao, are designed to offer a premium

and extravagant lifestyle to attract their target customers. They also

focus on attracting business travelers and hosting various

conventions and events.

In 2019, Sands China's total annual average occupancy in the

Macau region was 87.5%. Each of its hotels has an average annual

occupancy rate of over 80 per cent. While at the end of 2022, in

terms of occupancy, Sands Macao had the highest occupancy rate

at 51.1%, down 17.1% points year-on-year, followed by The

Venetian Macao, with an occupancy rate of 41.7 %, down 8% points

year-on-year. The Londoner and Paragon Macau both had occupancy

rates of less than 30%. (金沙中国：2022 年访客量减少，净亏损 15.8 亿美元_地产界_澎湃新闻-

The Paper)

Sands China's pricing is relatively low compared to other luxury

hotel groups in Macau, targeting leisure travellers and price-

sensitive customers.

Sands China's hotels face different market segments, depending on

their ambience and the type of services they offer. The Londoner, for

example, has a sober color palette and features business suites,

which are more suitable for high-end business people; The Four

Seasons and the Parisienne are decorated in bright warm colors,

with higher floor heights compared to the average hotel, with

courtly paintings and carpets to create a French court style that is

more appealing to young couples and hunter groups; The Venetian

is more appealing to family travellers as it has a higher proportion of

family rooms in the room setup, more entertainment and dining

facilities, and an overall relaxed atmosphere that provides more

entertainment for children.

Sands China has developed a meticulous business plan to avoid

homogeneous competition among its hotels, which, together with

the location of its hotels in Macau's major business districts,

maximizes coverage of different target markets.

4. Economical(傅辰雪)

4.1Internal

4.1.1.Diversification initiatives

Sands China has been focused on diversifying its offerings beyond

gambling to attract a wider range of tourists. This includes investing

in entertainment shows, retail, and non-gaming amenities such as

hotels and convention centers.

4.1.2.Redefining Market Segmentation

Firstly, changing consumer preferences. The pandemic has changed

travel behaviors and preferences of consumers. People are now

more concerned about hygiene and safety standards, preferring

contactless services, and emphasizing health protocols.

Secondly, shift in location preferences. The pandemic has altered

travel patterns and destination preferences. People may prioritize

domestic or regional travel, avoiding crowded tourist spots and

opting for destinations with better control over the virus.

4.1.3.Recovery and resilience strategies

Sands China is developing recovery and resilience strategies to

navigate the post-epidemic era. This may involve repurposing

existing properties, exploring alternative business models (e.g.,

mixed-use developments), and implementing flexible design

concepts that can adapt to changing market conditions.

4.2External

4.2.1.Macau's industrial homogenization

Macau's economy heavily relies on the gaming industry, and the

Sands Group has been affected by the slowdown in the region's

gambling market. Macau's gaming revenue declined significantly

between 2014 and 2016 due to the Chinese government's

crackdown on corruption and the slowing Chinese economy.

4.2.2.COVID-19 pandemic and Economic recession

With travel restrictions and lockdown measures leading to a steep

decline in tourism and gambling revenues, Sands China has been

leading to low occupancy rates, revenue losses, and a decrease in

new hotel developments. Financial constraints are also brought by

the pandemic, limited access to funding, increased borrowing costs,

and reduced investor confidence make it difficult to secure financing

for hotel projects.

4.2.3.Infrastructure development

The construction of new bridges, transportation links, and other

infrastructure projects can lead to an increase in visitor arrivals and

overall economic growth in the region.

4.2.4.Intense Competition

The opening of new casinos and integrated resorts in Macau has

intensified competition. New operators, including Wynn Resorts and

MGM, and Galaxy Entertainment, have entered the market,

increasing the supply of gaming tables and hotel rooms. This has led

to a more fragmented market share for the Sands Group, impacting

its revenue and market position.

4.2.5.Government policies

The Chinese government's policies and regulations regarding travel

restrictions and currency controls can also impact the Sands Group's

business, such as social distancing requirements, hygiene protocols,

and limitations on capacity.

In response to these issues and trends, the Sands Group has been

focused on diversifying its revenue streams beyond gaming,

expanding its non-gaming offerings, attracting a broader customer

base, and investing in entertainment and convention facilities. It has

also been expanding its presence in other Asian markets, to reduce

its reliance on the Macau market.

5.Cultural Diversity(王雅琦)

5.1Demographic Characteristics:

Sands China has a very diverse workforce compared to other

Chinese companies. They include Chinese, Southeast Asian

(including the Philippines, Vietnam, Nepal, etc.), and European-

American employees. The staff is very diverse in terms of language,

race, culture, age and religion, and because of this diversity, the

group is also a very inclusive family of employees. However, at the

same time, a problem common to most of the Macau companies,

there are fewer employees of Mainland Chinese nationality. This

includes narrower promotion channels than for local Macau

employees. Sands also disclosed in its annual report that the

proportion of local residents in management has grown significantly,

from 20 percent in 2004 to more than 90 percent by 2020. Although

this is due to the government's policy of protecting local residents, it

does limit the diversity of the company's workforce to a certain

extent.

5.2Personal characteristics:

In terms of gender, Sands provides a collaborative and equitable

environment for all, and creates opportunities for work and

development for neglected groups. In order to ensure a favourable

working environment for its employees, Sands was the first

company in Macau to adopt an anti-discrimination and harassment

policy in 2018. At the same time, Sands has also increased the

number of relevant training programmes to prevent unfair and

unequal treatment of employees in the workplace.

The chart also shows that the ratio of female to male employees in

the different branches and positions of the Sands Group is almost

1:1, which is difficult for most companies to achieve, and shows that

Sands has been taking action in the area of gender equality.

In the annual report, Sands' goals include 45 per cent female

representation at the management level and 47 per cent female

representation at the junior management level by 2025 in order to

achieve gender equality.

In addition to this, it is worth noting that Sands has issued a new

benefits policy for women returning to work after maternity leave in

2022. The option to start work one hour later or leave one hour

earlier each day for the next 30 days, for the sake of female

employees' health as well as to reduce the stress of caring for

children.

5.3Competencies and skills

According to the disclosure in Sands' 22 and 23 annual reports,

Sands China Group has been gradually growing into the largest

integrated resort operator in Macau. At the same time, Sands China

Group offers diversified job opportunities to its residents: these

include 1,300 new jobs (including specialisation in convention and

exhibition, retail, entertainment, etc.) and 75,000 job opportunities.

Sands believes that ideal career prospects contribute to employee

retention and loyalty. That's why, in recent years, it has provided

more than 16,000 job promotions and 1,500 lateral job changes for

employees to diversify their careers. Sands has also designed the

Integrated Resort SCL Manager Training Programme for middle

managers to help them become capable of working as managers

and operators of different resorts.

In terms of the diversification mentioned above, the company has

continued to provide diverse learning experiences for its employees

in recent years. More than twenty training programmes, totalling

more than 1.5 million hours of paid training each year, contribute to

the growth and development of employees to a large extent. Among

these, the Sands China Academy saw many face-to-face courses

cancelled during the outbreak, but most of the training courses were

also converted to online e-courses. Over 100 live courses were held,

providing 3,700 hours of training to over 2,100 employees. The

average employee received 52 hours of training, substantially

higher than the international standard set by the Association for

Talent Development (ATD): 34 hours per employee.

Sands' 410 in-house trainers are responsible for ensuring that each

employee meets the training standards while delivering training

programmes, in order to ensure that they have the skills and

competencies they need to learn.

6.Orgianization（池铨）

Sands Corporation (Macau, China), a multinational entertainment

group, may face the following issues in terms of management and

organization:

6.1. Decentralization and centralization: Sands Group involves a

number of business units and regions, for example, Sands Macao

has familiar Venetians, Londoners, Parisians, Palais de Macau, with

one of the largest convention and exhibition centers in Asia - Cotai

Convention, the largest performance venue in Australia - Cotai

Arena, etc., so there may be a balance between decentralization

and centralization of power. Excessive centralization of power can

lead to slow decision-making, while excessive decentralization can

make coordination and cooperation difficult.

6.2. Organizational structure: With the growth and development of

business, Sands Group is faced with the adjustment of

organizational structure. It is necessary to continuously optimize

and adjust the organizational structure to adapt to the rapid

development of the company and ensure the collaboration between

various departments.

6.3. Corporate culture and values: Sands Group faces the problem of

cross-cultural management and unity of values. In different regions

and cultural contexts, employees may have different attitudes and

values at work. The company establishes a common corporate

culture to promote cooperation and team spirit among employees.

As a result, the company pursues an innovative and up-to-date

human development strategy, especially in the field of human

development, so that different types of talent can flourish.

6.4. Talent Development and mobility: Over the years, the company

has continued to provide diverse learning experiences for team

members, thereby promoting the growth and development of

employees, with more than 20 training programs each year covering

various personal development and management areas and adding

more than 1.5 million hours of paid training. The average training

time per team member is twice the standard set by the Institute for

Workforce Development (ATD). Sands China team members have

unique career development opportunities, both vertical and

horizontal, and can even set foot in five properties owned by Sands

China. The percentage of management members who are local

residents has grown significantly, from 20% in 2004 to more than

90% in 2020.

6.5. Organizational communication and information flow: As Sands is

distributed in different regions, organizational communication and

information flow may face certain challenges. In order to ensure the

timely transmission of information and the effectiveness of

communication, the company establishes effective communication

channels and adopts appropriate technical tools to promote internal

collaboration. It not only focuses on the career development and

vocational training of team members, but also ensures a respectful

and equal working environment for team members. In July 2018, the

company was the first company in Macau to enact a policy to

prevent discrimination and sexual harassment, and provided

relevant training to all team members to enhance their

understanding of a respectful and equal work environment.

7.Issues and trends(池铨)

The development trend of Sands China in the future

7.1. Integration with digital technology: With the continuous

advancement of technology, digital technology is playing an

increasingly important role in the entertainment industry. Sands

should invest more in digital technology to deliver a more advanced

and innovative entertainment experience. For example, using virtual

and augmented reality technologies to create a more immersive

casino and hotel experience for customers.

7.2. Diversify: Sands has expanded its business to increase its

revenue streams. In addition to the traditional casino and hotel

business, they may consider investing in other areas such as dining,

entertainment, tourism, etc. This can attract a wider customer base

and improve the stability of the company.

7.3. Focus on sustainable development: Sustainable development is

an important issue in today's society. Sands has increased its focus

on environmental protection and social responsibility. They may take

measures to reduce negative impacts on the environment, such as

energy conservation, reducing waste generation and promoting the

use of renewable energy sources. In addition, they may enhance the

training and welfare of their employees, focusing on community

development and philanthropy.

7.4.International expansion: Macao, China is the base of the Sands

Group, but with the development of the global economy, the Sands

Group will consider expanding business in other countries and

regions. They can look for new market opportunities, such as

Southeast Asia, Japan and Europe. This can spread the risk and

further enhance the company's international visibility and influence.

8.environment (钟汉翔)

In 2022, it was recognized by the Corporate Sustainability Index of

the Chinese University of Hong Kong, and was rated as one of the

top ten companies in the Greater China Hotel Sustainability Index,

earning an excellent rating of 'Pioneer'. Sands China also ranks

among the top 20 in the Greater China Enterprise Sustainable

Development Index, and ranks ninth in the Guangdong Hong Kong

Macao Greater Bay Area Enterprise Sustainable Development Index

and ninth in the Hong Kong Enterprise Sustainable Development

Index. With the re certification of Macau Sands in 2022, all certified

hotels under Sands China have received the Environmental Hotel

Bonus Award.

8.1.Low carbon transformation

Adopting energy-saving building designs and utilizing new

technologies to reduce energy consumption during continuous

operation. Seeking renewable energy solutions, including on-site

solar thermal and solar photovoltaic systems, as well as renewable

energy credits. Convert guest shuttle buses to electric and clean

fuel driven, and utilize carbon compensation to achieve difficult to

decarbonize air and ferry travel. In terms of energy conservation, it

is recommended to use a centralized management system to better

control and adjust electrical equipment, and achieve reasonable

energy utilization.

8.2.water resources management

Upgrade devices and systems, develop water-saving policies, and

encourage rational water use. Increase the use of non drinking

water for landscaping, restrooms, cooling towers, and other

purposes. Collaborate with regional water resource advocates to

revitalize biodiversity ecosystems, enhance resilience, and involve

communities in utilizing water resource technologies.

8.3.Plastic and packaging

Replace disposable products with sustainable alternatives and reuse

them where possible. Replace disposable products with sustainable

alternatives and reuse them wherever possible to reduce the

environmental footprint of primary, secondary, and tertiary

packaging in our operations. Due to the nature of the products and

services provided by hotels and tourism, plastic and packaging are

ubiquitous in the hotel environment, and hotels are still unable to

achieve a positive impact. It is recommended to use biodegradable

plastics and seek cooperation with environmental protection

agencies to improve the utilization rate of resources.

8.4.purchase

Purchase environmentally friendly ingredients through a restaurant

menu that takes into account the Earth and biodiversity, and

provide sustainable dishes in the restaurant. Integrate energy-

saving technologies, environmentally friendly products, and

materials. Explore sustainable choices that integrate into our

business processes and customer experiences.

8.5.Waste
By preventing, donating, and transforming to cope with the largest

waste flow among us. Responsible handling of construction waste

from new development, renovation, and renovation projects. Try to

recycle and find opportunities to reduce waste generation as much

as possible. In terms of catering services, operations, and

construction, a large amount of waste is generated. Currently, the

conversion rate is only 14%, and the goal is to reach 20% by 2025.

9.Recommendation(钟汉翔)

Kitchen waste is the most common type of waste, and available food

can be donated to relevant organizations and local cooperative

enterprises can be found to handle the remaining waste.

In terms of energy conservation, it is recommended to use a

centralized management system to better control and adjust

electrical equipment, and achieve reasonable energy utilization.

It is recommended to use biodegradable plastics and seek

cooperation with environmental protection agencies to improve the

utilization rate of resources.

Strengthen environmental education and training for employees,

customers, and suppliers to enhance their environmental awareness

and behavior. For example, carry out themed activities such as

energy conservation and emission reduction, waste classification,

and green transportation, encourage employees and guests to

participate in environmental practices, promote green consumption

concepts, guide suppliers to adhere to green procurement

principles, and establish green partnerships.

Society

（1）Talent development

Assist our employees in achieving success through training and

establishing a strong physical, mental, and social foundation.

Provide resources and tools to assist suppliers and partners in

increasing business opportunities. Support higher education and

learning programs for hotel professionals and local talent pools.

（2）Health, Safety, and Wellbeing

Comply with applicable laws and maintain rigorous standards and

agreements to ensure public health and safety. Provide services to

promote the overall well-being of team members and guests.

（3）Responsible gambling and prevention of financial crimes

Reduce the risk of problematic gambling by assisting guests in

making informed decisions. Zero tolerance for illegal financial

activities

Policy.

（4）human rights

Ensure that team members and contract workers have the highest

ethical standards, fairness, and protection. Maintain strict standards

for our supply chain and business relationships.

（5）Diversity, Equality, and Inclusion

Create an environment where every employee can showcase their

strengths. Provide more opportunities for local diverse small

businesses and strengthen relationships with them. Empowering

organizations and institutions willing to help neglected groups.

（6）community

Focusing on corporate donations in the community, we provide

important resources for non-profit organizations and community

undertakings by investing in charitable activities, and assist small

and medium-sized enterprises, local enterprises, and non-profit

partners in achieving their goals. Establish a volunteer program to

support the work of non-profit partners and enable more people to

receive assistance.

10. Reference

[1]2020-Sands-China-EGS-report_SC

[2]https://hk.sandschina.com/esg/sustainability.html

[3]https://businessfocus.io/article/219024/

[4]https://www.thinkwithgoogle.com/intl/en-apac/future-of-
marketing/creativity/sands-china-embraces-machine-learning-focus-
high-value-consumers/
[5]https://assets.sandsresortsmacao.cn/content/sandschina/ESG/
report/2022-Sands-China-ESG-report_EN.pdf