The Hong Kong Jockey Club announced today (8 September) its results for the 2021/22 financial year ended 30 June 2022 (FY2021/22).

In a year in which Hong Kong was hard hit by the pandemic, the Club raced on, achieving a new turnover record of HK$290.0 billion. This enabled the Club to return a record HK$33.6 billion to the community. This included a record HK$27.0 billion to the HKSAR Government in betting and lottery duty, profits tax and Lotteries Fund contributions, while approved charity donations increased to HK$6.6 billion – including HK$1.4 billion to fight the pandemic.

Fundamental to this achievement is the Club’s long-term strategic investment in its world-class racing, wagering and technology. This has enabled the Club to respond with resilience and agility to the pandemic, with not a single race day lost due to COVID-19. Likewise, the Club’s leading-edge digital technology has enabled it to maintain strong connectivity with customers even when Off Course Betting Branches (OCBBs) were closed, with 90% of turnover now via online and mobile channels. Above all, through its pioneering of commingling markets overseas, the Club has earned significant additional revenue, which this season comprised 18.3% of total racing turnover. This additional revenue was responsible for the Club’s record results this year and more importantly enabled the Club to strengthen its support for the community.

Record Results

The Club’s proactive and agile response to the pandemic, together with the support of the HKSAR Government and Mainland authorities for racing, ensured that not a single day’s racing was lost due to the pandemic in 2021/22. This included the LONGINES Hong Kong International Races, where a highly effective “international racing bubble” made it possible to invite top overseas jockeys and horses to Hong Kong.

Responding to the fifth wave, the Club further strengthened its health measures. Daily PCR testing of more than 1,000 personnel central to racing operations, including jockeys, trainers, racing staff, as well as other personnel in other business critical operations. Rigorous tracing and tracking. Immediate isolation of positive cases and stringent social distancing. All this enabled the Club to keep on racing at no risk to public health in Hong Kong or the Mainland.

Racing turnover for FY2021/22 was up 3.1% to HK$140.4 billion and for the racing season up 3.0% to HK$140.5 billion. Racing betting duty returned to the HKSAR Government for FY2021/22 was up 2.9% to HK$14.1 billion and for the racing season up 2.8% to HK$14.1 billion.

With racing turnover from Hong Kong customers slightly down due to the temporary closure of OCBBs during the fifth wave, the main driver of growth was commingling - up 11.1% to HK$25.7 billion and comprising 18.3% of total racing turnover for the season.
Also making an important contribution was simulcasting - up 47.9% to HK$9.4 billion thanks to the HKSAR Government’s decision to increase simulcast days to 37 per year. This enabled the Club to showcase some of the world’s best racing over the summer months.

Meanwhile, the Club’s innovative World Pool initiative is fast developing, with Hong Kong now a global hub for wagering on the best of world racing. With 21 World Pool events, up from 12 last year, including such premier events as Royal Ascot and the Prix de l’Arc de Triomphe, total World Pool income was up 103.0%.

Football betting also saw a very positive performance in FY2021/22, with turnover up 2.6% to HK$143.8 billion, exceeding last year’s record turnover. Football betting duty was up 6.5% to HK$9.8 billion. This was largely due to the Club’s well-managed trading operations, with higher margins achieved.

With many Mark Six customers migrating to digital channels it was viable to hold more Mark Six draws this year. As a result Mark Six turnover for FY2021/22 was up 72.6% to HK$5.8 billion, generating lottery duty and Lotteries Fund contributions of HK$2.4 billion.

Outgoing Club Chairman Philip Chen said, "The past two years have been difficult but the Club's results have been excellent, with new records set.  Horse racing has kept going through every challenge Hong Kong has faced – even during the pandemic. Above all the Club has maintained its strong support for the community, making record contributions in tax and charity donations. These good results demonstrate the resilience and resourcefulness of the Club. For this my deepest thanks to the racing community and to all of the Club’s hard-working staff, who have been absolutely outstanding.”

Commenting on the Club’s record results, Club CEO Winfried Engelbrecht-Bresges said, “The Club’s achievement this year, as throughout the pandemic, is the product of the Club’s long-term strategic investment in racing, technology and people. Without this we would not have had the resilience to keep racing going, or the means to stay connected with our customers. We also owe an enormous debt of gratitude to our horse owners, trainers and jockeys for their support and most especially to our staff. My sincere and deepest thanks to them all. ”

25th Anniversary of the Hong Kong Special Administrative Region

This was an important year for Hong Kong as it celebrated 25 years since the establishment of the Hong Kong Special Administrative Region.

The Club marked the occasion with the 25th Anniversary Hong Kong Reunification Raceday on 1 July. It also donated HK$630 million to the HKSAR Government in support of over 60 community events and activities.

A special highlight was the opening of the Hong Kong Palace Museum. Its construction, as well as support for exhibitions and education programmes over the next nine years, was made possible by a HK$3.5 billion donation from the Club – its largest single donation to date.

Building Stronger Communities Together

With the pandemic continuing to have a major impact on Hong Kong, the Club substantially increased its charity donations in 2021/22. At HK$6.6 billion, approved donations were the second highest in the Club’s history. Of this, HK$1.4 billion was specifically to fight the pandemic.

In total, since February 2020, the Club’s Charities Trust has approved over HK$2.9 billion in pandemic-related donations. Working alongside over 2,300 community organiations, care homes, schools and kindergartens, the Club has sought to address emergency needs as well as to build long-term community resilience, with a particular focus on the most vulnerable.

Responding to the fifth wave of the pandemic, the Club launched new initiatives and expanded existing ones. These included an extra HK$100 million for the Club’s COVID-19 Emergency Fund, which provides fast-track grants to NGOs; additional high-efficiency air purifiers and filters for residential care homes for the elderly and the disabled; expansion of the food assistance programme for the food insecure; support for the disadvantaged to obtain out-patient and pharmaceutical services; and support for the online learning and mental wellness of school students.

Equally important, the Club’s regular donations remained unchanged at HK$4.5 billion, ensuring that its ongoing commitment to the community was fully maintained. These include its four focus areas: Positive Ageing & Elderly Care; Children & Youth Development; Healthy Community; and Talent & Capacity Building.

In total, 292 charities and community projects benefited from the Club’s approved donations in 2021/22.

Investing for the Future

Looking forward, the Club will continue to implement all necessary health measures to protect racing, customers and the community. It will also invest in maintaining the high standard of its world-class racing and thereby its strong support for the community.

To maintain a pipeline of equine, riding and training talent, the Club will continue to offer some of the best prize money in world racing. Next season prize money will rise 11.5% to HK$1.62 billion – the biggest single-season increase in the Club’s history.

With Hong Kong increasingly home to outstanding local talent, such as jockey Vincent Ho and this year’s champion trainer, Frankie Lor, the Club has established the Racing Talent Training Centre. This will further boost the quality of training provided to riding and non-riding professionals.

As a world leader in wagering technology, the Club offers unmatched connectivity, convenience and data content. Next season will see enhancements to the Racing Touch and HKJC TV apps. Racing fans will also have the opportunity to try the new Trainer Challenge, while the current rebate scheme will be extended to simulcast races.

Through its ongoing HK$7.1 billion programme of racecourse redevelopment, the Club will further invest in the racegoing experience, with new facilities opening in 2022/23, and more to come.

Meanwhile, the Club has embarked on a transformation of its Off-Course Betting Branches, with selected branches being transformed into experience-based environments.  The latest to open are Stanley Street, Central; Kwun Tong Plaza; and Wing Fong Road, Kwai Chung.

Mindful of climate change, the Club has pledged its support for the HKSAR Government’s target of carbon neutrality by 2050. It is currently working on a climate roadmap aimed at further reducing its carbon footprint.

A World-Class Equine Industry for the Greater Bay Area

As a global racing brand, the prospects for the Club are bright. Overseas, the Club will continue to harvest the rich potential of global markets through commingling and the World Pool. As the Club strengthens its racing, wagering and technology, and develops its partnerships around the world, these markets can only grow in size and significance.

Above all, there is the unique opportunity of the Greater Bay Area as articulated in the Framework Cooperation Agreement signed between the Club and the Guangzhou Municipal Government in May 2021 for the joint development of the Guangzhou-Hong Kong Racing Economic Cluster.

The Club’s vision is to develop a world-class equine industry in the Greater Bay Area leveraging its triangle of racecourses at Sha Tin, Happy Valley and Conghua. This will power the further growth of Hong Kong racing while also bringing economic development and employment to the Greater Bay Area.

Plans are already well advanced for the commencement of racing at Conghua Racecourse in the 2025/26 racing season. Looking further ahead the aim is to support the development of an equine industry in the Mainland that could potentially encompass every aspect of the equine value chain, from horse breeding, to the import and export of horses, to horse training and care, to the development of equine professionals and staff. Over time, races run at the Club’s three racecourses as a centre of global excellence could create value for the development of a breeding industry in the Mainland.