Hong Kong-listed catering services business Future Bright Holdings Ltd says it has exited an unrealised three-year deal to run a food court at Macau casino operator SJM Holdings Ltd’s Grand Lisboa Palace casino resort in Cotai.
The original plan was mentioned in a January 2020 filing by Future Bright, though it confirmed in a Thursday announcement to the Hong Kong bourse, that it had never taken possession of the space during the intervening period coinciding with the Covid-19 pandemic.
“Considering the current tourist industry in Macau, the group intends to focus on its existing business to generate stable income and to reduce the operating expenses and financial burden of the group,” said Future Bright.
Future Bright said in its Thursday update, that the value of the right-of-use asset to be derecognised under the termination agreement, amounted to just under HKD22.80 million (US$2.91 million).
In July 2021, when the deal was still in play, SJM Holdings said it had agreed to cut the minimum payable fee regarding the three-year deal for Future Bright unit, Bright Noble Co Ltd.
Future Bright’s main business is running restaurants and food courts in Macau, Hong Kong, and mainland China. The company’s managing director, Chan Chak Mo, is a veteran Macau legislator.
In a filing lodged on Wednesday, Future Bright had said it renewed – for four years effective from September 1, 2023 to August 31, 2027 – the right to use a shop space at Sands China Ltd’s Cotai casino resort the Venetian Macao, for a Japanese restaurant.
Future Bright has been operating that venue at the Venetian Macao since 2008. Its business performance “has generally been satisfactory”, the company said in its Wednesday filing.
