GGRAsia – Former Suncity listco warns likely US$49mln loss for 1H

Former Suncity listco warns likely US$49mln loss for 1H

Aug 22, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck

LET Group Holdings Ltd, until recently known as Suncity Group Holdings Ltd, said in a Friday filing that it expected to swing to a HKD387.1-million (US$49.3-million) loss for the six months to June 30, compared to a HKD251.1-million profit for the prior-year period.

“Due to the suspension of the travel-related products and services business since December 2021 and the cessation of the group’s travel-related products and services and hotel and integrated resort general consultancy services businesses with effect from 1 April 2022 respectively, there was no revenue generated from these segments for the six months ended 30 June 2022,” said the firm in its latest filing to the Hong Kong Stock Exchange.

The listed company had on December 1 announced suspension of such business, at the same time as it said its then-chairman Alvin Chau Cheok Wa was resigning.

Factors in the anticipated interim loss were: a decrease in gain on change in fair value of derivative financial instruments of approximately HKD526.1 million during the period; a loss from discontinued operations of approximately HKD52.7 million, compared to a profit from discontinued operations of HKD114.4 million in the prior-year period; and an impairment loss on “equity loans to, loans to and amounts due from” a joint venture, amounting to approximately HKD47.3 million.

The company stated in its Friday filing that although the group’s overall operations were “still impacted by Covid-19 and relevant social distancing and travel-related restrictions,” the group “expected to record an increase in revenue from continuing operations of approximately 31.7 percent” for the six months ended June 30, 2022.

This was “mainly attributable to the increase in revenue from the operation of integrated resort in the Russian Federation,” it added.

LET Group Holdings has interest – via Hong Kong-listed Summit Ascent Holdings Ltd and its units – in a hotel and gaming business at Tigre de Cristal in the Integrated Entertainment Zone of the Primorye Region, near Russia’s Pacific port of Vladivostok.

Summit Ascent said in an August 12 filing that it expected its first-half results to show a 37-percent year-on-year increase in revenue, helping it to return to profit.

Former Suncity Group Holdings chairman Mr Chau is currently being held in pre-trial detention in Macau’s prison facility in connection with his former privately-held Macau-based junket business Suncity, under suspicion of membership of a criminal group, of organising illegal gambling for Chinese customers, and of money laundering. He is due to go on trial in early September.