GGRAsia – HK-listed Suncity flags wider loss in first half 2017

HK-listed Suncity flags wider loss in first half 2017

Aug 22, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck

Hong Kong-listed Suncity Group Holdings Ltd said in a Monday announcement it expected to record “a significant increase in loss attributable to owners of the company for the six months ended 30 June 2017”, compared to the prior-year period.

Suncity Group Holdings recorded a net loss of RMB64.8 million (US$9.7 million) for the first half of 2016, according to previous filings.

The group is chaired by Macau junket investor Alvin Chau Cheok Wa. The listed entity does not currently have in its portfolio any gaming-related assets or any of the Macau junket-related businesses of privately-held Suncity Group.

In a Monday filing to the Hong Kong Stock Exchange, Suncity Group Holdings attributed the likely increase in loss in the first six months of 2017 to “a loss on change in fair value of derivative component of… convertible bonds of approximately RMB697.7 million; loss arising from and provision for litigations against two indirect wholly-owned subsidiaries … in the aggregate amount of approximately RMB411.8 million; an increase in income tax expense by approximately RMB99.0 million; and a gain from the reversal of impairment loss on trade and other receivables of approximately RMB150 million”.

Suncity Group Holdings said last month that it would acquire a 34-percent stake in a casino project in Vietnam for a total consideration of HKD600 million (US$76.8 million).