GGRAsia – Imperial Pacific warns of significant 2014 loss

Imperial Pacific warns of significant 2014 loss

Mar 12, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck, World

Hong Kong-listed Imperial Pacific International Holdings Ltd, which says it plans to invest US$7.1 billion in the development of a casino resort on the Pacific island of Saipan (pictured), on Wednesday stated it expects to “record a significant increase in net loss for the year ended December 31, 2014”.

Imperial Pacific reported a net loss of HKD14.95 million (US$1.93 million) for full year 2013. The company – until recently known as First Natural Foods Holdings Ltd – last reported a profit in 2012.

The firm posted a net loss of HKD19.6 million for the six months ended June 30, up from HKD1.9 million in the prior-year period.

In Wednesday’s filing, Imperial Pacific said the expected increase in loss for the full year was mainly attributable to the increase in operating costs and impairments in the food-processing segment and to the increase in expenses related to the development of the casino resort in Saipan.

Imperial Pacific’s subsidiary in Saipan is committed to build a multi-phase casino resort with 2,000 rooms. The company plans to build four luxury hotels, which will include “both private gaming rooms and public facilities”.

The company last week said it had reached an agreement to amend its casino licence, which would allow its subsidiary to establish and operate a “temporary casino” on the island of Saipan.

Imperial Pacific is also an investor in the profit stream of Macau junket firm Hengsheng Group. In January, the Hong Kong-listed company said the profit stream from the Macau junket firm – amounting to HKD10.7 million – had fallen short of guarantees made by the vendor’s side.

The annual results of the group are expected to be announced later this month.