Jimei ends deal with NagaCorp, drops Cambodia scheme

Mar 30, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Hong Kong-listed junket investor Jimei International Entertainment Group Ltd has announced the end of a partnership with NagaCorp Ltd for the promotion of not less than seven gaming tables within the latter’s NagaWorld casino (pictured), located in Cambodia’s capital Phnom Penh.

“This junket arrangement came to an end on January 31, 2017 as a result of the non-renewal of relevant contractual documents,” Jimei International said in its full-year results, filed on Wednesday.

The partnership had been established in May 2015.

Jimei International also said in its annual results filing it had terminated a framework agreement with two firms in relation to developing an “entertainment resort” project in Cambodia.

The deal had been announced by Jimei International in March last year. It envisioned a complex featuring hotel facilities, a golf course, theme park and “other entertainment and tourism business,” Jimei International said at the time. The firm did not mention whether there would be any gaming or where the resort would be located.

In Wednesday’s filing, Jimei International did not provide details on the reason for terminating the framework agreement for the Cambodia project.

In a separate filing – also dated from Wednesday – Jimei International stated the target date for completing a agreement between the firm and Macau-based junket operator New International Club Ltd had been again extended, this time to the end of June. The deal – enabling Jimei International to indirectly participate in Macau’s gaming promotion business through New International Club – was first announced in February 2015; according to the latest schedule, it should be completed by Friday (March 31).

Into the red

Jimei International on Wednesday reported a loss of HKD39.8 million (US$5.1 million) for full 2016, compared to a profit of approximately HKD8.7 million in 2015.

The loss was mainly attributable to an impairment loss on trade and other receivables of HK$100.8 million incurred in 2016, the firm stated.

For the 12 months ended December 31, Jimei International generated revenue of HKD193.1 million from its entertainment and gaming business, up by 8.0 percent year-on-year.

Jimei International has junket arrangements with two casino properties in Australia, namely The Star in Sydney and Crown Perth in Western Australia.

The firm did not declare a dividend.

Jimei International is the Hong Kong-listed portion of Macau veteran junket investor Jack Lam Yin Lok’s business interests.

Mr Lam is already involved – via a privately held business called Jimei Group – in junket operations at City of Dreams Macau, according to Jimei Group’s website. The group also runs Jimei Casino next door to the Grand Lapa hotel on Macau peninsula under an SJM Holdings Ltd gaming licence.

Jimei Group operated until recently the Fontana Casino at the Fontana Hot Spring Leisure Parks at Clark Freeport Zone on the main island of Luzon, and Fort Ilocandia Hotel and Casino in Laoag City in northern of Luzon.

The Philippines’ President Rodrigo Duterte had ordered in December the seizure of all gaming assets in that country belonging to Mr Lam for the latter’s alleged failure to pay the correct taxes, local media reported at the time. Prior to that, Mr Duterte had ordered the arrest of Mr Lam on accusations of bribery and economic sabotage.

The arrest order against Jimei Group’s Mr Lam was issued just a few days after 1,316 Chinese nationals were detained at premises linked to the Fontana Hot Spring Leisure Parks at Clark.

Earlier this month, a Philippine Senate committee concluded Mr Lam had been a victim of “extortion” from officials from the country’s Bureau of Immigration rather than an instigator of “bribery”.

Mr Lam is not known to have issued any public statement or made any public appearance since the late November raids at his Fontana premises. Mr Lam, a Chinese national, reportedly left the Philippines on November 29.

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