GGRAsia – Jimei’s 1H profit nearly halves despite higher revenue

Jimei’s 1H profit nearly halves despite higher revenue

Sep 02, 2016 Newsdesk Latest News, Macau, Top of the deck

Hong Kong-listed junket investor Jimei International Entertainment Group Ltd on Wednesday reported net profit of HKD28.6 million (US$3.7 million) for the first half of 2016, down by 45.9 percent from the prior-year period. That was despite an 18.1-percent year-on-year increase in revenue, to HKD132.7 million.

“The decrease in profit … was mainly attributable to the increase in finance costs,” Jimei International said in a filing to the Hong Kong Stock Exchange. Such costs came at HKD32.1 million for the six months to June 30, up from HKD3.2 million a year earlier.

“Other factors affecting the amount of profits for the period includes the impairment loss on trade and other receivables of approximately HKD56.3 million and the gain on change in fair value of derivative financial liabilities of approximately HKD68.7 million,” the firm added.

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 three Macau casino hotels including Wynn Macau, Grand Lisboa and City of Dreams, according to Jimei Group’s website. The group also runs Jimei Casino (pictured) next door to the Grand Lapa hotel on Macau peninsula under an SJM Holdings Ltd gaming licence.

Outside Macau, Jimei International has increased its presence in Australia via the signing of a junket arrangement in November with Australia-listed The Star Entertainment Group Ltd. In February 2015, Jimei International had signed a similar deal with Star Entertainment’s Australia market rival Crown Resorts Ltd, for the promotion of approximately eight to 10 gaming tables at Crown Perth’s casino in Western Australia.

In May 2015, Jimei International had entered into a partnership with NagaCorp Ltd for the promotion of not less than seven gaming tables within the latter’s NagaWorld Casino, located in Cambodia’s capital Phnom Penh. Jimei Group additionally operates Fontana Leisure Parks and Casino at Clark Special Economic Zone in the Philippines

For the six months ended June 30, Jimei International generated revenue of approximately HKD130.6 million from its entertainment and gaming business, up by 16.2 percent year-on-year.

In Wednesday’s filing, Jimei International said it would “continue to explore the possibility of further extending its business to further broaden its income sources”.

Jimei International in March announced that it had entered into a framework agreement in relation to developing an “entertainment resort” project in Cambodia.