Hong Kong-listed gaming equipment and casino services firm Paradise Entertainment Ltd is renewing for 2021 a “supply framework agreement” with an in-law of Jay Chun, the firm’s chairman (pictured).
Feng Linyi, Mr Chun’s brother-in-law, is described in the Thursday filing as a person controlling companies which will “purchase and/or lease… products from the group” at an 8 percent to 10 percent discount either to Paradise Entertainment’s list prices or to its normal rental fees.
Paradise Entertainment said it would “regularly collate updated information” on the prevailing market prices and rental rates of such products, in order to make sure that selling prices and/or rental fees under the contract “are no less favourable to the group than those offered by the group to other comparable independent third parties.”
The 2020 partnership up to October 31 this year generated for Paradise Entertainment transactions amounting to just HKD428,000 (US$55,200). The 2019 agreement had generated just under HKD1 million.
The decline for 2020 was “mainly due to the Covid-19 pandemic which has swept the globe and many countries, and hit hard on the casino gaming markets including those in Australia, Canada and in particular the United States,” said the Paradise Entertainment filing.
The annual value cap for the 2021 supply agreement will be HKD35 million, according to Thursday’s filing.
Paradise Entertainment said in an August filing that it had slipped to a HKD109.4-million net loss in the first half this year, compared to a HKD19.4-million profit in the initial six months of 2019.
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