Success Universe expects 1H loss due to fair value changes

Aug 20, 2024 Newsdesk Latest News, Macau, Top of the deck  

---

Success Universe Group Ltd, an investor in the Macau casino hotel Ponte 16 (pictured in a file photo), says it expects to post a loss for the first six months of this year in the range of HKD30 million (US$3.9 million) to HKD50 million, due to fair value losses on its overseas-listed equity securities and investment properties.

The firm had recorded a profit of HKD153.8 million for the first half of last year. It posted a net profit of HKD169.3 million for the full year 2023, compared with a net loss of nearly HKD287.1 million in the prior year.

Success Universe is a joint venture partner – with a unit of casino concessionaire SJM Holdings Ltd – in Ponte 16, a property located in Macau’s Inner Harbour district. The gaming venue is considered a “satellite” casino of SJM Holdings.

Success Universe said in a filing on Monday to the Hong Kong Stock Exchange that the expected fair value losses on the group’s overseas-listed equity securities and investment properties, “as well as the write-down/impairment loss of carrying amounts of the group’s stock of properties and leasehold land and buildings”, were “all unrealised in nature and are non-cash items.”

The firm stressed these fair value losses would “not affect the cash flows” of the company.

Success Universe said in the same filing that it expected to announce its unaudited consolidated interim results for the first half of this year later this month.

The firm is currently preparing for its long-anticipated extension to Ponte 16. The expansion plan is likely to involve an investment of “HKD500 million to HKD600 million,” according to the firm’s deputy chairman, Hoffman Ma Ho Man, in a statement made in February.

---

---