GGRAsia – Suncity Group listco terminates travel biz

Suncity Group listco terminates travel biz

Apr 04, 2022 Newsdesk Latest News, Macau, Top of the deck

Casino investor Suncity Group Holdings Ltd says it has ceased the operations of its “travel and related business segment” with effect from Friday (April 1). The decision was confirmed in a filing to the Hong Kong Stock Exchange.

The company had suspended its travel business segment since December 1, 2021, as it warned that Macau junket operator Sun City Gaming Promotion Co Ltd – identified as a key supplier of hotel accommodation products – “would not be able to supply hotel accommodation products” to the listed entity.

Suncity Group Holdings also said in early December that Alvin Chau Cheok Wa, its then chairman and chief executive, was resigning from those posts, “in view of the pending legal proceedings against him”. In November, Mr Chau was detained in Macau on suspicion of facilitating illegal gambling overseas for Chinese customers.

In Friday’s filing, the Hong Kong-listed company said its board “decided to cease the group’s travel and related business with effect from 1 April 2022.” The segment accounted for approximately 12.6 percent of the group’s aggregate revenue from continuing operations in full-year 2021.

The group said the decision took into consideration several factors, including: that Sun City Gaming Promotion has been unable to supply hotel accommodation products since December 1, 2021; the disposal of Suncity Group Holdings’ aircraft on December 30, 2021; and the continual adverse impact on travel business by the COVID-19 pandemic.

Suncity Group Holdings slipped to a HKD258.3-million (US$33.0-million) loss in 2021, versus a profit of HKD884.8 million in 2020. The company said in its annual results last week: “There is fairly limited supply of VIP gaming facilities to cater to high-end demand since Macau has now virtually left the VIP junket business.”

The group said at the time that it was no longer able – as it had in previous years – to rely on Mr Chau’s financial support, and was yet to appoint a new chairman.