Suncity Group Holdings Ltd says it expects to record a profit “in the range of CNY180 million [US$27.8 million] to CNY240 million” for the first six months of 2021. That compares with a loss of CNY118.6 million for the first half of last year, said the company in a Tuesday filing.
Suncity Group Holdings is led by Alvin Chau Cheok Wa (pictured in a file photo), who also controls privately-held Macau casino junket brand Suncity Group. The Hong Kong-listed company has a number of investments in casinos in the Asia-Pacific region.
In its latest filing, Suncity Group Holdings said the Covid-19 pandemic had “continued to negatively impact” the group’s overall businesses. The firm added that revenue from “travel-related products and services” had “significantly decreased” to CNY26.9 million for the six months ended June 30, compared to CNY67.7 million in the prior year period.
Suncity Group Holdings has invested in Hoiana, a casino resort in Vietnam, and a Philippine unit is involved in developing a casino hotel in the Westside City scheme in Manila, in the Philippines.
The company also has an investment in Hong Kong-listed Summit Ascent Holdings Ltd, the promoter of the Tigre de Cristal casino resort in Vladivostok, Russia. The latter firm said on Tuesday it had narrowed its first half loss to HKD131,000 (US$16,693).
In Tuesday’s statement, Suncity Group Holdings said that, despite the expected fall in revenue, it anticipated to record a net profit for the reporting period. That was because of: a gain on change in fair value of “derivative financial instruments” of the group, amounting to approximately CNY449.4 million; and a gain on the disposal of the entire equity interest in mainland China-based real estate firm Access Achievement Ltd, to be reported as part of the profit for the period from discontinued operations, at approximately CNY147.1 million.
Suncity Group Holdings said such gains were however partially offset by finance costs of approximately CNY123.1 million; and the share of loss of a joint venture of approximately CNY139.9 million.
Suncity Group Holdings said in March its consolidated adjusted loss before interest, taxation, depreciation and amortisation (EBITDA) for full-year 2020 had widen to CNY105.2 million, versus CNY59.4 million in 2019. Still, the group reached a net profit of CNY786.4 million for the period, helped by “non-cash” operations.
Nov 28, 2022The stock prices of Hong Kong-listed firms directly linked to Macau casino operations rose in Monday trading, following the Saturday announcement that the six incumbent licensees had each been...
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