Suncity Group Holdings Ltd says it expects to record a profit attributable to shareholders of about CNY750.4 million (US$115.3 million) for full-year 2020, despite a decrease in revenue for the period. Such profit compares with a net loss of just above CNY1.48 billion in 2019, said the company in a Monday filing.
Suncity Group Holdings is led by Alvin Chau Cheok Wa, 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, the Suncity listco said the Covid-19 pandemic had “significantly impacted” the group’s overall businesses, with revenue for full-year 2020 declining to CNY199.3 million, from CNY611.8 million a year earlier.
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.
In Monday’s statement, Suncity Group Holdings said that, despite the fall in revenue, it expected 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 nearly CNY1.36 billion; a gain of approximately CNY213.5 million due to a change in fair value of convertible bonds as a result of the extension of maturity dates of convertible bonds it had issued during 2020; and a net gain of about CNY200.7 million on acquisition of shares in Summit Ascent.
Such gains were however “offset” by an aggregate loss of about CNY1.01 billion related to factors including loss of fair value of investment properties and finance costs, said Suncity Group Holdings.
In February, Suncity listco said it was to receive a cash payment of circa CNY155.3 million for disposal of a loss-making mainland China property development and leasing firm with interests in Guangdong province.
Oct 25, 2021A senior executive at the promoter of casino resort Tigre de Cristal (pictured in a file photo), in the Russian Far East, says its business has been well supported by domestic customers seeking...
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