GGRAsia – Vanuatu, Cambodia ops slim Amax fiscal year loss

Vanuatu, Cambodia ops slim Amax fiscal year loss

Jun 29, 2018 Newsdesk Latest News, Macau, Top of the deck

Casino investor Amax International Holdings Ltd reported a net loss of approximately HKD52.8 million (US$6.7 million) for the financial year ended March 31, compared to a loss of about HKD983.9 million for the prior-year period.

Revenue of the group for the 12 months ended March 31 was about HKD62.2 million, up from HKD11.4 million for the corresponding period a year earlier, the company said in a Hong Kong filing on Thursday. “The increase in revenue was mainly attributable to the revenue derived from the gaming business in Vanuatu which has continued to achieve progress after its operation commenced in July 2016 and the stable revenue contributed by the business in Cambodia,” the firm said.

Amax acquired 60-percent equity interests in Forenzia Enterprises Ltd in 2014. The latter firm principally operates gaming business in Vanuatu under an interactive gaming licence valid for a period of 15 years, from February 2014.

Amax International announced in late November 2017 a three-year deal to rent a VIP room at a casino in Poipet, Cambodia, identified as “Genting Crown Casino”. GGRAsia understands the venue has no connection with either Australia’s Crown Resorts Ltd or Malaysian gaming operator Genting Bhd and its units. Under the deal, the operation of 13 VIP baccarat tables in the VIP room was outsourced by Amax to an “independent operator”, according to Thursday’s filing.

In the 12 months ended March 31, Amax International got most of its revenue – HKD34.1 million – from the VIP room operation in Cambodia.

The firm had consolidated net current liabilities of approximately HKD161.6 million as at March 31.

The performance of Greek Mythology (Macau) Entertainment Group Corp Ltd is not featured in the annual results. That entity – 24.8 percent owned by Amax International – had operated gaming tables in Casino Greek Mythology in Taipa under the SJM Holdings Ltd gaming licence.

Casino Greek Mythology has become part of a business wrangle between Ng Man Sun, chairman and chief executive of Amax International, and his former domestic partner. The casino was meanwhile shut down by Macau’s regulator, the Gaming Inspection and Coordination Bureau, on December 31, 2015 at the request of SJM Holdings.

The Beijing Imperial Palace Hotel, where Casino Greek Mythology was located, has also been shuttered since July 22, 2016 under the order of the Macao Government Tourism Office due to “serious administrative irregularities” and “illegal reconstructions”. The closure was for a period of six months. The operating licence was later handed back to the city’s authorities before the sanction expired.

Media reports in May mentioned a new dispute, now between Amax International and interests associated with Alvin Chau Cheok Wa, boss of Macau junket investor Suncity Group, over the control of Beijing Imperial Palace Hotel.

In Thursday’s filing, Amax International warned that, based on legal advice, the legal proceedings eyeing to allow the company to get direct access to the financial information of Greek Mythology were “expected to take further eigth to 18 months.”

Amax International additionally said it was also looking into ways “to source and/or set up projects and/or business in relation to blockchain technology and cryptocurrency which must be subject to compliance with relevant law and regulations.”