China Star expecting interim loss for 16H1

Gaming services firm China Star says it is expecting to record a loss of approximately HK$30 million ($3.9 million) to HK$50 million for the six months ended June 30, 2016, compared to a profit of HK$168.5 million in 15H1.

According to the company’s filing to the Hong Kong Stock Exchange, the loss is mainly attributed to a decrease in gross profit due to a significant decrease in service income from gaming operations, the recognition of unrealized loss of approximately HK$13 million, and the recognition of loss on fair value change of investment properties of approximately HK$25 million.

The loss for the period was partially offset by a 46 to 50 percent increase in interest income of approximately HK$35.8 million, said the company.

China Star currently owns and operates a casino hotel called Lan Kwai Fong, and runs gaming there under a license from SJM Holdings.

The casino hotel has a total of 84 gaming tables and 70 slot machines.