Saturday, June 25, 2022

Significantly widened loss hurts SunCity Group in 17H1


Macau junket operator, Suncity Group Holdings, reported a significantly higher loss for the six months ending June 30, mainly due to legal costs and a change in the fair value of derivatives.

The loss was  RMB 1.1 billion, compared to a loss of RMB 64 million in the prior year period.

While revenue increased 62.1 percent year-on-year to RMB 333.2 million, attributed mainly to the provision of travel agency services by Sun Travel, it was more than offset by a significant increase in other losses during the period, which included a change in fair value of financial derivatives (resulting in a loss of RMB 697.7 million), and loss and provision for litigations of RMB 411.8 million.

Other gains and losses also included a gain on reversal of impairment loss on trade and other receivables of RMB 150 million.

Suncity also said it saw an increase in selling and distribution expenses and general and administrative expenses in the half year.

Looking ahead, Suncity says it is aiming to optimize the business platform of its travel agency service, as well as broaden its sales channels such as development its own Online Travel Agency cellphone application in 2017.

In February, Suncity Group Management and Consultancy Limited, a subsidiary of the company, entered into a non-legally binding memorandum of understanding with an independent third party, regarding the provision of consultancy and management services to an integrated resort project to be developed in Vietnam.

In June, another subsidiary of Suncity Group Holdings, Goal Summit Ltd, signed a MOU with Suncity International Holdings to acquire the entire equity interest in and shareholders loan to Star Admiral Ltd., a company involved in an integrated resort project in Hoi An South in Vietnam.

Suncity says it expects to enter into a formal agreement for the two projects in Vietnam by the end of the year.

 

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