Macau (MNA) – The former operator of Lan Kwai Fong Hotel, China Star Entertainment Limited, has issued a profit warning on Tuesday.
According to a file of the company with the Hong Kong Stock Exchange, the group noted it will record a profit for the financial year ended December 31, 2017 as compared to a loss of some HK$335.61 million recorded during the same period a year before.
The company claims the expected profit is mainly attributable to ‘the substantial increase in the recognition of unrealised gain arising on change in fair value of financial assets at fair value through profit or loss’ and ‘the absence of gross loss incurred in the new film released in the previous year.’
The warning is based on a preliminary review on the unaudited consolidated management accounts of the Group for the year ended December 31, 2017 and information currently available to the Board.
The sale of hotel Lan Kwai Fong to local businessman Chan Meng Kam was completed on January 2018, after Paradise Entertainemnt Limited, headed by local businessman Jay Chun, withdrew its intention to acquire the property.