Junket operator and property developer Suncity Group Holdings Limited has announced RMB1.05 billion (US$160.15 million/MOP1.29 billion) in loss attributable to the owners of the company from non-gaming business segments during the six months ended June 30, mainly due to ‘forfeiture of deposits from purchasers,’ according to a filing with the Hong Kong Stock Exchange on Monday after trading hours.
Losses incurred during the same period a year earlier amounted to RMB64.91 million.
A significant increase in other losses during the period were mainly attributable to change in fair value of financial derivatives of nearly RMB697.7 million and loss and provision for litigation in the aggregate amount of some RMB411.8 million.
During the period, revenue of the company amounted to RMB333.21 million, a 38.31 per cent increase from the RMB205.52 registered in the same period a year prior.
The company further noted that the increase in revenue was mainly attributable to RMB122.10 million generated in Macau from the provision of travel agency services by Sun Travel Ltd., an indirect wholly-owned subsidiary acquired by the company in August 31, 2016 – revenue from the local travel services segment amounted to RMB4.84 million a year earlier.
Gross profits amounted to RMB145.36 million from RMB98.76 million the year before, with the group noting that gross profit margin in property development has increased to 60.56 per cent in the first half of 2017 from 41.36 per cent in the first half of 2016.
Suncity also said in the filing that ‘it is devoting time to optimise its business platform,’ by broadening sales channels such as the development of its own Online Travel Agency (OTA) mobile phone application this year.
OTA App will provide customers with hotel accommodation, ticket reservation service, and other travel related products.
By mid-month, the group had announced the launch of mobile phone app ‘Sun Finance,’ which enables VIP clients to keep track of their account information, earnings history, and rolling chip activities.
The company said then it was planning to create within the new app an embedded link to another app the company referred to as ‘Sun Travel,’ which would enable the promotion of the group’s products and services via the identification of travel spending patterns of clients.
Other revenue of the company during the six months under review was generated by the leasing of property in Shenzhen, and the development and sale of property in Shenzhen (completed project), Zhongmiao Town in Anhui Province and in the Fushun Economic Development Zone in Liaoning Province (projects under development).
Properties developed by the group consist mainly of high-rise and luxury high-rise buildings and a villa, totalling some 6,454 square metres of aggregate mass floor.
In June 2017, Suncity also entered into a memorandum of understanding to acquire Star Admiral Limited – a company indirectly owned by Suncity’s Chairman and Executive Director Alvin Chau Cheok Wa – with a 34 per cent equity interest in an integrated resort (IR) in Hoi An, Vietnam.
The company noted that during 2016 Suncity Group Management and Consultancy Limited, another indirectly wholly-owned subsidiary of the company, ‘has been set up for the opportunities of hotel and integrated resorts in Asian countries such as Korea, Malaysia and Vietnam.’