LET Group expecting HK$387 mln in net losses for H1

LET Group Holdings Limited – the company previously Suncity Group – has issued a statement that it expects to record HK$387.1 million (US$49.3 million) in net losses for the first half of this year, a turnaround from the HK$251.1 million in net losses from the same period of last year.

The group justified the change on the suspension of the travel related products and services business since December 2021 and the cessation of the group’s travel related products and services and hotel and integrated services since April of this year.

The LET Group added that despite overall operations still being impacted by COVID-19 and relevant social distancing and travel-related restrictions, it expects to record an increase in revenue from continuing operations of approximately 31.7 per cent for the six months ended 30 June 2022, mainly thanks to revenue increase from the operation of its Tigre de Cristal resort in Russia.

Suncity announced the proposed name change to Leisure Entertainment Taste (LET) Group Holdings to investors, as that it hoped the new name could bring “a new atmosphere to the company’s corporate image and identity.”

The group’s image was greatly impacted by the arrest of the CEO of junket operator Suncity and a leading figure in junket’s Hong Kong-listed arm, Suncity Group Holdings Ltd, Alvin ChauCheok Wa, in November 2021.

Chau, together with several top-level Suncity management directors, was detained by Macau police authorities following an arrest warrant issued by authorities in Mainland China’s Wenzhou city over alleged cross-border gambling activities, and will face trial together with 20 people in September 2.

Suncity Group, whose operations did not include Macau VIP promotion operations, was principally engaged via Suntrust Resort Holdings, Inc. and its subsidiaries in the development and operation of an integrated resort in the Philippines; in the operation of the Tigre de Cristal integrated resort in the Primorye Region in Russia via Summit Ascent, in property development in Japan, and in management and operation of malls in The People’s Republic of China.