Hong Kong-listed Suncity Group ended 2020 with RMB786.4 million (MOP958.1 million/US$119.6 million in net profits despite the pandemic outbreak.
The improvement from the RMB1.4 billion in net losses reported the year prior was attributed by the group to a gain on change in fair value of derivative financial instruments of approximately RMB1.3 billion.
The group held almost HK$700 million in convertible bonds that had their maturity date extended to 2022.
The change from losses to gains was also helped by a change in fair value of convertible bonds of approximately RMB213.5 million and a net gain on bargain purchase on the acquisition of Russian operator Summit Ascent Holdings Limited.
Still, the group headed by Alvin Chau still reported a 67.4 per cent year-on-year drop in revenues, which amounted to some RMB199.3 million, and some RMB105.2 million in consolidated Adjusted EBITDA.
An RMB415.8 million loss on change in fair value of its investment properties and
some RMB345.6 million also partially offset Sunictiy’s profits for the year.
Most of the group’s revenue comes from property development, property leasing and management and operation of malls, provision of hotel and integrated resort general consultancy services, provision of travel-related products and services, plus operations on a developing integrated resort in the Philippines and in the Russian Federation.
The Hong Kong-listed group’s operations do not cover Suncity’s junket business in Macau.
TheHoiana integrated resort in Vietnam – in which Suncity holds 34 per cent – also generated some US$4.8 million since its gradual opening in June, 2020.
‘The commencement of operation of Hoiana was in the midst of the pandemic when international travel restrictions were in place which had a significant impact on its business performance. The Group will continue to ramp up the property to prepare for more VIP rooms, hotel rooms, additional food & beverage and retail outlets,’ Sunicty noted in the report.
Suncity Group also held RMB2.2 billion in bank balances and cash, pledged bank deposits and restricted bank deposits, in aggregate as of December 31, 2020.