Suncity Group gross profit down 71 pct y-on-y in H1, warns possible delay in Hoiana project

Hong Kong-listed Suncity Group announced today that, due to a decrease in revenue from its property segment, its gross profit has dropped 70.8 per cent year-on-year in the first half of this year RMB51.6 billion (MOP58.3 billion/US$7.2 billion), the group’s most recent financial report indicated.

Total revenue generated by the group decreased by 32.7 per cent year-on-year to RMB307 million, with losses attributable to the owners being reduced by 25 per cent to RMB1.2 billion.

Suncity Group Holdings does not cover any of the junket operations associated with the Suncity brand.

The Hong Kong-listed company describes its business as mainly focusing on the development of residential and commercial properties as well as the leasing of commercial properties in Guangdong, Liaoning and Anhui Provinces, in Mainland China, with losses mainly attributed to the decrease in revenue from the property development segment which was reduced by some RMB150.7 million.

Suncity Group also provides hotel and integrated resort management and consultancy services and travel agency services, being an investor and hotel service consultant in the HOIANA integrated resort project in Hoi An South, Vietnam.

According to the financial report, Phase 1 of the construction of the integrated resort is expected to be completed between the end of 2019 and the first quarter of 2020.

The hotel will include more than 1,000 hotel rooms, a casino with 140 gaming tables and over 300 slot machines, as well as a golf course.

The Hoiana Project is expected to comprise of seven phases to be developed over a span of thirteen years on a site of approximately 985.5 hectares.

Suncity Group acquired Star Admiral, a joint venture that holds approximately 34 per cent in indirect equity interest in the Hoiana Project.