Suncity Group revenue falls 22.8pct y-on-y in 2019

Hong Kong-listed Suncity Group has indicated in its latest financial report that it has reported a 22.8 per cent year-on-year fall in revenues in 2019, with total results amounting to RMB611.8 million (MOP688.3 million/US$86.2 million).

Gross profit generated by the group also went down 57.8 per cent year-on-year to about RMB100 million, with the company attributing to changes in fair value of derivative financial instruments, which amounted to some RMB521.7 million in losses for the year, plus a decrease in revenue from the sale of properties.

The group listed at the Hong Kong Stock Exchange does not include Suncity’s junket and VIP gaming operations in Macau, but covers real estate operations, plus hotel and integrated resort general consultancy services, and travel services.

Revenue from travel-related services generated some RMB525.5 million,
a 3.2 per cent year-on-year drop, with hotel consultancy services falling 27 per cent to RMB14.5 million.

As of December 2019, the Group had two property development projects in the PRC, namely Le Paysage in Shenzhen, Guangdong Province and the Landale located at Chaohu, Anhui Province.

The group also has several agreements have been signed with integrated resorts in Vietnam and Cambodia with Suncity having invested in several projects to either be developed or expanded.

The Phase 1 of the Hoiana integrated resort in Vietnam is currently under development and is expected to be completed in the second quarter of 2020 and it 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 company also became last year a co-developer of a resort in Entertainment City, Manila, Philippines for a 5-star hotel with at least 400 rooms, and a casino establishment with 400 gaming tables and 1,200 slot machines for both mass and VIP markets.

The Group also holds approximately 24.74 per cent equity interest of Russian gaming operator Summit Ascent with Phase 2 of the Tigre de Cristal property under review and is finalizing conceptual designs.

‘It is targeting an opening of in 2022. This new integrated resort is expected to double the VIP and mass gaming tables, slots, and have at least twice the lodging capacity of the first property. The plans include four restaurants and bars,
additional retail offerings, and an indoor beach club and spa,’ the company noted.