Suncity Group reverts to profits in H1

Hong Kong-listed Suncity Group reported a total of RMB35 million (MOP43.3 million/US$5.4 million) in gross profit for the first half of this year, as total revenues doubled to RMB148.7 million from the same period of last year, the group’s latest financial report noted.

Profit for the period attributable to equity holders of the company reached a positive RMB320 million after RMB118.5 million in losses were reported in the first half of 2020.

The Hong Kong-listed group does not include Suncity’s VIP junket operations, with its business cope mainly covering property development and leasing, provision of hotel and integrated resort general consultancy service, and operation of integrated resorts.

The group led by Alvin Chau, described its principal activity as an investment holding, mainly through Suntrust Home Developers, Inc. and its subsidiaries in charge of the development and operation of an integrated resort in the Philippines; Summit
Ascent Holdings Limited and its subsidiaries in the operation of the hotel and gaming business in the Integrated Entertainment Zone of the Primorye Region in Russia.

Phase II planning and construction of Tigre de Cristal are underway except for minor delays due to COVID-19, and when Phase I & II are both running in 2023, the property will triple in its number of rooms, and double in number in its gaming facilities.

As for the group’s Philippines Westside City Project project, construction works are on-going even though Manila was under lockdown.

‘The foundation works have been completed, cranes are now being erected and the focus is to construct the building upwards. Westside City Project is expected to be ready in 2023,’ the group noted.

The Westside City Project will include pproximately 300 gaming tables, over 1,300 electronic gaming machines and more than 450 five-star hotel rooms plus shopping malls, theatres, restaurants, and shopping streets.

Suncity also held approximately 34 per cent in indirect equity interest in an Hoiana integrated resort, which has opened gradually since June, 2020.

‘The commencement of operation of Hoiana was in the midst of the pandemic when
international travel restrictions were in place which had 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,’ the group noted in the financial report.

The HOIANA resort generated US$6.8 million in total revenue in the first half of 2021 – US$5.1 million from gaming – and ended with a negative Adjusted EBITDA of US$20.6 million.

‘In Hoiana, hotel rooms are being rolled out gradually in Phase I according to demand. Hoiana Shores Golf Club, Hoiana Suncity, Hoiana Hotel & Suites and New World Hoiana Hotel are now operational. Phase II and beyond are planning in progress. Land plots are now being prepared for development,’ Suncirt added.

The group also plans to develop a diving resort and in Japan, located in Okinawa with 40 villas and a hotel with more than 100 rooms, and a skiing resort in Niseko, Hokkaido, near Grand Hirafu Mountain, with 50 villas, 20 townhouses and a hotel with over 40 rooms.