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Suncity Group reports reduced 1H20 loss, first gaming revenue for Hoiana

Hong Kong-listed gaming and real estate investor Suncity Group reported a loss of CNY118.6 million (US$17.3 million) in the six months to 30 June 2020, reduced from a loss of CNY1.25 billion (US$182.1 million) over the same period in 2019.

The improved result came despite COVID-19 impacting most of the group’s business segments with revenue down 70% year-on-year to CNY93.7 million (US$13.6 million). Suncity Group’s listed arm has an interest in Vietnamese integrated resort Hoiana and Russia’s Tigre de Cristal, develops and leases property in mainland China, offers travel services, and provides hotel and integrated resort management services including at Hoiana.

The 1H20 loss was aided by a “gain in respect of change in fair value of derivative financial instruments of approximately CNY588.2 million (US$85.7 million),” Suncity said.

While COVID played a big role, the first half of the year nevertheless proved to be a significant one for Suncity Group with Hoiana holding its exclusive preview opening on 28 June. The company revealed that Hoiana’s casino actually lost US$1.5 million on the three days it was operational for the June quarter, but “recorded positive gross gaming revenue in both July and August.”

“Hoiana has now officially entered the exclusive preview phase,” Suncity said.

“As COVID-19 continues to overhang, international travel restrictions plague casino revenue opportunities. This has affected our original marketing and promotion plans to international tourists as the target audience has been temporarily shifted to foreign passport holders’ domestic market. Once restrictions are lifted, we are confident that international tourists will return to Danang and Hoi An area.

“Given current market situation, hotel rooms will be rolled out in phases according to the demand of the market to balance cost and benefits.”

Suncity Group Chairman Alvin Chau said the launch of Hoiana was transformative for the group‘s long-term aspirations.

“Today, Suncity’s logo is displaying high in the air on the mass gaming floor of Hoiana Suncity – a first time for Suncity Group,” he said.

“Previously, Suncity was nobody in the integrated resort scene. Now we own gaming licenses, integrated resorts as well as a proprietary customer database built over years in travel operations. I trust that the best is yet to come.”

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