A profit alert for its investors was provided by investment company Rich Goldman Holdings Ltd, stating the group expects to lose no less than HKD18m ($2.3m) for the interim period of 2020.
The total shall be based on the consolidated unaudited data for the six months ended 31 December 2020.
In 2019, the group noted that the profit for the same duration was around HKD18m.
According to the statement, the loss is due to the lack of revenue from the group’s gaming and entertainment business and the need to suspend its junket operations in Macau as of April 2020. The group partnered with SJM to run gaming tables at the Grand Lisboa casino until then. However, Rich Goldman recently signed an agreement in Manila with Solaire Resort & Casino to run a junket business.
During the 2020 interim period, the group’s hotel operations also lost HKD2m, mainly due to a drop in tourism in Hong Kong.
The group said in a statement that other factors for the loss include expected impairment loss on the properties and equipment that amount to approximately HKD12m, and “an expected fair value loss of the group’s investment properties of approximately HKD6m to be recorded in the 2020 interim period.”
The loss was partly offset by the money lending business of the group that earned HKD5m as well as the lack of amortization of intangible assets for the period from the gaming and entertainment business. The group noted it was just a preliminary assessment and in the final analysis, the amounts could change.