China Star posts $43.2 million loss in 2016

China Star Entertainment, operators of the Hotel Lan Kwai Fong in Macau, recorded a loss of HK$335.6 million (US$43.2 million) for the year ended Dec. 31, 2016.

The loss represents a decrease of 411 percent year-on-year as compared to a profit of HK$107.9 million in the previous year.

China Star said the loss was mainly attributed to a significant decrease in revenue from service income from gaming operations, as well as the gross loss incurred in its new film released during the year of approximately HK$222.9 million.

The company also made a loss of HK$18.9 million “arising on change in fair value of financial assets classified as held for trading investments as compared to gain of HK$99.6 million recognized in the previous year.”

The company added it also incurred a loss on the fair value change of investment properties of approximately HK$33.4 million during the year.

The board did not recommend the payment of a final dividend for the year ended Dec. 31, 2016.