Jimei International profits halve in 16H1

Jimei International Entertainment Group Ltd posted nearly a halving of profits for the first half of 2016, according to its filing to the Hong Kong Stock Exchange.

Profit attributable to owners of the company for the half year ended June 30, 2016 totaled HK$28.6 million ($3.7 million), compared to HK$52.8 million for the prior-year period in 2015.

According to the junket investor, the decline in profit was due to a rise in finance costs of approximately HK$32.1 million during the period, up from HK$3.2 million in 15H1.

Other factors included the impairment loss on trade and other receivables of approximately HK$56.3 million and the gain on change in fair value of derivative financial liabilities of approximately HK$68.7 million.

For the six months ended June 30, Jimei International generated revenue of approximately HK$130.6 million from its entertainment and gaming business, up by 16.2 percent year-on-year, total revenue was HK$132.7 million for the half year.

The Jimei Group runs three businesses in Macau. It is the operator of Jimei Casino, and operates junket rooms at the Wynn International Club, City of Dreams International Club and the Leroy International Club.

Outside of Macau, the group has signed a junket agreement with Crown Perth and The Star in Australia, and has a junket arrangement with NagaWorld in Cambodia.

Jimei says it “shall continue to explore the possibility of further extending its business to further broaden its income sources.”