Hong Kong-listed Neptune Group, reported a net loss of HK$257 million (US$33.1 million) for the six months ended Dec. 31, 2015, compared to a net profit of HK$130.9 million in 2014, according to an interim report.
Neptune Group, an investor in the Macau VIP gambling sector noted the continuing contraction of Macau’s VIP sector and the effect on their junket operators. “None of our VIP junket operators are collectively clear on when their situation are going to evolve as business was sluggish and overall macroeconomic feel restive on the surface, tense beneath,” Neptune Group said in the report.
Revenue from commission on rolling turnover decreased by 53 percent year on year, to HK$133 million.
The group said until the China market stabilizes, their “hopes” will be placed on other businesses, including real estate and money lending. “The hope is our new business strategy to secure a stable investments return from other assets and money lending business will provide us some much needed leeway to weather such a tough moment.”
The company has resolved not to declare any interim dividend for the six months ended Dec. 31, 2015.