Rich Goldman issues profit warning for 19H2

Macau junket promoter Rich Goldman Holdings has issued a profit warning for the six months ended December 31, 2019, due mainly to the impact of the China-U.S. trade war on its gaming revenue, and the drop in tourists from Hong Kong due to continued social unrest. 

Rich Goldman also noted an increase in the group’s depreciation expenses resulting from the group’s hotel operation business following the completion of the acquisition of the remaining 70% interest in a hotel property in April 2019.

The loss is, however, partly offset by the increase in revenue from its money lending business. 

Speaking about the recent casino shut down, which was imposed by the Macau government in an effort to contain the spread of the coronavirus, Rich Goldman says it is currently assessing the impact of the suspension on the Group’s gambling business, which may, in turn, have a material adverse impact on the financial performance and position of the Group.