Suncity reports widened loss in 18H1, secures loan

Junket operator SunCity Group reported a significantly widened loss of RMB$1.6 billion (US$235.0 million) for the six months ended June 30, 2018.

In a profit warning released last week, Suncity said the loss is mainly attributable to a change in fair value of derivative financial instruments.

The company also saw a year-on-year increase in the cost of sales, and other operating expenses, according to the group’s financial statement.

Revenue however, increased by 25.8 percent year-on-year in 18H1, reaching RMB 456 million.

Suncity said this was mainly attributable to the continued growth in sales of travel related products and services and the new source of income from provision of hotel and integrated resort management and consultancy services since the second half of 2017.

Suncity’s businesses include property development, property leasing, provision of hotel and integrated resort management and consultancy services, and provision of travel related products and services.

On Monday, Suncity also announced that subsequent to the end of the 18H1 reporting period, the group obtained a HK$400 million loan from “a related company which is beneficially owned” by chairman Alvin Chau.