Suncity swings to profit in 2017 despite fall in revenue

Hong Kong-listed Suncity Group Holdings posted profits of CNY$196.9 million in 2017, up from a loss of CNY$712.3 million in the prior-year period.

In an earlier filing, Suncity said it expected net profit to increase as a result of a reversal of provision for litigation of CNY$289 million and reversal of impairment loss of CNY$438 million.

The positive results came despite a 50.9 percent decrease in revenue to CNY$544.7 million, and a 66.5 percent decrease in gross profit to CNY$182.1 million.

Suncity said the lower revenue was due to lower contributions from property sales and rental income – as a result of a decrease in occupancy rate during the year.

The group however saw an increase in revenue from the provision of travel related products and services and has also seen new revenue come from the provision of hotel and integrated resort management and consultancy services – namely, its Hoiana project in Vietnam.