Suncity Listko Says Losing Chow Support Could Be Damaged

SunCity Group Holdings Inc., a Hong Kong-listed company controlled by detained casino junket boss Alvin Chauchukwah, has warned that its "financial status, business and operations" will be "negatively impacted" if it loses financial support "for any reason." The company is interested in several casino initiatives in the Asia-Pacific region.

The company made the announcement on Monday evening after trading was suspended for the entire day at the request of the company. It said it had asked to resume trading on Tuesday (30 November) at 9 a.m.

After being detained in Macau on Saturday, Mr. Chow has been held in Macau's prison on charges of joining a criminal group, illegal gambling and money laundering. On Friday, authorities in the mainland city of Wenzhou separately issued an arrest warrant for Mr. Chow on charges of promoting "cross-border gambling" to Chinese consumers.

SunCity Group Holdings had already warned of "substantial uncertainty" regarding its ability to sustain itself as a "continued concern" due to the small amount of cash flow relative to its capital commitments at the time, in its first half results reported on August 31.

Half-year cash outflows to June 30 were approximately 114.5 million yuan ($17.9 million), while the company's capital expenditure was 3.44 billion yuan.

Brokerage Sanford C. Bernstein, Inc., said in a note on Monday providing commentary on Mr. Chow's detention that Suncity Group Holdings did not include any junket business, but "Listco's future is in doubt for us in light of China's ongoing two-year campaign against gambling abroad." "We expect a negative impact on publicly traded companies."

Suncity Group Holdings, through its wholly owned subsidiary Suntrust Home Developers Inc., is participating in a casino hotel under construction at the Westside City initiative in Entertainment City, Manila, Philippines.

He is also an investor in the hotel and gaming business (pictured) in Russia's Federal Maritime Province through the Hong Kong-listed Summit Ascent Holdings Inc.

Suncity Group Holdings is also involved in a joint venture at Hoiana Casino Resort in Quang Nam, Vietnam, which opened in late June 2020.

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