Summit Ascension Announces Loss Of Up To US$6.5 Million In Q2
Hong Kong-listed Summit Ascent Holdings said on Tuesday it expects a net loss of less than HK$50 million ($6.5 million) in the first half of 2020 due to the negative impact of COVID-19. The company posted a profit of HK$42.8 million in the first six months of 2019, according to an earlier filing.
Summit Ascension is the main promoter of the Tigred de Crystal Casino Resort (pictured) in Russia's Far East, which owns a 60% stake in Oriental Regents Inc., the property's operator.
Summit Ascent said in Tuesday's filing that the outbreak of COVID-19 had a "huge impact" on the group's gaming and hotel operations in the six months to June 30. The Russian government has temporarily banned foreigners, including Hong Kong and Macau, from entering the country, and suspended gaming operations at Tigred Crystal from March 28 as a measure against the COVID-19 pandemic.
The casino investor said the move resulted in a "significant decrease" in unaudited consolidated earnings of "less than about 63% compared to the same period in 2019." Summit Ascent reported gross net income of HK$257.3 million in the first half of 2019.
Tigred de Crystal has been authorized by local authorities to resume operations from July 16, outside the reporting period.
Hong Kong-listed Suncity Group Holdings Ltd is the largest shareholder of Summit Ascent. The company is in the process of increasing its stake in the company. Suncity Group Holdings is controlled by Macau junket boss Alvin Chau Cho Check Wa.
In a separate filing on Tuesday, Suncity Group Holdings announced a circular providing shareholders with more information on the acquisition of an additional stake in Summit Ascent. The transaction will provide additional funding for the expansion of Tigre de Cristal and Suncity Group Holdings will become the majority shareholder of Summit Ascent.
Tigred Crystal's adjusted real estate earnings before interest, taxation, depreciation and amortization were HK$9.7 million in the first quarter of 2020, down 83% year-over-year, according to a filing from Suncity Group Holdings.
Net revenue from gaming operations fell 27.9% year over year in the first quarter of 2020 to nearly HK$88.4 million and VIP revenue more than halved to HK$16.4 million. Revenue from hotel operations was HK$3.6 million, down 63.3% from the first quarter of 2019. Accommodation operations were disrupted throughout the second quarter.
https://www.reelgame.site