The group is involved in junket businesses at casino VIP rooms in Macau and receiving trade debts from customers through subsidiaries.
The group primarily operates in Macau and Hong Kong.
Management expects the company to report a loss of at least HK$18m (£1.7m/€1.9m/$2.3m) for the six months ended 31 December 2020.
The loss is attributed to various factors, including the lack of revenue from the gaming and entertainment business. The group’s Macau-based junket operator has been inactive since April 2020.
In comparison, the junket operator generated revenue of approximately HK$18m in the six months to 31 December 2019.
The group also experienced a decrease in revenue from its hotel operations business, with a decline of at least HK$2m in the 2020 interim period compared to the previous year. This decrease is due to a significant drop in tourist visits to Hong Kong.
Moreover, the group expects an impairment loss of around HK$12m on its held properties and a fair value loss of approximately HK$6m on its investment properties.
However, these losses were partially offset by a revenue increase of around HK$5m from the money lending business and the absence of amortization of intangible assets from the gaming and entertainment business compared to 2019.
The final results for the 2020 period are yet to be released.
