LET Group Holdings expects to post US$49.3m loss for H1

However, the company expects to record an increase in revenue from continuing operations of approximately 31.7 per cent.

Macau.- LET Group Holdings, the company formerly known as Suncity Group Holdings Limited has reported that it expects to record a loss attributable to Shareholders of approximately HK$387.1m (US$49.3m) for the first half of the year. That compares to a profit of HK$251.1m for the six months ended June 30 2021.

The company said in the profit warning: “Due to the suspension of the travel related products and services business since December 2021 and the cessation of the Group’s travel-related products and services and hotel and integrated resort general consultancy services businesses with effect from 1 April 2022 respectively, there was no revenue generated from these segments for the six months ended 30 June 2022.” 

However, the group also said that it expects to record an increase in revenue from continuing operations of approximately 31.7 per cent for the six months ended 30 June 2022, which is mainly attributable to the increase in revenue from the operation of the Tigre de Cristal integrated resort in Vladivostok, Russia.

The Board said the loss for the first half of the year was mainly due to: 

• The decrease in gain on change in fair value of derivative financial instruments of approximately HK$526.1m during the six months ended 30 June 2022;
• The loss from discontinued operations of approximately HK$52.7m for the six months ended 30 June 2022, as compared to a profit from discontinued operations of HK$114.4m (as restated) for the six months ended 30 June 2021;
• The impairment loss on equity loans to, loans to and amounts due from a joint venture of approximately HK$47.3m for the six months ended 30 June 2022.

LET Group Holdings expects to announce its interim results for the six months ended 30 June 2022 on 29 August 2022.

Alvin Chau indicted on charges of money laundering

In May, Alvin Chau Cheok Wa, former CEO of Suncity Group Holdings, was indicted for allegedly founding and leading a criminal group and money laundering. Chau Cheok Wa could face a prison sentence of between eight and 15 years for the crimes of which he is accused.

Chau Cheok Wa resigned as CEO of Suncity Group Holdings a day after his arrest. At the time, the company said in a statement: “In the event that the group loses the support of Mr Chau for whatever reason, the financial position, business and operation of the group will be adversely affected.”

Macau police conducted various investigations and collected information dating back to 2019. They claim they found that Chau had established gambling platforms in other countries and invited mainland Chinese residents to participate in illegal online gambling activities.