Rich Goldman reveals US$10m net loss for FY2020

The firm is looking to increase diversification due to the pandemic.
The firm is looking to increase diversification due to the pandemic.

The company has announced financial results for the year ending June 30. Numbers plunged due to the pandemic.

Hong Kong.- Rich Goldman Holdings has reported a net loss of HK$81.2 million (US$10.5 million) for the year ending June 30. That’s down from a profit of HK$91.6 million (US$11.8 million) in the previous year.

The company attributes the fall to border measures intended to prevent the spread of the Covid-19 pandemic, which caused a decrease in visitation to its Hong Kong hotel and reduced revenue from its Macau junket investment.

Revenue from the gaming segment fell 70.6 per cent year-on-year to HK$21.8 million (US$2.8 million), impacted by Macau border closures and the cessation of its last remaining cooperation with a junket operator in March 2020. Hoi Long Sociedade Unipessoal Limitada ended its contract to oversee eight VIP tables at Grand Lisboa due to “challenging economic conditions and the recent outbreak of Coronavirus.”

Rich Goldman said in a statement that its 2020 financials were the result of a “challenging year amid the worsening business environment as a result of several adverse factors”.

It added: “Furthermore, the Group’s Gaming and Entertainment Business was in a transitional period from Macau to the Philippines this year. The cessation of business in Macau and the delay of commencement of new business have caused significant reduction of revenue from this segment.”

As the scenario for the gaming industry remains difficult, the company said it “will continue to focus on its established diversification strategy”, involving plans to “expedite the gaming business setup in the Philippines; further expand existing money lending business by incorporation of fintech elements into the traditional business model; actively explore the market opportunities to strengthen our property leasing business; and broaden the business scope of our hotel operations to property management.”

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