Summit Ascent issues profit warning

The company expects an accumulated loss of US$6.45 million for the first half.

Hong Kong.- Summit Ascent Holdings has issued a warning to inform shareholders it expects accumulated losses of HK$50 million (US$6.45 million) for the six months ending June 30.

In a filing to the Hong Kong Stock exchange the operator of the Tigre de Cristal casino in Russia said: “The outbreak of the Covid-19 has had a huge impact on the gaming and hotel operations of the group in the first half of 2020 due to the temporary entry ban to the Russian Federation of foreign nationals, including those from Hong Kong and Macau, which had an adverse impact on the group’s visitation in early 2020.”

Gaming revenues were affected due to the suspension of operations from March 28 until July 16.

Preliminary financial results show consolidated revenue for the six months was about 63 per cent that of the same period in 2020. Final audited financial results are expected to be released in late August.

Meanwhile, Suncity Group is poised to take control of the company.

Summit Ascent also announed that Suncity is close to finalising further acquisition of the company through its wholly-owned subsidiary, Victor Sky.

Suncity currently has a 24.74 per cent interest in Summit Ascent, but in June announced a US$160 million investment with the goal of acquiring up to 75 per cent of the company.

This investment would add some liquidity for the Tigre de Cristal operator, and make Suncity the majority stakeholder in the Hong Kong-listed company.