Suncity Group expects to report a return to profitability for the first half of the year 2021.
China.- Suncity Group Holdings has estimated a profit of RMB180m (US$27.8m) to RMB240m for H1. That compares to a loss of RMB118.6m per cent in the same period last year.
According to the company, it will benefit from changes in the fair value of derivatives was approximately RMB449.4m and from the sale of its equity in Access Achievement for RMB 167.8m.
The company stated it continues to be affected by the Covid-19 pandemic and the lack of tourists, which led to a fall in revenue from RMB67.7m to RMB26.9m for the first half of the year.
Suncity recorded costs and expenses from continuing operations, including finance costs of RMB123.1m and its share in the loss of a joint venture of RMB139.9m.
The casino operator launched a voluntary exit scheme for employees. The so-called “Personal Career Reshaping Plan” offers benefits such as extra allowances for employees over 60 years old.
It also includes a partial payout of social security contributions, an extension of medical insurance coverage, and career planning support services.
Alvin Chau, CEO of the company, has issued a letter to employees, saying that the company is facing challenges due to the Covid-19 pandemic.
Chau stated: “For the company’s sustainable development, it is necessary to change the strategy, optimize the organizational structure, retain the core business, and respond to changes in the market environment.”
Suncity will share its full results for the first half of the year on August 31.