Suncity Group expects to record US$67.3m loss for 2021

Suncity Group Holdings Ltd has announced it expects to post a loss of HKD526.5m (US$67.3m) for the year ended December 31.

Macau.- Suncity Group Holdings Ltd has issued a profit warning, announcing that it expects to report a loss of at least HKD526.5m (US$67.3m) for 2021. That compares with a profit of HKD795.7m for the full year 2020.

The Covid-19 pandemic continues to impact the overall businesses of the group, together with the suspension of travel-related businesses from December 1. Suncity Group Holdings also noted an increase in its share of joint venture losses by approximately HKD160.5m.

The company said loan impairment charges had increased by HKD119.4m, while impairment losses on loans and receivables from joint ventures increased by approximately HKD216.5m. Revenue from travel-related products and services fell to HKD42.8m in 2021 from HKD123.8m the previous year.

Last year, Suncity Group Holdings announced that Alvin Chau Cheok Wa had resigned as chairman and chief executive following his arrest in Macau on Chinese accusations of cross-border gambling and money laundering.

Suncity has also claimed that Gold Yield Enterprises Ltd (GYE), a company related to the Hoiana casino resort in Vietnam has failed to repay a US$30m loan by its due date of February 28. It said it will closely monitor the situation.