The chief of Asia’s leading casino junket operator Suncity Group has said the company’s affiliated integrated resort project in Vietnam is pushing back its launch date by a year.
On Friday, Suncity Group Holdings – a separate but linked firm from junket operator Suncity Group – released its 2019 unaudited financial results. The Hong Kong-listed company’s revenue hit RMB611.8m (US$86.1m) last year, down 22.8% from 2018’s result, while gross profit tumbled 57.8% to RMB99.9m, resulting in a net loss of nearly RMB1.5b, a slight improvement over 2018’s RMB1.46b loss.
The Holdings company currently makes most of its bones through commercial property development and VIP gambler travel services, but is increasingly focused on casino management. Cash outlays toward expanding these casino management operations are largely responsible for the company’s recent losses.
Speaking of, Suncity announced that the Hoiana integrated resort project in Vietnam – a joint venture in which Suncity holds a 34% stake – is pushing back its official launch until sometime next year due to “uncertainties” caused by the COVID-19 pandemic.
Construction of Hoiana (pictured) is expected to be completed sometime in Q2 and the property will conduct an “exclusive preview” this summer. Suncity boss Alvin Chau said his company’s “long-term confidence” in Vietnam’s casino market “remains positive” despite the current flight and visa disruptions.
Elsewhere, Suncity recently announced that it had obtained shareholder approval for a $200m payment from its Suntrust Home Developers subsidiary to Westside City Resorts World, a joint venture with Travelers International Hotel Group that is building an integrated resort in Manila’s Entertainment City gaming zone. Suncity said piling works for the project were underway and a ground-breaking ceremony would be held “soon.”
Suncity is also looking to put down firmer roots in South Korea, having signed a memorandum of understanding with foreigners-only casino operator Paradise Co Ltd on a “possible co-operation on Paradise’s casino in Busan.”