Hong Kong-listed casino investor Suncity Group Holdings Ltd says that Gold Yield Enterprises Ltd, a firm principally engaged in the Hoiana casino resort in Vietnam, “has not repaid” to Suncity Group Holdings a US$30-million loan “by the due date”.
“Gold Yield Enterprises has not repaid the loan together with interest accrued thereon in the aggregate amount of approximately US$34.9 million … by the due date (i.e., 28 February 2022) and such amount became immediately payable,” said Suncity Group Holdings in a Wednesday filing.
In July 2020, Suncity Group Holdings said its unit Star Admiral Ltd would advance US$30 million to Gold Yield Enterprises Ltd, which is 50-percent owned by Star Admiral and 50-percent owned by Alpha Era Investments Ltd, the latter a British Virgin Islands entity said in corporate filings to be owned by an independent third party. At the time, Alpha Era also provided a loan of US$30 million.
Gold Yield Enterprises and its units are principally engaged in the Hoiana property (picture in a file photo), a casino resort complex at Hoi An South, Quang Nam Province, in Vietnam, which opened in late 2020.
In Wednesday’s filing, Suncity Group Holdings stated that “Gold Yield Enterprises also owed Alpha Era the same amount as of the date of this announcement and such amount remains outstanding.”
“The company and Alpha Era will closely monitor the subsequent development and the status” of the loans owed by Gold Yield Enterprises, it added.
Net loss for 2021
The Hong Kong-listed firm also said on Wednesday that it expected to record a loss for 2021 attributable to its shareholders of not less than HKD526.5 million (US$67.3 million). That compares to a profit of HKD795.7 million in full-year 2020.
The company said the Covid-19 pandemic continued to “impact the overall businesses of the group”, and that revenue from travel-related products and services declined to HKD42.8 million in 2021, from HKD123.8 million in the prior year.
The company suspended its travel business segment from December 1, 2021, as it warned that Sun City Gaming Promotion Co Ltd – identified as a key supplier of hotel accommodation products – “would not be able to supply hotel accommodation products” to the listed entity.
Suncity Group Holdings also said in early December that Alvin Chau Cheok Wa, its then chairman and chief executive, was resigning from those posts, “in view of the pending legal proceedings against him”.
The listed entity said at the time that Mr Chau could lose his controlling stake in that firm due to an unpaid loan to a group of lenders.
In November, Mr Chau was detained in Macau on suspicion of facilitating illegal gambling overseas for Chinese customers.
Aside from the negative impact of the pandemic on its business, Suncity Group Holdings said the expected loss for 2021 was also a result of a number of items including: an increase in share of loss of a joint venture of approximately HKD160.5 million; increase in impairment loss on equity loans to a joint venture in the amount of HKD119.4 million; and increase in impairment loss on loans to and amounts due from a joint venture in the aggregate amount of about HKD216.5 million.
Suncity Group Holdings is involved in an under-construction casino hotel at the Westside City scheme, at Entertainment City, Manila in the Philippines, through a non-wholly owned subsidiary Suntrust Home Developers Inc.
It is also an investor in a hotel and gaming business – known as Tigre de Cristal – in Primorye, in the Russian Federation, through Hong Kong-listed Summit Ascent Holdings Ltd.
