Hong Kong-based investment company Rich Goldman Holdings Ltd issued a profit warning for its investors, stating the group expects to lose no less than HKD18m ($2.3m) for the 2020 interim period.
The sum is based on the unaudited consolidated data for the six months ending 31 December 2020.
The group noted the profit for the same period in 2019 was approximately HKD18m.
According to the statement, the loss is attributable to the lack of revenue from the gaming and entertainment business the group operates, and having to cease its junket operations in Macau since April 2020. Until then, the group partnered with SJM to run gaming tables in the Grand Lisboa casino. Recently, however, Rich Goldman signed an agreement with Solaire Resort & Casino to run a junket business in Manila.
The group’s hotel operations also lost HKD2m during the 2020 interim period, mainly due to a drop in tourism in Hong Kong.
Other factors for the loss include expected impairment loss on the properties and equipment that amount to approximately HKD12m, and “an expected fair value loss of the group’s investment properties of approximately HKD6m to be recorded in the 2020 interim period,” the group said in a statement.
The loss was partially offset by the group’s money lending business that earned HKD5m as well as the absence of amortisation of intangible assets from the gaming and entertainment business for the period. The group noted it’s just a preliminary assessment and the amounts can change in the final review.