Suncity Group Holdings Ltd expects to record a profit attributable to shareholders of approximately RMB750.4m ($115.3m) for the year that ended on 31 December 2020, despite a 67% drop in revenue for the period. The figure is also an improvement from a loss of RMB1.5bn in 2019.
The company stated the Covid-19 outbreak has significantly impacted the overall businesses, and the revenue for FY2020 was RMB199.3m, a decline from RMB611.8m for the same period in 2019. Despite the losses, the group stated the profit for shareholders was impacted by several factors, such as a gain on change in fair value of derivative financial instruments of approximately RMB1.4bn and “a gain on change in fair value of convertible bonds of approximately RMB213.5m as a result of the extension of maturity dates of convertible bonds” that were issued by the company in 2020.
The company also recorded a RMB200.7m net gain on the acquisition of Summit Ascent Holdings Limited.
The net gain was partially offset by finance costs, a loss on change in fair value of investment properties and a share of loss of a joint venture, totaling approximately RMB1bn.
The company had invested in a casino resort in Vietnam called Hoiana that was scheduled to open this year, but was postponed due to pandemic restrictions.
Suncity is also a shareholder of Summit Ascent, operator of Tigre de Cristal IR in Russia.