Asian gaming and travel investor Suncity Group recorded a loss of RMB1.46 billion (US$217.5 million) for the year ended 31 December 2018, down from a profit of RMB197 million in 2017, due primarily to changes in the fair value of derivative instruments of RMB859.7 million and an exchange loss of RMB181 million in relation to convertible bonds.
The loss overshadowed a substantial year-on-year increase in revenue for the year, including rising income from the provision of hotel and integrated resort consultancy services as well as travel related products and services. Group-wide revenue through 2018 grew 45.5% to RMB792.6 million (US$118.1 million), with the hotel and integrated resort consultancy services segment up from RMB2.5 million (US$372,500) to RMB19.8 million (US$3 million).
Suncity is currently providing pre-opening management and consultancy services at under-construction Vietnamese IR Hoiana, of which it holds a 34% stake, and at a Cambodian casino resort in Sihanoukville.
Revenue from travel agency services related to the Asian gaming and leisure industry increased from RMB6.2 million to RMB7.7 million while sales of travel related products rose 53.8% to RMB535.1 million (US$79.7 million).
Travel services and sales comprised 68.48% of the group’s 2018 revenue, up from 65.01% in 2017.
Suncity Group’s listed arm does not include revenue from its junket operations.
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