Macau VIP Club operator Suncity Group has informed shareholders that they will be exempted from any loss between February and May 2020, with losses to be indemnified by the group’s independent fiscal reserve. The indemnity will not apply to any shareholders whose shares are withdrawn.
In a letter sent to shareholders on Tuesday in which he pledged to support those who have supported the company, Suncity Group CEO Alvin Chau revealed a “robust fiscal foundation” had been built over the years for the group which would now be utilized to navigate the COVID-19 pandemic.
Chau said that, due to the “immense impact” of the pandemic on Macau, “shareholders will be exempted from the loss recorded from February to May 2020, and normal calculations will be resumed in the month of June, except for shareholders whose shares are withdrawn.”
From June, the full amount of employee salaries as well as rebates for account deposits will also be paid using the fiscal reserve until either 4Q20 or January 2021, depending on market recovery at the time.
Suncity Group’s dividend calculation scheme will be resumed once the business is back on track after the impact of COVID-19 subsides.
“It is not an easy decision for both myself and Suncity Group and I urge you, my fellow shareholders, to continue to stand together with the Group as we march towards the long-term objective of prosperity,” Chau said.
“The Group will continue its effort to minimize the loss sustained by shareholders during the pandemic as we deeply appreciate all your support, especially during these hard times.
Suncity Group will continue to stay true to the spirit of this year’s NPC and CPPCC Annual Sessions of ensuring economic and social stability.
“As we strive to protect the livelihood of our 4,500 employees as well as to maintain the confidence of our shareholders, Suncity Group is prepared to employ various long-term measures, remaining steadfast as we march towards a better future.”