Hong Kong-based gaming and hotel investor Rich Goldman Holdings has issued a profit warning for the six months to 31 December 2020 on an expected HK$18 million (US$2.3 million) loss.
The company told the Hong Kong Stock Exchange on Friday that, based on the preliminary assessment of its accounts for the second half of 2020 it expects to record a loss of not less than HK$18 million, compared with a profit of around HK$18 million a year earlier.
The reasons given for the change in fortunes include the cessation in April 2020 of a long-standing agreement with a junket operator in Macau that had run eight VIP tables at SJM’s Grand Lisboa, its last remaining investment in gaming at the time before the company recently confirmed a new partnership in a VIP room at Solaire Resort & Casino in Manila.
Rich Goldman also cited a decrease in revenue from hotel operations of at least HK$2 million (US$258,000) due to the COVID-19 pandemic, impairment loss on properties held by the group of HK$12 million (US$1.5 million) and a fair value loss on investment properties of HK$6 million (US$774,000). Those losses were partially offset by a HK$5 million (US$645,000) increase in revenue from the company’s money lending business.
Audited results are due to be finalized by the end of February.
