Hong Kong-listed Success Universe Group Ltd, a joint venture partner in Macau’s Ponte 16, has issued a profit warning for the year ended 31 December 2022 on expected losses of up to HK$300 million (US$38.2 million).
In a filing, Success Universe said it anticipates reporting a loss of between HK$260 million and HK$300 million for FY22, compared with the HK$4.9 million (US$624,000) profit recorded in 2021.
This, the company explained, was due to a substantial fair value loss on the group’s overseas listed equity securities compared to a fair value gain of HK$87.7 million (US$11.2 million) in 2021, and a fair value loss on the group’s investment properties as well as a write-down of carrying amount of the group’s stock of properties. A fair value gain on its investment properties and a reversal of write-down of the stock of properties of HK$8.6 million (US$1.1 million) were recognized in FY21.
These, however, are all “unrealized in nature and are non-cash items which will not affect the cash flows of the group,” it added.
Final results are due to be published before the end of the month.
Success Universe previously reported narrowed losses from its share in Ponte 16 in the six months to 30 June 2022, despite the ongoing challenges it faced as a result of the COVID-19 pandemic.
The company owns 49% of Pier 16 – Property Development, the operating entity of Ponte 16, with SJM Resorts subsidiary SJM – Investment Limited holding the other 51%.