Hong Kong-listed gaming investor Amax International Holdings has announced vastly improved results for the year ended 31 March 2018 on the back of expanding gaming operations in Cambodia and Vanuatu.
In its annual results announcement, released Thursday, Amax declared revenue of HK$62.2 million – a 445.6% year-on-year increase on 2017 revenue of HK$11 million. The group’s net loss for the year also declined substantially from HK$988.5 million 12 months earlier to HK$50.7 million “due to the result of continuing cost streamlining efforts made by the group and the reduction of the recognition of impairment losses during the year.”
Amax saw strong improvement in its Vanuatu business, with revenue growing 168.8% to HK$17.7 million. In 2014 the group acquired 60% equity interests in Forenzia Enterprises Limited, which operates a gaming business in Vanuatu under an interactive gaming license.
Amax also declared revenue of HK$34.1 million from its recently acquired gaming operations in Poipet, Cambodia. The new revenue stream relates to the signing of a license agreement last November under which Amax is renting a VIP room with 13 baccarat tables at Genting Crown Casino for the next three years.
The company has touted Poipet as presenting strong growth opportunities in the future, stating, “Given the above, the management of the company is of the view that Poipet, where the VIP Room is located, has potential to become another well-developed gaming city in Cambodia after Phnom Penh. The entering into of the License Agreement with Genting Crown Casino for an exclusive period of three years represents a valuable business opportunity for the company to promptly develop its gaming business in Cambodia.
“Together with the Company’s existing gaming business in Vanuatu, the board believes that the company is gradually building a broad network in the gaming and entertainment business beyond Macau, which will also open up new revenue sources for the company. It also represents an opportunity for the company to establish its brand name in South East Asia.
“Since the commencement of the License Agreement in December 2017, the revenue brought by the VIP Room in Cambodia has begun to be reflected in the financial results for the year under review. The directors are more than confident that the business performance will live up to the expectation and generate steady revenue to the group.”
Despite the improved results, Amax said there had been little progress made in ongoing legal action against Greek Mythology (Macau) Entertainment Group Corporation Limited, which operates and manages Macau’s Greek Mythology casino at Beijing Imperial Palace Hotel and of which Amax holds a 24.8% stake.
Greek Mythology has denied Amax access to their books and records since 31 March 2010 with no management accounts of Greek Mythology available since 31 March 2012.
“Due to the lack of sufficient appropriate audit evidence, we were unable to satisfy ourselves as to whether Greek Mythology was properly accounted for as an associate, and whether the gross carrying amount before impairment loss allowance of the group’s interest in Greek Mythology of approximately HK$1,191,209,000 as at 31 March 2018 and 2017 and the group’s share of results of Greek Mythology for the year ended 31 March 2018 were free from material misstatements,” Amax said.
Greek Mythology was closed in December 2015 under order of the DICJ, with the Macau Government Tourism Office subsequently ordering The Beijing Imperial Palace Hotel to cease operations on 22 July 2016. The hotel’s license was revoked on 12 January 2017.
However, Amax enjoyed a small victory last week when Macau’s Court of First Instance ruled that its subsidiary, Empresa Hoteleria de Macau, was the rightful owner of Beijing Imperial Palace Hotel.
The ruling related to an ongoing dispute between Amax Chairman Ng Man Sun and an ex-partner which led to the Suncity Group Holdings-owned Victory Success Holdings Ltd declaring ownership of the hotel earlier this year.
In May, Suncity’s Executive Director, Andrew Lo, said in an interview with Hong Kong’s Ming Pao Daily News that Victory Success had gained control of the property and planned to revitalize it. Macau’s Court of First Instance was quick to knock that idea on the head in its recent ruling.
