Suncity Group Holdings Limited saw its losses increase by 160% in the six months to 30 June 2018 to RMB1.65 billion, due primarily to an increase in loss relating to a change in fair value of the derivative component of convertible bonds.
The increase in loss for the period from RMB632.4 million in 1H17 was higher than previously forecast, with the company stating that its liabilities now exceed its assets by almost RMB 3 billion.
That’s despite revenue for the period growing 27.9% year-on-year to RMB433 million. Suncity Group Holdings reports results from four key segments – property development, property leasing, hotel and IR consultancy services and travel related products and services – but does not include any revenue junket operations.
The majority of Suncity’s revenue increase came from its travel related business, where revenue more than doubled to RMB250.8 million due to continued expansion following the August 2016 acquisition of Sun Travel Ltd. Sun Travel’s core activities include booking tickets for clients to Macau and arranging luxury accommodation and entertainment.
The group also saw revenue for the first time from its hotel and IR consultancy services of RMB8.5 million, primarily related to the provision of management and pre-opening services in Vietnam.
Suncity last month completed the acquisition of a 34% stake in Vietnam integrated resort project Hoiana.
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