Hong Kong-listed Century Entertainment International Holdings Ltd says it hopes to launch operations of its gaming table business at a new casino in Dara Sakor, Cambodia, by late September following a series of setbacks.
Announcing its financial results for the year ended 31 March 2022 overnight – which saw revenue plummet 72.5% to HK$200,000 (US$25,500) but loss narrow from HK$43 million (US$5.5 million) in FY21 to HK$3.7 million (US$471,000) – the company confirmed that it still holds the right to operate two gaming tables at the casino in question but that conditions precedent to the agreement have not been fully satisfied or waived by 30 June 2022.
As previously reported by IAG, the casino is operated by Century Entertainment’s own Chairman and CEO Ng Man Sun, and opened for business on 4 November 2021. Ng’s casino had originally been located in Sihanoukville but Century Entertainment announced in October 2020 that he would relocate his operation after receiving a better offer from the owners of the building within which it is now located in Dara Sakor.
On Thursday, Century Entertainment said the group “remains positive towards its business prospects as the mass gaming tables are targeted to begin operation by late September and begin contributing revenue in the second half of 2022.”
The update comes with Century Entertainment in a precarious financial position, revealing that its auditor has expressed a disclaimer of opinion on material uncertainty around its ability to continue as a going concern. The company’s FY22 results show that it has net current liabilities of HK$65.1 million (US$8.3 million) – impacted by the inability to recommence gaming table operations throughout the COVID-19 pandemic.
Century Entertainment said it is undertaking a series of measures to address its liquidity and financial position, including raising additional new sources of financing as and when needed, seeking an undertaking by its Chairman and CEO not to demand payment on convertible bonds worth HK$50 million (US$6.4 million) due for repayment on 30 September 2022, and having him personally guarantee other borrowings from third parties totalling HK$33.4 million (US$4.3 million).
“The management of the company also have implemented the re-opening plan of the gaming tables business … in Dara Sakor Investment Zone and target to commence the operation of gaming tables business from September 2022 after the completion of systems testing and training of casino staff,” it said.
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