Hong Kong-listed gaming investor LET Group, formerly known as Suncity Group, says it has reached an agreement to sell off a subsidiary currently leasing mall space in mainland China’s Zhejiang Province, with the proceeds to help fund “existing developments”.
In a filing, LET Group – which is majority shareholder in a US$1.1 billion hotel and casino development in Manila’s Entertainment City, majority shareholder in Russia’s Tigre de Cristal and a 34% shareholder in Vietnam’s Hoiana – said the sale price of the subsidiary was HK$21.4 million (US$2.7 million), representing a loss on disposal of HK$1.5 million (US192,000).
Nevertheless, it explained, “The Board is of the view that the Disposal provides a good opportunity for the Group to realise its investment in the [subsidiary] and focus its resources to develop its existing businesses in light of the fact that the [subsidiary] has been in loss making position since May 2022 and there is keen competition between physical stores and online platforms.
“Having considered the continual loss-making situation of the [subsidiary] and fierce competition from online platforms, the Disposal will avoid the Group to further inject working capital for the deteriorating business.”
LET Group has already sold off plots of land located in Hokkaido and Okinawa in Japan, acquired in 2019, with the group explaining at the time it would “continue to offload assets to aid survival by focusing on the most profitable business segments only.”
The subsidiary related to this latest sale, Dongyang Xinguang Pacific Industrial Company Limited, had reported losses of RMB 641,000 (US$87,775) in 2022 and RMB 2.3 million (US$314,950) through August 2023, LET Group said.
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