Success Universe Ltd, SJM’s joint venture partner in Macau integrated resort Ponte 16, has issued a profit warning on an expected decline in 1H24 profit from HK$153.8 million in 1H23 to between HK$30 million and HK$50 million in the first six months of 2024.
The decline, it said by way of a filing, is mainly attributable to a fair value loss on the group’s overseas listed equity securities for the period in question versus a HK$105.5 million gain a year earlier, as well as a fair value loss on the group’s investment properties and a write-down impairment loss of carrying amounts of the group’s stock of properties and leasehold land and building.
Success Universe noted that such fair value losses and write-down/impairment loss are all unrealized in nature and are non-cash items which will not affect the cash flows of the group.
The company did not comment on the performance of Ponte 16’s gaming or non-gaming operations, with interim results for the six months ended 30 June 2024 expected to be published by the end of the month.
It previously reported a profit attributable to owners of the Company of HK$169.3 million (US$21.6 million) for FY2023, reversing a HK$287.1 million (US$36.7 million) loss from a year earlier due in part to the improved performance of Ponte 16.
Success Universe, which is also in charge of day-to-day operations of Ponte 16, holds a 49% stake in the property’s operating entity Pier 16 – Property Development, with SJM Resorts S.A. holding the other 51%.
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