Hong Kong-listed LET Group Holdings Limited, formerly known as Suncity Group, has issued a profit warning for the year ended 31 December 2022 on an expected loss attributable to shareholders totaling HK$408.8 million (US$52.1 million).
In a Friday filing, the company said its FY22 loss was mainly due to an impairment loss on equity loans to and amounts due from a joint venture of HK$74.3 million (US$9.5 million), from its share of loss in a joint venture of HK$160.9 million (US$20.5 million) and finance costs of HK$195.1 million (US$24.9 million).
However, the loss was narrowed from the HK$527.5 million (US$67.2 million) loss reported in FY21, aided by an increase in revenue from its Russian integrated resort, Tigre de Cristal.
“Due to the suspension of the travel related products and services business since December 2021 and the cessation of the Group’s travel related products and services and hotel and integrated resort general consultancy services businesses with effect from 1 April 2022 respectively, there was no revenue generated from these segments for the Reporting Period,” LET Group said.
“Although the Group’s overall operations are continuously impacted by COVID-19 … the Group is expected to record an increase in revenue from continuing operations of approximately 33.9%, which is mainly attributable to the increase in revenue from the operation of integrated resort in the Russian Federation.”
Aside from its Russian interest, LET Group also holds a 33% stake in Vietnam’s Hoiana and is developing a US$1 billion hotel and casino in Manila.
The company’s subsidiary Summit Ascent Holdings, which owns a 77.5% stake in Tigre de Cristal, last week issued a profit alert of its own for FY22 with the company expected to report a HK$30.9 million (US$3.9 million) profit.
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