Suncity widens loss despite revenue increase in 2018

Suncity Group saw its loss for the year increase six-fold year-on-year to RMB1.5 billion (US$223.6 million), due mainly to the change in fair value of derivative financial instruments, exchange losses, and absence of a reversal of impairment loss and reversal of provisions for litigations which occurred in 2017.

Total revenue increased 45.5 percent in the year to RMB 792.6 million.

Suncity said the increase was mainly attributable to the increase in sales of properties and the continual growth in sales of travel related products and services and provision of hotel and integrated resort general consultancy services.

During the year, the Group entered into technical service agreements with integrated resorts in Vietnam and Cambodia (in addition to the one Vietnam integrated resort project in 2017) and therefore generated more revenue by approximately RMB 17.3 million.

Looking ahead, with several integrated resorts to complete construction starting from 2019, Suncity said it believes the performance of its hotel and integrated resort general consultancy services segment to improve in the coming years.

Last year in August, Suncity completed the acquisition of the entire equity interest in Star Admiral Limited, the company which holds a 34 percent indirect equity interest in the integrated resort development project located in Hoi An South, Quang Nam Province in Vietnam.

The Hoi An South Project is expected to comprise seven phases to be developed over a span of thirteen years on a site of approximately 985.5 hectares. Phase 1 is currently under development and is expected to be completed by 2019 and it will include more than 1,000 hotel rooms, a casino with 140 gaming tables and over 300 slot machines as well as a golf course.

The company also acquired a minority stake in Summit Ascent Holdings Limited, the operator of Tigre De Cristal in Vladivostok, Russia.

Going forward, Suncity said it will continue to diversify it businesses to tourism-related real estate in Asian Countries and will grasp opportunities on the provision for hotel and integrated resort general consultancy services.

A memorandum of understanding with Paradise Co., Ltd. was signed earlier on the possible cooperation in Paradise Casino Busan.

The Group aims to build an integrated tourism-related platform with equity investments in integrated resorts as well as a tourism-related service provider to integrated resorts within the Asian region.