Despite warnings from auditors, the directors of Century Entertainment ‘have maintained and insisted their optimistic view towards the commercial viable concern of the Group’.
This comes largely as the group’s Chairman and CEO says he will not call for repayment of convertible bonds totaling HK$82 million (due for repayment in September 2025 and December 2026).
The executive, Ng Man Sun, will also ‘further provide sufficient financial supports for the group’s working capital for a period of at least 12 months until June 2025’. And Ng will also ‘personally guarantee’ borrowings from independent third parties totaling nearly HK$39.04 million.
This is also based upon the group’s focus ‘to develop its core gaming table business and capture opportunities from the latest round of positive development’, alongside control of costs and capital expenditure.
The group’s table games business hinges around a casino agreement with LongBay Entertainment to open a VIP room at Dara Sakor, Cambodia – expected to open in September of this year.
In the Monday filing, the group noted that this casino agreement circular ‘will be ready and dispatched to the shareholders ‘, while a general meeting of shareholders to approve the transaction ‘will be held in September 2024’.
‘Upon completion of the proposed major transaction, the directors believe that the group will start having cash inflows from business operations, and the profitability of the group will have a significant improvement reasonably,’ notes the company.
The Dara Sakor project focuses on seven baccarat tables to be operated in a 650-square-meter space, with monthly rent set at $35,000 and Century Entertainment entitled to all house winnings, but being responsible for house losses, staff costs and taxes’.
LongBay Entertainment will handle licensing, operational expenses, and dealer services.
For its fiscal year ending March 31st, Century reduced its net losses to HK$24.2 million ($2 million), despite recording zero revenue for the two fiscal years ending March 31st, 2024 – attributed to the prolonged closure of Cambodian casinos due to the pandemic.
