Hong Kong-listed LET Group, formerly known as the Suncity Group junket, still faces the risk of delisting, as certain requirements remain unmet, the group indicated in a recent dispatch
The company remains under a trading suspension, with the Resumption Guidance unchanged as of the latest announcement.
Following the resignation of independent non-executive director Kwok Kai Bun Bennie on November 11th, 2024, LET Group had been operating without a replacement while actively seeking suitable candidates.
Although a new independent non-executive director has recently been appointed, the company still faces the risk of delisting, as certain requirements remain unmet.
LET Group’s shares have been suspended since February 14th, 2024, and will remain so until all resumption conditions are fulfilled.
Trading in shares of Summit Ascent, which is linked to LET Group, has also been suspended and halted at the same time. Summit Ascent is expecting to record a profit of HK$38 million for 2024, reversing a loss from 2023.
To resume trading, LET Group must meet several criteria set by the Stock Exchange, including demonstrating the integrity of its management, publishing outstanding financial results, and ensuring compliance with corporate governance standards.
As of now, the Group says it has made progress in several areas, with a Validly Constituted Board Guidance and Corporate Governance Guidance fulfilled following recent appointments to its board.
Lam Hung Tuan has been appointed as an executive director, while Tou Kin Chuen, John Lo Wai Tung, and Chan Suet Ngan have joined as independent non-executive directors. Additionally, the Audit, Remuneration, and Nomination Committees have been reconstituted.
The company is also preparing for an extraordinary general meeting (EGM) where these newly appointed directors will seek re-election.
This re-election, if approved by independent shareholders, will serve as a testament to their integrity and independence, as required by the Integrity Guidance.
LET Group has submitted various proposals to the Stock Exchange aimed at meeting the Integrity Guidance requirements. Further announcements will be made as these proposals are reviewed.
“The Group remains committed to ensuring compliance and demonstrating suitability for continued listing as it navigates the challenges posed by market conditions and regulatory expectations”, chairman Andrew Lo points out in the dispatch.
Russia-Ukraine conflict continue to impact Tigre de Cristal
The company also provided some operational updates, stating that the Tigre de Cristal operational environment remains challenging due to the Russia-Ukraine conflict.
The Tigre de Cristal hotel and casino operations in Vladivostok, Russia, continue to face significant challenges due to the escalating Russia-Ukraine conflict and associated sanctions, operator LET Group Holdings Limited says in a recent dispatch
The group reported stability in its day-to-day operations, with ongoing construction and development of the Main Hotel Casino in the Philippines progressing as planned.
The company is expecting to record a loss amounting to approximately HK$215.6 million ($27.71 million) for 2024, compared to a profit of HK$58.7 million ($7.5 million) for 2023.
The expected loss was attributed to increased expenses and the dissolution of a joint venture, since in December of 2024, the group dissolved Gold Yield Enterprises, which was engaged in the Hoiana integrated resort in Vietnam.
In a strategic move to enhance cash flow, the Group is actively seeking to divest its non-core property development interests in Niseko and Miyako Island, Japan, although no buyers have been secured as of yet.
