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LET Group targets profit conversion after $31.2M loan repayment

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Hong Kong-listed LET Group Holdings Ltd. aims to convert its share of losses in a joint venture into an accounting profit.

This follows Thursday’s repayment by Gold Yield Enterprises Ltd (GYE) of an outstanding loan totaling $31.2 million to Star Admiral Ltd, an indirect subsidiary of LET Group.

According to the filing on Tuesday, LET Group notes that after the repayment, GYE does not have any outstanding shareholder’s loans payable to Star Admiral.

‘Subject to audit, it is expected that the Group would, in accordance with Hong Kong Accounting Standards, record a share of profit of a joint venture which represents a reversal of the share of loss of the joint venture recognized in previous years arising from the Further Repayment.’

Meanwhile, LET Group reveals that it is ‘looking into the feasibility to dissolve GYE’, a 50 percent-owned joint venture of the LET Group, and any surplus assets available upon completion of such dissolution will be distributed to the Group and Alpha Era in equal share.

‘Subject to audit, the surplus assets (if any) that will be received by the Group would, in accordance with Hong Kong Accounting Standards, be treated as a profit.’

Another company under the control of LET Group, Summit Ascent Holdings, which is also listed on the Hong Kong Stock Exchange, operates the Tigre de Cristal casino resort in Primorye, near the Russian Pacific port of Vladivostok.

Summit Ascent, Tigre de Cristal, Primorye

LET Group and Summit Ascent became non-compliant with Hong Kong stock exchange rules in January, subsequent to both companies experiencing a departure of directors following an attempted deal to dispose of the entity holding the gaming license for Tigre de Cristal.

The same filing also mentions that trading in the shares of the LET on the Stock Exchange has been suspended with effect from 14 February 2024 and will remain suspended until the Company has met all Resumption Guidance.

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