Suncity Group Holdings said it has terminated its travel and related-services business, which accounted for 12.6 percent of its revenue.
The unit, which was related to former CEO Alvin Chau, has been able to supply hotel accommodation since Dec. 1st and given the continued impact of Covid, the group has decided to shut down the division, it said in a filing with the Hong Kong Stock Exchange.
The effective date of termination was April 1st.
Suncity warned in December that the division may longer be viable if Chau’s Suncity Gaming Promotion Ltd (SCGPCL) were unable to provide support by buying hotel accommodation products.
Chau was detained in late November on accusations of organizing illegal gambling and money laundering.