Former junket investor Rich Goldman Holdings Limited revealed that its management has decided to cease its gaming and entertainment business, which involved introducing customers to VIP rooms in casinos, as part of a ‘strategic realignment’.
According to its latest annual report, the company noted this significant shift in focus as it transitioned away from previous operations. Rich Goldman was formerly known as Neptune Group, which operated various VIP rooms in Macau before China’s crackdown on the junket business in the region.
The Hong Kong-listed company is now primarily engaged in money lending, hotel operations, and property leasing in Hong Kong and mainland China. The company reported a significant revenue increase of approximately 28.9 percent year-on-year for the year ending June 30, 2024, rising to about HK$126.8 million ($16.5 million).
Despite this growth, the company faced a substantial loss of approximately HK$49 million ($6.36 million) in the same period, compared to a loss of HK$6.6 million ($857,143) during the same period ending June 30, 2023.
This dramatic increase in losses was primarily attributed to a rise in provisions for impairment and write-offs of loans receivable and interest receivables, which surged by about HK$23.4 million ($3.04 million).
“In the coming year, we will continue to pay attention to the impact of economic changes, commit to the implementation of a diversification strategy, prioritize the development of the more profitable money lending business, and make timely adjustments to the hotel operations and property leasing businesses to steadily improve operating results,” Rich Goldman stated.
The group’s money lending business segment focuses on providing unsecured personal loans and property mortgages via its platform ‘Funki Finance,’ with gross loans receivable as of June 30, 2024, amounting to approximately HK$402.3 million ($52.2 million). Additionally, the group experienced a fair value loss on its investment properties, which increased by approximately HK$22.4 million ($2.91 million).
Rich Goldman’s property leasing business consists of leasing shops and venue spaces in properties situated in the Pudong New District, Shanghai. Despite the losses, Rich Goldman stated that it has maintained healthy cash flow through diversification efforts, enabling the company to navigate the complex and volatile economic landscape.
