Macau’s Ponte 16 operator, Success Universe, has flagged a potential loss ranging between HK$30 million ($3.9 million) and HK$50 million ($6.4 million) for 1H24, attributed to a decline in fair value.
The profit warning was issued through a filing on the Hong Kong Stock Exchange on Monday, ahead of the company’s financial results announcement.
According to the filing, the company notes that this anticipated loss contrasts with an unaudited consolidated profit of approximately HK$153.8 million ($19.7 million) for the corresponding period last year.
The group’s unaudited consolidated loss for the six months ending June 30th, 2024, is primarily due to a fair value loss on its overseas listed equity securities, compared to a fair value gain of approximately HK$105.5 million ($13.5 million) recorded in the same period last year.
Additionally, the group registered a fair value loss on its investment properties and recognized write-downs/impairment losses on the carrying amounts of its properties, leasehold land, and buildings classified under property, plant, and equipment.
In contrast, the previous corresponding period saw a fair value gain on investment properties and a reversal of write-downs on the carrying amounts of its properties, totaling HK$2.3 million ($295,200).
The company emphasizes that the aforementioned fair value losses are ‘unrealized in nature and are non-cash items, which will not affect the cash flows of the Group’.
