C Y Foundation to miss gaming machine target and warn of further losses

Hong Kong-listed C Y Foundation Ltd warned investors it will not hit its target number of gaming machines in operation and that losses for the year ending 31 March 2015 are expected to be greater than the previous year’s.
C Y says the precarious situation it finds itself in is due to the recent changes in the Macau market, which includes smoking restrictions in casinos and a potential visitor cap.
“[G]iven the recent changes in market environment in Macau, the Group is not able to achieve its target to expand the number of gaming machines in operation to 1,000 by the end of this
financial year. Accordingly, the Group has extended its plan to achieve the goal of 1,000
gaming machines in operation for a further year to the financial year ending 31 March 2016.”
The filing said the company’s loss is expected to increase to a “greater extent” due to “the absence of two items of one-off income from non-operating activities for the corresponding year in 2014.”
“An indication of potential impairment losses for the financial year ending 31 March 2015 in respect of the Group’s intangible assets and goodwill which are subject to the
further review by the Company and the finalization of impairment assessment by an independent professional valuer.”
C Y Foundation reported a net loss of HK$11.92 million for the six months to September 30 last year, compared to a profit of HK$7.82 million in the prior-year period.
In a filing last week Lin Zheying resigned as an executive director of the company due to personal work arrangement.