Hong Kong-listed LET Group is expecting to significantly lower its loss in the first half of this year, as it liberated itself from the loss associated with a former joint venture.
According to a profit warning issued on Monday, the group is expecting to decrease its loss from HK$75.3 million ($9.6 million) in 1H24 to HK$42.8 million ($5.45 million) in 1H25.
The group notes that this was boosted by having cut ties in a joint venture that in 1H24 cost it HK$234.3 million ($29.85 million) in losses.
The group also benefited from a HK$13.4 million ($1.71 million) gain in interest income during the period, as well as net exchange gains of HK$184.7 million ($23.53 million).
The loss reversal stems from the company’s divestment of its interest in Vietnamese integrated resort Hoiana Resort & Golf, now operated by the VMS Group.
Currently LET Group is attempting to also divest its interests in the Tigre de Cristal hotel casino in Vladivostok – a project which has been plagued by the ongoing conflict in the Ukraine.
The group previously indicated that it was now focusing its efforts solely on its Westside City integrated resort project in the Philippines, via its majority stake in Suntrust Resort Holdings.
However, in mid-July the group warned that its current assets and liabilities ‘indicate the existence of a material uncertainty which may cast significant doubt on the Group’s ability to continue as a going concern’.
