Embattled PH Resorts Group has lost control of its Emerald Bay casino property in Cebu after failing to exercise a repurchase option from China Banking Corp., leading to a significant financial impact.
The company’s latest financial report for the quarter ended June 30th, 2025, revealed a net loss of PHP6.7 billion ($116 million) for the first six months, a 1,260 percent increase from PHP494 million ($8.5 million) in the same period of 2024.
This surge was primarily driven by the derecognition of the 12.4-hectare beachfront site on Mactan Island, valued at PHP13.65 billion ($236 million), including improvements and the unfinished hotel and casino structure.
The expiration of the buyback option on March 31st, 2025, triggered the removal of PHP13.65 billion ($236 million) in assets and PHP8.6 billion ($149 million) in related liabilities and transaction costs from the company’s balance sheet. PH Resorts, controlled by businessman Dennis Uy, had previously described the $300 million Emerald Bay as its most ambitious gaming project. The group, which operates the boutique Donatela Resort & Sanctuary in Panglao, Bohol, also reported a 12.7 percent decline in net operating revenues to PHP17.4 million ($300,000) from PHP19.9 million ($345,000) year-on-year.
In 2023, China Banking Corp., led by the Sy family, acquired the property through a financial restructuring agreement to settle PH Resorts’ mounting peso loans and interest. Under the deal, PH Resorts leased the site and retained the right to repurchase it for PHP5.74 billion ($99 million). However, after failing to secure a strategic investor, the company did not proceed with the buyback. Earlier filings indicated ongoing talks to reacquire the property, but the 2Q25 report omitted any reference to a repurchase plan.
China Banking Corp. chair Hans Sy confirmed the development in a May interview, stating that PH Resorts was given sufficient time to reclaim the prime beachfront property, located near Mactan-Cebu International Airport. “We always do things with a heart. We gave him [Dennis Uy] a chance,” Sy said. He added, “It’s expired and we’re not renewing anymore.”
The loss of this key asset has left PH Resorts with a capital deficiency of PHP5.83 billion ($101 million) as of June 30th, 2025. The company’s financial statements show additional pressures, including a ‘loss on extinguishment of financial liability’ of PHP7 billion ($121 million), an ‘impairment loss’ of PHP54 million ($930,000), and a ‘loss on sale of assets’ of PHP17 million ($290,000). Total assets plummeted to PHP3.5 billion ($61 million) from PHP19.5 billion ($337 million) at the end of 2024, reflecting the derecognition.
With its most valuable holding out of reach, PH Resorts faces mounting pressure to revise its business strategy. Attention is shifting to potential developments involving contractor EEI Corp., which advanced PHP300 million ($5.2 million) to PH Resorts’ parent firm Udenna in January 2025 related to the casino property.
