Suncity Listco Reserves 2020 Earnings, But Hoana Drag Flag

Hong Kong-listed SunCity Group Holdings saw its consolidated adjusted loss before interest, taxation, depreciation and amortisation (EBITDA) expand from RMB105.2 million (US$16 million) in 2020 to RMB59.4 million in 2019 in several overseas casino resort projects that suffered headwinds related to the COVID-19 pandemic.

The group's overall net profit attributable to shareholders in 2020 was RMB786.4 million, higher than the company's initial estimate of RMB750.4 million. The actual results were "inherently non-cash" but a "significant reversal," compared with the group's net loss of RMB1.48 billion in the previous fiscal year, according to results filed with the Hong Kong Exchange.

Hoiana (pictured), the group's flagship casino resort complex located in central Vietnam, recorded gross net income of approximately $4.8 million and gross gaming revenue (GGR) of approximately $8.9 million from the "preview date" of the property on June 28, 2020 to December 31, 2020. The property had a gross adjusted EBITDA loss of $32 million during that period.

"Joana's grand opening has been suspended due to the pandemic," Alvin Chowchuck, the group's chairman, said in a letter to shareholders along with the release of its full-year group results.

The results did not provide an update on Hoiana's new official launch date. However, the group noted, "Hotel rooms will be rolled out in phases based on market demand to balance costs and profits."

Suncity Group Holdings, an investor in the Hoiana Islands, also noted that it will "continue to market" and hold foreign passports to "local expatriates" and overseas Vietnamese who exist locally, while "ensuring Hoiana's financial viability" until international travel recovers from the impact of COVID-19.

"The group will continue to increase [Joana] properties to prepare more VIP rooms, hotel rooms, additional food and beverage and retail stores," Suncity Group Holdings said in its 2020 annual results document.

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