Hong Kong-listed gaming investor Century Entertainment International Holdings Limited, formerly known as Amax, says there remain uncertainties around its ability to continue as a going concern after recording a HK$43 million (US$5.5 million) loss for the year ended 31 March 2021.
The FY21 loss, widened from a loss of HK$38.1 million 12 months earlier, comes after Century Entertainment recorded just HK$700,000 (US$90,000) in revenue for the year due to the suspension of its gaming tables business in Cambodia.
Previously operating table games at a casino in Sihanoukville owned by the companys own Chairman and CEO Ng Man Sun, Century Entertainment was in the process of relocating its business to a new casino in Dara Sakor when Cambodias latest outbreak of COVID-19 struck in March.
As a result, the company said in its FY21 results announcement published Tuesday that its current status indicates the existence of material uncertainties which may cast significant doubt about the Groups ability to continue as a going concern.
It did, however, add that conditions surrounding a table rights agreement it signed in 2019 with its Chairman and CEO remain unchanged, with the company to pay HK$120 million over five years with a profit guarantee of HK$28 million in year one and HK$32 million in year two form the date the new casino opens.
This will help mitigate the Groups operational risks, it said.
As at the date of this report, all the necessary decoration and equipment installation of the new casino have been completed but pending for system testing and provision of training to casino staff. In view of the current strict lockdown measures imposed in Cambodia and new wave of outbreak, the actual re-opening day is yet to be confirmed.
The Group will continue to work on the preparation work and strive for re-opening as soon as the current COVID-19 situation in Cambodia eases and personnel are able to move in the city.