Rich Goldman issues profit warning on expected US$2.7 million loss

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Rich Goldman Holdings has issued a profit warning ahead of an expected net loss of at least HK$21 million (US$2.7 million) for the year ended 30 June 2021.

The loss represents an improvement over the HK$81 million (US$10.4 million) loss recorded in the previous financial year, with the narrowed loss attributable to reduced impairment loss on the properties held by the Group, absence of amortisation of intangible assets from the Groups gaming and entertainment business as compared to a HK$24 million (US$3.1 million) amortisation in FY20 and a reduction in fair value loss of the Groups investment properties.

This was partially offset, the company said, by the absence of reversal of impairment losses on trade receivables from the groups gaming and entertainment business, an increase in the groups administrative expenses at least HK$5 million (US$642,500) as a result of the expansion of the money lending business, and an increase in the groups income tax expense of at least HK$6 million (US$771,000).

Previously an investor in junket rooms in Macau, Rich Goldman earlier this year launched a new junket business at Solaire Resort & Casino in Manila after entering into a profit share agreement with the companys joint venture partner.

The room was originally scheduled to begin operations within three months of an initial April 2020 agreement but was delayed as a result of COVID-19. The new Solaire VIP room instead welcomed first customers on 1 January 2021.