Suncity expecting return to profit in 1H21 despite global tourism woes

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Suncity Group launched its Vietnam IR, Hoiana, in June 2020.

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Hong Kong-listed Suncity Group Holdings says it expects to report a profit attributable to shareholders of between RMB180 million and RMB240 million (US$28 million and US$37 million) for the six months ended 30 June 2021, reversing an RMB118.6 million (US$18.3 million) loss recorded during the same period last year.

According to a profit warning issued overnight (Asia time), the reversal is due to multiple factors, including a gain on the disposal of its entire interest in Access Achievement Limited, Suncitys mainland China property development business, for RMB167.8 million (US$26 million).

Suncity also recorded a gain on change in fair value of derivative financial instruments of the group amounting to RMB449.4 million (US$69 million).

However, those gains were partially offset by finance costs of approximately RMB123.1 million (US$19 million) and its share of loss of a joint venture of around RMB139.9 million (US$22 million).

Suncity, which holds significant interest in Vietnam integrated resort Hoiana, Tigre de Cristal in Russia and a hotel-casino development at Manilas Westside City Resorts World, said the COVID-19 pandemic has continued to negatively impact the overall businesses of the group, especially the groups revenue from travel related products and services.

That revenue, it said, fell by 60% year-on-year to RMB26.9 million (US$4 million) for the six months ended 30 June 2021.

Suncity will publish its interim results for the period on 31 August 2021.