Macau junket investor Rich Goldman Holdings Ltd, formerly known as Neptune Group, has announced unaudited net profit for the year ended 30 June 2017 of HK$39.9 million, turning around a 2016 loss of HK$466.7 million due to improved gaming revenues and reversal of impairment loss of trade receivables.
Net loss for the year attributable to owners of the company amounted to HK$10.2 million, down from HK$202.1 million 12 months earlier.
In a filing to the Hong Kong Stock Exchange, Rich Goldman flagged “the reversal of impairment loss of trade receivables of approximately HK$306.3 million for the year ended 30 June 2017 as a result of the subsequent settlement by the trade debtors,” as a key factor in the improved results, adding that the group had “recorded an impairment loss of trade receivables of approximately HK$63.0 million for the year ended 30 June 2016.”
It had also recorded an impairment loss of intangible assets of approximately HK$397.3 million for the year ended 30 June 2017 compared with an impairment loss of intangible assets of approximately HK$450.9 million for the year ended 30 June 2016 due to “the receipt of termination notices by junket operators during the year ended 30 June 2017.”
Rich Goldman began the financial year working with three junket partners in Macau but has since had two agreements terminated. On 31 May, the company was informed by Hao Cai Sociedade Unipessoal Ltd – which operated 14 VIP tables at the Venetian Macao – that Venetian Macau Limited (VML) had terminated its gaming promotion agreement effective from 30 June 2017.
VML subsequently terminated another promotion agreement with Hou Wan Entertainment Ltd – which operated 10 VIP tables at Sands Macao – effective 30 August 2017.
Rich Goldman is still working with one remaining junket partner at Grand Lisboa, operating eight VIP tables.
Revenue from its three junket rooms in 2017 grew 6.03% to HK$295.5 million, led primarily by a 58.1% revenue boost at Sands Macao from HK$72.5 million to HK$114.6 million. Revenue at Grand Lisboa grew 3.6% to HK$94.4 million but the group suffered a 24.8% revenue decline at the Venetian to HK$86.5 million.
The company pointed to its intention to continue with a money lending business it commenced in 2017, which contributed revenue of HK$1.1 million, as well its hotel operation business after acquiring Harbour Bay Hotels Limited.
Company EBITDA for the year ended 30 June 2017 amounted to HK$149.7 million compared with a negative EBITDA of HK$260.5 recorded 12 months earlier.
In a separate filing, the company announced that its English stock short name will be changed from “NEPTUNE GROUP” to “RICH GOLDMAN” and its Chinese stock short name from 海王集團” to “金粵控股” from 9 October 2017. The stock code will remain unchanged as “00070”.
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