Hong Kong-listed gaming operator Amax International Holdings Ltd saw its losses grow 54.7% to HK$21.5 million for the six months ended 30 September 2018, despite booking a 493.3% increase in revenue following the launch of a VIP room in Cambodia late last year.
Amax put the losses down to increased expenses arising from loss on settlement of promissory notes completed in July 2018 as well as general and administrative expenses in relation to its new VIP room and the introduction of a new augmented and virtual reality business.
However, the company pointed to a positive outlook after a difficult few years thanks to substantial revenue growth through its Cambodian VIP operations. Revenue for the six-month period jumped from HK$10.5 million in 2017 to HK$62.3 million after Amax began operating 13 VIP baccarat tables at Genting Crown Casino in Poipet last December.
Amax is also yet to realize revenue from a Service Agreement it signed with Cheung Shing Global Travel Entertainment Limited (CSG) in October 2018 that will see it provide technical and pre-opening services for a new casino project in Sihanoukville, Cambodia. The company will be paid fees amounting to HK$9 million for the year ending 31 March 2019, of which HK$2 million is to be paid before the end of this year and remainder upon commencement of casino operations or by 31 March 2019.
Amax is currently engaged in an ongoing legal stoush with Greek Mythology (Macau) Entertainment Group Corporation Limited – which operated and managed the shuttered Greek Mythology casino at Beijing Imperial Palace Hotel in Macau and of which Amax holds a 24.8% stake – in an effort to gain access to their books and records.
No management accounts of Greek Mythology have been made available to Amax since 31 March 2012. Greek Mythology was closed in December 2015 under order of the DICJ, with the Macau Government Tourism Office subsequently ordering The Beijing Imperial Palace Hotel to cease operations on 22 July 2016. The hotel’s license was revoked on 12 January 2017.
Discussing the events of the past few years in a Friday filing, Amax stated, “With the efforts made in the previous year, the business of the group has come back on track during the period under review. It was a time when the company had made few steps forward in eliminating the adversity while fine-tuning the business structure of the company so that there shall be a strong foundation for the group to capture the growth opportunities in the gaming industry in Cambodia and other ASEAN areas.
“The development during the period under review allowed the group to further penetrate into these new markets, helping the group to expand and grow.”
