LET Group Holdings Ltd, formerly known as Suncity Group, has issued a profit warning ahead of an anticipated HK$387.1 million (US$49 million) loss attributable to shareholders for the six months ended 30 June 2022.
The loss reverses a profit of HK$251.1 million (US$32 million) reported for the same period last year, although last year’s gain was non-cash in nature – derived from the sale of assets and a gain on the fair value of derivative financial instruments.
In a Friday HKEX filing, the company said it had recorded zero revenue from its travel related products and services business since it was suspended in December 2021, nor from its travel related products and services and hotel and integrated resort general consultancy services businesses which ceased from 1 April 2022.
Despite this, groupwide revenue for 1H22 is expected to record an increase from continuing operations of approximately 31.7%, mainly attributable to the increase in revenue from the operation of Tigre de Cristal in Russia. Suncity holds a 69.66% stake in Summit Ascent Holdings, which owns 77.5% of Tigre de Cristal operator Oriental Regent Ltd.
LET expects to release its full financial results for the six months to 30 June 2022 on 29 August.
In a separate release, the company also confirmed that it has now officially changed its name from Suncity Group to LET Group Holdings Ltd after shareholders voted in favor of the move.
As previously reported by IAG, LET – which stands for Leisure, Entertainment and Taste – “better reflects the Group’s strategic business plan and its future development direction with the focus on tourism-related business,” the company said.
Aside from its Tigre de Cristal investment, LET also holds a stake in Vietnam’s Hoiana and controlling interests in a new hotel-casino development in Manila’s Entertainment City.
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