Hong Kong-listed Summit Ascent Holdings, the majority owner of Russian integrated resort Tigre de Cristal near Vladivostok, has issued a positive profit alert on an expected reversal of loss for FY22.
In a Tuesday filing, Summit Ascent said it anticipates reporting a profit of HK$30.9 million (US$3.9 million) for the 12 months to 31 December 2022, reversing a HK$273.8 million (US$34.9 million) loss in 2021. This, the company explained, is due to a HK$106.8 million (US$13.6 million) or 40% increase in revenue and the absence of a HK$136.9 million (US$17.4 million) impairment loss recognized on property, operating right and equipment for the year 2021.
Full financial results are due to be published before the end of the month.
Despite the reversal, Summit Ascent faces some short-term uncertainty after last year postponing the Phase II development of Tigre de Cristal due to the COVID-19 pandemic and Russia’s war on Ukraine.
The company said last March that it was wary of a volatile business which could impact capital investment into the project, supply chains and settlements with suppliers.
“The Board has been closely monitoring the market conditions and assessing the short-term and long-term implications of the geopolitical tensions, the Group’s working capital requirements as well as funding requirements for its projects under development,” it said at the time.
“The Board will base [resumption of Phase II development] on the [situation in Russia] and perform further assessment of its impact on the Group’s financial performance and take relevant measures.”
Summit Ascent is 69.66% owned by Asian gaming investor LET Group, formerly known as Suncity Group.
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