Summit Ascent Holdings Ltd has issued a profit alert, revealing it expects to record a profit attributable to shareholders of around HK$38 million (US$4.75 million) for the year ended 31 December 2024, reversing a loss recorded in FY23.
In a filing, the company explained that the improved performance comes on the back of a 12% increase in revenue from gaming and hotel operations to HK$414.5 million (US$51.8 million) at its Russian integrated resort Tigre de Cristal.
There was also no impairment loss recognized on property, operating right and equipment for the year whereas an impairment loss was recorded for the year ended 31 December 2023, Summit Ascent said.
Parent company LET Group, meanwhile, issued a profit warning of its own on an expected loss of HK$215.6 million (US$27.0 million) in FY24, down from a HK$58.7 million (US$7.3 million) in FY23. LET Group said this was due to expenses, impairments and the dissolution of a joint venture – likely in reference to its interest in Vietnam casino-resort Hoiana.
Both LET Group and Summit Ascent – whose shares have been suspended for over a year now – also outlined plans to publish their financial results for FY23 and FY24, as well as their 2024 interim results, by June 2025 after recently reconstituting their respective boards.
Hong Kong’s Securities and Futures Commission (SFC) in February 2024 ordered trading in LET Group’s shares be suspended due to concerns that a move by Chairman Andrew Lo tosell the company’s entire stake in Tigre de Cristal was made without the required approval of shareholders.
It later launched legal action against Lo for the alleged misconduct, stating he “deliberately disregarded the applicable Listing Rules and the requirements under the Code on Takeovers and Mergers and caused both LET and [its subsidiary] Summit Ascent to enter into agreements to dispose of their assets in Russia in early 2024.”
In January 2024, prior to the SFC taking action, five of LET Group’s six board members had stepped down in protest at the attempted sale of Tigre de Cristal, leaving Lo as the company’s only representative before three directors returned in May, then departed again in November.
While Lo has since resumed efforts to sell off its Russian interests, Summit Ascent at present still holds hold a 77.5% stake in Tigre de Cristal operator Oriental Regent, while LET Group, formerly known as Suncity Group, owns 69.66% of Summit Ascent.
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