Suncity Group Holdings, which was hit by a scandal from a former junket operator at an integrated resort, has announced its intention to change its name to Leisure Entertainment Taste (LET) Group Holdings.
The company announced a name change in a statement to investors, saying it hopes the new name “will bring a new atmosphere to the company’s corporate image and identity.”
For the reason of the new name, the business said it was primarily involved in four resort businesses. Previously, Macau’s junket was the main business channel, but the combination of business-related scandals, Macau’s market conditions, and general crackdowns in the junket sector has made this area less important.
Not mentioned are the company’s net loss before tax of HK $ 646.2 million (£ 62.8 million / 74.0 million euros / 82.6 million US dollars) in March, or Alvin Chow, a majority shareholder and former chairman. Was arrested. Illegal gambling business.
The arrest triggered Sun City to close the VIP room operated by all six concessions and deputy concessions in Macau.
Due to these adverse events, Suncity said in a report, “These conditions indicate the existence of significant uncertainty that could raise serious doubts about the ability of the group to survive as a going concern.” It states.
Revenue losses were in part due to the collapse of Sun City’s core junket business, which saw revenues decline by HK $ 123.8 million in 2020. After Chau’s arrest, the business was suspended from December 1st.
In April, the business faced existential problems and the board announced plans to survive.
“The board has also ordered the company to consolidate all its resources to focus on survival. Strong cash savings are the Group’s top priority.”
“The group is currently implementing the most uncompromising cost-cutting program to date. Non-core businesses such as mainland China’s real estate business and the disposal of aircraft in 2021 have been sold and will continue to be sold. It’s a schedule.”
“As the Group continues to transform into a pan-Asia integrated resort operator, the Group targets all traditional gaming business segments, including VIP, premium mass, mass, slots and non-gaming businesses.”
Renaming requires approval from Cayman Islands shareholders and the Office of Corporate Registration.
