Summit Ascent postpones Tigre de Cristal Phase II development on Russia economic uncertainty

March 23, 2022 Hong Kong Events & Announcements

Hong Kong-listed Summit Ascent Holdings says it has postponed the Phase II development of its Russian integrated resort, Tigre de Cristal, as result of ongoing uncertainties around the COVID-19 pandemic and Russia’s war on Ukraine.

Publishing its FY21 financial results overnight, which included a 26% year-on-year increase in revenue to HK$266 million (US$34 million), Summit Ascent said its expansion of Tigre de Cristal, located in the Primorye Economic Zone near Vladivostok, would now be complete no earlier than 2025.

However, it could be later still with the company monitoring the situation in Ukraine and the impact of sanctions currently imposed on Russia by much of the world.

“The Group’s integrated resort Tigre de Cristal is operating in the Russian Far East and has been self-sustaining without any bank borrowings,” Summit Ascent said.

“However, we shall have to adjust our operations to the reality of a volatile business environment and try to find ways to do business within the new constraints we may face including,

but not limited to, the payment platform for further capital investment for the Tigre de Cristal Phase II,

loan repayment and dividend repatriation to its parent companies in Hong Kong, settlements with the overseas customers, suppliers, and service providers, and the increased operating costs due to the inflation and supply-chain disruptions.

“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.