Summit Ascent expects to report net loss for full-year 2023

A stakeholder in the Tigre de Cristal casino resort in Vladivostok, Summit Ascent Holdings Ltd., intends to report a financial loss for the fiscal year 2023, after a profit of HKD11.8 million (US$1.5 million) the year before.

The Hong Kong-listed company attributed the estimated loss in a filing on Thursday to several factors, mostly Russian currency movements, which also included a 1% year-over-year decline in revenue from gaming and hotel operations, totaling about HKD369.1 million.

In addition, while no such impairment loss was recorded in 2022, Summit Ascent reported an impairment loss of almost HKD438.8 million on property, operating rights, and equipment in 2023.

Due to fluctuations in the ruble, the company also reported a loss in foreign exchange rates of around HKD39.1 million in 2023 as opposed to a gain of about HKD60.0 million in the previous year.

It is important to stress that this data is the preliminary assessment of the firm and has not yet been subjected to an audit or evaluation by the audit committee, which has not yet been established after the resignation of all independent non-executive directors on January 15.

Following Tigre de Cristal’s announcement that it was going to sell its company to a Russian conglomerate, claiming the conflict between Russia and Ukraine as justification for the sale, there was widespread resignation. But in late February, the potential buyer requested that the sale be put on hold.

Similar resignations occurred at LET Group Holdings Ltd., the parent company of Summit Ascent, which is now non-compliant with the listing requirements of the Hong Kong market. After reporting a full-year loss of HKD408.8 million in 2022, LET Group anticipates a lower loss in 2023.

The parent company expects to register a profit share of about HKD112.3 million from a joint venture and reverse an impairment loss of HKD412.5 million on equity loans and amounts outstanding from a joint venture. Additionally, borrowing costs decreased by almost HKD158.6 million in 2023.

Original story by: GGRAsia