Macau’s concessionaires could face heavy punishment from the region’s Chief Executive if they fail to report major financial decisions, under proposals to amend Macau’s gaming laws.
Following continued discussions held by the Second Standing Committee on proposed amendments to gaming laws, its Chairman, Chan Chak Mo, has issued a new statement.
He claims the new law, once implemented, will set specified financial deadlines in which concessionaires must inform Macau’s Chief Executive of any major financial movement.
What’s more, Chan notes these financial cut-off points – the amount at which a concessionaire’s expenditure passes the “major” threshold – will be established in due course.
These thresholds will be bespoke and take into consideration the investment status and scale of each concessionary.
Fine rates have been established, however, with an opening range set at MOP$2m ($250,000) to MOP$5m (625,000).
The committee has also let it be known that concessions may even be revoked in cases where operators refuse to disclose finances.
Success Universe predict profits between HK$3m & HK8m
Major shareholder in Macau’s Integrated Resort Ponte 16, Success Universe, expects to record consolidated profits of between HK$3m ($383, 529) and HK$8m ($1m) for the year ended 31 December 2021.
This unaudited profit is a marked improvement from full-year results ended 31 December 2020, where the operating company suffered consolidated losses of HK$142m.
Success Universe attributes its financial turnaround to fair value gain on the company’s overseas equity securities, a decrease in the share of loss relating to Ponte 16 and a fair value gain on the group’s investment properties.
“Facing the evolving coronavirus pandemic and the rising geopolitical tensions around the world, a full economic recovery may still take time"Yeung Hoi Song, Success Universe Group Chairman
Success Universe’s share of losses reduction on Ponte 16 – offloading depreciating stocks to other associates – is of particular note; it will allow Ponte 16 to remain the company’s flagship investment project.
Yeung Hoi Song, Success Universe Group Chairman, has commented on the company’s business performance for the full year of 2021.
He said: “The global situation in 2021 was complicated and full of changes. I am very grateful to the management and all the staff for their efforts in their positions to overcome challenges.
“Facing the evolving coronavirus pandemic and the rising geopolitical tensions around the world, a full economic recovery may still take time.
“The Group will remain cautious and prudent towards the formulation and implementation of corporate strategies to cope with the everchanging market and prepare for the recovery.”
Tigre de Cristal majority owner extends yearly losses to 472%, cite Russian sanctions
The majority stakeholder of casino Tigre de Cristal, Summit Ascent Holdings, has noted its expectation of increased yearly losses for the period ending 31 December 2021.
The Tigre de Cristal is situated in the Primorye Integrated Entertainment Zone or IEZ of far east Russia. And, as is in the case of many other Russian industries, the integrated casino has suffered additional losses owing to international sanctions on Russian businesses.
Summit Ascent, however, has reassured fellow investors that the casino will remain self-sustaining.
The result of this, though, has led to an increase in expected year-on-year losses with current estimations expected to total no less than HK$237.8m (US$35m). This anticipated end-of-year loss is significantly greater than a total loss of HK$47.8m suffered in 2020.
The firm noted in a statement: “The board will continue to assess the impact of economic sanctions against the Russian Federation on the financial position and operations of the group, and will make further announcements if and when it is necessary.”
It would seem Summit Ascent will have to play a waiting game, for now.
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