Summit Ascent Expects Net Loss for Full 2023; Reports an Impairment Loss of US$56m
Byadmin
Jul 31, 2024It was recently reported that Summit Ascent Holdings Ltd., a subsidiary of LET Group Holdings Ltd., commented that it projects to reveal a the net loss for the entire last year, in comparison to income of HKD11.8 million, which is approximately 1.5 million, in the previous year.
Reasons for expected net loss:
The Tigre de Cristal casino resort investor commented in a March 28 filing that a number of factors were responsible for the projected net loss, involving a 1% annual decline in income from hotel and gaming operations to roughly HKD369.1 million. The main reason for the decline is the oscillation of the Russian ruble.
Relatedly, the impairment loss on the property, equipment and operating rights, was also recognized by the firm, of roughly HKD438.8 million for the past year. However, an identical impairment loss did not occur in 2022.
Last year, the company also saw a loss associated with foreign exchange rates of approximately HKD39.1 million, also due to the oscillation of the Russian ruble. In addition, it made a profit of roughly HKD60.0 million in the previous year, based on information from the March 28 filing.
Preliminary assessment:
On a related note, the details in the filing were just a “preliminary assessment” by the company, which wasn’t reviewed by the audit committee of the company or reviewed and audited by an auditor, the company said. The reason for this is that the audit committee of the firm hasn’t yet been constituted, after the departure of all of the firm’s independent non-executive directors, in addition to others, which occurred on January 15, according to GGRAsia.
The said mass departure took place after news of the intention to officially sell the Tigre de Cristal operations to a Russian company. However, Summit Ascent listed uncertainties over the conflict between Ukraine and Russia, as the cause for the sale.
Then, at the end of February, the firm commented that the sales contract had been terminated. The reason for this was the request of a potential purchaser.
Furthermore, an identical situation occurred at LET Group Holdings Ltd., the parent firm of the Summit Ascent listed on the Hong Kong Stock Exchange, which currently does not comply with the listing rules of the said Hong Kong stock market.
Also on March 28, LET Group commented in its own filing that it projects the net loss for the entire previous year to be below HKD408.8 million loss that took place in 2022.
An impairment loss on “equity loans to, loans to and amounts” that came from joint venture in the sum of HKD412.5m, and a share of the joint venture’s income of roughly HKD112.3m, are projected to be reversed. In addition, its financial expenses over the past year were reduced by around HKD158.6m.