(Yicai) Feb. 6 — Emperor Entertainment Hotel has sold about 79 kilograms of gold bricks that were laid out in the lobby of its Macau Grand Emperor Hotel, netting the hospitality and entertainment services provider a profit of HKD90.2 million (USD11.5 million).
Emperor Entertainment will sell the gold for around HKD99.7 million, the Hong Kong-based firm announced late on Feb. 4. The transaction cost for the bars, which the company had bought for about HKD9.4 million (USD1.2 million), will be around HKD100,000 (USD12,800), it noted.
After ceasing casino operations at the end of last October, the gold bars no longer align with the Macau Grand Emperor Hotel’s new positioning, Emperor Entertainment said. In addition, the bricks were removed and sold due to the area requiring renovation and reconfiguration, it added.
The Macau Grand Emperor Hotel opened in 2006, focusing on gambling as one of its main businesses. It used the 78 gold bars, each a Swiss 999.9 fine gold and with an individual identification number, to create a luxurious and opulent atmosphere in its lobby.
The surge in gold prices to record highs provided a favorable opportunity for Emperor Entertainment to sell the assets, the company said, adding that the Macau Grand Emperor Hotel would also be able to save on security and insurance expenses associated with the bricks.
After ending its gambling operations, Emperor Entertainment continued its hotel business, with its portfolio including the Emperor Hotel in Hong Kong’s Wanchai, the Macau Grand Emperor Hotel, and the Inn Hotel Macau. It also operates an apartment rental business.
Shares of Emperor Entertainment [HKG: 0296] fell 3.7 percent to 26 Hong Kong cents (3 US cents) apiece as of 2.45 p.m. in Hong Kong today. The stock closed up 2.5 percent yesterday, after surging by as much as 18 percent at one point.
The proceeds from the gold sale will also help improve the financial performance of struggling Emperor Entertainment. The firm saw a net loss of about HKD73.1 million in the six months ended Sept. 31 after a loss of HKD248 million (USD31.74 million) in the fiscal year ended March 31 last year, according to its latest financial report.
The sale may help alleviate, to some extent, the financial pressure faced by Emperor Entertainment’s controller, Hong Kong entertainment tycoon Albert Yeung. Emperor International Holdings, a real estate business listed company controlled by Yeung, has reported losses for six straight years, reaching a total of HKD13.8 billion (USD1.8 billion).
Emperor International Holdings’s loss topped HKD4.7 billion (USD600 million) in the 12 months ended March 31 last year, while also defaulting on HKD16.6 billion of bank loans.
Editors: Tang Shihua, Martin Kadiev
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.yicaiglobal.com ’
