Suncity Group Board Proposes Name Change as It Tries to Escape Dirty Past
Posted on: July 18, 2022, 10:55h.
Last updated on: July 19, 2022, 12:55h.
Suncity Group hopes a new name will help it separate itself from its dubious past, as well as its former leader, Alvin Chau. Formerly the largest junket operator in Asia, the company may soon change to LET Group Holdings Limited.
A filing with the Hong Kong Stock Exchange (HKSE) indicates that the name is an intentional acronym. L stands for leisure, E for entertainment and T for taste. The company’s board is recommending the change, with the idea that the new name will better reflect its operations.
This is the second considerable name change for Suncity. This past April, its Sun Entertainment Group Ltd moved to rename the business Yeah Yeah Group Holdings.
Out of Sight, Out of Mind
Suncity Group fell on hard times after police in Macau arrested Chau for allegedly running a massive money-laundering operation through his interaction with casinos. That came immediately after Macau received a massive blow from COVID-19, which greatly impacted revenue opportunities for the city’s casino industry.
Since then, the company has lost partners, as well as its reputation. It has been looking for ways to reduce costs, as it simultaneously sought ways to put itself back in a positive light in the global gambling ecosystem.
The Board believes that the new name can bring a new atmosphere to the Company’s corporate image and identity, which will help the Company better capture potential business opportunities and benefit the future development of the Group,” said Suncity in a Hong Kong Stock Exchange filing.
Before the name change takes place, Suncity has to get its shareholders on board. The company will hold an extraordinary general meeting where they will discuss the idea and decide the path they want to take.
New Leadership, New Direction
Chau, who remains in prison in Macau, no longer has any financial interest in Suncity. He sold all of his shares in the company, as well as those he held in Summit Ascent. As a result, Andrew Lo Kai Bong, then the company’s deputy chairman, took over both.
Lo now holds 74.98% of Suncity. He already took over as executive director following the Chau debacle, and is working to undo the trouble that the former leader’s activities caused. Lenders have been demanding repayments of loans or other compensation, with Lo trying to keep the company together.
Suncity is still not turning a profit, so analysts will look at revenue growth to gauge how much the underlying business has grown. However, its revenue has dropped by 65% over the past three years. In addition, its stock lost 90% during that same period.
The share price, before the HKSE halted trading, also fell at a rate of 24% per annum. However, since it returned, its share price jumped 171% in a month.