Golden
Resorts Loss Up
As reported by the Hong
Kong Standard: "Golden Resorts Group, a
Hong Kong watchmaker turned Macau hotel-casino
operator, said its first-half loss widened sharply
to HK$365.9 million from HK$3.2 million a year
earlier thanks largely to new accounting rules.
"When the company acquired the
Grandview Hotel for HK$500 million in November
last year, Golden Resorts chairman Jenkin Cheung
personally gave shares valued at HK$496.8 million
as of March 30 to chief executive Pollyanna
Chu and non-executive director Lee Wai-man,
Chu's father, as a reward for joining Golden
Resorts. Lee, who has interests in VIP rooms
in Macau, has long been associated with gambling
tycoon Stanley Ho. However, Chu, who founded
Hong Kong's Kingston Securities, received three-quarters
of the share bonus.
"Under new accounting rules adopted this
year, the share gift was treated as a business
expense, even though the stock came from Cheung's
personal holdings, not the company treasury.
"…However, the Macau operations
still reported a net loss of HK$ 6.3 million
as a result of a one-time HK$20 million payment
to tenants of the Grandview Hotel as compensation
for the early termination of their leases to
make room for a casino expansion…"
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