Casino owner in Quang Ninh loses 16 consecutive quarters

According to the third quarter financial report, Royal International Corporation (Royal Ha Long, code RIC) continued to record a poor business quarter when reporting a 33% decrease in net revenue compared to the same period, only over 30 billion VND and a gross loss of 3.6 billion VND.

In addition to the high interest expense and the high proportion of operating expenses, this Quang Ninh-based company reported a loss of more than VND18 billion (compared to a loss of nearly VND3 billion in the same period). This was the 16th consecutive quarter of loss for the company.

The company explained that the post-pandemic tourism market is still facing many difficulties, people are limiting their travel, so domestic customers have decreased. While the company's international customers are mainly Chinese tourists coming to Quang Ninh through border gates, China is currently restricting people from traveling abroad, causing the number of international visitors to also decrease sharply, and revenue from all segments has decreased.

The company's management said they have actively sought every measure to stabilize existing customer sources and exploit new customer sources to increase revenue, but it is still not enough to cover costs, so business results are still at a loss.

In the first 9 months of the year, this casino and hotel business recorded net revenue of more than VND86 billion, down more than 10% compared to the same period last year. Operating below cost price and high operating costs caused the business to lose more than VND54 billion, a sharp increase compared to the loss of VND36 billion in the same period.

In terms of structure, the casino business segment brought in the largest revenue of nearly 54 billion VND and a loss of nearly 13 billion VND; while the hotel and villa segment brought in nearly 33 billion VND in revenue and a loss of 41 billion VND.

Thus, if there is no sudden improvement in the last months of the year, Royal Ha Long may face its fifth consecutive year of losses.

Currently, this restaurant and casino business has total assets of VND923 billion, mainly in the form of tangible fixed assets and cash of more than VND27 billion.

The end-of-period payables were VND314 billion, including a financial loan of nearly VND94 billion. Owners' equity has been increasingly narrowed to below VND610 billion, mainly due to the accumulated loss growing to VND529 billion and about to consume almost all of the owner's equity of VND704 billion.

Poor business performance caused RIC shares to be delisted from HoSE to be transferred to a lower-standard exchange than UPCoM from May 26, 2022. The market price also plummeted to VND4,800/share, the lowest level since the listing transfer.

A company selling votive paper and cassava starch earns more than 50 billion VND per month . Despite the downward trend in the last quarter of the fiscal year, the votive paper company still had another year of record profits of more than 114 billion VND and increased its idle money to nearly 200 billion VND.

Source