Hong Kong-listed C Y Foundation Group Ltd., which majors in the provision of services for the management of electronic gaming equipment in Macau, recorded a widened loss in the city’s gaming business for the financial year ended March 31 under unfavourable market conditions, the firm told the Hong Kong Stock Exchange. CY Management Ltd., the subsidiary of C Y Foundation that handles the gaming business in Macau, recorded a loss of HK$21.6 million for the year, an increased loss when compared to the HK$9.7 million it posted for the 2014 financial year. The company accounted for ‘significant amortisation and depreciation of investment cost’ as the main cause for the loss, as well as the negative impact brought about by China’s anti-graft drive that has affected the mass market gaming segment here as well. CY Management provides management services to three casinos here: namely, Casino VIP Legend, Casino Casa Real, and Casino Grandview. The results filing also noted that the company is providing information technology services to two other casinos in Macau. In a separate announcement filed with the Hong Kong Stock Exchange yesterday, C Y Foundation noted that it has entered into a share placing agreement with placing agent Haitong International Securities Company Ltd., by which the agent conditionally agreed to place up to 220,700,000 placing shares at a price of HK$0.605 per placing share. The said placing shares would represent approximately 16.65 per cent of the enlarged issued share capital of the company. The net proceeds to be raised from the placing will be about HK$132.42 million, which will be used for the expansion of the company’s business, investment and general working capital.
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