Success Dragon to increase shares in Vietnam hotel

69

Success Dragon, the gaming management services company formerly known as C Y Foundation, announced a 16.67 per cent increase in their share acquisition to control a 45 per cent interest in a 5-star hotel and land development in Vietnam, as published yesterday on the Hong Kong Stock Exchange. The property – One Opera Danang Hotel – is a 24 storey 5-star hotel and commercial complex located in the Hai Chau district of Da Nang City in Vietnam. The land to be acquired is located adjacent to the hotel and approved for ‘hotel construction usage or such other compatible use as may be approved by the relevant authorities in Vietnam,’ according to the March 30 initial filing regarding the acquisition. The report states that the land is ‘intended for building a new wing for usage as an expansion of the hotel’. The consideration for the total acquisition was US$14.14 million (HK$109.65 million). Prior to the acquisition, the company announced a profit warning of an increased profit loss for its financial year ending March 31, mainly attributable to ‘deterioration of the business of the provision of services in management of electronic gaming equipment in Macau’ as well as ‘significant set-up costs incurred in developing the business of provision of racing system and betting assets in Vietnam.’ Success Dragon CEO Carlos Salas told Chinese Language business wire Finet Group Ltd. in January that the company operates around 800 slot machines in Macau, with each machine generating revenue of around US$60 and US$120 daily. Salas also told the newswire that profits generated by the slot machine management business in Vietnam could be 100 per cent higher than those generated in Macau.