Hong Kong-listed Century Entertainment International Holdings Ltd has unveiled a strategic roadmap aimed at removing the disclaimer of opinion issued by its auditors for the prior financial year, ending 31 March 2024. The company, led by its major shareholder and Chairman Ng Man Sun, is navigating a complex financial landscape, with a focus on improving liquidity and ensuring its ability to continue as a going concern.
Financial Position and Measures Taken:
As of 31 March 2023, Century Entertainment finds itself in a net liability position of HK$67.5 million, primarily attributed to borrowing and convertible bonds. However, the company remains optimistic that this will not result in a significantly adverse financial impact for the year ending 31 March 2024. To fortify its financial standing, Century Entertainment has implemented various measures, with a key reliance on the commitments made by its Chairman, Ng Man Sun.
Chairman’s Commitments:
Ng Man Sun’s significant commitments include:
A pledge not to call for repayment of HK$54.7 million in loans issued by him.
A commitment to provide further financial assistance when necessary, extending at least until 30 June 2024.
Providing a personal guarantee on borrowings amounting to HK$36.2 million to independent third parties.
A potential conversion of a convertible bond worth HK$50 million into equity shares.
Table Games Business and Going Concern Basis:
Despite delays in the implementation of an agreement related to the table games business in Cambodia’s Dara Sakor casino, Century Entertainment emphasizes that there is no urgency for the company to repay its indebtedness, as these obligations are personally guaranteed by or due to Mr. Ng. The company also highlights Ng’s willingness to maintain financial assistance for the group’s working capital.
Action Plan and Auditor Approval:
Century Entertainment outlines an action plan to address its indebtedness, including the restructuring of exterior debt with creditors. The company expresses confidence that, if auditors endorse its proposed action plans, it will result in the removal of the disclaimer of opinion for the year ending 31 March 2024. The Directors believe that these measures will ensure sufficient working capital to support operations, particularly with the expected commencement of the gaming table business.
Century Entertainment International Holdings Ltd’s strategic moves, anchored by Chairman Ng Man Sun’s commitments and a carefully crafted action plan, aim to secure the company’s financial stability. The proposed measures, if executed as planned and endorsed by auditors, hold the promise of removing uncertainties surrounding the company’s financial standing and positioning it for sustainable growth.