SUNCITY GROUP HOLDINGS LTD - 1383.HK 2021 Interim Results - Suncity Group Holdings Limited
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I N V E S T O R P R E S E N T A T I O N 1383.HK SUNCITY GROUP HOLDINGS LTD 2021 Interim Results 31 August 2021 INNOVATIVE DREAMS BRING A WORLD OF ENDLESS POSSIBILITIES
Chairman’s Letter to Shareholders
Dear fellow Suncity shareholders,
In the past two decades, I have witnessed Asia gaming’s exponential growth, its downturns and its shifts towards leisure and entertainment; but none of these was even faintly comparable to the
pandemic now, because borders grinding to a halt is a completely new phenomenon. As you may have expected, our businesses have been impacted by border restrictions. Yet we are also glad to
see economic resilience globally, which has given us the confidence that pent-up demand is real and will happen once borders reopen. A big applause to the Central Government, the Russian, the
Vietnamese and the Philippines governments and everyone else who play a part in controlling the pandemic to date.
Our core strategy is to preserve cash and liquidity while retaining flexibility to adapt to the challenges brought by the pandemic and changing market conditions. Firstly, we focus on the
maximisation of cash flows from our operating properties through continued implementation of cost-reduction and efficiency initiatives; some of which have become permanent savings. In each of
our properties, we manage costs carefully without affecting customer experience. Secondly, we will continue to work on creating growth for all our properties so that Tigre de Cristal, Hoiana, and
later, Westside City Project will become main growth drivers of the Group. We remain pragmatic and will flexibly adjust the scale and speed of development, prioritising projects with the highest
and fastest returns.
For now, let us put the growth story aside and prepare for the worst, as surviving today is a prerequisite for tomorrow. In the first half of 2021, we completed the disposal of the legacy property
development and leasing businesses which will generate total proceeds of approximately RMB675 million, so that Suncity can finally focus on integrated resort development, with significantly
improved liquidity. In Summit Ascent, Tigre de Cristal has delivered fair results generating a positive-EBTIDA of HK$17.2 million, thanks to solid local mass and slots business. Hoiana has also been
running at its lowest cost ever. We are pleased that our stakeholders continue their support towards Hoiana.
The gaming business in Asia may be tough for now, yet, Suncity’s commitment to our vision in the North, South and East of Asia remains steadfast. We have worked diligently during these
challenging times to sow the seeds for the best integrated resorts in Asia. In the North, in Tigre de Cristal, both hardware and software are ready - Suncity Premium Club and new F&B options are
now all ready, awaiting border reopening. Phase II is on its way too, not to mention that the Integrated Entertainment Zone of the Primorye Region (“IEZ Primorye”) will be the next entertainment
destination of its own calibre with nearby openings. In the South, Hoiana is awaiting tourists to experience her beauty along the sandy coast in Central Vietnam. In the East, Westside City Project is
constructing in full steam in the Philippines. In Japan, our ski hotel in Niseko and diving hotel in Miyako Islands will offer customers pure Japanese leisure and fun.
Suncity’s synergistic locations in the North, South and East of Asia makes our entertainment accessible to people living in key markets in Asia. Riding on the wave of digitalisation and by mining
our data, we know what our guests love best with the Suncity advantage – a propriety network of unparalleled services and fun, only achievable under the Suncity’s umbrella. Our Korean and
Japanese customers will love heading to Vladivostok for a weekend break with seafood and vodka within a short two-hour commute. South East Asians may take mini weekend excursions relishing
sun, sea and sand in Hoiana. Westside City Project will be well-loved as the trendiest party place in town by socialites. When borders reopen, the picture will be very different from how it is today.
The afterlife of the Asian entertainment sector post-COVID awaits, because what doesn’t kill you, makes you stronger.
Currently in Suncity, we are creating the good; and sustaining the bad. If the road ahead of us is hard and rocky, we continue our journey by flowing down like a river; if the environment turns to
the extreme chill; we solidify and continue downhill in the form of a glacier. By being ultra-flexible and adaptable in a ferocious business operating environment is in the heart of every Suncity team
member. Suncity will always have my full support, be it rainy days, or rainbow days.
Finally, I would like to extend my gratitude to our global team, our shareholders, our suppliers, our investment partners and our team members for their patience to grow together with the Group.
While pending recovery, we are turning pain into power, and turning power into motivation. I look forward to sharing with you the successes of our Group in the many more half-years ahead.
Mr Alvin Chau Cheok Wa
Chairman
Suncity Group Holdings Limited
2
Suncity’s Selected Awards and Recognition
Suncity (1383.HK) Suncity (1383.HK) Suncity (1383.HK) Suncity (1383.HK)
2020 Asian Gaming Power Number 1 in Gaming & Best ESG, Ranked 1st Buy-side Best CEO, Ranked 1st Sell-
50: Number 6 – Alvin Chau Lodging Sector & Most & Sell-side Combined side (Andrew Lo)
Honored Company
iag Institutional Investor 2021 Institutional Investor 2021 Institutional Investor 2021
All-Asia Executive Rankings All-Asia Executive Rankings All-Asia Executive Rankings
2020 2021 2021 2021
Suncity (1383.HK) Suncity (1383.HK) Suncity (1383.HK) Suncity (1383.HK)
Best CFO, Ranked 1st Sell-side Best Investor Relations Best Investor Relations Best Investor Relations
Company, Ranked 1st Buy- Professional, Ranked 1st Buy- Team, Ranked 1st Buy-side
side & Sell-side Combined side & Sell-side Combined & Sell-side Combined
Institutional Investor 2021 Institutional Investor 2021 Institutional Investor 2021 Institutional Investor 2021
All-Asia Executive Rankings All-Asia Executive Rankings All-Asia Executive Rankings All-Asia Executive Rankings
2021 2021 2021 2021
3
Hoiana and Tigre de Cristal Selected Awards and Recognition
Tigre de Cristal Tigre de Cristal Tigre de Cristal Hoiana Shores Golf Club
Corporate Travel Awards 2020 Winner of the XVI Business Top 5 Nominees of “Russia’s 2021 Asia's Top 100 Golf
(Hotel Resort of the Year) Prize of Primorsky Krai Leading Resort 2019” Courses
(Company of the Year 2019)
CEO Today Magazine Zolotoy Rog World Travel Awards 2021 Xing Ding Capital Asia’s
4 Top 100 Golf Courses Rankings
2020 2019 2019 2021
Hoiana Hoiana Hoiana Shores Golf Club Hoiana Shores Golf Club
Best Integrated Resort of the Asia's Leading Tourism GEO Certified® World's Best New Golf
Year - Best of the Best Awards Development Project 2020 Development Status Course 2020
2020
Robb Report 27th World Travel Awards GEO Foundation World Travel Awards
4
2020 2020 2020 2020
4
1 GROUP 2021 INTERIM RESULTS
CONTENTS
1 GROUP 2021 INTERIM RESULTS
2 COMPANY OVERVIEW
3 INVESTMENT HIGHLIGHTS
4 GROWTH OPPORTUNITY
5 KEY DIFFERENTIATORS
6 ESG
7 APPENDIX
GROUP 2021 INTERIM RESULTS
FINANCIAL UPDATE
1383.HK 2021 Interim Results Highlights
Profit attributable Basic Earnings TdC Recovery in 1H vs
to Equity Holders per Share Pre-pandemic1 1H 2021 TdC GGR
RMB 320.0
US$49.4 million
million RMB 3.13
US$0.48 cents
cents
Mass Table Drop
recovered to 87% HK$ 139.1
US$17.9 million
million
Electronic Gaming
Volume recovered
to
100%
Group Total
Bank Balances & Cash Revenue Group Revenue Mix 1H 2021 Hoiana GGR
1.9 148.8 13.0
18% Operation of integrated
resort in the Russian
1% Federation US$ million
RMB billion RMB million Property development
US$300 million US$23 million
8%
1H 2021
0.0% Management and operation
of malls
73%
Hotel and integrated resort
general consultancy services
Travel related products and
services
US$1 = RMB6.48, US$1 = 0HK$7.75
1 Pre-pandemic: Average monthly volume recorded in Q1 2020 as a percentage of average monthly volume recorded during the pre-closure period of 1H 2021
6
1383.HK 2021 Interim Results Highlights
Suncity: Significant Turnaround to Bottomline Profit Although Non-Cash in Nature
• 1H Group Total Revenue of RMB148.8 million, up 99% year-on-year
• 1H Group Consolidated Adjusted EBITDA of negative RMB(33.7) million versus approximately negative RMB(44.5) million in
1H 2020
• 1H Group Profit Attributable to Equity Holders of the Company of RMB320.0 million, significant turnaround from Loss
Attributable to Equity Holders of the Company of RMB(118.6) million in 1H 2020, though the Profit was non-cash in nature
Group & Segmental Results: Suncity will Focus on Development & Operation of Integrated Resorts Going Forward
• Suncity completed the sale of the property development & leasing segment in China, with total proceeds of approximately
RMB675 million; Suncity will focus on the development and operation of integrated resorts going forward
• 1H Operations of integrated resort in the Russian Federation contributed revenue of approximately RMB107.9 million (1H
2020: Nil)
• 1H Travel related products and services segment contributed revenue of approximately RMB27.0 million, down 60% year-
on-year
• 1H Hotel and integrated resort general consultancy services segment revenue of approximately RMB1.3 million, decreased
81% year-on-year
• 1H Management and operation of malls segment revenue of approximately RMB12.6 million (1H 2020: Nil)
7
1383.HK 2021 Interim Results Highlights
Tigre de Cristal: 1H 2021 Adjusted EBITDA Continued Trending Positive While Increased 1.3 Times Sequentially in the Middle of
COVID, Thanks to Sustained Local Mass & Slots Businesses
• 1H Net Revenue from Gaming Operations of HK$122.7 million, up 33% YoY
• 1H Total Gross Gaming Revenue (“GGR”) of HK$139.1 million, up 9% YoY
• 1H Adjusted EBITDA of Tigre de Cristal was HK$17.2 million versus negative HK$(22.1) million in 1H 2020, 1H Adjusted
EBITDA was also up 131% sequentially versus 2H 2020
• Average Hotel Occupancy was 44% during weekends and 21% during weekdays in 1H 2021
Hoiana: Ensure Survivability through the COVID Storm
• 1H Net Revenue was US$6.8 million, up 42% compared to 2H 2020
• 1H Total GGR of US$13.0 million, up 46% compared to 2H 2020
• 1H Adjusted EBITDA of negative US$(20.6) million
Balance Sheet: Liquidity Improved with the Sale of Property Development & Leasing Segment in China
• The Group improved its liquidity position through the sale of the property development & leasing segment in China and
generated total proceeds of RMB675 million
• Bank Balances and Cash of RMB1.9 billion as at 30 June 2021
• Total Bank and Other Borrowings of approximately RMB965.3 million as at 30 June 2021
8
1383.HK Total Revenue Summary 1H 2021
1383.HK 1H 2020 Total Revenue increased by 99% YoY to RMB148.8 million
1383.HK Total Revenue Summary
YoY
RMB’000 Total: 148,770
Operations of integrated resort in the Russian Federation N/A
160,000
140,000
26,950
Property development1 N/A1
1,309
120,000 12,639
Total: 74,621 Management and operation of malls2 N/A2
100,000
80,000
107,872 Hotel and integrated resort general consultancy services (81%)
60,000
67,733
40,000
Travel related products and services (60%)
20,000
6,888 0 0
Total Revenue Change 99%
0 0
0
1H 2020 1H 2021
Travel related products and services
Hotel and integrated resort general consultancy services 1 1H 2021 revenue of RMB107.8 million
1 The Company disposed the entire interest in Access Achievement Limited on 30 June 2021. Accordingly, part of the property
Management and operation of malls
development segment & the entire property leasing segment were discontinued as at 30 June 2021
2 1H 2021 revenue of RMB12.6 million through the operation of shopping malls in China
Property development
Operation of integrated resort in the Russian Federation
9
A Growing Asset Base & Ample Liquidity
Total Bank Balances and Cash amounting to RMB1.9 billion in 1H 2021 (+17% YoY)
Total Assets of RMB8.1 billion in 1H 2021 (+39% YoY)
Bank balances and cash, Restricted bank deposits
Total Assets
RMB’000 and Pledged bank deposits RMB’000
2,000,000 9,000,000
1,947,400 +39% YoY 8,096,940
1,950,000
8,000,000
+17% YoY
1,900,000
7,000,000
1,850,000
5,830,044
6,000,000
1,800,000
5,000,000
1,750,000
4,000,000
1,700,000
1,667,298
3,000,000
1,650,000
1,600,000 2,000,000
1,550,000 1,000,000
1,500,000 -
Jun 2020 Jun 2021 Jun 2020 Jun 2021
10Tigre de Cristal – 1H 2021- Delivered Fair Results During the Pandemic
1H 2021 Adjusted Property EBITDA Continued Trending Positive While Increased 1.3 Times Sequentially in the Middle of COVID,
Thanks to Sustained Local Mass & Slots Businesses
Tigre de Cristal
HoH YoY
• 1H 2021 Total Revenue from gaming and hotel operations of HK$’million
HK$129.5 million, up 35% YoY and up 12% sequentially Total Revenue from Gaming and Hotel
12% 35%
Operations
• 1H 2021 Positive-Adjusted EBITDA of HK$17.2 million, up 178%
YoY, increased 1.3 times compared to 2H 2020 Gaming
VIP Gross Win (100%) (100%)
• In 1H 2021, no VIP Gross Win was recorded, down 100% YoY Mass Net Win 15% 62%
Electronic Gaming Net Win 10% 68%
• 1H 2021 Mass Net Win increased 62% YoY to HK$55 million, 1
Non-Gaming Revenue 46% 82%
and increased 15% HoH
• 1H 2021 Electronic Gaming Net Win increased 66% YoY to HK$’000 20,000
Adjusted EBITDA (HK$'000) and 17,287 16%
HK$68 million, and increased 10% HoH 15,000 Adjusted EBITDA Margin (%) 13%
14%
12%
10,000 10%
• 1H 2021 Non-gaming revenue1 increased 82% YoY to HK$6.7 7,470 8%
5,000
million, and increased 46% HoH 6% 6%
- 4%
• During 1H 2021, average hotel occupancy during weekends (5,000) 2%
0%
was 44% and during weekdays was 21% (10,000)
(22,149) -2%
(15,000) -4%
-6%
(20,000)
-8%
1 Non-gaming revenue: refers to revenue from hotel operations (25,000) -10%
1H 2020 2H 2020 1H 2021
Adjusted EBITDA Margin
11Hoiana – 1H 2021 Managed Cashflow to Ensure Survivability
Hoiana generated US$13 million GGR in 1H 2021. Adjusted EBITDA of US$(20.6) million
Hoiana
• 1H 2021 Total GGR of US$13 million, down 18% QoQ; up HoH YoY*
65% HoH; up 968%YoY US$'000
• 1H 2021 Total Net Revenue of US$6.8 million in 1H 2021, up VIP Gross win 65% 631%
42% HoH
Mass Gross win 21% 3,804%
• 1H 2021 VIP Gross Win was US$8.9 million, down 18% QoQ;
up 65% HoH; up 631% YoY
Electronic Gaming Gross Win 6% 1,228%
• 1H 2021 Mass Gross Win was US$2.7 million, down 46%
QoQ; up 21% HoH, up 3,804% YoY GGR 46% 968%
• 1H 2021 Electronic Gaming Gross Win was US$1.4 million, US$’000
up 80% QoQ; up 6% HoH; up 1,228% YoY 9,000 Adjusted EBITDA (US$'000) and 0%
Adjusted EBITDA Margin (%)
• 1H 2021 Adjusted EBITDA was negative US$(20.6) million 4,000
-2%
(1,000)
-4%
(6,000)
-6%
(11,000) (20,557)
-8%
*Comparison between the period from 1 January 2021 to 30 June 2021 and the 3-days period from 28 June 2020 (16,000)
(the date of commencement of casino operation) to 30 June 2020
(21,000) -10%
1H 2021
12Continued Full Financial Support from the Chairman
Proof that Mr. Chau is not worried about the Group in not repaying him
Mr. Chau exchanged his unconditional loans into Perpetual Securities to a maximum of HK$6 billion (i.e. liability has been classified as
equity → enhanced Suncity’s Net Asset Position)
Perpetual Securities
Shareholder's Unconditional Loan Facility (Part of Shareholder’s Equity)
Total: HK$6 billion
HK$’000
6,000,000
628,000
5,000,000 1,827,000
From 18 Aug 2020
onwards
4,000,000
• As of 30 Jun 2021, the Group has approx. HK$628 million
3,000,000
5,372,000 of unissued perpetual securities from Mr. Chau
3,793,000
2,000,000 • The act of changing shareholder’s loan into Perpetual
Securities enhanced Suncity’s Net Asset Position and
1,000,000 lowered the Group’s Gearing Ratio
0 June 2020 Jun 2021
Drawn Unutilised Drawn
13Main Shareholder Mr. Alvin Chau
14Development Update
Tigre de Cristal Phase I upgrade ready; Phase II Planning & Design on its Way; Diversifying into the Philippines
• Russia: Tigre de Cristal Phase I upgrade ready, which includes a brand-new Suncity Premium Club, a new hot pot restaurant and a
new private club; Phase II minor delays due to COVID, target to be ready in 2023
• Philippines: Invest in one of the fastest-growing Asian gaming jurisdictions in Asia, the Philippines; Westside City Project target to be
ready in 2023
Tigre de Cristal, Russia Westside City Project, Philippines
When Phase I & II are both running, Tigre de Cristal will triple in its number of When Westside City Project is ready, it will consist of:
rooms, and double in number in its gaming facilities • Approximately 300 gaming tables
• Over 1,300 electronic gaming machines
• Over 450 five-star hotel rooms
• Approximately 1,000 car park spaces
• Pool club & leisure club, etc.
15Development Update
Moving forward for Skiing and Diving Resorts in Japan
• Vietnam: Hoiana Phase II and beyond are planning in progress
• Japan: Moving forward with plans to develop a diving resort in Miyako Islands, Okinawa; and a skiing resort in Niseko, Hokkaido
Miyako Islands & Niseko, Japan Vietnam
• Miyako Islands: 40 villas and a hotel with more than 100 rooms In Hoiana, hotel rooms are being rolled out gradually in Phase I according to demand.
• Niseko: 50 villas, 20 townhouses and a hotel with over 40 rooms Hoiana Shores Golf Club, Hoiana Suncity, Hoiana Hotel & Suites and New World Hoiana
Hotel are now operational.
Phase II and beyond are planning in progress. Land plots are now being prepared for
development.
162 COMPANY OVERVIEW
CONTENTS
1 GROUP 2021 INTERIM RESULTS
2 COMPANY OVERVIEW
3 INVESTMENT HIGHLIGHTS
4 GROWTH OPPORTUNITY
5 KEY DIFFERENTIATORS
6 ESG
7 APPENDIX
COMPANY OVERVIEW
SUNCITY GROUP HOLDINGS LIMITED 1383.HKFlexibility is the HEART of Suncity’s Core Strategy
STATIC FLEXIBLE ADAPTABLE
When needed In the present In the future
Balancing risk & reward
18Corporate Structure
Suncity Group Holdings Ltd (HKEx: 1383)
HKEx Stock code: 102 69.66% PSE Stock code: SUN 51% 100%
SGMC
Hotel & Integrated Resort
Integrated Resort in Russia Integrated Resort in the Philippines
Consultancy Services
34% 51% 100% 100% 100%
MSRD Honour City Management &
Operation of Malls
Integrated Resort in Vietnam Hotel development in Hotel development in
Dongyang Xinguang
Miyako Islands, Japan Niseko, Japan
19How Suncity Group Holdings Limited 1383.HK Evolved
2012 2017 2019
• Change of company name from • Change of company name from Sun • Acquired 51% equity interest of Suntrust (PSE: SUN)
Hong Long to Sun Century Century Property Group Limited to • Became the single largest shareholder of Summit Ascent (HKEx: 102)
Group Ltd. Suncity Group Holdings Limited • Acquired 51% equity interest of MSRD
• Became an eligible security for southbound trading under Shenzhen Stock Connect
• COVID, travel bans and restrictions were in place
• Suncity Group (private • Completed HK$600mn acquisition • Hoiana soft opening on 28 June 2020
junket business, not listed) agreement for an effective 34%
• Westside City Project in the Philippines construction started
founded in Macau interest in Hoiana
• Suncity Group (HKEx : 1383) increased holdings of Summit
Ascent (HKEx : 102) to 69.66%
• Summit Ascent increased holdings of the Russian casino
Tigre de Cristal to 77.5% from previously 60%
• Acquired Niseko hotel project in Japan
2007 2018 2020
20Suncity’s Five Year Plan
Control In 5 years’ time, Suncity will have:
by
Suncity
# of Hoiana P1: 140 tables
2021
tables Westside City: 300 tables
Tigre de Cristal P1+2: 140 tables
• Tigre de Cristal Phase I upgrade completed Total: Over 580
• New Suncity Premium Club and Premium mass business
line set up in Tigre de Cristal
# of Hoiana P1: 1,000+ rooms
rooms Westside City: 2,400 rooms*
Tigre de Cristal P1+2: 470 rooms
Miyako Island project: 40 villas + more
than 100 hotel rooms
Niseko project: 50 villas + 20 townhouses
• Westside City Project ready in operations • Completion of the hotels & villas in + over 40 hotel rooms
4,000
• Tigre de Cristal Phase II ready in operations Miyako Islands and Niseko, Japan
• Hoiana Phase 2 completion; Total: Over
subsequent phases of Hoiana starts
2023 2024+ # of slots Hoiana: max 2,000 slots
Westside City: >1,300 slots
Tigre de Cristal P1+2: 630 slots
Total: Over 3,900
* Rooms include both Suncity’s hotel & Westside’s hotel
213 INVESTMENT HIGHLIGHTS
CONTENTS
1 GROUP 2021 INTERIM RESULTS
2 COMPANY OVERVIEW
3 INVESTMENT HIGHLIGHTS
4 GROWTH OPPORTUNITY
5 KEY DIFFERENTIATORS
6 ESG
7 APPENDIX
INVESTMENT HIGHLIGHTSStrongest Pipeline in the Gaming Industry in Asia
RUSSIA
Strongest Pipeline in the Gaming
industry in Asia:
Niseko
Vladivostok
JAPAN
SOUTH
CHINA KOREA
Miyako
Islands
MYANMAR Hong Kong And more…
Van Don Macau
Hoi An
Manila
VIETNAM
PHILLIPINES
23TIGRE DE CRISTAL
Vladivostok, RussiaOperates the largest IR in the Russian Federation
TIGRE DE CRISTAL,
Vladivostok
Suncity (1383.HK)
69.66%
Summit Ascent
(102.HK)
77.5%
Oriental Regent
Limited
100%
G1 Entertainment LLC
Holder of the gaming license
Tenant under Lot 8, 9 and 10
25Tigre de Cristal development summary
Development Largest integrated resort in the Russian Federation
Vladivostok, Integrated Entertainment Zone (IEZ) in the Russian Far East
Location
(Located 15 min from the Vladivostok airport)
Land area Phase 1 [Lot 9] Over 90,000 sqm; Phase 2 [Lot 10] Over 150,000 sqm;
Phase 1
Phase 1 + Phase 2
[Phase 1 GFA: 35,000 sqm]
• 5 star hotel 121 rooms [Phase 2 GFA: over 65,000 sqm]
• Electronic gaming machines 330 machines • Luxury hotel rooms Approx. 470 rooms
• VIP tables 30 tables • Electronic gaming machines Approx. 630 electronic gaming
Components • Mass tables 35 tables machines
• Restaurant & Bars 4 • Gaming tables Approx. 140 tables
• Spa 1 • Luxury duty free shopping
• Fitness Center 1 • Oriental, Korean, Japanese, Western Restaurants
• Beach club
• Conference, performance, auditorium and banquet facilities
26Strong Tourism Growth from Northeast Asia
Pre-COVID Foreign Tourist Arrivals by Region Tourist Arrivals to Primorye
1,000 Pre-COVID CAGR 941
E-visa Regime of 43%
Implemented on 8 Aug
779
2018 2019 YoY % 800
Foreign Tourist Arrivals
2017 644
Country Arrivals Arrivals increase 600
('000)
China 422,125 456,295 +8% 400
248
171 132
200 108
Republic of South
226,849 304,000 +34% -
Korea
2014 2015 2016 2017 2018 2019 2020
Japan 20,955 35,000 +67% Source: Primorsky Territory Department for International Cooperation
and Tourism; Federal State Statistics Bureau
E-visa
Approval
Validity period Application fee
processing time
2021: US$ 40 pp*
2021: 16 days per entry* 4 days at maximum
(consular fee)
*A single-entry electronic visa is suspended due to COVID-19.
Visa-free regions that are potentially
Countries applicable for e-visa that are potentially our target customers
our target customers
China Japan Singapore Philippines Taiwan India Malaysia etc. South Korea Hong Kong Macau
27Tapping into the relatively Untapped Korean and Japanese Markets
Both Japanese and Koreans could afford gaming better than others South Koreans love gaming, already contributed half of the entire Korea’s GGR in 2019
US$ Comparison of GDP per capita pre-pandemic (2019) US$ million GGR Contribution in South Korea (Local casino KWL vs
45,000
Foreigner-Only casinos)
40,113 3,000
40,000
35,000 31,846
30,000 2,000 1,094 1,123 1,430 1,275
1,212 1,062 49% 51%
25,000 1,101 1,204
885 991
20,000
15,000 1,000
11,500
1,251 1,373 1,432 1,340 1,232 1,304
10,000 1,103 1,043 1,064 1,126
5,000 Kangwon Land
0
0 Other 16 Casinos
Korea Japan Other East Asian Countries
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Kangwon Land Other 16 Casinos
An average Japanese / Korean are 250% / 177% more well-off than other
East Asians
Yet, it is in fact quicker for Koreans to fly to Vladivostok than driving to Kangwon Land.
Japanese have no local access to casinos – nearest is Korea / VVO
Arrivals at Tigre de Cristal by Air Arrivals at Kangwon Land by Land
*30 flights weekly (Kangwon Land is the only locals-permitted
Japan does not have Japan Pachinko market size casino in Korea)
any land-based casino
yet US$ 182 billion* Incheon Vladivostok 2.5 Hrs
VS
Seoul Kangwon Land 4 Hrs
Busan Vladivostok 2 Hrs Busan Kangwon Land 6 Hrs
*2020 figure, according to paper published by a of pachinko manufacturer
More marketing campaigns about TdC to Koreans and Japanese could be done
28Strategically Located, Strong Tourism Growth & Low Tax
RUSSIA
3 hr flight
Monthly Levy
2 hr flight
~USD1,700/ table / month ~USD100/ slot / month
RUB125,000 / table / month RUB7,500 / slot / month
1 hr flight
45%
39% 39%
40%
35% 35%
3 hr flight Vladivostok 35%
30%
JAPAN 25%
2 hr flight
25% 22%
20% 20%
SOUTH
CHINA KOREA Busan
20%
15%
15% 12%
1 hr flight
10%
Miyako
Islands
5% 1.5% 1.5%
MYANMAR Hong Kong
Van Don Macau 0%
Russia South Korea Singapore Philippines Malaysia Macau
Hoi An
Manila
VIP Mass
(as a % of 2019 GGR)
VIETNAM
PHILLIPINES
29Tigre de Cristal Future Phases Masterplan
PHASE 1
PHASE 3 PHASE 2 (Existing) PHASE 4
30WESTSIDE CITY PROJECT
Manila, PhilippinesWestside City Project is Located in the Heart of Entertainment City
500 tables
993 rooms
3,000 slots
OKADA
Suncity (1383.HK) SUNCITY – WESTIDE CITY PROJECT
THEME OKADA MANILA
PARK
51%
300 tables
2,400 rooms
SunTrust (PSE: SUN) >1,300 slots
Suncity Entertainment
Complex Hotel CITY OF DREAMS MANILA
Westside City Resorts World
WCRW
Develops & Operates
Main Hotel Casino at
Westside City Project
SOLAIRE
449 tables
AYALA GRAND WESTSIDE HOTEL
CITY OF 800 rooms
1,883 slots
DREAMS
298 tables
951 rooms
2,256 slots
AYALA MALL
SOLAIRE
32Westside City Project Development Summary
Development Westside City Project, Manila, Philippines
Location Heart of Manila’s Entertainment City, 8 minutes to Ninoy Aquino International Airport
Total gross floor area of over 200,000 sqm on a piece of land of approx. 44,000 sqm
Land area
Main Hotel Casino (to be built by SunTrust) Westside (to be built by Westside City Resorts World Inc.)
Components
Ready in 2023.
Main Hotel Casino owned under SunTrust • Shopping Mall 1 massive mall
• Gaming tables Approximately 300 tables • Hotel rooms More than 2,000 rooms
• Electronic gaming machines More than 1,300 machines • Grand Opera House 1 Grand + 3 mini Theatres
• 5-star Hotel rooms More than 450 rooms • Westside Avenue Restaurant & theatre district
• Car Park spaces Approximately 1,000 spaces • Car Park spaces 2,300 spaces
• Pool club & Night club
• Signature restaurants & Broadway street
• Philippines is the best gaming market in Asia outside of Macau
Highlights
• Complementary relationship: Suncity brings gaming experience. Westside’s parent company, Megaworld Corporation, is a
well-established real estate developer in the Philippines, with local expertise in building successful local shopping malls
33Westside City Project – Design Preview
35Hoiana Hoi An, Vietnam
Operates Vietnam’s premium Integrated Resort
Hoiana
The Master Plan
37Hoiana is well-positioned for International Tourism
• Pre-COVID, international arrivals increased 16%
YoY in 2019 to 18 million visitors
• Hoiana is excellently located near UNESCO World
Heritage sites and world-class beaches
• A lot of nearby tourist attractions within a one-
hour travel radius
38Hoiana Development Summary
Development Suncity is a primary developer of Hoiana, Vietnam’s largest casino and integrated resort
Quang Nam Province, Central Coast Vietnam
Location
(30km/30 minutes from Da Nang International Airport and 7km/15 minutes from Hoi An Ancient Town)
Land area Approx. 986 ha (10 km2) with 4 km pristine beach frontage
Phase 1:
Phase 2:
165 hectares • Multiple beachfront resorts
Exclusive Preview held on 28 June 2020 • Lake side resorts
Hoiana Casino to be managed by Suncity Group • Lagoon hotels
• Walking street
Components • Gaming tables 140 tables • Duty Free
• Electronic gaming machines 330 machines (max 2,000) • Beach club
• Hotel rooms 1,000+ rooms • Diamond lagoon
• Hoiana Shores Golf Club 18 holes • Entertainment and Vietnamese Cultural Villages
• Suncity is a primary developer, and would introduce other developers to develop Phase 2 and onwards together
Our land development
strategy • Suncity focuses on the value generated from the casino
39Hoiana Phase 1
40Hoiana Shores Golf Course
41F&B Offerings in Hoiana
42Hoiana – Public Areas
43Hoiana Hotel & Suites
44New World Hoiana Hotel
45Japan Miyako Islands, Okinawa & Niseko, Hokkaido
Miyako Islands, Okinawa
Development Miyako Islands Hotel Development
Location • 25 minutes from Miyako Shimojishima Airport (new
airport), 19 minutes to Miyako Airport (old airport)
• Near Sunayama beach
Approx. 109,000 sqm
Site area
Convert land use to resort hotel development
Plans
• Build 40 villas
• Build more than 100 hotel rooms
• An addition to Suncity’s travel products to enhance our
Highlights customer stickiness
• Scenic area in Miyako Islands
• Pre-COVID, up to 24 direct flights per from Miyako
Airport and up to 17 direct flights per day from Miyako
Shimojishima Airport to Tokyo, Osaka and Hong Kong
47Niseko, Hokkaido
Development Niseko Hotel Development
Location • International direct flights to the closest airport, New
Chitose Airport, from Seoul (Incheon), Busan, Dalian,
Shanghai, Beijing, Hong Kong, Yuzhno-Sakhalinsk, Guam,
Taipei
• An quiet area but with easy access to Kutchan
Approx. 220,200 sqm
Site area
• Build 50 villas
Plans
• Build 20 townhouses
• Build over 40 hotel rooms
• Situated at the most famous ski town in Hokkaido,
Highlights renowned for the quality of powder snow, becoming the
most popular vacation destination in Asia
• Hokkaido Shinkansen (to be upon completion in 2030)
and Expressway shorten the travel time to visit Niseko
48IR MANAGEMENT CONTRACT
49Multiple Integrated Resort Management Contracts
Asset-light Expansion strategy offers synergies with our database
Call option to No CapEx
acquire 25% required
Hoiana, Hoi An, Vietnam Van Don, Vietnam
50OTHER SEGMENTS
51Management and Operation of Shopping Malls
Dongyang Xinguang Pacific
Shopping Mall in Zhejiang, China
Phase 1 Shopping Mall of Xinguang Tiandi
Name
Phase 2 Living Mall of Xinguang Tiandi
Location Zhejiang Province
Description Phase 1 & 2, 620 units with a total floor area of over 65,000 m2
Status Leased out, occupancy rates of Phase 1 & 2 as at 30 June 2021 were approximately 88% and 79%, respectively
524 GROWTH OPPORTUNITY
CONTENTS
1 GROUP 2021 INTERIM RESULTS
2 COMPANY OVERVIEW
3 INVESTMENT HIGHLIGHTS
4 GROWTH OPPORTUNITY
5 KEY DIFFERENTIATORS
6 ESG
7 APPENDIX
GROWTH OPPORTUNITYFlexibility is at the HEART of Suncity’s core strategy
At Suncity, we are flexible We fit into any environment And if opportunity requires, we
with good opportunities can even transform
54Synergies among our Different IR Locations
If the customer
wants this
experience:
Suncity could
take them to:
At the same
time, Suncity
could have
access to local
resources
55Suncity is Interested in all Asian Gaming Jurisdictions
Macau
Vietnam South Korea Malaysia
RUSSIA
2020 GGR: hard hit
by COVID 2020 GGR:US$1B 2020 GGR: US$0.96B
2020 GGR: US$7.5B Pre-pandemic 2019 Pre-pandemic 2019 Pre-pandemic 2019
GGR:US$0.3B GGR:US$2.29B GGR:US$2.95B
Pre-pandemic 2019
GGR: US$36.6B
Cambodia Philippines Japan
Vladivostok
JAPAN Est. GGR
SOUTH
CHINA KOREA Busan 2020 GGR: US$0.87B 2020 GGR:US$2B US$15B
Pre-pandemic 2019 Pre-pandemic 2019
GGR: US$1.7B GGR: US$4.3B
Miyako Russia Far East Singapore
Islands
MYANMAR Hong Kong
Macau
Hoi An
Manila 2020 GGR: US$0.03 2020 GGR: US$0.7B
VIETNAM
Sihanoukville
CAMBODIA Pre-pandemic 2019 Pre-pandemic 2019
PHILLIPINES
GGR: US$0.1B GGR:US$4.6B
Source: DICJ; Vietnam Decree 108/2015/ND-CP for tax calculation basis; broker reports; Cambodia figure only includes public data. From MOF by 8 licensed casinos only
56Interested in all Asian Gaming Jurisdictions so that Synergies among different IR locations
could be created
Country Macau Vietnam Philippines Singapore Malaysia South Korea Russia Far East Cambodia
Significantly
2020 GGR (US$mn) 7,538 1,987 747 965 1,307 33 870
affected by COVID
(during pandemic)
2019 GGR (US$mn)
(pre-pandemic) 36,637 380(Est.) 4,302 4,568 2,953 2,285 103 1,719
Provisional pilot Only allow in
Locals gaming Yes, with an entry
Yes licenses for locals Yes Yes Kangwon Land; Yes No
allowed levy
can be applied Others No
Primarily mainland
For Hoiana, primarily Primarily Locals and Locals for Kangwon Naga: businessmen;
Chinese; businessmen Slots & Mass: Locals;
Target Customers and affluent middle
tourists from South some tourists; Local Tourists Locals Land; Tourists for all
VIP: Tourists
Sihanoukville: tourists
East Asia businessmen others & businessmen
class
39% 39%
35% 35% 35%
Tax Rate * 25%
22%
20% 20%
14% 15%
12%
7%
4%
1.5% 1.5%
Source: Estimates from Broker investment research; Relevant decrease specifying gaming taxes; Public data;
* Vietnam’s official tax rate is 35%, but commission deductible 57Leverage on Suncity’s Exceptional Marketing Programmes
Shopping Entertainment
Global Travel
Dining
58Leverage on Suncity’s Group-wide Customer Access
Members spent HK$1.7bn in
Suncity Group has over 190,000 members shopping & entertainment in 2019 pre-pandemic
Data Information Insight
59Lower Risks – Not reliant on One Client source; Koreans the Biggest Foreign
Group of Customers
RUSSIA
3 hr flight
Suncity has 190,000 actively serviced members worldwide
2 hr flight Koreans
>10k
South East Asians (Malaysians,
1 hr flight
Singaporeans, Filipinos, Thais) >8k
Taiwanese >5k
3 hr flight
JAPAN
2 hr flight SOUTH Japanese
CHINA KOREA Busan ~thousands
Other
1 hr flight
Nationalities
Miyako
Islands
MYANMAR Hong Kong
Koreans, South East Asians and Japanese Gaming Patrons
Van Don Macau
Hoi An
Manila
accounts for the largest group of foreign Suncity Members
VIETNAM
PHILLIPINES
60The Network Effect that Synergises the Business
Database from Experienced Global integrated Huge Value to be
SunTravel Management resort locations unlocked
Team
61Strong Support from Main Shareholder
Strong support from main shareholder
• Biggest supporter of Suncity Group Holdings Limited (1383.HK)
Mr Chau Cheok Wa (Alvin) • Through his company with his investment partner, Mr Chau
Chairman & Executive has an effective control of 75% of Suncity Group Holdings
Director of 1383.HK; Limited
Founder of Suncity Group
62Highly Experienced Management and Execution Teams
Mr Chau Cheok Wa Mr Lo Kai Bong Mr Au Chung On Mr Manuel Assis Da Mr. David Chua
(Alvin), Chairman & (Andrew), Executive (John), Executive Silva, Executive Director
Executive Director Director Director Executive Director and CEO,
Summit Ascent
• Became the Chairman • Executive Director and
• Experienced in the • Previous head of the
of the Company since Chief Investment
gaming industry Gaming Inspection
Nov 2011 Officer of Suncity
• Previously he was the and Coordination Ms. Gillian Murphy
• Significant Experience Group & in charge of
Senior Director of Bureau (“DICJ”) from
in gaming and in overseas development,
Business 2003 – 2016, for more
integrated resorts corporate
Development, than 43 years during Senior Vice President, Non
• Currently, he is also management and Gaming, Hoiana
Director of Operations which he was
the Chairman of M&As
at one of the major responsible for
Summit Ascent • Currently he is also the
gaming overseeing the casino
(102.HK) Executive Director and
concessionaires in operation in Macau
• Previously he was the Deputy Chairman of
Macau • An expert on casino
executive director and Summit Ascent Mr. Michael French
• Was a member of game rules, internal
Chairman of Sun (102.HK)
gaming related controls, junket
International Group • Previously he was the Senior Vice President,
committee formed by control and VIP
Limited (8029.HK) executive director of Gaming
the six concessionaires gaming operations
Sun International
to provide advice to
Group Limited
the regulatory bodies
(8029.HK)
of the Macau
government Mr. Stylianos Tsifetakis
COO, Tigre de Cristal
635 KEY DIFFERENTIATORS
CONTENTS
1 GROUP 2021 INTERIM RESULTS
2 COMPANY OVERVIEW
3 INVESTMENT HIGHLIGHTS
4 GROWTH OPPORTUNITY
5 KEY DIFFERENTIATORS
6 ESG
7 APPENDIX
KEY DIFFERENTIATORSSummary - Why Suncity Group Holdings Limited (1383.HK)?
Started in Macau, Transforming into a Low Valuation Compared to Flexible IR Expansion
Worldwide Vision Global Operator other Gaming Operators Strategy
Suncity started in Macau Tigre de Cristal, Hoiana and Relatively low valuation Management Contracts offers a
A vision to expand as an Westside City Project will be the compared to other global flexible global IR expansion
integrated resort developer and main driver of the Group gaming operators strategy. Highly flexible and
operator worldwide adaptable in expansion
High Flexibility and Leverage on Suncity Network Effect on Experienced
Adaptability customers’ database Multiple IR locations Management
If an investment opportunity is good; we Suncity’s customer database is If customers want to ski, Suncity Senior management have extensive
co-invest; valuable as we know what brings them to Vladivostok; If gaming industry experience
If there is a perceive higher risk, we services and which location each customers want to go to the beach,
have the power to manage the project customer likes most Suncity brings them to Vietnam
656 ESG
CONTENTS
1 GROUP 2021 INTERIM RESULTS
2 COMPANY OVERVIEW
3 INVESTMENT HIGHLIGHTS
4 GROWTH OPPORTUNITY
5 KEY DIFFERENTIATORS
6 ESG
7 APPENDIX
ESGCOVID-19 Prevention Measures in Suncity’s Integrated Resorts
Tigre de Cristal staff started to receive Russia’s self-developed Sputnik V Applied social distancing in public Established Covid-19
COVID-19 vaccine areas; Employees wear face masks in Task Force and published weekly
premises internal communications
67Tigre de Cristal and Hoiana Fully Support the Local Community
Tigre de Cristal and Hoiana actively supported the local community in fighting against the Covid-19 pandemic and
promoting environmental protection
Hoiana donated one COVID-19 testing Tigre de Cristal staff and their families cleaned Tigre de Cristal staff helped clean and improve
machine to Quang Nam province in support of up rubbish in the volume of 12 cubic metres at school territory for students
the fight against the pandemic the beach for recycling
687 APPENDIX
CONTENTS
1 GROUP 2021 INTERIM RESULTS
2 COMPANY OVERVIEW
3 INVESTMENT HIGHLIGHTS
4 GROWTH OPPORTUNITY
5 KEY DIFFERENTIATORS
6 ESG
7 APPENDIX
APPENDIXProject Cost of selected Integrated Resorts in different markets
Project Cost of selected Integrated Resorts in different markets (US$ Million)
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000
Hoiana Phase 1 (2020), Vietnam $1,000
Westside City Project (2023) $1,000
Tigre de Cristal Phase 1 (2015), Russia $195
Tigre de Cristal Phase 2 (2023), Russia $200
Galaxy Macau Phase 3 & 4 (soon), Macau $6,200
Grand Lisboa Palace (2021), Macau $5,000
Sands Cotai Central (2012), Macau $4,480
Wynn Palace (2016), Macau $4,400
MGM Cotai (2018), Macau $3,432
COD Macau (2009), Macau $3,032
The Parisian (2016), Macau $2,849
Venetian (2007), Macau $2,549
Galaxy Macau Phase 2 (2015), Macau $2,500
Galaxy Macau Phase 1 (2011), Macau $2,100
Londoner (2021), Macau $1,900
Marina Bay Sands (2010), Singapore $5,585
Resorts World Sentosa (2010), Singapore $3,226
The Grand Ho Tram Resort (2013), Vietnam $600
Corona Phu Quoc Vietnam (2019), Vietnam $2,100
Naga3 (2025), Cambodia $3,515
Naga2 (2017), Cambodia $700
NagaWorld (2005), Cambodia $227
Okada Manila (2017), Philippines $2,700
Solaire (2013), Philippines $1,200
Resort World Manila (2009), Philippines $1,000
COD Manila (2014), Philippines $850
Resorts World Genting (1971), Malaysia $1,339
Naga Vladivostok (soon), Russia $300
Shambala Phase 1 (2020), Russia $110
70Disclaimer
• The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to this document. If
you are in any doubt about any of the contents of this document, you should obtain independent professional advice.
• This document appears for information purpose only and does not constitute an invitation or offer to acquire, purchase or subscribe for the securities of the Company.
• The information of this document is intended to be accessed by Professional Investors only (or such similar persons as the term is defined under the laws of other
relevant jurisdictions). For this purpose, “Professional Investor” is defined under the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong), as may be
amended from time to time.
• Certain information set forth in this presentation contains “forward-looking information”, including “future-oriented financial information” and “financial outlook”, under
applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact, the information contained herein
constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of
proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects, and joint ventures; (iv) execution of
the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; (v) sources and availability of third-party financing for the
Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the
Company’s current customer, supplier and other material agreements; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements
are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs
and opinions as one factor in evaluating an investment.
• These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of
future performance or result expressed or implied by such forward-looking statements.
• Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can
be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change
except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.Thanks Suncity Group Holdings Limited 1383.HK Investor Contact: Winnie Lei, Senior Director Investor Relations winniewi.lei@suncitygroup.com.hk
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