ASF Group posts another year of loss after Gold Coast setback
Chinese consortium ASF Group posted another year of operating losses in the year to June 30 after its biggest target project in Australia, the $3 billion casino and integrated resort on the Gold Coast, was terminated by the Queensland Government in August.
The company had a $19.9 million net loss and while its net asset value was still positive, it fell to $4.7 million from $12.4 million the previous year, mainly due to an issue of convertible notes at $28 million.
The company, an investment and trading house focused on the identification, incubation and realisation of investment opportunities between China and Australia, has not reported an operating profit in the past 10 years.
And while it has lost the Gold Coast resort after a 4½-year application and approval process, it says its business model is still viable.
It was planning to build a five-tower integrated resort on the Gold Coast including a casino, on the Spit at Southport, with one of China’s largest construction companies, China State Construction Engineering.
A few days after the Gold Coast setback, the group also announced it had missed out on a shortlist to bid for the commercial redevelopment of the 10-hectare Albert Island in London.
“We take this opportunity to focus on a full pipeline of exciting and upcoming business endeavours across other geographies,” chairwoman Min Yang said in a note to shareholders.
“We anticipate 2018 will be a strong and profitable year for the group. There are encouraging early signs that our strong progress is proving not only realistic and achievable, but now well within reach.”
The diversified business is currently developing a coal project in Queensland, Dawson West Project, and is marketing an ultra-luxury apartment project on Surfers Paradise, The Au.
Its waterfront housing development project, The Peninsula Hope Island on Hope Island, Gold Coast, is almost sold out, Ms Yang said.
The company also said its balance sheet “does not tell the whole story as not all of their assets show realisable value yet”.
Ms Yang said the company had built a diversified asset base and had realised profits on the sale of some of these investments, such as the sale of Metaliko Resources Limited, and held stakes in several smaller resources companies.
The company shares have rarely traded and its share price has been largely flat. Its share price closed at 14¢ on Thursday.
It counts Hong Kong group Sun Hung Kai Investment Services as one of its biggest shareholders.
