Sun International : First Quarterly Report 2021





CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate companies to which a high investment risk may be attached other than companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.

Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the Growth Enterprise Market ("GEM") of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The directors of the Company, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

This report will remain on the "Latest Company Announcements" page of the GEM website at www.hkgem.com for at least 7 days from the date of posting and on the designated website of this Company at http://www.sun8029.com/.

First Quarterly Report 2021 1

FINANCIAL SUMMARY (UNAUDITED)



• Revenue of the Group was approximately HK$11,250,000 for the three months ended 30 June 2021, representing a decrease of approximately 36% from the corresponding period in the previous fiscal year.
• For the three months ended 30 June 2021, gross profit of the Group was approximately HK$10,832,000 as compared to the gross profit of approximately HK$16,501,000 from the corresponding period in the previous fiscal year.
• Loss attributable to owners of the Company for the three months ended 30 June 2021 amounted to approximately HK$6,605,000 as compared to loss of approximately HK$4,481,000 from the corresponding period in the previous fiscal year.
• Total comprehensive loss attributable to owners of the Company for the three months ended 30 June 2021 amounted to approximately HK$11,230,000 as compared to income of approximately HK$2,835,000 from the corresponding period in the previous fiscal year.
• The Directors do not recommend the payment of an interim dividend for the three months ended 30 June 2021 (2020: Nil).

2 Sun International Group Limited

CONSOLIDATED FIRST QUARTERLY RESULTS FOR 2021 (UNAUDITED)



The board of Directors (the "Board") of the Company hereby announces the unaudited condensed consolidated results of the Group for the three months ended 30 June 2021 together with the comparative unaudited figures for the corresponding period in 2020 as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the three months ended 30 June 2021

		For the three months
		ended 30 June
	Note	2021		2020
		HK$'000		HK$'000
Revenue	3	11,250		17,558
Direct costs		(418)		(1,057)
Gross Profit		10,832		16,501
Other operating income		769		1,613
Reversal of allowance for expected credit loss, net	4	669		-
Administrative expenses		(14,489)		(16,835)
Finance costs	5	(4,386)		(5,644)
Loss before taxation	6	(6,605)		(4,365)
Income tax expense	7	-		(116)
Loss for the period		(6,605)		(4,481)
Other comprehensive (loss)/income:		(4,625)
Currency translation differences			7,316
Total comprehensive (loss)/income for the period		(11,230)		2,835
Loss for the period attributable to:		(6,605)
Owners of the Company			(4,481)
Total comprehensive (loss)/income for the
period attributable to:
Owners of the Company		(11,230)		2,835
Loss per share (HK cents)	9	(0.29)
Basic and diluted			(0.21)

First Quarterly Report 2021 3

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL RESULTS



1. GENERAL INFORMATION

The Company is incorporated in the Cayman Islands on 11 July 2000 as an exempted company with limited liability under the Companies Law (Revised) of Cayman Islands. Its share are listed on GEM of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). As at the reporting date, the ultimate and immediate holding company of the Company is First Cheer Holdings Limited ("First Cheer"), a company incorporated in the British Virgin Islands, and is beneficially owned as to 50% by Mr. Chau Cheok Wa ("Mr. Chau") and as to 50% by Mr. Cheng Ting Kong ("Mr. Cheng").

The unaudited condensed consolidated financial statements are presented in Hong Kong dollars ("HK$") which is same as the functional currency of the Company and all amounts are rounded to the nearest thousand (HK$'000) except otherwise indicated.

During the period ended 30 June 2021, the Group was principally engaged in money lending, securities and futures brokerage, assets management services, properties investment, digital currency mining and investment in stallions.

2. BASIS OF PREPARATION

The unaudited condensed consolidated financial statements of the Group for the three months ended 30 June 2021 have been prepared in accordance with the Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards and Interpretations (collectively, "HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the GEM Listing Rules.

The unaudited consolidated results have been prepared under the historical cost convention except for certain properties and certain financial instruments, which are measured at fair values.

The accounting policies used in preparing the unaudited consolidated financial statements are consistent with those used in the Group's annual financial statements for the year ended 31 March 2021, except for the adoption of the new and amended HKFRSs that are first effective for the current reporting period.

The condensed consolidated financial statements of the Group for the three months ended 30 June 2021 are unaudited but have been reviewed by the Company's Audit Committee.

4 Sun International Group Limited