Best Sunshine parent company absorbs $2.5M loss

The parent company of Saipan casino developer Best Sunshine International Ltd. recorded a net loss of $2.5 million for the six months that ended on June 30, 2014, partly due to the associated growth pains in establishing its $7.1-bilion integrated resort project on the island, according to GGRAsia, a website and newsletter about Asia’s casino industry.

The story, which can be accessed via www.ggrasia.com/imperial-pacifics-first-half-loss-widens-to-us2-5-mln/, noted that Imperial Pacific International Holdings Ltd.’s $2.5 million loss translates to HKD19.6 million. GRRAsia said the conglomerate posted a loss of HKD1.9 million a year earlier.

“Basic loss per share was HKD0.25 as compared with last period basic loss per share of HKD0.02,” the company said in a filing with the Hong Kong Stock Exchange as reported by GRRAsia.

Formerly known as First Natural Foods Holdings Ltd., GRRAsia said Imperial Pacific is principally engaged in the sharing of the profit stream from a junket operator in Macau, the development and operation of an integrated resort on the western Pacific island of Saipan, and in the processing and trading of food products.

The website further reported that while the company’s revenue increased by 15.4 percent year-on-year to HKD293 million in the first half of 2014, Imperial Pacific had already warned of a significant loss due “to the increase in administrative and other expenses due to the development of integrated resort business on the island of Saipan.”

When asked for comment, Gov. Eloy S. Inos said the CNMI is confident that Best Sunshine’s parent company will rebound nicely from the losses it incurred in the six-month period.

“We expect Best Sunshine’s parent company will recoup its costs once operations are underway. As is with any new business venture, there are inherent costs involved. Manageable risks and incurred costs are mitigated by the company’s management. We look forward to having said company begin construction soon,” he said in an email to the Saipan Tribune.

The CNMI Lottery Commission awarded an exclusive casino license to Best Sunshine last July.

According to GRRAsia, Imperial Pacific said Best Sunshine recorded a loss of HKD14 million in the six months to June 30, as the project for the integrated resort was under development stage.

The food processing business also contributed for the increase in the half-year loss, GRRAsia reported. The segment recorded a loss of approximately HKD14.1 million in the first half of 2014.

In its interim report, Imperial Pacific confirmed that it will allocate more resources to the gaming business, especially for development of the integrated resort on Saipan. GRRAsia said the conglomerate would seek potential investors to dispose of part or all of its food processing and trading business.

Land shopping

Meanwhile, Inos said Best Sunshine is still looking for public land it could lease to finally start its casino project.

“The timeline is still the same. At this point we’re waiting for Best Sunshine to identify a property where they will be build the development,” he said in an interview with reporters yesterday at the Governor’s Office conference room.

Inos also defended Department of Public Lands’ decision to offer over 20 hectares of public lands south of Mariana Resort & Spa in Marpi to Best Sunshine.

“That property was out on tender in early spring. E Land was offered [the land] after Sunshine 100 turned it over. …It took E Land awhile to accept but no further communication was received from E Land as to project development plans and so forth. In the meantime, there’s a need for Best Sunshine to get its project going. That was the reason for communicating with them.”

The governor also sees no problem with the Legislature coming out with a resolution supporting the extension of Mariana Resort’s lease. Kan Pacific’s original 40-year lease expires in 2018.

“That’s not a problem. [But] what is it that Marianas Resort has to offer in terms of project development for the additional period? It’s like I approve your lease then tell me what you’re going to do about it later on. The right way to do this thing would be to get Mariana Resort to submit a plan/proposal as to what it wants to do and how much it wants to invest and so forth and on that basis the Legislature can come in and say ‘we like this’ and then maybe they can pass a resolution supporting it,” added Inos.

He said public land is for the benefit of the general public and whatever decision comes out of the lease of public lands in Mari should be always be in the best interest of the Commonwealth.

“Of course we’re concerned about the Japanese investment. That’s about the last Japanese investment of that magnitude. We would like to see what we can do to preserve that but again it’s the whole economy. It has to be mutual also.”