LET Group Holdings Limited Reports Interim Results For 1H 2023

HONG KONG SAR –
Media OutReach – 29 August 2023 – LET Group Holdings Limited (“LET”, the “Group” or “Company”) (Hong Kong Stock Exchange code: 1383) today reported financial data for the first half of the year ending 30 June 2023. All amounts are expressed in Hong Kong dollars unless otherwise stated, except for the financial performance of Hoiana which is reported in US dollars.

1H 2023 RESULTS HIGHLIGHTS

Group 1H 2023: Focus Development on Westside City Project

• 1H 2023 Group Total Revenue of HK$190.9 million, up 0.3% YoY
• 1H 2023 Group Consolidated Adjusted EBITDA from continuing operations of HK$21.0 million, down 58% YoY
• 1H 2023 Profit Attributable to Equity Holders of the Company of HK$584.7 million, versus a Loss Attributable to Equity Holders of the Company of HK$(253.0) million in 1H 2022
• Through the Group’s subsidiary Suntrust, the Group will focus on the development Westside City Project as top priority

Group & Segmental Results

• 1H 2023 Operations of integrated resort in the Russian Federation contributed revenue of approximately HK$182.0 million, up 2% YoY
• 1H 2023 Management and operation of malls segment revenue of approximately HK$8.9 million, down 29% YoY
• No revenue has been recorded in the operation of integrated resort in the Philippines as Westside City Project is still construction in progress

Hoiana, Vietnam: Significant Growth in GGR and Adjusted EBITDA; First Reporting Period Without Travel Restrictions

• 1H 2023 Net Gaming Revenue of US$29.3 million, up 546% compared to 1H 2022
• 1H 2023 Total Gross Gaming Revenue (“GGR”) of US$113.8 million, up 687% compared 1H 2022
• 1H 2023 Adjusted EBITDA of US$10.1 million, versus negative US$(25.8) million in 1H 2022

Tigre de Cristal, Russia: Local Mass and Slots Volumes Steady

• 1H 2023 Net Revenue from Gaming Operations of HK$167.3 million, down 0.2% YoY
• 1H 2023 Total GGR of HK$197.0 million, down 0.6% compared to 1H 2022
• 1H 2023 Adjusted EBITDA of Tigre de Cristal was HK$57.0 million, down 5% YoY
• Average Hotel Occupancy was 63% during weekends and 30% during weekdays in 1H 2023

Balance Sheet

• Bank Balances & Cash of HK$873.5 million as of 30 June 2023
• Total Other Borrowings of approximately HK$150 million as of 30 June 2023
• Gearing ratio was approximately 7.6% as of 30 June 2023 (31 Dec 2022: 29.3%)

A Letter FROM THE CHAIRMAN

Dear valued Shareholders and Stakeholders,

I extend my warmest greetings to each and every one of you. As the Chairman of LET Group Holdings Limited, it is with great pleasure that I provide you with an update on our organisation’s current flagship project, Westside City Project, in the Philippines. Likewise, I wish to emphasise our unwavering commitment to delivering unparalleled Asian hospitality experiences to our esteemed guests when Westside City Project soft opens in late 2024.

Since assuming the role of Chairman in August 2022, I am delighted to report that LET Group has achieved significant milestones. Through meticulous efforts, we successfully rebranded our listed company, restructured our balance sheet to reduce debt, and secured a substantial loan from a prominent local financial institution. These decisive actions have empowered us to persevere in the face of prevailing market sentiment adversities within the gaming sector hindered by travel restrictions previously.

I am pleased to inform you that our subsidiary Suntrust, the operator of Westside City Project, has made strides in securing its future financial stability. The successful drawdown of the loan signifies not only the confidence bestowed upon the Group’s managerial prowess and operational capabilities, but also serves as a resounding vote of confidence from financial institutions familiar with the local business environment. This development stands as a significant milestone, bolstering our shareholders’ confidence in LET Group’s ability to execute the delivery of an exceptional integrated resort with superior profitability. Furthermore, the financial backing received serves as a testament that the project remains on track, both in terms of timely completion and adherence to the budget.

As Chairman of LET Group, I take immense pride in leading an exceptional team that is wholeheartedly committed to the creation and delivery of a truly extraordinary integrated resort entertainment complex. Our newly created brand LETX Lifestyle is characterised by its youthful dynamism and distinguished by the provision of bespoke care and exceptional product offerings, accompanied by authentic services. Allow me to assert that every endeavour undertaken by us is aimed at surpassing the realms of conventional excellence.

Our core values of Leisure, Entertainment, and Taste serve as the guiding principles in our pursuit of creating a transcendent experience that seamlessly merges contemporary and traditional luxury. Westside City Project is poised to emerge as the iconic destination for both local residents and Asian tourists seeking respite and entertainment, particularly those from Japan and South Korea. To cater to their discerning tastes, we offer an array of exceptional food and beverage offerings. I have also searched globally for the finest whiskeys and cigars to stock Asia’s finest cigar and whiskey bar. As a member of the rapidly growing economy in the developing country, the middle class in the Philippines is increasingly pursuing a higher quality of life with increasing sophistication. Our brand epitomises a lifestyle incubator, where bespoke care, authentic services, and exceptional product offerings converge, creating an oasis of tranquillity amidst the ceaseless clamour of our dynamic world.

Meanwhile, in Vietnam, Hoiana is experiencing a surge in demand from both domestic and international visitors. It is noteworthy that, for the first time in our financial reporting history, Hoiana’s Adjusted EBITDA has surpassed that of Tigre de Cristal’s in the first half of 2023, a true testament of the quality of Hoiana as an integrated resort when travel restrictions is no longer in force. Encouraging arrival data signals the return of tourists to Vietnam, and our dedicated team remains steadfast in providing our esteemed guests with superlative services and authentic experiences. In Russia, the persisting political instability has been a source of disappointment; nonetheless, local business contribution has been stable while we remain resolute in our pursuit of exploring new opportunities to diversify our operations to locations that yield the highest and most favourable returns.

At LET Group, we take pride in our unwavering commitment to delivering exceptional product offerings and bespoke care that transcend the ordinary. Our valued guests, partners, and stakeholders have played a pivotal role in our success. With your unwavering support, we harbour utmost confidence that our flagship resort, Westside City Project, will flourish in the years ahead.

Thank you for your trust and confidence in LET Group.

Warm regards,

Mr. Lo Kai Bong (Andrew)

Chairman

LET Group Holdings Limited