Rich Goldman : ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 AND VOLUNTARY ANNOUNCEMENT REGARDING RESUMPTION OF CASINO OPERATIONS IN MACAU

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, 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 announcement.

(Incorporated in Hong Kong with limited liability)

(Stock Code: 00070)

ANNOUNCEMENT OF INTERIM RESULTS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

AND

VOLUNTARY ANNOUNCEMENT REGARDING RESUMPTION OF

CASINO OPERATIONS IN MACAU

The Board of Directors (the "Board") of Rich Goldman Holdings Limited (the "Company") is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (hereinafter collectively referred to the "Group") for the six months ended 31 December 2019 together with the comparative figures as follows:

1

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 31 December 2019

		For the six months
		ended 31 December
		2019		2018
		(Unaudited)	(Unaudited)
	Notes	HK$'000	HK$'000
Revenue	3	35,179		70,628
Cost of services provided		(4,353)	(7,272)
Other income		4,601		3,449
Other gains and losses		(320)	328
Write-back of provision for impairment
losses on financial assets, net	4	582		2,082
Amortisation of intangible assets	9	(15,857)	(34,050)
Administrative expenses		(19,610)	(5,681)
Profit from operations		222		29,484
Share of profits of an associate		-	832
Profit before taxation	4	222		30,316
Income tax expense	5	(1,451)	(2,236)
(Loss)/profit and total comprehensive
income for the period		(1,229)	28,080
Attributable to:
- Owners of the Company		(3,309)	14,426
- Non-controlling interests		2,080		13,654
(Loss)/profit and total comprehensive
income for the period		(1,229)	28,080
				(Restated)
		HK$	HK$
(Loss)/Earnings per share attributable to
owners of the Company
Basic	6(a)	(0.41 cent)	1.78 cents
Diluted	6(b)	N/A	N/A

2

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 December 2019

		At	At
		31 December	30 June
		2019		2019
		(Unaudited)	(Audited)
	Notes	HK$'000	HK$'000
Non-current assets		549,652
Property, plant and equipment			561,336
Investment properties	8	151,000		151,000
Intangible assets	9	7,929		23,786
Goodwill		2,644		2,644
Deferred tax assets		619		225
Financial assets at fair value		31,512
through profit or loss	10		52,671
Loans receivable and interest receivables	12	-	140,000
		743,356		931,662
Current assets
	3,908
Trade and other receivables	11		14,852
Loans receivable and interest receivables	12	288,901		173,012
Bank and cash balances		123,909		84,161
		416,718		272,025
Less: Current liabilities
	1,228
Other payables			4,083
Current tax liabilities		8,638		7,783
		9,866		11,866
Net current assets		406,852		260,159
Net assets		1,150,208		1,191,821
Capital and reserves
	1,171,921
Share capital	13		1,171,921
Reserves		(42,808)	(39,499)
Equity attributable to owners
of the Company		1,129,113		1,132,422
Non-controlling interests		21,095		59,399
Total equity		1,150,208		1,191,821

3

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL INFORMATION

For the six months ended 31 December 2019

1. BASIS OF PREPARATION
   The condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The principal accounting policies used in the condensed consolidated financial information are consistent with those followed in the preparation of the Group's financial statements for the year ended 30 June 2019 except for the adoption of the new and revised Hong Kong Financial Reporting Standards ("HKFRSs"), HKASs and Interpretations (hereinafter collectively referred to as the "new and revised HKFRSs") as disclosed in Note 2 to this interim results. The condensed consolidated financial information are unaudited but have been reviewed by the Company's Audit Committee.
   The financial information relating to the financial year ended 30 June 2019 that is included in this interim results as comparative information does not constitute the Company's statutory annual consolidated financial statements for that financial year but is derived from those financial statements. Further information relating to these statutory financial statements disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap. 622) is as follows:
   The Company has delivered the financial statements for the year ended 30 June 2019 to the Registrar of Companies in accordance with section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance (Cap. 622).
2. ADOPTION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS
   The accounting policies and methods of computation used in the preparation of the unaudited interim financial information are consistent with those used in the annual financial statements for the period ended 31 December 2019 except for the changes mentioned below.

With effect from 1 January 2019, the Group has adopted the below amendments which are relevant to the Group's consolidated financial statements:

HKFRS 16	Leases
HK(IFRIC) 23	Uncertainty over income tax treatments

The Group has assessed the impact of the adoption of the above new standards amendments to HKFRSs and considered that there was no significant impact on the Group's results and financial position or any substantial changes in the Group's accounting policies.

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HKFRS 16 supersedes HKAS 17 Leases, and the related interpretations, HK(IFRIC) 4 Determining whether an Arrangement contains a Lease, HK(SIC) 15 Operating Leases-Incentives and HK(SIC) 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. HKFRS 16 introduced a single accounting model for lessees, which requires a lessee to recognise a right-of-use asset and a lease liability for all leases, except for leases that have a lease term of 12 months or less and leases of low-value assets.

Lessor accounting under HKFRS 16 is substantially unchanged from HKAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in HKAS

17. Therefore, HKFRS 16 did not have an impact or leases where the Group is the lessor. The lessor accounting requirements are brought forward from HKAS 17 substantially unchanged.

HKFRS 16 also introduces additional qualitative and quantitative disclosure requirements which aim to enable users of the financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of an entity.

The Group has initially applied HKFRS 16 as from 1 January 2019. None of the developments have had a material impact on how the Company's results and financial position for the current or prior periods have been prepared or presented. The Company has not applied any new standard or interpretation that is not yet effective for the current accounting period.

3. REVENUE AND SEGMENT REPORTING

The Group's reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies.

The Group's operating divisions are as follows:

1. To introduce customers to respective casino's VIP rooms in Macau and receiving the profit streams from junket businesses at respective casino's VIP rooms in Macau (the "Gaming and Entertainment Business")
2. Money Lending Business
3. Hotel Operations
4. Property Leasing

5

1. Segment revenue and results
   An analysis of the Group's revenue, which represents services provided, and results by reportable and operating segment is as follows:

For the six months ended 31 December 2019:

	Gaming and		Money
	Entertainment		Lending		Hotel	Property
	Business		Business		Operations	Leasing	Total
	HK$'000		HK$'000		HK$'000	HK$'000	HK$'000
REVENUE	18,491	10,782	4,928		978	35,179
SEGMENT RESULTS	2,602	10,864	(9,844)	595	4,217
Unallocated other income									4,562
Unallocated other gains and losses									(320)
Unallocated expenses									(8,237)
Profit before taxation									222

For the six months ended 31 December 2018:

	Gaming and		Money
	Entertainment		Lending	Hotel
	Business		Business	Operations	Total
	HK$'000		HK$'000	HK$'000	HK$'000
REVENUE	48,231	9,761	12,636	70,628
SEGMENT RESULTS	17,065	9,484	4,073	30,622
Unallocated other income							3,362
Unallocated other gains and losses							330
Unallocated expenses							(4,830)
Share of profits of an associate							832
Profit before taxation							30,316

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1. Segment assets and liabilities
   An analysis of the Group's assets and liabilities by reportable and operating segments is as follows:

	Gaming and	Money
	Entertainment	Lending	Hotel	Property
	Business	Business	Operations	Leasing	Total
	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
As at 31 December 2019
ASSETS
Segment assets	26,435		356,052		493,590	154,761	1,030,838
Unallocated corporate assets									129,236
Consolidated total assets									1,160,074
LIABILITIES
Segment liabilities	(111)	(6,815)	(1,979)	(696)	(9,601)
Unallocated corporate
liabilities									(265)
Consolidated total liabilities									(9,866)
As at 30 June 2019
ASSETS
Segment assets	74,264		318,282		507,709	177,842	1,078,097
Unallocated corporate assets									125,590
Consolidated total assets									1,203,687
LIABILITIES
Segment liabilities	(111)	(5,120)	(3,452)	(489)	(9,172)
Unallocated corporate
liabilities									(2,694)
Consolidated total liabilities									(11,866)

Unallocated corporate assets mainly represent certain property, plant and equipment, financial asset at fair value through profit and loss and bank and cash balances.

Unallocated corporate liabilities mainly represent other payables.

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4. PROFIT BEFORE TAXATION

For the six months ended 31 December

20192018

(Unaudited) (Unaudited)

HK$'000 HK$'000

Profit before taxation is arrived at after

charging/(crediting):
Amortisation of intangible assets	15,857		34,050
Depreciation of property, plant and equipment	11,719		1,612
Decrease/(increase) in fair value of financial assets
at fair value through profit or loss	90		(330)
Loss on disposal of financial assets	230		-
Loss on disposals of property, plant and equipment	-	2
Operating lease charges	-	2,292
Write-back of provision for impairment losses
on financial assets, net	(582)	(2,082)

5. INCOME TAX IN THE CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

On 21 March 2018, the Inland Revenue (Amendment) (No. 7) Bill 2017, which introduces a two-tiered profits tax regime, was substantially enacted. Under the two-tiered profits tax regime, the first HK$2 million of assessable profits of qualifying corporations will be taxed at 8.25% with effect from the year assessment 2018/2019. Assessable profits above HK$2 million will continue to be subject to the tax rate of 16.5%.

The amount of taxation charged to the condensed consolidated statement of profit or loss and other comprehensive income represents:

	For the six months
	ended 31 December
	2019		2018
	(Unaudited)	(Unaudited)
	HK$'000	HK$'000
Current tax Hong Kong Profits Tax
Provision for the period	1,876		2,364
Over-provision in prior years	(30)	-
Deferred tax	(395)	(128)
	1,451		2,236

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1. (LOSS)/EARNINGS PER SHARE
2. 1. Basic (loss)/earnings per share
      The calculation of basic (loss)/earnings per share is based on the consolidated loss (2018: profit) attributable to owners of the Company of approximately HK$3,309,000 (2018: profit of approximately HK$14,426,000) and the weighted average number of ordinary shares of the Company of 810,020,261 (2018: restated 810,020,261) in issue during the period after adjusting the effect of the open offer in January 2020. The basic earnings per share for 2018 had been adjusted and restated accordingly.
   2. Diluted earnings per share
      No diluted (loss)/earnings per share is presented as the Company did not have any dilutive potential ordinary shares during the six months ended 31 December 2019 and 2018.
3. INTERIM DIVIDEND
   The directors of the Company do not recommend the payment of any interim dividend in respect of the six months ended 31 December 2019 and 2018.
4. INVESTMENT PROPERTIES

	HK$'000
Fair value
At 1 July 2017, 30 June 2018 and 1 July 2018	-
Arising from acquisition of a subsidiary	150,600
Increase in fair value	400
At 30 June 2019, 1 July 2019 and 31 December 2019	151,000

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9. INTANGIBLE ASSETS

Gaming and Entertainment Business

During the year ended 30 June 2018, the directors reassessed the recoverable amount and useful life of Hoi Long Profit Agreement in view of the renewal of junket representative agreement between the junket operator and the casino operator for a period of 9 months ended 31 January 2019. The recoverable amount of Hoi Long Profit Agreement was determined at HK$49,800,000 and amortisation charges of approximately HK$11,067,000 was charged for the year ended 30 June 2018. Amortisation charges of approximately HK$38,733,000 in respect of the above was charged for the year ended 30 June 2019.

On 29 January 2019, the directors reassessed the recoverable amount and useful life of Hoi Long Profit Agreement in view of the renewal of junket representative agreement between the junket operator and the casino operator for a period of 14 months ending 31 March 2020. The recoverable amount of Hoi Long Profit Agreement is determined based on value-in-use calculations by reference to the valuation report issued by Ascent Partners Valuation Services Limited, an independent qualified professional valuer. These calculations use cash flow projections based on financial budgets approved by the directors of the Company covering a 14-month period. The cash flows are discounted using a discount rate of 19.23%. The discount rate used is pre-tax and reflects specific risks relating to the gaming and entertainment segment. Other key assumptions for the value-in-use calculations relate to the estimation of cash inflows/outflows which have included budgeted revenue from sharing of profit streams from the junket businesses, and such estimation is based on the past performance and management's expectation for the market development.

The recoverable amount of Hoi Long Profit Agreement on 29 January 2019 was estimated at HK$37,000,000 and a reversal of impairment loss of an equivalent amount was recognised for the year ended 30 June 2019. Amortisation charge of approximately HK$13,214,000 in respect of the above was charged for the year ended 30 June 2019.

Amortisation charge of approximately HK$15,857,000 in respect of the above was charged during the six months ended 31 December 2019.

During the six months ended 31 December 2019, no impairment loss (2018: nil) was recognised.

Hotel Operations

During the year ended 30 June 2017, Harbour Bay Hotels Limited ("Harbour Bay") entered into a deed of lease and a supplemental deed of lease with 5-year lease term ending on 30 April 2022 with Ever Praise Enterprises Limited ("Ever Praise"). The Group acquired 100% entire equity interest in Harbour Bay and 30% entire equity interest in Ever Praise. A lease benefit relates to the favourable aspect of the 5-year lease was identified as intangible asset with a definite useful life of 5 years ending on 30 April 2022. The fair value of the lease benefit was initially valued by income approach with a pre-tax discount rate of 20.37%.

On 18 April 2019, the Group acquired the remaining 70% equity interest in Ever Praise. Following the acquisition, Ever Praise become a wholly owned subsidiary of the Group. The aggregated lease benefit was derecognised following the completion of the acquisition.

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10. FINANCIAL ASSET AT FAIR VALUE THROUGH PROFIT OR LOSS

	At		At
	31 December		30 June
	2019	2019
	(Unaudited)		(Audited)
	HK$'000		HK$'000
Financial assets at fair value through profit or loss
- Unlisted fund investment	31,512	52,671
	31,512	52,671

At 13 December 2019, the Group disposal 2,000 units unlisted fund investments for aggregate consideration of HK$20,838,356.

As at 31 December 2019, carrying amount at unlisted fund investment of HK$31,512,329 which is not quoted in an active market. The fair value of investment is stated with reference to the net asset value provided by administrator of the fund at the reporting date. The directors believe that the estimated fair value provided by the administrator of the fund is reasonable, and that is the most appropriate value at the end of reporting period.

11. TRADE AND OTHER RECEIVABLES
	At	At
	31 December	30 June
	2019		2019
	(Unaudited)	(Audited)
	HK$'000	HK$'000
Trade debtors of gaming and entertainment business
- Entity owned by shareholders of non-controlling
interests of subsidiaries	9,940		20,172
	9,940		20,172
Trade debtors of hotel operations business	164		260
Trade debtors of property leasing business	135		-
Deposits, prepayment and other receivables	1,321		2,074
	11,560		22,506
Impairment losses on trade and other receivables	(7,652)	(7,654)
	3,908		14,852

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The Group allows an average credit period ranging from 30 days to 60 days to its trade customers. Before accepting any new customers, the management will internally assess the credit quality of the potential customers and define appropriate credit limits. Management closely monitors the credit quality of trade and other receivables and considers the trade debtors that are neither past due nor impaired to be of a good quality.

The aging analysis of trade receivables, based on the invoice dates, and net of allowance, is as follows:

	At		At
	31 December		30 June
	2019	2019
	(Unaudited)		(Audited)
	HK$'000		HK$'000
0 - 90 days	2,587	5,797
Over 365 days	-	6,981
	2,587	12,778

Movement on the Group's impairment allowance of trade and other receivables are as follows:

	At	At
	31 December	30 June
	2019		2019
	(Unaudited)	(Audited)
	HK$'000	HK$'000
At beginning of the period/year	7,654		59,007
Impact of adoption of HKFRS 9	-	6
At 1 July	7,654		59,013
Charged for the period/year	-	4
Reversed during the period/year	(2)	(2,007)
Written off during the period/year	-	(49,356)
At end of the period/year	7,652		7,654

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12. LOANS RECEIVABLE AND INTEREST RECEIVABLES

		At	At
		31 December	30 June
		2019		2019
		(Unaudited)	(Audited)
		HK$'000	HK$'000
Loans receivable	288,643		313,143
Less: Provision for impairment assessment
of loans receivable	(190)	(768)
Loans receivable, net of provision	288,453		312,375
Interest receivables	449		643
Less: Provision for impairment assessment of interest
receivables	(1)	(6)
Interest receivables, net of provision	448		637
		288,901		313,012

The credit quality analysis of the loans receivable and interest receivables are as follows:

	At			At
	31 December			30 June
	2019	2019
	(Unaudited)			(Audited)
	HK$'000			HK$'000
Neither past due nor impaired
- Secured	282,380	304,096
- Unsecured	6,521	8,916
	288,901	313,012
Analysed as:
- Current assets	288,901	173,012
- Non-current assets	-	140,000
	288,901	313,012

As at 31 December 2019, the secured loans were secured by the borrowers' personal guarantee, and/ or properties and assets held. The fair value/net assets value of collaterals, as assessed by the management, at loans' inception date is not less than the principal amount of the relevant loans.

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In general, loans receivable and interest receivables are considered as default with the loans receivable and interest receivables are overdue by 60 days. At 31 December 2019, no loans receivable and interest receivables were default and loans receivable and interest receivables were neither past due nor impaired relate to the customers for whom there was no recent history of default.

For loans receivable and interest receivables that are not credit-impaired without significant increase in credit risk since initial recognition ("Stage 1"), ECL is measured at an amount equal to the portion of lifetime ECL that result from default events possible within next 12 months. If a significant increase in credit risk since initial recognition is identified ("Stage 2") but not yet deemed to be credit impaired, ECL is measured based on lifetime ECL. If credit impaired is identified ("Stage 3"), ECL is measured based on lifetime ECL. In general, when loans receivable and interest receivables are overdue by 30 days, there are significant increase in credit risk.

Movement on the Group's impairment allowance of loans receivable and interest receivables are as follows:

	Year ended 30 June 2019
	Stage 1 - 12-month ECL
	Loans	Interest
	receivable	Receivables	Total
	HK$'000	HK$'000	HK$'000
At 1 July 2018	-	-	-
Impact of adoption of HKFRS 9	1,347		8			1,355
At 1 July 2018 as restated	1,347		8			1,355
New loans originated	60		1			61
Loans repaid during the year	(61)	(1)		(62)
Reversed during the year	(578)	(2)		(580)
As at 30 June 2019	768		6			774
	Period ended 31 December 2019
	Stage 1 - 12-month ECL
	Loans	Interest
	receivable	Receivables	Total
	HK$'000	HK$'000	HK$'000
As at 1 July 2019	768		6			774
New loans generated	186		1			187
Loans repaid during the period	(760)	(6)		(766)
Reversed during the period	(4)	-	(4)
As at 31 December 2019	190		1			191

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13.	SHARE CAPITAL
			At 31 December 2019		At 30 June 2019
			(Unaudited)		(Audited)
		No. of shares		Amount		No. of shares	Amount
			('000)		HK$'000		('000)	HK$'000
	Ordinary shares, issued and fully paid:
	At beginning and end of the period	692,437	1,171,921	692,437		1,171,921

The owners of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual assets.

14. SUBSEQUENT EVENTS

In January 2020, the Company conducted an open offer of ordinary share on the basis of nine open offer shares for every five ordinary shares held by eligible shareholders (the "Open Offer") at a subscription price of HK$0.12 for each ordinary share. Details of the Open Offer are set out in the Company's prospectus dated 6 January 2020.

15

MANAGEMENT DISCUSSION AND ANALYSIS

RESULTS

The Group's underlying loss attribute to Company's shareholders for the six months ended 31 December 2019 (the "Period") amounted to approximately HK$3.3 million (2018: profit of approximately HK$14.4 million); Underlying loss per share was HK0.41 cents as compared with earnings per share of HK1.78 cents for the six months ended December 2018 (the "Comparing Period").

BUSINESS OVERVIEW

Due to impact of the China-U.S. trade war on China's economy and the decrease in number of visitors in Macau, the gaming industry and our gaming and entertainment business were adversely affected over the Period. According to figures released by Macau's Gaming Inspection and Coordination Bureau, the gaming revenue decreased by approximately 7% to approximately HK$142,952 million for the six months ended 31 December 2019 from HK$152,629 million for the six months ended 31 December 2018. According to Statistics and Census Service of the Government of Macao Special Administrative Region, the number of visitors to Macau was 2,910,118 and 3,083,406 in November 2019 and December 2019 respectively, representing a decrease of approximately 11% and 14% as compared to the corresponding month in 2018 respectively.

The social unrest in Hong Kong since June 2019 has seriously damaged Hong Kong's tourism and hotel industry. According to the statistics of Hong Kong Tourism Board, the overall number of visitors in Hong Kong was decreased by approximately 16% from approximately 65 million in 2018 to approximately 56 million in 2019. As a result, the average hotel occupancy rate in Hong Kong decreased from 91% in 2018 to 79% in 2019.

In light of the above, promotional campaigns have been launched by our hotel in order to boost our room sales. However, revenue from the hotel operation business could not be improved significantly. Hence, our revenue from hotel operation business was significantly decreased.

Against the backdrop of the US-China trade war on China's economy and the social unrest in Hong Kong, revenue from our money lending business shows growth over the Period as compared with the Comparing Period. Performance of our property leasing was also stable with positive result recorded for the Period.

Looking forward, the business environment will continue to be challenging in the second half of the financial year, our Group will remain cautious when conducting and expanding our businesses. The Board will continue to explore other viable investment opportunities to ensure sustainable growth.

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GAMING AND ENTERTAINMENT BUSINESS

The revenue from commission on rolling turnover have recorded approximately HK$18 million for the Period, representing a decrease of approximately 63% as compared to approximately HK$48 million for the Comparing Period. The decrease was mainly attributable to the decrease in the number of visitors in Macau, as a result of the impact of the China-U.S. trade war on China's economy.

The remaining junket operator is currently operating junket businesses in relation to a total of 8 VIP tables in the casino of Grand Lisboa. The Group would continue to monitor closely the performance of the Junket Operator and it is intended to continue to engage in the gaming sector in Macau through the Junket Operator.

MONEY LENDING BUSINESS

As one of the key segments of our diversifying strategy over the income streams, our money lending business had been distributed increasing amount of funds for its expansion. We continue to offer flexile and competitive loan package to enlarge our customer bases during the year. Revenue generated from the money lending business increased by approximately 10.2% from approximately HK$9.8 million for the Comparing Period to approximately HK$10.8 million for the Period. A comprehensive risk assessment had been implemented before loan packages are granted to our customers. Its effectiveness can be demonstrated by the fact that no default history had been recorded from our customers. All of the principal and interest income had been collected in accordance with their corresponding repayment schedules during the Period.

With our strong financial capability and effective management, our Group has both the potential and ability to further expand our money lending business. Despite the economic uncertainty in Hong Kong, the Board consider that the money lending market in Hong Kong has a good business prospect. It is our Group's intention to further develop the money lending business.

HOTEL OPERATION

Our Group recorded revenue of approximately HK$4.9 million from the hotel operation business, as compared to that of approximately HK12.6 million for the Comparing Period. The decrease in revenue of the hotel operation business for the Period was mainly attributable to the continuous social incidents during the Period.

Our Group recorded a loss before taxation from the hotel operation business amounted to approximately HK$9.8 million for the Period as compared to a profit before taxation of approximately HK$4.1 million for the Comparing Period. The loss was mainly attributable to the increase in deprecation of approximately HK$10.1 million following the completion of the acquisition of the remaining 70% interest in the hotel property in April 2019.

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The Directors remain cautiously optimistic on the hotel business in Hong Kong in long term. The Group will keep developing the hotel operations business.

PROPERTY LEASING BUSINESS

The hotel property held by our Group is mainly used for our hotel operations business, leaving the shops on the ground floor of the hotel property leased to independent third parties so as to generate another income stream for our Group. The revenue from the property leasing business amounted to approximately HK$1 million for the Period. We have a positive view on the commercial property market in Hong Kong and therefore the potential capital appreciation of the hotel property.

PURCHASES, SALES OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES

Neither the company nor any of its subsidiaries has purchased, sold or redeemed any of the Company's listed securities during the period under review.

INTERIM DIVIDEND

The Board of Directors has resolved not to declare any interim dividend for the six months ended 31 December 2019 (2018: HK$ Nil).

LIQUIDITY, FINANCIAL RESOURCES AND FUNDING

The Group had net current assets of approximately HK$406.9 million as at 31 December 2019 (30 June 2019: HK$260.2 million). We have currently no other external funding source, and therefore resulting nil borrowings as at 31 December 2019 (30 June 2019; HK$ nil million). The total equity of the Group as at 31 December 2019 was HK$1,150.2 million (30 June 2019: HK$1,191.8 million). The gearing ratio, calculated on the basis of total debts over total equity attributable to equity shareholders as at 31 December 2019 was nil, (30 June 2019: nil). The total current liabilities of the Group as at 31 December 2019 were HK$9.9 million (30 June 2019: HK$11.9 million).

In January 2020, the Company conducted an open offer of ordinary share on the basis of nine open offer shares for every five ordinary shares held by eligible shareholders (the "Open Offer") at a subscription price of HK$0.12 for each ordinary share. Details of the Open Offer are set out in the Company's prospectus dated 6 January 2020.

PLEDGE OF GROUP'S ASSETS

As at 31 December 2019, the Group's has no pledged leasehold and building (30 June 2019: Nil).

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INTERIM REPORT

The 2019/20 interim report containing all the financial and other related information of the Company required by the Listing Rules will be available on the website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and the website of the Company at www.richgoldman.com.hk and dispatched to Shareholders before the end of March 2020.

RESUMPTION OF CASINO OPERATIONS IN MACAU

As disclosed in the Company's announcement dated 5 February 2020, the chief executive of the Macau Special Administrative Region of the PRC announced on 4 February 2020 that all casino operators should suspend operations for 15 days to help curb the spread of the new coronavirus.

The Company would like to inform the Shareholders that the operations of casinos in Macau have resumed on 20 February 2020 (Thursday). Following the resumption of casino operations in Macau, the Group's gambling business has resumed its operations.

By Order of the Board of

Rich Goldman Holdings Limited

Lin Chuen Chow, Andy

Executive Director

Hong Kong, 21 February 2020

As at the date of this announcement, the Board comprises Mr. Lin Chuen Chow Andy (Chairman) and Ms. So Wai Yin as executive Directors; Mr. Nicholas J. Niglio as non-executive Director and Mr. Cheung Yat Hung, Alton, Mr. Yue Fu Wing and Ms. Yeung Hoi Ching as independent non-executive directors.

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