SJM Holdings (00880) is seeking debt restructuring to handle high debt levels and is considering resuming dividends when performance improves.

SJM HOLDINGS (00880) turned its loss into a profit of 101 million Hong Kong dollars in the third quarter, with adjusted EBITDA exceeding market expectations and continuing to capture market share. Insider sources from Macau have indicated that they will do everything possible to avoid a full-year loss, actively address high debt levels, including seeking debt restructuring, and consider resuming dividend payments when performance improves and banks agree. Insiders have stated that the "Grand Lisboa" project in Cotai will continue to aim for a 5% market share, with a market share of 2.6% in the last quarter. "Grand Lisboa" will have over 10 restaurants and 50,000 square feet of exhibition space next year, along with the nearby project, the Macau government-developed "Macau Outdoor Performance Area" which can accommodate 50,000 people, adding more ammunition to compete with other rivals. Regarding the "New Lisboa", the sources mentioned above stated that after completion of renovations next year, the existing VIP rooms will be transformed into independent villas and luxury suites, increasing room numbers by 10%. The "Golden Jubilee Entertainment Center" acquired from Entertainment Group in Macau this year will be transformed into a food hub called "Golden Jubilee Square," and will open gradually starting on December 20. Financially, SJM HOLDINGS turned its loss into a profit in the third quarter, with a profit attributable to shareholders of 101 million Hong Kong dollars, compared to a loss of 410 million Hong Kong dollars in the same period last year. The loss for the first 9 months narrowed to 61 million Hong Kong dollars, compared to a loss of 1.674 billion Hong Kong dollars in the same period last year. Casino net income in the third quarter was 6.995 billion Hong Kong dollars, up 29.23% year-on-year; for the first 9 months, casino net income was 19.892 billion Hong Kong dollars, up 41% year-on-year.