VANCOUVER, British Columbia, April 30, 2018 (GLOBE NEWSWIRE) -- Alpha Peak Leisure Inc. (TSX-V:AAP) (“Alpha Peak” or the “Company”) announces that for its fiscal year ended December 31, 2017, it has incurred a loss before tax of approximately CAD$30.2 million. Such loss primarily resulted from: (i) the recognition of impairment losses in respect of property, plant and equipment of approximately in the amount of CAD$10.1 million and in respect of intangible assets arising from a service concession arrangement of its wholly-owned subsidiary, Gonga Terraferma Limited (“Gonga”), due to unfavourable performance of Gonga, in the amount of approximately CAD$7.7 million; and (ii) a write-off of property, plant and equipment of approximately CAD$7.5 million. These impairment losses are non-cash items with no adverse impact on the Company’s cash flows.
In connection with the change to Alpha Peak’s management team beginning in the third quarter of 2017, a decision was made to reposition the Company’s business focus and modify its revenue streams. These modifications of the Company’s business focus included suspending the cableway project and certain programs offered to visitors. Accordingly, the recoverable amount of Gonga as at December 31, 2017, which was determined based on value in use calculation, declined below its carrying amount and impairment losses were recognised.
Excluding items such as the impairment loss and write-off of property, plant and equipment, qualifying transaction costs and foreign exchange gain, the adjusted net loss of the Company is CAD $4.9 million.
Despite the occurrence of an impairment loss, the overall visitors increased from 64,597 in 2016 to 102,003 in 2017. As a result, revenues from admission ticket sales has increased by 48% to CAD$515,578, while revenues from attraction ticket sales and bubble hotels also increased by 53.5% and 29%, respectively.
The Company’s audited consolidated financial statements for its fiscal year ended December 31, 2017 were filed on the System for Electronic Document Analysis and Retrieval earlier today.
About Alpha Peak
The Company, via its wholly-owned subsidiary, Total Wonder Enterprises Limited, has a 40-year operating and development right with the Hailuo Valley Scenic Area Administration for Swallows’ Gully, a national scenic location in China encompassing an area of approximately 593 km. Located in Ganzi Tibetan Autonomous Prefecture in Sichuan and within a cluster of highly frequented tourist landmarks, Swallows’ Gully is recognized as one of the most pristine and beautiful scenic sights in China.
For more information, please contact:
Jin Huang; Corporate Secretary
Telephone: (86) 1376173979
Email: jin.huang@alphapeak.ca
Forward-Looking Information
Except for statements of historical fact contained herein, information in this press release may constitute “forward-looking information” within the meaning of Canadian securities laws. Other than statements of historical fact, all statements that involve various known and unknown risks, uncertainties and other factors are “forward-looking statements”. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these “forward-looking statements”. Except as otherwise required by applicable law, Alpha Peak expressly disclaims any intention or obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.