Davao tycoon Dennis A. Uy’s PH Resorts Group Holdings Inc. (PHR) has already written-off its investments in its shelved Emerald Bay integrated casino-resort project in Mactan, which led to a ₱6.75-billion net loss for the first half of 2025.

The firm informed the Philippine Stock Exchange (PSE) that, “The group’s option to repurchase its parcels of land and construction in progress under a sale and leaseback arrangement with Chinabank [China Banking Corp.] expired on March 31, 2025.

“In connection with this, the corresponding property plus improvements totaling ₱13.65 billion, as well as the financial liabilities of ₱8.75 billion originating from the SLBB repurchase option were derecognized from LLI [Lapu-Lapu Leisure Inc.] and LLC’s [Lapu-Lapu Land Corp.] books.”

For the first six months of 2025, the group reported a net loss of ₱6.75 billion mainly due to a ₱7-billion loss on extinguishment of financial liability related to the Chinabank SLBB transaction. This resulted in a deficit of ₱11.66 billion and a capital deficiency of ₱5.83 billion as of June 30, 2025.

However, based on management analysis, the loss on extinguishment of financial liability due to the Chinabank SLBB transaction is lower at ₱3.29 billion if offset with the unrealized revaluation surplus, or accumulated appraisal gain, from the appraised value of the Mactan property.

In the first half of 2024, the group reported a net loss of ₱494.3 million primarily due to lease and interest expenses and pre-development costs, which resulted in a deficit of ₱7.3 billion as of June 30, 2024.

The group’s current liabilities exceeded its current assets by ₱4.81 billion as of June 30, 2025, lower than the ₱13.59 billion as of Dec. 31, 2024. The group has negative operating cash flows of ₱19.2 million and ₱97.2 million for the six months ended June 30, 2025 and 2024, respectively.

Total assets declined by ₱16 billion to ₱3.51 billion primarily due to derecognition of subjected assets related to the expiration of SLBB contract.

Due primarily to a higher net loss of ₱6.75 billion for the first half of 2025 on the back of a ₱7-billion loss on extinguishment of financial liability related to the SLBB transaction, the total deficit increased to ₱11.65 billion, leading to a capital deficiency of ₱5.83 billion.

“As the group expects at least ₱4.37 billion in advances for future stock subscription, ₱1.17 billion in advances from related parties, and ₱718 million in deposits for future stock subscription to be converted into equity upon the planned increase of its authorized capital stock, this capital deficiency will be eliminated and cured,” PHR said.

It added that, “These conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern and, therefore, that the group may not be able to realize its assets and discharge its liabilities in the normal course of business.”

PHR said though that negotiations are still ongoing with its lenders Chinabank and Land Bank of the Philippines on proposed loan repayment arrangements and schedules in connection with ongoing strategic investor discussions on the PHR, LLI and LLC, and Donatela Hotel Panglao Corp. (DHPC) levels.

“A memorandum of agreement (MOA) was signed between PHR and third-party entities in April 2025, for a potential purchase of properties or shares of stocks. Discussions and negotiations are ongoing and the group will disclose partnership details as talks progress into the documentation stage,” the company said.

It added that the group has additional ongoing strategic investor discussions with several other parties. Due diligence is ongoing and in various stages of completion.

DHPC is the owner of the Donatela Resort & Sanctuary, a boutique-style, upscale hotel in Tawala, Panglao Island, Bohol. PHR said it has ongoing strategic investor discussions with several parties with due diligence ongoing and in various stages of completion.

Meanwhile, subsidiary Clark Grand Leisure Corp. is giving up its gaming license in line with the group’s ongoing reprioritization of projects.