Editor’s Note
This article highlights an unconventional move by Emperor Entertainment Hotel, where the sale of gold bricks from its lobby floor tiles coincided with a significant stock price surge. While the immediate market reaction was positive, investors should consider the long-term fundamentals of the company beyond such one-off asset sales.
Emperor Entertainment Hotel Limited (Stock Code: 00296.HK) saw its stock price surge after selling the gold bricks that were embedded in the floor tiles of its hotel lobby in Macau. On February 5, the stock opened higher and continued to rise, with a maximum intraday gain of nearly 18%. It closed at HK$0.27 per share, up 9.76% for the day.
On the evening of February 4, Emperor Entertainment Hotel announced that its non-wholly owned subsidiary, Right Achieve Limited, had sold the precious metal to buyer Heraeus Metals Hong Kong Limited for approximately HK$99.7 million. The sold precious metal consisted of multiple gold bricks with a total weight of 79 kilograms. This translates to a selling price of about HK$1,262 per gram.
According to the announcement, the book value of this precious metal, recorded as property, plant, and equipment at cost as of September 30, 2025, was approximately HK$9.4 million (equivalent to its original purchase price). With transaction costs (including transportation and purification fees) of about HK$100,000, the directors expect to recognize a gain of approximately HK$90.2 million from the sale. This means the sale price exceeded ten times the purchase price, with the gain being about 9.6 times the original cost.
The hotel stated that over the past 20 years, to create a luxurious and splendid atmosphere in the casino of its Macau property and enhance its brand image, the group had paved the main passage area of the hotel lobby floor with this precious metal (the gold bricks), which attracted a large flow of people. Following the termination of its gaming operations, the group has been actively planning other entertainment and leisure facilities to enhance the overall service experience and broaden its revenue base.
Gold prices have been rising continuously in recent years and have surged significantly this year, with spot gold prices exceeding $5,500 per ounce (approximately 31.1034768 grams) at their peak. Although there have been adjustments recently, gold prices remain at historically high levels.
The company added that the net proceeds from the sale will strengthen the group’s financial position, allowing it to invest when suitable opportunities arise. As of the announcement date, the group has not identified any attractive investment opportunities.
Emperor Entertainment Hotel is an investment holding company whose subsidiaries are primarily engaged in providing hotel services in Hong Kong and Macau. The group has been in the hotel service business for the past 20 years and currently operates several hotels and rental apartments in both regions.
The Emperor Entertainment Hotel in Macau, which opened in 2006, is located in the city center. It was previously known for the gold bricks in its lobby floor. Last October, the company announced the termination of its gaming operations at the Macau property. The group stated it will continue its hotel business, including The Emperor Hotel in Hong Kong, The Unit series of rental apartments, and the Emperor Entertainment Hotel and Grandview Hotel in Macau.
