When the company acquired the Grandview Hotel for HK$500 million in November last year, Golden Resorts chairman Jenkin Cheung personally gave shares valued at HK$496.8 million as of March 30 to chief executive Pollyanna Chu and non-executive director Lee Wai-man, Chu's father, as a reward for joining Golden Resorts. Lee, who has interests in VIP rooms in Macau, has long been associated with gambling tycoon Stanley Ho. However, Chu, who founded Hong Kong's Kingston Securities, received three-quarters of the share bonus.

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Under new accounting rules adopted this year, the share gift was treated as a business expense, even though the stock came from Cheung's personal holdings, not the company treasury.

"Stripping off this one-time, non- recurring and non-cash item, operating profit from the Macau hotels and casinos [was] HK$13.7 million," coupled with a 90 percent gain in turnover to HK$107.7 million," said Golden Resorts executive director Kenneth Chi. Sales jumped 90 percent to HK$107.7 million, he said.

However, the Macau operations still reported a net loss of HK$ 6.3 million as a result of a one-time HK$20 million payment to tenants of the Grandview Hotel as compensation for the early termination of their leases to make room for a casino expansion.

The impact of the Macau business won't be fully reflected in Golden Resorts' results until the second half, said Hans Wong, the company's executive director. The firm operates two four-star hotels with 787 guest rooms and casinos boasting 104 gaming hall tables and 10 VIP rooms.

The gambling operations dwarf the company's remaining watch business, and Wong wouldn't rule out selling those operations.

Chu said gaming hall turnover grew by double digits in recent months, a pace she expects will be sustained. In August, gaming hall revenue reached HK$47 million, with Golden resorts and the Macau government each getting 40 percent and the remainder going to Ho's Sociedade de Jogos de Macau.