Shin Hwa World expects to post loss for 2023

Shin Hwa World expects to record a consolidated net loss of approximately HK$450m

South Korea.- Shin Hwa World Limited, the former Landing International Development, has issued a profit warning announcing that it expects to record a consolidated net loss of approximately HK$450m (US$57.5m) to HK$540m (US$69m) for 2023. 

The company attributed the increase in losses to a decrease in revenue in its integrated resort development segment due to lower room prices and occupancy rates, which resulted from intense competition and domestic customers travelling abroad after the easing of travel restrictions. 

The casino operator said it experienced a downturn in the property market and an interest rate rise, which led to a decrease in residential property sales. It also incurred higher operating expenses, particularly utility costs and facilities maintenance costs, as well as an increase in employee benefit expenses due to inflation. 

In 2022, the company posted an annual loss of HK$216.9m (US$27.6m). The casino firm’s group-wide revenue increased by 2.7 per cent year-on-year to nearly HK$1.39bn (US$175.8m). Nevertheless, the company will not recommend the payment of a final dividend for 2022. 

The increase in consolidated revenue was mainly attributable to the steady growth of domestic consumption in its Jeju Shinhwa World integrated resort in South Korea, with a 10 per cent increase in revenue in the Integrated Resort Development segment to HK$946.2m, mainly hotels, MICE events, food and beverage, theme parks, merchandise sales and retail leases. Non-gaming revenue was approximately HK$1.34bn.