Shin Hwa World expects to post substantial decrease in full-year loss

Shin Hwa World expects its consolidated loss to be down by up to 85 per cent year-on-year.

South Korea.- Shin Hwa World Limited, the company formerly known as Landing International Development, has announced that it expects a ‘substantial decrease’ in its consolidated net loss for 2022. It expects the figure to be between 65 and 85 per cent less when compared to the previous year despite a drop in revenue from gaming.

The company attributed the expected decrease in its consolidated net loss to six factors.

1. Steady growth in domestic consumption at Jeju Shinhwa World, which led to an increase in revenue generated from the integrated resort segment.
2. A decrease in amortisation and depreciation. 
3. A decrease in operating expenses due to stringent cost controls. 
4. A decrease in finance costs owing to partial loan repayment during the year. 
5. The reversal of trade and other receivables impairment. 
6. A possible impact from the recognition of impairment on intangible assets. 

Shin Hwa World is still in the process of assessing the impairment loss on intangible assets. Full-year results will be published in late March.

The group operates Jeju Shinhwa World integrated resort in South Korea. Last September, it reported consolidated revenue of nearly HK$691m for the second half of the year, up 45.1 per cent year-on-year.