Shin Hwa World posts a loss of US$66.8m for 2023

The group operates Jeju Shinhwa World integrated resort in South Korea.
The group operates Jeju Shinhwa World integrated resort in South Korea.

The consolidated net loss more than doubled year-on-year.

South Korea.- Shin Hwa World Limited, the former Landing International Development, has shared its financial results for 2023. The company posted an annual loss of HK$522.4m (US$66.8m), more than double the HK$216.9m loss in the previous year.

Group-wide revenue was down from HK$1.39bn (US$175.8m) to HK$1.04bn. As such, the company has not recommend the payment of a final dividend for 2023. 

Gaming revenue was up 1.4 per cent year-on-year, to HK$46.8m (US$6m). However, segment loss from the gaming business was approximately HK$258.4m. The company reported that its gaming business showed signs of recovery in 2023, with an increase in both rolling and non-rolling volume compared to the previous year. However, a decline in the winning percentage negatively impacted revenue. 

Shin Hwa World incurred an impairment of HK$12.9m on relevant intangible assets, up from HK$8.7m in 2022. The group’s non-gaming revenue was HK$989.5m, down 26.2 per cent when compared to the previous year. The firm attributed this to intense competition and domestic customers travelling abroad after the lifting of travel restrictions, which resulted in lower room prices and occupancy rates for its hotels.

Shin Hwa World has recently raised HK$28.74m (US$3.67m) through a share subscription agreement. It issued 845.25 million subscription shares at HK$0.034 per share. The proceeds will be used to upgrade, repair and maintain the building, equipment and facilities at Jeju Shinhwa World (approximately HK$14m), to pay off interest expenses (HK$10m), for sales and marketing (HK$4.5m) and general working capital.

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