Shin Hwa World posts US$27.63m loss for 2022
The loss compares to HK$1.06bn in 2021.
South Korea.- Shin Hwa World Limited, the former Landing International Development, has announced an annual loss of HK$216.9m (US$27.6m) for 2022. That’s a substantial reduction from a loss of HK$1.06bn (US$134.4m) in 2021.
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.
The gaming business performed poorly due to Covid-19-related travel restrictions and competition from other casinos, resulting in a decrease in net revenue from approximately HK$88.6m in 2021 to HK$46.12m (US$5.88m). The gaming business segment recorded a loss of approximately HK$173.96m.
As for 2023, the company is still negotiating with the Philippine Amusement and Gaming Corp (PAGCOR) “for a mutually acceptable solution” regarding its plans for a casino in the Philippines. In 2018, Philippine authorities declared void the lease for the site originally earmarked.
“The group has yet to identify another suitable lease of land to develop an integrated resort in the Philippines for satisfying the requirements of the provisional license,” the company said. It added that it was recently granted an extension by PAGCOR for it to fulfil the documentary requirements. It said it would evaluate the feasibility of relevant land leases and development if opportunities arise.
Shin Hwa World has also announced plans to start constructing a new residential development at Jeju Shinhwa World, which is expected to be completed in 2024. The development “may better utilise the use of land in Jeju Shinhwa World and it may broaden the income stream of the group,” the company said.