Shin Hwa World raises US$3.67m through share subscription agreement

The company issued 845.25 million new shares to fund upgrades and maintenance at Jeju Shinhwa World.

South Korea.- Shin Hwa World Limited has raised about 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 public float has decreased from 38.14 per cent to 31.78 per cent.

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.

The company’s founding chairman, Yang Zhihui, who stepped down as director of the company in June 2023, remains the largest single private shareholder despite a dilution of his stake from 35.06 per cent to 29.21 per cent. Yang indirectly holds over 1.48 billion shares through Landing International, a company he wholly owns. 

Shin Hwa World Limited has not yet shared financial results for the year 2023. However, the company said it expects to record a consolidated net loss of approximately HK$450m (US$57.5m) to HK$540m (US$69m). It attributed the increase in losses to a decrease in revenue in its integrated resort segment due to lower room prices and occupancy rates due to intense competition and domestic customers travelling abroad after the easing of travel restrictions.