GGRAsia – Jeju Shinhwa op narrows loss, gets extension from Pagcor

Jeju Shinhwa op narrows loss, gets extension from Pagcor

Mar 31, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

Hong Kong-listed casino developer Shin Hwa World Ltd – formerly known as Landing International Development Ltd – reported a loss attributable to shareholders of HKD216.9 million (US$27.6 million) for full-year 2022. That compared with a HKD1.06-billion annual loss for 2021, according to a Thursday filing.

The result was on group-wide revenue that increased 2.7 percent year-on-year, to nearly HKD1.39 billion.

The company did not recommend the payment of a final dividend for 2022.

The company runs a resort called Jeju Shinhwa World (pictured) with foreigner-only casino in Jeju, South Korea. Previously, the firm had been linked with a plan to develop a Philippines resort complex.

In its latest filing, Shin Hwa World Ltd indicated that it was still negotiating with the Philippine Amusement and Gaming Corp (Pagcor), the country’s gaming regulator, “for a mutually acceptable solution” regarding its plans for a casino in that country. In 2018, the Philippine authorities had declared void the lease for the originally-earmarked site for such a scheme.

“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,” stated the casino developer. It said it was recently granted an extension by Pagcor “to fulfil the documentary requirements”.

“The group will evaluate the feasibility of relevant lease of land and development should opportunities arise,” it added.

Shin Hwa World Ltd also said it would start this year construction of a new residential development at Jeju Shinhwa World, “to be completed in 2024”. The new residential development “may better utilise the use of land in Jeju Shinhwa World and it may broaden the income stream of the group,” it stated.

The casino firm had suspended in 2021 construction of a new hotel within Jeju Shinhwa World. “If and when the group resolves to resume the construction of a new hotel… the group will reassess its internal financial resources and funding needs prior to making material future capital commitments,” it stated in Thursday’s filing.

For full-year 2022, the integrated resort business generated segment revenue of approximately HKD946.2 million, up from HKD856.4 million in the prior year.

The performance of the group’s gaming business however “remained sluggish” during the reporting period. Travel by international visitors to Jeju was limited during parts of 2022 due to travel restrictions linked to Covid-19.

Net revenue from gaming operations stood at HKD46.1 million in 2022, down from HKD88.6 million a year earlier. Segment loss was nearly HKD174.0 million, an improvement on the HKD671.8 million segmental loss in 2021.

The company swapped its name to ‘Shin Hwa World Ltd’ late last year, as its board decided it would “better reflect the current status of the group’s business development and its direction of future development”.