Jeju Shinhwa operator flags wider loss for 2023

Mar 04, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Hong Kong-listed casino developer Shin Hwa World Ltd says it expects the group’s consolidated net loss for full-year 2023 to more than double from the prior year. The company runs a resort called Jeju Shinhwa World with foreigner-only casino in Jeju, South Korea.

The firm said in a filing on Friday that its consolidated net loss for the 12 months ended December 31, 2023 was expected to be in the range of HKD450 million (US$57.5 million) to HKD540 million.

That compares to a consolidated net loss of HKD216.9 million in full-year 2022.

In other news, the firm said in a Monday filing before the Hong Kong bourse opened, that trading in its shares was being halted at its own request with effect from 9am that day.

In the Friday filing, Shin Hwa had said the expected increase in its yearly net loss was mainly attributable to: a decrease in revenue generated from the integrated resort development segment; a decline in residential property sales; an increase in operating expenses, including in employee benefits; and the absence of a HKD63-million impairment amount from the reversal of trade and other receivables that had been recorded in 2022.

The company also flagged the “possible impact” of the recognition of an impairment on intangible assets as a factor that might still influence its results.

“As at the date of this announcement, the group is still in the course of assessing the impairment loss on intangible assets, if any,” it stated.

In August, Shin Hwa reported an interim loss attributable to shareholders of HKD338.9 million for the first six months of 2023. The result was on group-wide revenue that declined 39.5 percent year-on-year, to just below HKD418.1 million.

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