GGRAsia – Jeju Shinhwa operator logs US$67mln loss for 2023

Jeju Shinhwa operator logs US$67mln loss for 2023

Mar 28, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck

Hong Kong-listed casino developer Shin Hwa World Ltd on Wednesday reported a consolidated net loss for full-year 2023 of HKD522.4 million (US$66.8 million), more than double the HKD216.9 million in the prior year.

Group-wide revenue was just under HKD1.04 billion last year, down from HKD1.39 billion in 2022, said the company in a filing to the Hong Kong Stock Exchange. The firm did not recommend the payment of a final dividend.

The company runs a resort called Jeju Shinhwa World (pictured) with foreigner-only casino in Jeju, South Korea. The complex’s casino has 150 gaming tables and 210 slot machines and electronic table games, according to the filing.

Gaming revenue rose 1.4 percent year-on-year, to HKD46.8 million in 2023. But segment loss from the gaming business was approximately HKD258.4 million, compared with nearly HKD174.0-million loss in the prior year.

The company said the recovery momentum of its gaming business “became apparent” in 2023, “with both the rolling volume and non-rolling volume increasing compared to the previous financial year”.

“However, the decline in the winning percentage resulted in a negative effect on the segment revenue during the year,” it added.

The company recorded last year an impairment of about HKD12.9 million “on relevant intangible assets … based on the recoverable amount of the cash-generating unit” of its gaming business, up from HKD8.7 million in 2022.

During the reporting period, the group’s non-gaming revenue stood at approximately HKD989.5 million, down 26.2 percent from a year earlier.

“Faced with intense competition and domestic customers travelling abroad after the lift of travel restrictions, the room prices and occupancy rates of our hotels were under pressure during the year,” stated the firm.

Earlier this month Shin Hwa World Ltd raised a gross amount of just under HKD28.74 million via a share subscription agreement. It involved issuance of 845.25 million new shares, at HKD0.034 per subscription share.

About HKD14.0 million of the net proceeds are to be used for “upgrade, repair and maintenance of the existing building, equipment and facilities” within Jeju Shinhwa World, the firm stated.