GGRAsia – Jeju Shinhwa op’s loss down at least 65pct y-o-y for 2022

Jeju Shinhwa op’s loss down at least 65pct y-o-y for 2022

Feb 28, 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 – says it expects to record a “substantial decrease” in consolidated net loss” for full-year 2022. That is despite a “decline in revenue” derived from its gaming operations during the period.

The firm said in a filing on Monday that its consolidated net loss for the 12 months ended December 31, 2022 was expected to be down by “approximately 65 percent to 85 percent” as compared with the previous year.

The company reported a HKD1.06-billion (US$134.9-million) annual loss for 2021, but that was still halved from the HKD2.12-billion loss for 2020.

Shin Hwa World Ltd expects to publish its full-year 2022 results “in late March”.

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

Travel by international visitors to Jeju was limited during parts of 2022 due to travel restrictions linked to Covid-19. A visa-free scheme for Jeju visits for certain passport holders commenced in June, described at the time as a “restart” of some pre-pandemic arrangements.

Shin Hwa World Ltd reported in August a net loss of nearly HKD105.4 million for the first half of 2022, compared with a HKD623.7-million loss a year earlier.

The firm said in its Monday filing that the forecast decrease in consolidated net loss was attributable, among other factors, to the “steady growth” of spending by domestic visitors at its Jeju Shinhwa World resort, “leading to [an] increase in revenue generated from the integrated resort segment”. That was further helped by a “decrease in operating expenses resulting from stringent cost controls,” it added.

The company stated that decreases recorded in amortisation and depreciation expenses, and in finance costs, had also helped it reduce its consolidated net loss for 2022.

Other factors mentioned were related to a reversal of trade and other receivables impairment; and the “possible impact” on recognition of impairment on intangible assets.

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