Shin Hwa World Ltd, promoter of Jeju Shinhwa World (pictured), a resort with foreigner-only casino on the South Korean holiday island of Jeju, expects its first-half consolidated net loss to increase by “not more than 12 percent” from a year earlier. That is according to a Monday filing to the Hong Kong bourse.
The firm posted a net loss of just over HKD231.5 million (US$29.5 million) in the first half of 2024, which had been an improvement on the HKD338.9-million loss recorded in the first six months of 2023.
The firm said the expected increase in first-half net loss was primarily attributable a “decline in consolidated revenue, particularly from the group’s integrated resort and gaming business,” due to what it said was “pressure on room price and dampened customer spending”.
Another factor impacting the group’s earnings was a “decrease in fair value of the investment properties, compared to the corresponding period in 2024,” it added.
The company stated: “Taking into account the possible impairment on intangible assets that may need to be recognised, it is anticipated” there will be “an increase of not more than 12 percent in consolidated net loss for the period as compared with the corresponding period in 2024.”
The Hong Kong-listed firm narrowed its net loss for 2024 by 5.4 percent year-on-year, to about HKD494.1 million. That was on revenue that rose by 3.7 percent year-on-year, to just over HKD1.07 billion.
In July, the casino developer announced a proposal for a rights issue, with the intention of raising approximately HKD182.6 million. The operation is set to be completed by October, but it still requires shareholder approval in a meeting scheduled for mid-September.
