New Silkroad issues profit warning

New Silkroad Culturaltainment Limited, operator of the MegaLuck Casino at KAL Hotel Jeju, has issued a profit warning for the six month period ending June 30.

“The Group is expected to record a net loss from the continuing operations of more than HK$47 million as compared to a net loss of approximately HK$23 million for the corresponding period in 2019,” the statement to the Hong Kong Stock Exchange revealed.

The increased losses were mainly attributed to “the significant drop in revenue from the group’s entertainment business in Jeju, Korea, for the period brought by the outbreak of the novel coronavirus pandemic since January this year and the imposition of local travel and entry restrictions by the Korea government, thereby resulting in a sharp reduction of tourists to Jeju, Korea.”

They also cited a decrease in gross profit margin of the group’s winery business.