South Korean integrated resort operator Shin Hwa World has announced that it’s expecting a reduction in loss for 2024 ‘of not more than 10 percent’.
According to a recent filing with the Hong Kong Stock Exchange, the reduction in loss is based on an increase in consolidated revenue, ‘particularly generated from the gaming business segment’. It also highlighted a decreased in amortization and depreciation and in operating expenses.
The group notes that ‘taking into account the possible impairment on intangible assets that may need to be recognized, it is anticipated that there was a reduction of not more than 10 percent in consolidated net loss for the year’.
In 2023, the group saw consolidated revenue amount to HK$1 billion ($128.8 million), up by 25 percent yearly. However, losses for the year amounted to approximately HK$522.4 million ($67.4 million), a strong increase from the approximately HK$217 million ($28 million) in losses registered in 2022.
This increase in loss was attributed to factors including intense competition, reduced residential property sales and an interest rate rise, accompanied by increased costs due to inflation and higher employee benefit expenses.
Last November, the company indicated that it was issuing some HK$200 million ($25.7 million) in a private bond offering, aimed at supporting its ongoing business development, particularly in the integrated resort sector.
