Shin Hwa World, the operator of Jeju integrated resort Jeju Shinhwa World – formerly known as Landing International Holdings – has issued a profit warning on an expected loss of between HK$450 million and HK$540 million (US$57.5 million and US$69.0 million) for the year ended 31 December 2023.
The FY23 loss is more than double the HK$217 million (US$27.7 million) loss reported in 2022, although it does suggest a narrowed loss compared to the first six months of 2023 when the company reported a loss attributable to owners of HK$338.9 million (US$43.2 million).
In a filing, Shin Hwa World said the FY23 loss was mainly due to pressure on its hotel room price and occupancy rate as a result of intense competition and domestic customers travelling abroad after the easing of travel restrictions, which led to a decrease in revenue generated from the integrated resort development segment.
The loss was also due to a decrease in residential property sales owing to the downturn in the property market and an interest rate rise; an increase in operating expenses resulting from inflation, particularly utility costs, facilities maintenance costs and an increase in employee benefit expenses; the absence of a net amount of approximately HK$63 million (US$8.1 million) from the reversal of trade and other receivables impairment recorded FY22; and the possible impact on the recognition of impairment on intangible assets.
Shin Hwa World said it expect to release its audited FY23 results in late March 2024.
RelatedPosts
