Landing International Development Ltd has issued a positive profit alert, informing shareholders that it expects the group “may record a net profit for the year ended 31 December 2017,” having previously recorded a HK$1.07 billion loss in 2016.
In a filing to the Hong Kong Stock Exchange on Friday, Landing said that the turnaround in performance was “mainly attributable to (i) gain on disposal from discontinued operations in the United Kingdom; (ii) realized gain from available-for-sale financial assets; (iii) segment profit of property development arising from revenue recognition upon delivery of the properties to the purchasers; (iv) gain on fair value change of financial assets at fair value through profit or loss; (v) gain on fair value change of investment properties; and (vi) reversal of impairment for other receivable.”
The company announced in September that it had reached an agreement to sell luxury London casino Les Ambassadeurs Club – which it purchased in December 2015 for HK$1.4 billion – to Hong Kong businessman Paul Suen Cho Hung for a total of HK$2.5 billion. The sale was said to raise around HK$500 million in working capital after loan repayments and represent a return on investment of 30% to 35%.
Landing also announced late last year that it was investing an extra HK$300 million into its Jeju Shinhwa World resort, taking the total amount invested in the project to HK$11.71 billion. Jeju Shinhwa World, located on the Korean holiday island of Jeju, is a mixed-use project that will feature apartments, hotels, theme parks and a casino among other attractions once completed in 2019.
The company opened the first part of the resort, a fully serviced resort condominium called Somerset Jeju Shinhwa World, in April 2017 and its Shinhwa theme park in September. The theme park offers more than 20 rides and attractions themed by TUBAn, a well-known local animation IP creator in Korea.
Marriott Resort Jeju Shinhwa World was also opened to the public in December although casino operations have been delayed, having originally been scheduled to launch on 8 December 2017.
Landing International reported revenue of HK$1.72 billion (US$221 million) in 2016 but posted a net loss of HK$1.07 billion. The company had previously reported a loss of HK$988 million in 2015.
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