Hong Kong-listed casino operator Landing International Development Ltd has warned that it expects to record a widened loss of at least 160% more than the previous year for FY19.
Issuing a profit warning overnight ahead of its 2019 earnings release, Landing – which operates integrated resort Jeju Shinhwa World on the holiday island of Jeju – said the increase in net loss is “mainly attributable to (i) significant decrease in net revenue from gaming business; (ii) decrease in fair values of investment properties; (iii) impairment of property, plant and equipment; (iv) decrease in interest income and increase in finance cost; and (v) increase in depreciation charges due to progressive opening of various facilities and provision for impairment of trade and other receivables.”
The company reported a loss of US$89.4 million in 2018, down from a profit of US$64 million the previous year, suggesting its loss for FY19 will exceed US$200 million. Landing has previously reported a loss of HK$835.6 million (US$108 million) for the six months to 30 June 2019 following an 80% decline in group revenue from HK$1.75 billion (US$225 million) to HK$347.4 million (US$45 million), primarily due to lower gaming revenue at Landing Casino.
The company is also in the midst of an ownership dispute after Chairman Yang Zhihui filed a writ of summons against two individuals named as receivers of all company shares held by majority owner Landing International Ltd (LIL).
The writ of summons relates to the revelation in November that liquidators had filed two disclosures of interest in LIL, which holds a 50.48% stake in Landing International Development Ltd and is wholly-owned by Yang.