Landing International Development, owner and operator of Jeju Shinhwa World in South Korea, has announced the sale of its wholly-owned subsidiary, Stepwide Developments, including Stepwide subsidiaries Jumbo Step and Landing Korea, for HK$120 million.
The sale, to China Yueda Group Holdings Limited, includes assets held by Landing Korea, amongst which are land and buildings located in Jeju which were to be used for establishment of a training center for staff.
In a Monday filing, Landing explained that, “Following the inception of the integrated leisure and entertainment resorts of the Group in 2017, a new training center developed by the Group in closer proximity to its core businesses and facilities has been in place to carry out training activities of the Group. Hence, the training activities of the Group have been conducted in a more efficient and cost-effective manner in another location thereafter and the utilization of the lands and buildings owned by Landing Korea had decreased substantially in 2019.
“The Group considers that the sale proceeds from the Disposal may strengthen the cash position of the Group and the Disposal may also enable the Group to better utilize and allocate its internal resources whilst the Disposal does not result in material impact on its existing business operation. Moreover, the Disposal may also enhance efficiency and reduce cost of the Group’s business as the maintenance, management and other operating costs for maintaining the lands and buildings owned by Landing Korea will no longer be required subsequent to the completion.”
Landing noted net revenue of Stepwide Developments fell from HK$14.8 million in FY18 to HK$1.5 million in 2019, with its loss widening from HK$18.7 million to HK$170.2 million.
As previously reported by Inside Asian Gaming, Landing recently raised HK$137 million via the placement of new shares to provide working capital at Jeju Shinhwa World, having seen the group’s losses increase to HK$2.13 billion in FY19.