Landing International Development Ltd has issued a profit warning for the year ended 31 December 2020, revealing it expects to record a net loss but that the loss will be reduced versus the previous year.
According to a filing with the Hong Kong Stock Exchange overnight, Landing is expecting a 3% year-on-year decrease in revenue from the HK$815.5 million (US$105 million) reported in FY19 and a decrease in net loss of between 10% and 20% from the loss of HK$2.13 billion (US$274.5 million) in FY19.
Landing said the decrease in revenue is due to “a drop of visitation to the Group’s foreigner-only casino and reduction of property sale activities” at its South Korean integrated resort, Jeju Shinhwa World. However, it also noted an increase in revenue generated from Jeju Shinhwa World during the second half of 2020 due to “an increase in consumption and visitation by domestic customers.”
Landing’s losses in 2020 look to have been exacerbated by the theft of KRW14.56 billion (US$13.4 million) from a safe at Landing Casino, which was discovered by staff in early January.
The company said overnight that it does not yet know the recoverable amount of funds if any, but that it had incorporated the funds into its expected losses for FY20.