South Korea’s Shin Hwa World reported a loss attributable to the owners of the parent of HK$231.5 million (US$29.7 million) for the six months to 30 June 2024, narrowed from a HK$394.3 million (US$50.5 million) loss a year earlier due to significant improvement in its gaming business.
The company also pointed to a decrease in amortisation and depreciation, as well as a decrease in finance costs.
Shin Hwa World is the parent company of Jeju Shinhwa World, an expansive integrated resort development located on Jeju Island. The property’s facilities include various hotels, a convention and exhibition centre, a retail mall, food and beverage outlets, a leisure and entertainment complex, a theme park, a water park, and one of the largest foreigners-only casinos in Jeju.
Group-wide revenue for the period grew by 25.5% year-on-year to HK$524.7 million (US$67.3 million), led by a 380% increase in net gaming revenues to HK$114.9 million (US$14.7 million). Landing Casino, boasting 150 gaming tables and 210 slot machines and electronic table games, benefited from “growing visitation and the increasing rolling volume and non-rolling volume compared with the corresponding period in 2023,” the company explained.
The gaming business still fell to a segment loss HK$55.8 million (US$7.2 million), albeit narrowed from HK$107.8 million (US$13.8 million) a year earlier.
Also showing improvement was the Property Development segment, related to the sales activities of resort condominiums and villas in part of Jeju Shinhwa World. Revenue generated from such sales reached more than HK$70 million (US$9.0 million) in 1H24 with segment profit of HK$30.9 million (US$4.0 million), up 92% year-on-year.
However, the Integrated Resort or non-gaming segment saw revenues fall slightly to HK$339.3 million (US$43.5 million), with segment loss of HK$115.4 million (US$14.8 million).
Looking ahead, Shin Hwa World says it continues to look for opportunities rto expand its customer base despite increasing local and regional competition.
“In recent years, the Group has faced the greatest challenges to sustain and grow its businesses,” it said. “Despite the pressure on room price and occupancy rate, the Group will strive to grow its market share under the keen competition from some newly built hotels in Jeju. It is believed that if and when the scheduled flights and routes to reach Jeju increase in number in the future, it would significantly boost the Group’s business performance.
“As the core business of the Group is an integrated resort development, where a wide range of amenities and amusements in Jeju Shinhwa World is the key to the success of the Group.
During the Period, the Group made continued progress in the maintenance, renovation, and upgrading of facilities in Jeju Shinhwa World. In order to turnaround the performance
of the Group, we will continue to upgrade our facilities and enhance our service, and will also organize gaming tournaments and offer entertainment and compliments for casino VIP patrons in the years ahead.”
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