Shin Hwa World faces revenue dip in 2023

Jenny Ortiz 2 weeks ago
Shin Hwa World faces revenue dip in 2023

Shin Hwa World Limited has released its financial report for the fiscal year 2023, showing a significant downturn in consolidated revenue and an alarming surge in losses.   

According to the report, the company’s consolidated revenue for the year plummeted to approximately $128.8 million (€119.2 million), marking a stark 25.3 percent decrease from the 2022 figure of approximately $166.1 million (€154.7 million).  

Despite striving to stem financial losses, Shin Hwa World faced an amplified loss attributable to its owners, soaring to approximately $67.4 million (€62.8 million) from approximately $27.9 million (€25.9 million) in 2022. The company’s non-gaming revenue dwindled to approximately $127.5 million (€118.7 million) from approximately $166.1 million (€154.7 million) in the previous year, while gaming revenue remained relatively stable at approximately $6 million (€5.9 million) compared to approximately $5.9 million) the previous year.  

Competition, property sales impact  

A myriad of factors contributed to the adverse financial performance, including intensified competition impacting room pricing and occupancy rates, dwindling residential property sales amid market downturn and interest rate hikes, escalating marketing and operating expenses fueled by inflation, particularly in utility and facilities maintenance costs, and surging employee benefit expenses.  

The company’s revenue from residential property sales and property management plummeted to approximately HK$201.9 million ($26.0 million), a stark reduction of more than a third from the previous year.  

Grappling with economic challenges  

Moreover, the absence of certain income, stemming from the reversal of trade and other receivables impairment recorded in the prior financial year, exacerbated the financial strain. The company underscored the challenging economic landscape characterized by interest rate hikes, dampening the global economic rebound and posing significant hurdles for the foreseeable future.  

Capital management, cautious investment strategies ahead  

In response to the economic headwinds, Shin Hwa World emphasized its commitment to prudent capital management and cautious investment strategies. Despite the tumultuous financial landscape, the company remains steadfast in enhancing facilities at Jeju Shinhwa World, with plans underway for a new premium cinema equipped with a state-of-the-art surround sound system and premium seating facilities. Additionally, Shin Hwa World is exploring the feasibility of further residential development within Jeju Shinhwa World’s zone R to diversify income streams.  

While acknowledging the arduous road ahead, Shin Hwa World remains optimistic about navigating through the challenges and ensuring long-term sustainability by evaluating funding needs and exploring fundraising opportunities when feasible.  

Operating on Jeju Island  

The renowned gaming operator is behind Jeju Shinhwa World, an integrated resort on Jeju Island, South Korea. Shin Hwa World hosts the foreigners-only Landing Casino, boasting 150 gaming tables, 210 slot machines, and electronic table games across a sprawling gaming area spanning approximately 5,500 square meters.  

SiGMA Americas

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