Shin Hwa World expects H1 net loss to fall up to 75%

Shin Hwa World expects its consolidated net loss to fall by approximately 60% to 75% for the six months ended 30 June 2026, supported by increased revenue from its integrated resort operations.

The Hong Kong-listed operator has yet to disclose absolute revenue or EBITDA figures for the period. Based on the HK$244.4m ($31.4m) net loss reported in the first half of 2025, the indicated reduction would place the latest loss at approximately HK$61.1m to HK$97.8m, subject to final adjustments. 

The anticipated improvement would reverse the direction recorded in the first half of 2025, when revenue fell 21.8% year-on-year to HK$410.4m. Gaming revenue declined 46.1% to HK$62m during that period, while non-gaming revenue totaled HK$348.4m.

Shin Hwa World's core asset is Jeju Shinhwa World, an integrated resort on South Korea's Jeju Island that includes the foreigners-only Les A Casino. The property's gaming operations are consequently exposed to international tourism trends and visitor spending.

Jeju recorded 2.24 million foreign tourists during 2025, an increase of 17.7% from the previous year. Chinese travelers accounted for 70.2% of the international total. Foreign arrivals continued to increase during the first five months of 2026, rising 21.5% year-on-year to almost one million visitors.

The wider South Korean foreigners-only casino sector has also benefited from recovering inbound tourism. Paradise and Grand Korea Leisure both recorded year-on-year increases in casino sales during June, although each reported sequential declines from May. 

Shin Hwa World said its expected first-half improvement was also driven by an increase in the fair value of investment properties and the recovery of tax paid in previous years.

However, the operator is still assessing whether an impairment loss on intangible assets will need to be recognized. Its preliminary figures have not been confirmed or reviewed by its independent auditor, with full interim results expected in late August.

In March, Global Gaming Insider reported that Shin Hwa World generated HK$966.9m in 2025 revenue while its annual loss narrowed to HK$342.5m, despite gaming revenue falling 45.2% to HK$115.2m.