Shin Hwa World 1H loss narrows 72pct as revenue rises to US$61.7mln

Hong Kong-listed Shin Hwa World Ltd, promoter of Jeju Shinhwa World (pictured), a resort with a foreigner-only casino on the South Korean holiday island of Jeju, narrowed its net loss by 72.1 percent year-on-year in the first half of 2026. The loss attributable to owners of the company was approximately HKD68.3 million (US$8.7 million) in the six months to June 30, compared with a HKD244.4-million loss a year earlier, according to a Friday filing. Revenue for the first half rose 17.8 percent year-on-year, to nearly HKD483.5 million. The company did not declare an interim dividend. Gaming revenue rose to nearly HKD71.0 million, up 14.6 percent from a year ago. The increase was attributed to higher non-rolling volumes. The gaming operation nonetheless recorded a segment loss of HKD66.4 million, compared with a loss of HKD59.6 million in the first half of 2025. Les A Casino is described by the company as one of Jeju’s largest foreigner-only casinos. It has 179 gaming tables and 65 slot machines and electronic gaming devices. First-half non-gaming revenue increased to HKD412.5 million, from HKD348.4 million. Shin Hwa World Ltd said the narrowing of its net loss was mainly attributable to the increase in revenue, particularly from its integrated resort business, as well as an increase in the fair value of investment properties and a tax recovery relating to tax paid in prior years. The company had said earlier this month that it expected its first-half net loss to narrow by between 60 percent and 75 percent year-on-year. Revenue from the integrated resort segment increased 20.9 percent year-on-year, to approximately HKD362.6 million. The segment recorded a loss of HKD15.9 million, sharply narrower than the HKD130.0-million loss in the prior-year period. The company attributed the improved performance in the integrated resort segment to a “refined sales and marketing strategy” and an increase in the number of tourists visiting Jeju during the first half of 2026. It said its continued efforts to enhance facilities, as well as its marketing effort had also contributed to revenue growth. Shin Hwa World Ltd’s first-half results also included a HKD57.1-million income tax credit. The company said it received a refund of withholding tax following an April ruling by South Korea’s Supreme Court cancelling tax imposed by the country’s National Tax Service in relation to a 2017 share-transfer transaction. As of June 30, Shin Hwa World had cash and bank balances of approximately HKD156.8 million, up from HKD141.0 million at the end of 2025. Total bank and other borrowings stood at approximately HKD972.3 million, compared with HKD1.08 billion at the end of last year.