Shin Hwa World Limited provided earnings guidance for the year ended 31 December 2022. For the period, the Group is expected to record a substantial decrease of approximately 65% to 85% in consolidated net loss for the year ended 31 December 2022 (the "Year") as compared with the previous financial year ended 31 December 2021. The expected decrease in consolidated net loss for the Year was mainly attributable to (i) the steady growth of domestic consumption in Jeju Shinhwa World leading to the increase in revenue generated from the integrated resort segment; (ii) the decrease in amortization and depreciation; (iii) the decrease in operating expenses resulting from stringent cost controls; (iv) the decrease in finance cost owing to partial loan repayment during the Year; (v) the reversal of trade and other receivables impairment; and (vi) the possible impact on recognition of impairment on intangible assets.

As at the date of this announcement, the Group is still in the course of assessing the impairment loss on intangible assets, if any. Despite the decline in revenue derived from the gaming business, after taking into account of possible impairment on intangible assets that may be required to be made, it is anticipated that there was a reduction of approximately 65% to 85% in consolidated net loss for the Year as compared with the previous financial year ended 31 December 2021.