Shin Hwa World Limited provided earnings guidance for the year ended 31 December 2023. The Group is expected to record a consolidated net loss of approximately HKD 450 million to HKD 540 million for the year ended 31 December 2023 (the "Year") as compared to the consolidated net loss of approximately HKD 217 million for the previous financial year ended 31 December 2022. The expected increase in consolidated net loss for the Year was mainly attributable to (i) the pressure on the room price and occupancy rate due to intense competition and domestic customers travelling abroad after the easing of travel restrictions, leading to a decrease in revenue generated from the integrated resort development segment; (ii) the decrease in residential property sales owing to the downturn in the property market and the interest rate rise; (iii) the increase in operating expenses resulting from inflation, particularly utility costs and facilities maintenance costs, as well as an increase in employee benefit expenses; (iv) the absence of a net amount of approximately HKD 63 million from the reversal of trade and other receivables impairment recorded in the previous financial year 2022; and (v) the possible impact on the 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. Taking into account the possible impairment on intangible assets that may be required to be made, it is anticipated that there was a consolidated net loss of approximately HKD 450 million to HKD 540 million for the Year (2022 audited: net loss of approximately HKD 217 million).