Landing International Development has issued a profit warning to shareholders through the Hong Kong Stock Exchange warning that the firm’s full year 2019 results are going to be grim.
“The board of directors of the company,” the note said, “wishes to inform shareholders of the
company and potential investors that based on the information currently available to the board, the group expected to record a substantial increase in net loss for the year ended 31 December 2019 by not less than 160% as compared to the year ended 31 December 2018.”
The note went on to explain the reasons: “The increase in expected net loss was mainly attributable to (i) significant decrease in net revenue from gaming business; (ii) decrease in fair values of investment properties; (iii) impairment of property, plant and equipment; (iv) decrease in interest income and increase in finance cost; and (v) increase in depreciation charges due to progressive opening of various facilities and provision for impairment of trade and other receivables.”
In its half year results issued last August, the company recorded an 80 percent drop in gaming revenue.