The gaming machine provider Asia Pioneer Entertainment Holdings Limited Macau has announced a loss for the year 2021 of HK$23m. (PS2.2m/EUR2.6m). This led chairman Allen Tat Yan Huie, to say that APE Macau must focus on digital opportunities.
Revenue came to HK$7.6m (PS732,720/EUR882,546/USD$971,010), an 81.1% drop compared to HK$40.4m generated in 2020, which was itself a steep drop from 2019. The profit warning issued last week predicted this.
The total revenue was HK$5 million, with consultancy and technical service HK$1.8 million. Repair services accounted for HK$651,495 in revenue.
APE Macau’s Smart Vending Machine Business added HK$145.305 to its revenue.
Macau generated the majority of revenue – HK$6.4m – for the company. The Philippines operations generated HK$1.0m, and Vietnam, Korea, and other countries brought in HK$121.122.
The cost of selling was HK$6.7m compared to HK$27.9m a year ago. The overall gross profit was HK$850.536, a decline of 92.3% from the previous year.
Operating costs fell 10.2%, to HK$18.6m. Finance costs decreased by 27,5%, to HK$856,620. The impairment losses for property, equipment, and rights-of-use assets reached HK$2.0m. There will be no similar figure in 2020.
The year-end loss on other impairments was HK$1,303, compared with a loss in 2020 of HK$22.8m.
The write-downs of inventory caused a further loss of HK$3.2m. The business made HK$148.407 of other income.
The total loss was HK$23.0m. This is less than the HK$32.0m in 2020. In 2021, there was no tax liability.
Allen Tat Yan Huie is the chairman and executive Director of APE Macau. He said, “We are concerned that the Covid-19 virus pandemic will have an impact on our business operations.” While the group is taking proactive measures to diversify their businesses, they may still be affected by macro-conditions such as travel restrictions and border closures.
The group must therefore look at opportunities which are digitally based, and are not as affected by physical limitations.
We believe mass gaming is coming back to Macau once the virus has passed. Our electronic gaming equipment company will be well-positioned to benefit from this.
