Asia Pioneer Entertainment (APE) Holdings Ltd, a casino gaming equipment distributor and technical support specialist, saw its annual loss grow by 10 times in 2020, on revenue that fell 50.6 percent.
Such loss was HKD32.0 million (US$4.1 million), versus a loss of HKD3.0 million in 2019. Revenue for 2020 was just under HKD40.5 million, versus nearly HKD82.0 million a year earlier.
The results included a nearly HKD22.9 million impairment loss on “finance lease receivables” due to termination of some agreements as announced in May.
The chairman, Allen Huie Tat Yan, noted in prepared remarks in the 2020 results filed on Thursday with the Hong Kong Stock Exchange, that the decline in 2020 revenue was “mainly attributable” to a number of factors.
They included: a circa 51-percent decline in contributions from technical sales and distribution of electronic gaming equipment; an approximately 42 percent dip in revenue from consulting and technical services; and a 61 percent contraction in repair-service revenue.
The group’s interests encompass Asia Pioneer Entertainment Ltd, a Macau-based distribution, sales and servicing business for casino slot machines and electronic table.
Mr Huie stated the firm remained “concerned about the impact of the ongoing Covid-19 epidemic on the operations of its land-based operators in the Macau Special Administrative Region and Southeast Asia”.
But he asserted that the Macau-based company’s ”long-term financial stability remains intact”.
Operating expenses declined by 37.1 percent in 2020, to HKD20.8 million, from HKD33.0 million in 2019.
The chairman said “after extensive market research,” the group had decided to move into “smart vending” as an “underserved market” in Macau, and one that was “particularly relevant in a post-Covid-19 environment”.
The firm said it had ordered 15 such machines for placement in parts of Macau with high foot traffic.
“We are hopeful and confident that the smart vending business will supplement our core electronic gaming equipment business to the benefit of all shareholders,” stated Mr Huie.
In Thursday’s filing, the parent company said it had decided “not to pursue further development” of previously-announced businesses in the “sports and sports-related entertainment” sector, “as the ongoing Covid-19 impact has affected travel, sports and entertainment events” during the reporting year.
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Andrew Lee and David Katz
Analysts at brokerage Jefferies LLC