The Hong Kong-listed parent of Macau-registered electronic gaming equipment distributor Asia Pioneer Entertainment Ltd has warned that it expects to swing to a HKD1.7-million (US$216,619) first-quarter loss, compared to an unaudited HKD4.8-million profit – before recurring expenses – recorded by the group in the first quarter 2017, a period prior to the group’s public flotation.
The deterioration was mainly attributable, said Asia Pioneer Entertainment Holdings Ltd, to a year-on-year decrease in revenue from sales of electronic gaming equipment and its consulting and technical services; an increase in operating expenses; and a “decrease in the group’s gross profit margin for the current period”.
Asia Pioneer Entertainment Holdings started trading on Hong Kong’s small-cap exchange, the Growth Enterprise Market, in November last year.
Part of the firm’s commercial model involves acting as a clearing business for casino slot machines reaching the end of their life in the Macau market, in order to sell them on to other markets.
"The first seven weeks of trading in the second quarter 2018 have been much stronger than the first quarter 2018"
Chief executive of boutique casino operator Silver Heritage