GGRAsia – Success Dragon 1H revenue grows despite gaming dip

Success Dragon 1H revenue grows despite gaming dip

Dec 01, 2020 Newsdesk Latest News, Macau, Rest of Asia, Top of the deck

Gaming services firm Success Dragon International Holdings Ltd says revenue for the six months to September 30 grew by 14.0 percent year-on-year, to nearly HKD50.5 million (US$6.5 million). That was despite a 57.7-percent decline in revenue from the provision of gaming-related services in the Macau market, said the firm in a Monday filing.

The Hong Kong-listed company said the provision of services on management of electronic gaming equipment operations in Macau generated revenue of approximately HKD17.8 million in the April to September period, compared to HKD42.0 million a year earlier.

“The decrease was mainly attributable to intense competition in the Macau gaming market faced by the group. The market competition was further worsened by the outbreak of Covid-19 pandemic,” said Success Dragon.

The company also said that restrictions on gaming capacity at Macau’s casinos represented a“high risk” to the group’s revenue stream, as the segment accounted for about 35.2 percent of group-wide revenue in the period. Despite cost control measures in its operations in the Macau market, the company said the segment recorded a loss of nearly HKD4.9 million in the reporting period, compared with a loss of HKD1.7 million in the prior-year period.

Success Dragon reported a group-wide net loss of HKD6.1 million for the six months ended September 30, an improvement on the HKD6.9-million loss recorded a year ago, according to Monday’s filing.

The company also provides money lending services in Hong Kong, and is – since March this year – engaged in the processing of gold-laden carbon processing and the sale of gold and other precious metals. In the six months to September 30, revenue generated from this segment reached HKD29.6 million, with a segmental profit of approximately HKD243,000, according to the earnings filing.

The company said it would be “establishing a production line” in Yunnan province, in mainland China, “for the extraction of gold and other precious metals from gold-laden carbon.”

“The extracted gold and other precious metals will be sold to buyers and dealers” in mainland China, it added.