GGRAsia – Success Dragon flags swing to 1H profit from loss last year

Success Dragon flags swing to 1H profit from loss last year

Nov 23, 2021 Newsdesk Latest News, Macau, Top of the deck

Gaming services provider Success Dragon International Holdings Ltd expects a HKD4.4-million (US$565,000) net profit for the six months ended September 30 this year, compared to a net loss of HKD6.1 million in the prior-year period.

The group said in a Monday filing to the Hong Kong Stock Exchange that the anticipated improvement was due to a 143-percent increase in gross profit for the period, to HKD21.4 million, from HKD8.8 million in the prior-year interim period.

That in turn had been affected by improved trading conditions, including “eas[ing] of control” in Macau “on measures against the spread of Covid-19”. This had enabled the group to “attract more business” in relation to its “outsourced business process management” work.

Revenue from such work was expected to rise 7.3 percent, to HKD19.1 million, from HKD17.8 million in the comparable period a year earlier.

In September, Success Dragon announced it had a deal to “supply, set up and manage” a minimum of 120 slot machines and multi-terminal machine units in the slot halls of Macau casinos Grandview and Casa Real.

The properties are controlled by Hong Kong-listed Kingston Financial Group Ltd, and run under the gaming licence of Macau concessionaire SJM Holdings Ltd.

In its Monday positive profit warning, Success Dragon stated that April to September revenue from its gold-laden carbon processing and trading business was expected to jump nearly 189 percent year-on-year, to HKD85.5 million, from HKD29.6 million.