GGRAsia – Success Dragon wings clipped in latest fiscal year

Success Dragon wings clipped in latest fiscal year

Jun 28, 2018 Newsdesk Latest News, Macau, Top of the deck

Success Dragon International Holdings Ltd, a firm that makes most of its income from managing slot machines in the Macau market, reported a loss of nearly HKD130.7 million (US$16.7 million) for the financial year ending March 31, it said in a Wednesday filing to the Hong Kong Stock Exchange.

In the reporting period – with effect from April 1 2017 – the firm adopted the new Hong Kong Financial Reporting standards.

In the prior 12-month period, Success Dragon had reported a loss of HKD155.4 million.

The group recorded revenue of approximately HKD112.4 million for the financial year ended March 31, 2018 versus approximately HKD151.2 million in the financial year ended March 31, 2017.

The management of electronic gaming equipment operations in Macau contributed over 95 percent of the group’s revenue during the year. Such revenue was approximately HKD107.0 million, representing a decrease of approximately 18.2 percent, compared to the HKD130.8 million booked in financial year 2017.

Success Dragon said in commentary with Wednesday’s results: “Despite the cost control measures that have been implemented by the group in Macau operations, the loss from such segment increased.”

Such loss was approximately HKD11.6 million compare with a loss of approximately HKD7.0 million during financial year 2017.

This was mainly due to “the heavy operating cost and worse performance of one of the operation outlets located at the Landmark Macau”, the firm said, referring to the so-called satellite casino Pharaoh’s Palace inside the Landmark Macau hotel, and that relies on the gaming licence of SJM Holdings Ltd.

“As a result, the management of the group decided to cease such operation at the Landmark Macau during the year,” it noted.

During financial year 2017, the group had started providing management services for horse racing business in Vietnam.

“However, due to the changes in regulatory environment in Vietnam which make the operating environment for provision of services for racing business more challenging, the group decided to terminate the agreements with the customers with effect from 28 June 2017,” it further noted.

Success Dragon said it had also disposed of a packaging business during the current reporting year.

Looking ahead, the firm said it was assessing venturing into blockchain technology. Success Dragon added: “We found that blockchain outside of cryptocurrency applications has potential… To better position ourselves to capture these potential opportunities, in the near future, the company wishes to form strategic partnership with and invest tactically into leading fintech companies.”