Macau’s Paradise Entertainment Ltd has signed a Supply Framework Agreement with the brother-in-law of Chairman and Managing Director Jay Chun to sell up to HK$40 million worth of products in the US, Canada and Australia in 2019.
Under the terms of the agreement, Linyi Feng and companies he controls will purchase products for the development, manufacture, sale, marketing and distribution of electronic gaming machines in the aforementioned markets among others.
Paradise said that the products would be priced at an 8% to 10% discount from suggested retail prices and would be “no more favorable than those pricing discounts offered to other independent third parties by the group for similar model and size of order of the products.”
It added that the company regularly conducts checks on prevailing market prices and that it was not compelled to accept any purchase orders for the products that were less favorable than those agreed with other companies.
Feng is also a director of a number of subsidiaries of Paradise.
Paradise explained that the deal was the first ever struck between the group and Feng, relating specifically to new products it has recently developed. The HK$40 million annual cap is based on expected demand in the agreed markets
Paradise Entertainment recently announced that its revenue grew 15.2% year-on-year to HK$563.9 million in 1H18, buoyed by greatly improved EGM sales in Macau.
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