Macau-based gaming equipment distributor Asia Pioneer Entertainment Holdings Ltd (APE) says it will turn its focus back to Macau to negate the impact of COVID-19 on its business after falling to a loss of HK$29 million in the first half of 2020.
The loss represents a 429% increase from a loss of HK$5.5 million (US$710,000) over the first six months of 2019, with APE pointing to a 46% year-on-year decline in revenue to HK$11.8 million – mainly attributable to a 50.7% decrease of income derived from technical sales and distribution of electronic gaming equipment.
The company also recorded a one-time write-off of finance lease receivables of approximately HK$22.9 million after terminating two finance lease agreements for the leasing of EGE in May. The agreements were terminated after Siam Star Leisure Co, Ltd, which leased EGE from APE for use at a casino in Cambodia, and GLIMEX Inc, which did the same for a casino in the Philippines, failed to pay lease rental.
In its 1H20 results release, APE said GLIMEX has agreed to pay its outstanding finance lease rental of US$127,680 but that the first two instalments totaling US$35,200 had not been paid on time due to Manila bank services being affected by COVID-19 lockdowns.
A letter has been sent to Siam Star demanding payment for outstanding rental of US$249,050.
Outlining measures it has taken to massage the company through the COVID-19 crisis, APE said it has not only reduced operating expenses and accepted voluntary salary reductions for senior management, but has “decided to concentrate its focus on operations and businesses in Macau SAR and only selectively sell EGE to Southeast Asian countries.
“The Group believes that these initiates will help weather the uncertainties caused by the outbreak of COVID-19.”
APE’s 1H20 numbers included a 50.7% decline in revenue in the technical sales and distribution segment to HK$9.4 million, a 10.6% decline in consultancy and technical services to HK$1.5 million, and a 22.1% decline in repair services to HK$951,000.
The company recently announced plans to diversify its revenue streams by launching new “sports and sports-related entertainment businesses,” including the sponsorship and promotion of sports events and the operation of sports entertainment venues in Macau.
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