Hong Kong’s Success Dragon International Holdings Ltd says it expects to post a profit of HK$4.4 million for the six months to 30 September 2021, reversing a HK$6.1 million loss recorded in the same period last year.
According to a positive profit alert filed this week, the turnaround includes an increase in revenue from the provision of electronic gaming equipment management services in Macau from HK$17.8 million to HK$19.1 million.
Success Dragon had announced in May plans to shut down its outsourced business process management business but four months later revealed it had signed new retrospectively dated contracts for the provision of services at two Macau casinos – Grandview and Casa Real. Both casinos are owned by Kingston Financial Group and operated under license from SJM Resorts, S.A.
Explaining its reasoning for continuing the business, Success Dragon said it “believes that the financial performance of the Outsourced Business Process Management will improve under a better market condition along the continued increase in vaccination rates and the gradual recovery of the tourism industry in Macau.”
This week’s filing also pointed to an increase in revenue from Success Dragon’s gold-laden carbon processing and trading business for its return to profit, partly offset by increase in income tax expense from nil to HK$2.7 million.
Final results are expected to be announced this Friday 26 November 2021.
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