Macau-based electronic gaming equipment supplier Asia Pioneer Entertainment (APE) has reported a loss of HK$23.1 million (US$3 million) for FY21, narrowed from a loss of HK$32.0 million (US$4.1 million) despite suffering huge declines in revenue and gross profit.
APE operates two main business lines, with its existing electronic gaming equipment (EGE) segment recently supplemented by the addition of a smart vending machine business.
The latter contributed only HK$150,000 (US$19,000) in revenue in 2021 due to the majority of its 42 machines in Macau and Zhuhai being installed towards the end of the year, while the company reported an 81.1% decline in revenue from its EGE segment HK$7.6 million (US$971,000).
By EGE division, APE said revenue from technical sales and distribution fell 86.4% to HK$5.0 million (US$639,000), from consultancy and technical services by 27.2% to HK$1.8 million (US$230,000) for the year and for repair services by 27.2% to HK$2.5 million (US$319,000). Repair services contributed revenue of HK$700,000, a decrease of 38.4% year-on-year.
Despite its struggles throughout the COVID-19 pandemic, APE said it remains well-placed to profit from the region’s recovery in the coming years.
“Management remains steadfast in the Macau SAR … as it transforms from a VIP focused gaming centre to a mass entertainment, travel and technology hub,” the company said.
“Instead of waiting for the change, the Group has used FY21 to diversify and reposition itself for the future. Management has a strong belief in [the] Macau SAR and the GBA. Once the pandemic [subsides], we believe that mass gaming will come back to Macau SAR, and our EGE Business is well positioned to profit from it.
“We also believe that the trend towards digitised consumerism in China, especially the GBA, will continue and grow and our Smart Vending Machine business will actively participate in this consumer trend.
“Overall, the entire Macau SAR and GBA market will be more digitised. The Group needs to position for this future if it aspires to be a premier Macau-based company in the market.”
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