Macau-based gaming product supplier Asia Pioneer Entertainment (APE) reported a comprehensive loss of HK$4.3 million (US$548,000) for the three months to 31 March 2022 – in line with a near identical loss recorded during the same period in 2021.
This loss was “mainly due to a continued slowdown of new orders as a result of the impact of COVID-19 on the operations of our major customers — the casino operators in the Macau Special Administrative Region,” APE said.
Revenue in 1Q22 fell 34.5% year-on-year to HK$1.3 million (US$166,000), down from HK$2.0 million (US$255,000) on the back of a 72.4% decline in the technical sales and distribution of EGEs to HK$438,374 (US$56,000). Consulting and technical services saw revenue rise 61.9% to HK$603,974 (US$77,000) while repair services more than doubled to HK$132,211 (US$17,000).
APE’s new Smart Vending Machine (VM) business contributed HK$145,846 (US$18,500) in revenue.
Addressing the ongoing pandemic situation in Macau, APE said it “remains confident that within a medium term of two to three years’ timeframe, our core EGE business will recover back to operating normalcy once COVID-19 subsides.
“Over the longer term, we believe that casinos will assign more gaming floor space to cater towards the mass market segment of players. This in turn will increase operations of slot machines, EGMs and ETGs. Casino managers will move towards greater automation as they implement new social distancing policies for [their] customers.
“The Group is also optimistic on the rollout of its smart VMs and the Smart VM Business in Macau SAR and the GBA. On 30 March 2020, the Group set up a new 100% owned subsidiary company called “APE Digital Creations Limited” (APE DCL) in the Hong Kong SAR to participate and engage in metaverse and related businesses.
“The Group hopes that APE DCL will allow the Group to diversify into online, digital business opportunities. Digital consumerism is a growing trend in the Macau SAR and the Greater Bay Area, and smart and connected VMs is a good way to tap into consumers who want convenient access to quality branded products.
“The Group’s management continues to review various business plans to diversify the Group’s business.”
