Hong Kong-listed Success Dragon International Holdings Ltd returned to profit in the 12 months ended 31 March 2023, but no thanks to its outsourced business process management – or slot machine servicing – segment, which saw mounting losses before being shut down during the year.
While group-wide profit of HK$816,000 was aided by a profit of HK$4.6 million from continuing operations, Success Dragon reported a loss of HK$3.8 million from discontinued operations, which includes the Macau slot machine business and a separate money lending business.
The company explained that revenue generated from the outsourced business process management decreased by 77.4% year-on-year to HK$7.1 million in FY23 due to “limited operation of business for only around three months as the operating agreement was terminated in June 2022.”
Success Dragon had provided electronic gaming equipment management services to Kingston Financial’s Casa Real and Grandview casinos.
“The Group decided to cease operation of this business as this segment … kept on operating in loss,” it said.
“The loss from the captioned segment during the Year was approximately HK$4.4 million, compared with loss of approximately HK$5.4 million during FY22. The decrease in loss was mainly due to the reduction of expenses as the operation was ceased during the Year.”
Group-wide revenue for Success Dragon grew by 152% year-on-year to HK$363.8 million on the back of its gold processing and trading business although the company was hit by considerably higher administrative and tax expenses.
RelatedPosts
