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| Contributed by Robust Slot Machine Sales |
HONG KONG, Mar 20, 2018 - (ACN Newswire) - Asia Pioneer Entertainment Holdings Limited ("APE" or the "Company", with its subsidiaries collectively referred as the "Group"; Stock Code: 8400.HK), a leading Electronic Gaming Equipment supplier in Macau, is pleased to announce the audited consolidated annual results of the year ended 31 December 2017 ("FY2017").
FY2017 highlights
- Revenue generated from technical sales and distribution segment surged 74% year-on-year
- Excluding listing expenses, profit after tax increased by 34.5% year-on-year from approximately HK$13.9 million to approximately HK$18.7 million
Latest developments
- The Group concluded sales of 319 refurbished slots, which formed a new business segment for the Group
- Its 18,000 sq. ft. integrated office with workshop and warehouse is expected to open in the second quarter of 2018
Industry Review
The overall Macau gaming market has rebounded in 2017 seeing its first growth in Gross Gaming Revenue (GGR) in 3 years. GGR jumped 19.1% to MOP264.7 billion (USD33.0 billion) in 2017 on a year-on-year basis. Mass-market gaming, including play from slot machines and ETG, was MOP31.7 billion in the last quarter of 2017, a rise of 17.1% from MOP27.1 billion year-on-year from the fourth quarter of 2016. The overall gaming equipment markets in Macau expanded in 2017 due primarily to the openings of 2 major casinos, namely the Wynn Palace in Coati strip and Legend Palace in Fisherman's Wharf.
Business Review
The Group is a total solutions provider of electronic gaming equipment ("EGE") for land based casinos in Macau as well as other regions in Asia. EGE principally include electronic table games ("ETG") and electronic gaming machines ("EGM" or "Slot Machines"). The Group's business can be segmented into: (i) technical sales and distribution of EGEs to land based casinos; (ii) the repair and sale of EGEs plus spare parts; (iii) consultancy to suppliers or manufacturers of EGE products to the casino gaming supplier market; and (iv) sales of refurbished EGMs.
In FY2017, the Group's revenue increased by 63.7% to approximately HK$86.1 million from approximately HK$52.6 million in 2016. Gross Profit increased by 49.9% to approximately HK$34.8 million in 2017 from approximately HK$23.2 million in 2016, thanks to new casino openings in Macau in 2017 which created strong demand for our products and led to an increase in technical sales and distribution segment of 74.0% year-on-year in revenue in 2017.
Due to listing expenses of approximately HK$14.2 million, net profit before tax fell by 37.8% to approximately HK$7.1 million in 2017 from approximately HK$11.5 million in 2016. Excluding listing expenses, the Group's profit after tax increased by 34.5% from approximately HK$13.9 million in 2016 to approximately HK$18.7 million in 2017.
The net profit attributable to shareholders in 2017 is approximately HK$4.5 million after listing expenses and income tax expense (2016: approximately HK$9.6 million).
Prospect
Looking ahead, management believes that the Group's prospect will continue to ride on the rebound of Macau's GGR as well as the growth of mass-market gaming. In 2018, there will be 2 new major casinos, namely MGM Cotai as well as Grand Lisboa Palace Cotai, opening, creating a favourable backdrop for the Group's sale and distribution business in Macau.
For the year ahead, the Group will continue to implement its business plan and use of proceeds as outlined in our listing prospectus. It has already concluded the sale of our first batch of refurbished slots, a batch of 319 used slots which we purchased, refurbished in Macau and resold. Management is also actively pursuing leasing agreements with Macau operators, and is continuing to pursue distribution opportunities in Asia outside of Macau. In our consulting services business, APE has signed with a major supplier of ticket printers to be their official repair centre for the Asia Pacific region.
In the second quarter of 2018, the Company is expected relocate to a new 18,000 sq ft premise which is an integrated office with workshop and warehouse. We believe that the expanded facility will allow us to capture greater market share and enhance our reputation as a total solutions provider of EGEs in Macau.
About Asia Pioneer Entertainment Holdings Limited
Asia Pioneer Entertainment Limited (APE) was established in 2006 in Macau. APE is an approved gaming machine agent licensed by the Gaming Inspection and Coordination Bureau of Macau (DICJ). Since its founding, APE has been dedicating its business to introducing innovative gaming products to casino operators in Macau and other Asian countries. APE is focused on providing a full range of customised and integrated solutions for the Electronic Gaming Equipment industry. With an established track record of supplying Electronic Gaming Equipment to casino operators in Macau and Asia, APE is a now a global distributor, presenting gaming manufacturers from Slovenia, US, Taiwan and Australia. It has well established business relationships with casino operators in Macau and Philippines.
This press release is disseminated by Frement Financial Relations Limited on behalf of Asia Pioneer Entertainment Holdings Limited.
For further enquiries, please contact Frement Financial Relations Limited:
Ms. Dawn Lee
Tel: (852) 2890 8262
Mob: (852) 6155 8827
Email: dawn@frement.com
Ms. Ashley Kung
Tel: (852) 2890 8262
Mob: (852) 6608 9927
Email: ashley@frement.com
Ms. Vanessa Wong
Tel: (852) 2890 8262
Mob: (852) 61271953
Email: vanessa@frement.com
Topic: Press release summary
Source: Asia Pioneer Entertainment Holdings Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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