Asian Pioneer Entertainment Holdings Limited, also known as APE Macau, revealed a financial shortfall of HK$23 million (equivalent to £2.2 million or €2.6 million) in its 2021 financial statement. Hu Dean, the company’s chairman, highlighted the importance of embracing digital opportunities for the group’s future success.
The company’s total income amounted to HK$7.6 million (roughly £732,720, €882,546, or $971,010), representing an 81.1% decline from the HK$40.4 million recorded in 2020. This downturn aligns with the profit warning issued last week.
Technical sales and distribution of electronic gaming equipment contributed HK$5 million to the company’s revenue, while consulting and technical services generated HK$1.8 million. Maintenance services added HK$651,495 to the revenue stream.
APE Macau’s smart vending machine business contributed an additional HK$145,305 to the company’s overall income.
Macau served as the company’s primary revenue source, generating HK$6.4 million. The Philippines contributed HK$1 million, while Vietnam, Korea, and other regions collectively generated HK$121,122.
The cost of goods sold reached HK$6.7 million, a decrease from the HK$27.9 million recorded in 2020. This resulted in a gross profit of HK$850,536, representing a year-on-year decline of 92.3%.
Operating expenses experienced a 10.2% reduction, settling at HK$18.6 million. Financial expenses also decreased by 27.5%, reaching HK$85,620.
The organization recorded a HK$2 million devaluation loss on fixed assets, tools, and leasehold assets, compared to no similar data in 2020.
Over the same time period, other impairment losses reached HK$1,303, compared to HK$22.8 million in 2020.
An extra HK$3.2 million loss was incurred due to stock write-downs. However, the organization generated HK$148,407 in other revenue.
Taking all these factors into consideration, the total loss for the year was HK$23 million, down from HK$32 million in 2020. There was no income tax expense in 2021.
APE Macau President and Chief Executive Hu Yao-yan stated: “The Group remains concerned about the ongoing impact of the COVID-19 pandemic on its business operations. While the Group has taken proactive steps to diversify its business, the business itself may be affected by macroeconomic conditions such as border closures and travel restrictions.
“Therefore, the Group must seek more opportunities of a digital nature; these opportunities are not affected by physical limitations.
“We believe that once the pandemic subsides, mass gambling will return to Macau, and our electronic gaming equipment business will be well-positioned to benefit.”
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