Hong Kong’s Success Dragon International Holdings Ltd says it will cease providing electronic gaming equipment management services to Macau casinos as current contracts expire due to the impact of COVID-19 on its segment performance.
The decision comes after Success Dragon reported a 57.7% decline in revenue to just HK$17.8 million from its Outsourced Business Process Management segment during the six months to 31 December 2020, with segment contribution falling from 94.9% of group-wide revenue to 35.2%.
The company stated at the time that a combination of intense competition in the Macau gaming market and the outbreak of COVID-19 had imposed “high risk” upon the segment’s revenue.
On Friday, Success Dragon said that “due to its less than satisfactory performance, the board of directors of the company [has] proposed to cease to operate the Outsourced Business Process Management [segment].
“As the two contracts with the casinos for the Outsourced Business Process Management are expected to expire on 30 April 2021 and 31 May 2021, respectively, the board proposed not to renew the contracts, and as a result, the Company will cease to operate the Outsourced Business Process Management in the coming month.”
Success Dragon also operates a money lending segment, IT services segment and gold-laden carbon processing business selling gold and other precious metals in China.