Hong Kong-listed Success Dragon International Holdings Ltd has returned to profit in the year ended 31 March 2022, despite its outsourced business process management segment – which provides slot machine servicing in Macau – reporting lower revenues.
The company booked a profit of HK$2.0 million (US$255,000) for FY22, reversing a loss of HK$10.5 million (US$1.34 million) recorded 12 months earlier, with the gain primarily recorded in its gold-laden carbon processing and trading business. Success Dragon said lower costs and higher gradings of gold resulted in a higher profit margin.
Group-wide revenue reached HK$182 million (US$23.2 million) in FY22, of which the gold-laden carbon processing and trading business contributed HK$144.1 million (US$18.4 million) – up 6.7% year-on-year and representing 79.2% of all revenue.
By comparison, the outsourced business process management segment contributed 17.3% of the Group’s revenue during the year, which fell by 6.1% to HK$31.5 million (US$4.01 million). Success Dragon’s Macau business sees it provide electronic gaming equipment management services to its customers, which include Kingston Financial’s Casa Real and Grandview casinos.
“The lack of improvement in the revenue for this business segment was mainly attributable to the adverse impact on the Macau gaming industry caused by the prevalence of the COVID-19 pandemic,” the company said.
“The loss from the segment during the year was approximately HK$5.6 million, compared with loss of approximately HK$9.4 million during FY21.”
Success Dragon had last year flagged its intention to quit its Macau slot machine servicing business but later announced that it had inked a new deal to service EGMs in the slot halls of Grandview Casino and Casa Real Casino.