Macau-based casino equipment supplier Asia Pioneer Entertainment Holdings Ltd (APE) has reported a net loss of HK$14.7 million (US$1.9 million) for the 12 months ended 31 December 2022, narrowing a HK$23.1 million (US$2.9 million) loss in 2021 due to increased revenue and reduced expenses.
Releasing its FY22 financial results overnight, APE said its group-wide revenue grew by 37.7% year-on-year to HK$10.5 million (US$1.3 million), of which HK$9.6 million (US$1.2 million) came from the electronic gaming equipment (EGE) business.
This included revenue from the technical sales and distribution of EGE of HK$6.1 million (US$777,000), up 21.2% year-on-year, while the consultancy and technical services segment saw revenue rise by 67.9% to HK$3.0 million (US$38,000). Repair services contributed HK$500,000 (US$64,000), down 28.8%.
Assessing the performance of its EGE business, APE described 2022 as “a year of survival” due to a dearth of EGE orders from casinos in Macau and elsewhere.
“During this period, many of our EGE suppliers and competitors closed or have left Macau. We chose instead to continue engaging our casino customers and work actively with our suppliers despite a lack of EGE orders,” said APE Chairman and Executive Director Allen Huie Tat Yan.
“We believe that our presence and loyalty will serve us well when business turns around. As we end the Year and start 2023, we are beginning to see some lights at the end of the dark tunnel. Several casinos in Macau have started to ask us for quotations for new EGE orders.”
APE’s Smart Vending Machine business, launched in 2021 and selling various Macau-sourced products, generated revenue of HK$900,000 (US$115,000) in 2022 with a segment loss of HK$450,000 (US$57,000). The company said it installed 28 vending machines and 19 customized coffee machines in Macau in 2022, plus four vending machines and one customized coffee machine in Zhuhai.
Huie said that APE “did not perform well” in 2022, but explained, “While not excusing losses, management has taken proactive action to make the company leaner, more sustainable, and better prepared for a turnaround post-COVID.
“For the coming year, the group’s uncompromising focus is to drive the company back to profitability. We are beginning to see light at the end of the tunnel.”