APE Issues Profit Warning on 85% Revenue Decline Through September 2021

Asia Pioneer Entertainment Holdings Limited (APE) has issued a profit warning on an expected 85.5% decline in revenue for the nine months to 30 September 2021.

The decline, to around HK$5.5 million, is mainly attributable to the impact of the COVID-19 pandemic, which has been “ongoing for approximately 21 months now [and] continues to affect adversely the operations of our customers, the land-based casinos,” APE said.

Notably, the HK$5.5 million in revenue APE expects to report for the first nine months of 2021 is less than half the HK$11.8 million in revenue the company previously reported for the six months through 30 June 2021. No reason was given for the change.

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Instead, APE said only that revenues for technical sales and distribution of electronic gaming equipment recorded a decrease of 89.4% year-on-year, the consultancy and technical services segment a decrease of 32.2% and the repairs services segment a decrease of 65.3%.

Despite the decline, APE added that it expects to record a decrease in the loss by approximately 44.7% from HK$23.5 million for the first nine months of 2020 to HK$13 million.

The loss of HK$32 million is significantly wider than a loss of HK$1.7 million The Company had recorded a one-time write-off of finance lease receivables of approximately HK$22.8 million (US$2.9 million) in 2020 after it was forced to terminate two finance lease agreements for the leasing of electronic gaming equipment.