Electronic gaming equipment company Success Dragon announced that it has decided to cease its outsourced management services for electronic gaming machines in Macau due to ‘less than satisfactory performance’.
The group’s revenue generated by this segment dropped by 55 per cent year-on-year for the six months ended 30 September 2020 to HK$17 million, due to intense competition in the Macau gaming market and the Covid-19 pandemic.
Despite the drop, the segment was considered by the group as one of its core businesses, contributing to more than a third of its total revenue, however, the company decided to not renew two service contracts scheduled to finish on April 30 and May 31.
“The Company will continue to develop its gold-laden carbon processing business and
money lending services while exploring other profitable business opportunities and open up different revenue channels in different markets to deliver strong and sustainable returns,” Success Dragon noted.
The group generated some HK$29.6 million from its gold-laden carbon processing business in the financial year under review, helping its total revenues rise by 14 per cent year-on-year to some HK$50.5 million, despite the decrease in revenue from the provision of electronic gaming machine services.