APE Macau revenue plummets amid Covid-induced “weaker demand”
There was a dramatic decrease in revenue derived from technical sales and distribution of electronic gaming equipment (EGEs), with the figure decreasing 89.4% to HK$3.8m.
Revenue from repair services fell 65.3% to HK$348,025, and revenue from consultancy and technical services dropped 32.2% to HK$1.4m.
Ape Macau’s financial report said: “The Group’s performance for the third quarter of 2021 continues to be adversely affected by the outbreak of the novel coronavirus disease (Covid-19) in Macau and Southeast Asia.
“As a result, there was a weaker demand for technical sales and distribution of EGEs of the Group.”
The cost of sales and services for the period was HK$4.9m, down from HK$26.2m in 2020.
As a result, gross profit for the nine month period came to HK$603,132, down from $12.9m in 2020.
Operating expenses for the company were HK$13.5m – a 7.4% decrease attributed to voluntary salary cuts taken by Ape Macau’s senior management team. Directors’ remuneration amounted to HK%2.6m, while other staff costs were HK$6.7m.
Finance costs fell 38% to HK$58,351, while other losses amounted to HK$46,964 – down significantly from the HK$1.1m of other income generated last year.
Overall losses for 2021 were HK$13.0m, a 44.7% decrease from last year.
Losses were lower in 2021 than 2020 due to a one-time impairment of finance lease receivables of approximately HK$22.9m in 2020.