Asia Pioneer Entertainment expects extra US$3.9 million loss
Asia Pioneer Entertainment (APE) Holdings Ltd, a company listed in Hong Kong, has revealed a loss before tax going up by about HKD30.3 million (US$3.9m) for the full year of 2020, when comparing to 2019. This means that the company’s loss will go up to HKD32.0 million. A major contributor to this loss, as stated by the company itself, has been a one-time accounting damage costing about HKD22.9m thanks to a stoppage of two agreements.
The company identified the possible loss in a filing directed towards the Hong Kong Stock Exchange. It is now seeking to release the 2020 results by the 25th of March. Back in 2019, APE published a HKD1.7 million loss for the entire year.
In a new announcement, APE also noted that it will probably be losing about 50% in revenue for the full year of 2020, going down to HKD40.5 million from 2019’s HKD82.0m. The company also revealed back in May of 2020 that it had ended all finance lease deals with both firms, since they had not paid their rental fees.
Back then, the company said that one of those agreements was a finance lease deal with Glimex Inc, signed in December of 2018, which regarded the leasing of gaming equipment in order to use it in a Philippine casino. The second deal was one with Siam Star Leisure Co Ltd around the same time for a casino in Cambodia. In an announcement last Friday, the firm stated that this one-time loss will not be having a major impact on the company’s long-term financial security.
The company also mentioned:
“The COVID-19 pandemic has adversely affected the operations of land-based casinos, leading to a weaker demand for technical sales and distribution of electronic gaming equipment. It is expected that revenue from technical sales and distribution of electronic gaming equipment, consulting and technical services, and repair services of our group for [for 2020] would decrease by approximately 51 percent, 42 percent and 61 percent, respectively, as compared to those for the previous year.”
Despite that, APE noted that is was hoping to witness a good net operating cash flow, around HKD0.8m, for the entire year of 2020, which is a good recovery from 2019’s negative of HKF2.7m. This, said APE, was a direct result of the improved management of trade receivables.