Asia Pioneer Entertainment (8400) has reported its full-year results for 2024, marking its first return to profitability following the pandemic, with a net profit of approximately HKD 3.8 million, compared to a loss of 1.9 million Hong Kong dollars in 2023. This profit was driven by a 70.9% increase in revenue, rising from 2.97 million Hong Kong dollars in 2023 to about 5.08 million Hong Kong dollars last year.
The majority of the group’s revenue and profit came from the electronic gaming equipment business, largely fueled by orders from casino clients in Macau. The total revenue from this segment was approximately 4.85 million Hong Kong dollars, representing a 77.3% increase from 2.74 million Hong Kong dollars in 2023.
In terms of gross profit, the electronic gaming equipment segment recorded a total gross profit of about 2.29 million Hong Kong dollars and a gross profit margin of approximately 47.3% in 2024, up from 1.06 million Hong Kong dollars and a gross margin of 38.6% in 2023.
Breaking down the segments, the group’s technical sales and distribution revenue in 2024 was around 3.9 million Hong Kong dollars, an increase of about 178.0% from 2023, with a gross profit of 1.67 million Hong Kong dollars and a gross profit margin of 42.9%. Revenues from consulting and technical services were about 0.88 million Hong Kong dollars, down approximately 25.6% from 1.18 million Hong Kong dollars in 2023, with a gross profit of 6.2 million Hong Kong dollars compared to 7.2 million Hong Kong dollars in the previous year, resulting in a gross profit margin of 70.8%. Revenue from maintenance services was about 0.8 million Hong Kong dollars, a decrease of 50.9% from around 1.6 million Hong Kong dollars in 2023, with a gross profit of approximately 26,700 Hong Kong dollars, translating to a gross margin of 3.5%.
In its automated vending machine business in Macau, the group procured and customized three types of vending machines: for drinks and snacks, coffee, and consumer goods, installing 59 different machines across Macau. Last year, income from the smart vending machines was about 2.2 million Hong Kong dollars, with a gross profit of about 500,000 Hong Kong dollars.
The company’s net current assets stood at approximately 1.62 million Hong Kong dollars, compared to about 1.27 million Hong Kong dollars in 2023.
Chairman and Executive Director Allen Huie Tat Yan expressed excitement over the company’s return to profitability, stating that recent industry awards received by partners highlight the strong appeal of their products not only in Macau but also in other physical casino markets such as the Philippines and Southeast Asia. The group will continue to seek strategic opportunities for overall business growth, remaining optimistic about the prospects for 2025 and beyond due to the significant growth potential in the gaming industry.
The CEO and Executive Director, Ng Man Ho, added that as the company expanded its core electronic gaming equipment business into other gaming-related products and services, it planned to collaborate with trusted partners to introduce innovative products in other Asian cities, expressing confidence in future opportunities.
Regarding the development of electronic gaming equipment, the group is working with suppliers to launch new machines and products to meet the growing demands of the mass gaming market. Additionally, at the end of last year, the company made a small capital investment of 3.57% in a new manufacturing and technology company in Macau, which is expected to produce products suitable for the gaming industry. If successful, the group may consider increasing its stake in this new company to as much as 50%.
Overall, the group maintains an optimistic outlook for 2025 and beyond, believing that overall gaming revenue in Macau will steadily grow, and has noted potential new casino opportunities in Abu Dhabi and Thailand, as well as developments in new technologies in the gaming industry.
