In Gambling Insider’s Asia-focused issue, we speak to APE Assistant General Manager of Corporate Sales & Marketing, Vicky Chan, who discusses the origins of one of Macau’s biggest casino game manufacturers and the services it provides to Southeast Asia.
Chan speaks about the struggles APE faced during the Covid pandemic, which hit Macau particularly hard over an extended period. It is only recently that Macau, alongside other Southeast Asian markets, has begun to open its doors once more.
This gives a boost to APE, who can once again begin to supply the latest electronic table games, and resume servicing devices across the markets in which it operates.
Looking forward, Chan discusses how the company must react to new requirements on slot machines, ahead of the impending renewal of Macau’s casino licences at the start of 2023.
What are the origins of APE; how did you start?
APE was established in 2006 in Macau and was listed on the Growth Enterprise Market of Hong Kong Stock Exchange in 2017, (Stock Code: 8400.HK). We are an approved gaming machine agent licensed by the Gaming Inspection and Coordination Bureau of Macau (DICJ). APE is a supplier of Electronic Gaming equipment (EGEs) to casinos in Macau and Asia, representing products from Slovenia, the US, Taiwan and Australia. Our services include the technical sales and distribution of EGEs, machine refurbishment, parts repairing and consultancy, and technical service.
In 1999, Macau started to open up the gaming licences. One of the founders of APE, who is our current CEO Herman Ng, took the lead in introducing Japanese gaming equipment to Macau. Since then, we have successively introduced high-quality gaming products from all over the world that are suitable for Macau.
In 2020, APE started its new business as an operator of smart vending machines in Macau and the Greater Bay Area (GBA) of the People’s Republic of China (PRC or China), selling various Macau sourced products to consumers and travelers (the Smart VM Business).
How many markets do you supply your products to?
APE is one of the largest EGE and Electronic Table Games (ETG) distributors in Macau. APE has strong local knowledge and over 16 years’ experience in the EGE market; around 85% of our whole revenue is from the Macau market. In recent years, the gaming industry in the Southeast Asian (SEA) country has rapidly grown. In light of these developments, APE also expanded its footprint in other SEA countries, such as the Philippines, Cambodia and Vietnam, through our EGE distribution and other services. In the future, in addition to focusing on Macau’s local market, APE will also vigorously develop in other emerging overseas markets, such as Singapore, Thailand and South Korea to seek out more opportunities.
As a Macau-based company, how has business been affected throughout the pandemic? How have you reacted to these unprecedented times?
The pandemic dealt a huge blow to our company. Our plan when we listed on the Hong Kong Stock Exchange in 2017 was a massive expansion in Southeast Asia. We started rolling out to these markets in 2018 and 2019 by partnering with some casinos and agents, and our manufacturers even planned their roadmap for new product launches in 2020 through to 2022. But then when the pandemic started, most countries locked down in early 2020. With the recent resumption of normal exchanges and the opening of travel restrictions in many countries, it is time to introduce our products and services to these markets again. Although the seven-day hotel quarantine policy in Macau is still one of our big challenges, we would not give up on seeking out more opportunities. Our trip to G2E Asia in Singapore was very fruitful and we attended G2E Vegas to find potential partners, to strengthen our business in Macau and our expansion in Southeast Asia.
How do you see Macau’s market developing going forward? Do you think it will recover and you can experience the levels you reached pre-pandemic?
While the Government has announced new requirements on slot machines following the renewal of casino licences, new brands without any help in this market will have a harder time entering. With our expertise and trailblazing spirit, we believe we still maintain a firm foothold within this market. I expect the market will return to normal within two years, during which time we will keep pace with the times to offer different products and services. We also welcome any manufacturers who wish to cooperate with us when entering Macau or any other Southeast Asian markets.
What are APE’s plans for the future? What is the short-term plan over 18-24 months, and the long-term goals for the next 5 years?
APE has always been rooted in Macau, with our reach extending to Southeast Asia. Extensive expansion in Southeast Asia and setting up offices for local support will be our long-term goals in the next two years.
