The two agreements were signed by Success Dragon’s wholly-owned subsidiary Ace Advantage Developments Ltd, and are currently awaiting regulatory approval. Initially, the company was prepared to withdraw from the EGM business in Macau due to less than satisfactory performance, and its agreements with the two casinos were set to expire at the end of April and May 2021. However, the casinos weren’t able to find a replacement for Success Dragon, so the partnership was extended.
“Despite the Original Agreements expired on 30 April 2021 and 31 May 2021 respectively, the operations of the Outsourced Business Process Management business have remained ongoing in the casinos because the manager was yet to identify new supplier(s) to replace the group,” stated the company. “It is the mutual understanding between the group and the manager that the group would continue operating the Outsourced Business Process Management business in the casinos during this interim period.”
Ace Advantage, in turn, will receive a monthly performance bonus based on a fixed percentage of net income and has the right to renew the agreements for another year. Currently, the extension was applied until June 2022. Success Dragon believes that “the financial performance of the Outsourced Business Process Management will improve under a better market condition along with the continued increase in vaccination rates and the gradual recovery of the tourism industry in Macau.”
