Success Dragon strikes gold as H1 revenue doubles

The revenue figure for the six months to 30 September 2021 represents a 114.7% increase on the same period last year.

The majority of the revenue total – HK$85.4m – was derived from the company’s gold-laden carbon processing and trading business, up from HK$29.6m in 2020. HK$19.1m came from the management of electronic gaming equipment in Macau, while money lending services contributed HK$3.8m.

“Due to the expected inflation in long-term global economy environment as well as geopolitical uncertainties, the group expected the gold price will remain stably high and will grow further in coming few years,” Success Dragon said, explaining its diversification.

“The group will continue to operate the gold-laden carbon processing and trading of gold and other precious metal business as its core business as which will enable the group to provide a diversified income sources and increase shareholders’ return in long-term.”

Sales costs also increased in 2021, rising from HK$41.7m to HK$87.0m. This led to gross profits of HK$21.4m, representing a 143.2% increase on 2020.

Administrative costs amounted to HK$13.9m, and distribution costs added a further HK$0.7m. Operating profit for the first half of the year came to HK$7.9m, up 88.1% from 2020.

After subtracting finance costs of HK$1.4m and accounting for share of profit of an an associate, Success Dragon’s pre-tax profits totaled HK$7.1m. After income tax expenses of HK$2.7m, the company’s profit for the period came to HK$4.4m, up from a HK$6.1m loss suffered in 2020.

The first half of the year has also seen Success Dragon appoint a new chief financial officer in the form of Yam Wan Fung, who took on the role back in September.