Amax sees “obvious increase” in FY2019 loss

Amax International said it expected to report an “obvious increase” in its loss for the year to end-March 2019, although it stressed the shortfall is due to one-off impairments that don’t affect the cash flow of the business.

Last year, the gaming investor, which also holds an online gaming license in Vanuatu, posted a net loss of HK$52.8 million ($6.7 million).

It said the increase in loss  was mainly due to an impairment loss made on 16 February 2019 on the interest in an associate company amounting to $353.6 million and an impairment loss on an amount due of about $28.5 million.

“The board wishes to emphasize that the above mentioned impairments made are one-off and non-cash in nature and do not have any impact on the cash flow and the current business operation of the group,” it said in a statement to the Hong Kong Stock Exchange.

Earlier this month, Amax sold a mobile gaming business to Galaxy World Co. Ltd, a casino operator in Cambodia for HK$30 million (US$3.8 million).

The mobile games apps include 30 offline mobile game app’s source codes, which cover the areas of leisure and entertainment, education and intellectual, sport, and adventures.