HONG KONG, Dec. 11, 2015 /PRNewswire/ -- Success Dragon International Holdings Limited ("Success Dragon" or the "Group", SEHK: 1182) is pleased to announce that the Group has entered into two agreements, namely the Le Meridien Fundamental Agreement ("Fundamental Agreement") and Opera Management Agreement ("Management Agreement"), for providing outsourced services of 187 electronic gaming machines management at the electronic gaming machine clubs operated by and/or located in two five-star hotels in Vietnam, namely Le Meridien Hotel in Ho Chi Minh City and One Opera Hotel in Danang.
The Group has entered into the Fundamental Agreement with Tien Phuoc and 990 Company Limited, the owner of the Le Meridien Hotel on 28 October 2015 for cooperating to establish and operate an electronic gaming machine club to carry out the electronic games with prizes for foreigners at the Le Meridien Hotel for a term of at least 10 years. Success Dragon will invest in, manage and operate the electronic gaming machine club.
Success Dragon has also entered into a Management Agreement with Cong Ty Co Phan Thuong Mai Va Xay Dung Hong Lam, the owner of One Opera Hotel on 10 December 2015. Pursuant to the Management Agreement, the Group will exclusively manage the services of prize-winning games in the electronic gaming machine club in One Opera Hotel for an initial term of 10 years and subject to the extension of term for another 10 years.
The Group will receive a monthly management fee, which is calculated as 4% of the total gross revenue, brought by the operation of the One Opera Hotel after deducting all payments made to the prize-winning games players for electronic gaming machines and exercise tax as required by the laws of Vietnam ("Laws"). If the management fee exceeds the maximum amount as permitted by the Laws, the management fee will be adjusted to an amount in compliance with it.
Currently the outsourced services of electronic gaming machines management business of the Group is managing approximately 800 operative gaming machine units in Macau. The Group has selected Vietnam as the first country for its international expansion of outsourced electronic gaming machine management business. According to the World Bank, the national economic output of Vietnam's GDP and GDP per capita were USD186.2 billion and USD1,077.91 respectively, in 2014, representing a year-on-year increase of 6.0% and 4.8% respectively. This high-level sustainable growth will economically empower the community in Vietnam which can in turn energize the entertainment sector and boost domestic gaming expenditure in Vietnam.
Mr. Carlos Luis SALAS PORRAS, Chairman of Success Dragon, stated, "Currently the outsourced services of electronic gaming machines management business of Success Dragon has been carried out in Macau. Considering the economic growth in Vietnam driven by the industrial and service sectors, it is expected that there will be more foreign visitors to Vietnam leading to a potential growth for the electronic gaming industry. Following the entering into of the two agreements, the Group will be expanding its outsourced electronic gaming machine management business internationally and enter into a growing market. It will broaden the Group's revenue source of this business sector and reinforce our expansion plans."
About Success Dragon International Holdings Limited (SEHK: 1182)
Success Dragon International Holdings Limited is principally engaged in providing IT services for racing enterprises in Vietnam and electronic gaming equipment management services for casino operators in Macau and Vietnam. The Group's business strategy has long been seeking investment opportunities proactively, especially in the gaming industry in Asia. Success Dragon will continue to procure new business relationship in Macau and Vietnam and plan to extend its geographical reach to other parts of Southeast Asia.
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