AGTech 1H15 sales jump 46 percent, sees China regulatory progress

AGTech Holdings posted a 45.6 percent jump in 1H15 revenue to HK$101.1 million ($13.2 million), boosted by sales of newly added hardware and technical services and said it expects significant regulatory progress in China’s lottery market in the second half.

During the period, AGTech’s GOT unit was selected as an authorized instant verification terminals supplier by China’s National Sports Lottery Administration Centre.

“This development is of great significance in GOT’s continuous effort to increase its product lines and further broaden its product diversification,” the company said in a release.

AGTech says it is continuing to monitor policy developments in Beijing when it comes to sales of lottery products through the internet and mobile phones.

“In the internet channel, the authorities are working on a national internet distribution system. It is anticipated that sales of the group’s approved games,  Lucky Racing and e-Ball Lottery, are likely to benefit strongly when such a system is introduced,” it said.

In terms of mobile phones, China’s lottery market has started to activate the trial sale of a new category of mobile phone lottery games in various provinces.

“We are pleased with the strategic progress of the group so far and expect to see significant regulatory progress during the second half of the year with relevant laws and regulations (particularly on internet and mobile distribution) introduced in China’s lottery industry,” AGTech chairman and CEO John Sun said. “We see the further regulation and professionalisation of lottery supervision as a very positive trend for the group in 2015 and beyond.”