AGTech Holdings Limited reported a 2.3 percent year-on-year decline in total revenue for the six-month period ending September 30th, 2024, amounting to approximately HK$271.4 million ($36.7 million).
The group is mainly involved in gaming technologies and lottery management, with its lottery services covering over 80 percent of the provinces and municipalities across China. In Macau, the group also owns digital Ant Bank (Macao) and the electronic payment services platform Mpay.
The lottery segment demonstrated resilience, with revenue increasing by approximately HK$12.4 million ($1.7 million) to HK$126.4 million ($17.1 million). This growth was primarily driven by a surge in sales of lottery hardware, which rose by about HK$18.9 million ($2.6 million) due to successful tender awards and timely deliveries.
However, this increase was partially offset by a HK$6.0 million ($0.8 million) decrease in revenue from lottery distribution and ancillary services, attributed to supply shortages of instant scratch tickets across several provinces in China.
AGTech remains a key player in the lottery terminal market in China, successfully securing multiple tenders to supply lottery hardware across various provinces. During this period, it won several lottery hardware tenders to supply terminals to the Sports Lottery Administration Centres in Jiangsu, Zhejiang, Guizhou, Jiangxi, Shandong, Hainan, Shaanxi, Hubei, and in the Shanghai Municipality.
In the electronic payment sector, AGTech’s revenue dropped by approximately HK$25.6 million ($3.5 million), bringing in around HK$138.2 million ($18.7 million). This decline was linked to reduced spending by tourists in Macau and the conclusion of the 2022 Electronic Consumption Benefits Plan’s living subsidies in June 2023.
Electronic payments and banking
The group’s banking arm, Ant Bank (Macao), contributed approximately HK$6.8 million ($0.9 million) in revenue following the acquisition of a controlling stake on September 2nd, 2024.
Revenue streams included HK$5.4 million ($0.7 million) from interest income and HK$0.5 million ($0.07 million) from fees and commissions related to various financial services.
AGTech reported a loss of approximately HK$1.6 million ($0.2 million) for the period, a significant improvement from the HK$10.5 million ($1.4 million) loss recorded in the previous year.
This positive shift was largely due to reduced operational losses and a fair value gain of approximately HK$3.1 million ($0.4 million) from convertible loan facilities extended to its joint venture in India.
Macau Pass, a subsidiary of AGTech, continues to dominate the contactless payment landscape, with over 5 million “mCards” in circulation. The e-wallet service, MPay, saw a 17 percent increase in registered users, facilitating around 80 percent of all electronic payment transactions in Macau.
Significant enhancements have been made to MPay, including expanded transaction limits and the introduction of cross-border payment services.
With its recent acquisition, Ant Bank (Macao) has broadened its digital financial offerings, achieving a 33 percent increase in its customer base and a 142 percent growth in deposits. The bank has also focused on supporting local SMEs, leading to a 193 percent increase in corporate lending.
