Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately HKD 294,400,000, an increase of about 120.9% compared to HKD 133,300,000 for the same period in 2022[4]. - The operating loss for the six months was approximately HKD 12,400,000, a significant improvement from an operating loss of HKD 68,500,000 in the same period last year[4]. - The net profit for the six months was approximately HKD 22,900,000, a turnaround from a loss of HKD 84,900,000 in the previous year[4]. - Financing income net increased by approximately HKD 26,500,000 to about HKD 35,600,000 compared to HKD 9,100,000 for the same period in 2022[4]. - The total comprehensive income for the six months was HKD 1,665, compared to a loss of HKD 116,491,000 in the same period last year[7]. - The basic earnings per share for the six months was HKD 0.212, compared to a loss of HKD 0.74 for the same period in 2022[7]. - Adjusted EBITDA for the six months ended June 30, 2023, was HKD 40,939,000, compared to a loss of HKD 11,849,000 in the same period of 2022[19]. - The company reported a net profit of HKD 24,157,000 for the six months ended June 30, 2023, a turnaround from a loss of HKD 85,194,000 in the same period of 2022[25]. Revenue Sources - Revenue contributions primarily came from lottery and related businesses amounting to approximately HKD 92,300,000 and electronic payment services in Macau amounting to approximately HKD 202,100,000, reflecting increases of HKD 9,900,000 and HKD 151,200,000 respectively[4]. - The group reported total revenue of HKD 294,432,000 for the six months ended June 30, 2023, representing an increase of 109.5% compared to HKD 133,267,000 for the same period in 2022[17]. - The segment revenue from electronic payment and related services reached HKD 189,653,000, up 305.5% from HKD 46,650,000 in 2022[19]. - Revenue from external customers in Macau surged to HKD 202,156,000 for the six months ended June 30, 2023, compared to HKD 50,909,000 in 2022, marking a 295.5% increase[21]. - The group’s life services, gaming and entertainment, and marketing technology services generated revenue of HKD 11,264,000 for the six months ended June 30, 2023, up from HKD 1,470,000 in the same period of 2022[17]. Expenses and Liabilities - Employee benefit expenses increased by approximately HKD 21,800,000 to about HKD 77,300,000 during the six months[4]. - The company incurred operating expenses of HKD 166,504,000 for the six months ended June 30, 2023, compared to HKD 86,341,000 in 2022, reflecting a 92.9% increase[22]. - Total liabilities decreased to HKD 931,091 thousand from HKD 3,759,265 thousand, indicating a reduction of approximately 75.2%[9]. - The company reported a net cash outflow from operating activities of HKD (2,648,831) thousand for the six months ended June 30, 2023, compared to a net inflow of HKD 1,717,595 thousand for the same period in 2022[11]. Assets and Equity - As of June 30, 2023, total assets decreased to HKD 3,571,880 thousand from HKD 6,422,104 thousand as of December 31, 2022, representing a decline of approximately 44.5%[8]. - The net asset value as of June 30, 2023, was HKD 2,640,789 thousand, slightly down from HKD 2,662,839 thousand as of December 31, 2022, a decrease of about 0.8%[9]. - The company’s total equity as of June 30, 2023, was HKD 2,640,789 thousand, reflecting a minor decrease from HKD 2,662,839 thousand as of December 31, 2022[9]. Market and Strategic Developments - The group plans to continue expanding its electronic payment services in Macau, leveraging the growth in digital transactions[18]. - The company aims to expand its hardware product range into non-lottery hardware for the retail sector, enhancing its hardware business[38]. - The group plans to seek overseas opportunities and engage in strategic partnerships with local partners in Asia to globalize its business[38]. - The group plans to continue exploring strategic cooperation with Alibaba Group to expand e-commerce and digital media entertainment[62]. - The group aims to support the digital transformation of financial services in the Greater Bay Area through infrastructure and platform enhancements[62]. Corporate Governance and Shareholder Information - The company aims to maintain high standards of corporate governance to enhance transparency and protect shareholder interests[103]. - The board believes it is premature to determine a dividend policy due to the lack of distributable reserves calculated under Bermuda law[105]. - The company has established a mechanism for checks and balances to ensure fair representation of shareholders' interests[104]. - The total number of shares held by major shareholders is disclosed, with no individual holding 5% or more of the voting shares[87]. Future Outlook - The company has set a future revenue guidance of HKD 850 million for the next quarter, indicating a projected growth of 19%[111]. - New product launches are expected to contribute an additional HKD 100 million in revenue over the next fiscal year[111]. - The introduction of the MPay electronic wallet is anticipated to drive user growth by 40% in the next six months[111]. - The company plans to explore strategic acquisitions to bolster its service offerings, with a budget of HKD 200 million allocated for potential deals[111].

Revenue and Profit Performance - Revenue for the first quarter of 2023 was approximately HKD 169.9 million, a 381.6% increase compared to HKD 35.3 million in the same period in 2022[3] - Total revenue for Q1 2023 reached 169,873 thousand HKD, a significant increase from 35,272 thousand HKD in Q1 2022[11] - The company's revenue for Q1 2023 reached approximately HKD 169.9 million, a 381.6% increase compared to HKD 35.3 million in Q1 2022, driven by lottery-related business (HKD 53.2 million) and electronic payment services in Macau (HKD 116.7 million)[41] - Operating profit for the first quarter of 2023 was approximately HKD 15.5 million, compared to an operating loss of HKD 12.6 million in the same period in 2022[3] - Net profit for the first quarter of 2023 was approximately HKD 37.2 million, compared to a net loss of HKD 10.8 million in the same period in 2022[3] - Basic earnings per share for the first quarter of 2023 were 0.323 HK cents, compared to a loss of 0.10 HK cents in the same period in 2022[8] - Basic earnings per share for Q1 2023 were 36,889 thousand HKD, a turnaround from a loss of 11,130 thousand HKD in Q1 2022[13] - Operating profit for the quarter was HKD 15.5 million, compared to an operating loss of HKD 12.6 million in the same period last year, driven by increased revenue and other income[42] - Net profit for the quarter was HKD 37.2 million, compared to a net loss of HKD 10.8 million in the same period last year, largely due to increased financing income[42] Lottery Business - Lottery and related business contributed approximately HKD 53.2 million in revenue, up from HKD 31.8 million in the same period in 2022, driven by increased sales of lottery hardware[3] - Lottery hardware sales surged to 33,854 thousand HKD in Q1 2023, up from 15,735 thousand HKD in Q1 2022[11] - Lottery hardware sales revenue increased by HKD 18.1 million to HKD 53.2 million in Q1 2023, attributed to delayed deliveries due to COVID-19 outbreaks in late 2022[41] - In Q1 2023, the company's lottery sales revenue through retail outlets increased by approximately 48% YoY, driven by a 23% increase in the number of retail outlets and higher average sales per outlet[26] - The company operates dedicated lottery resource channels on Taobao and Alipay, providing services such as lottery results and retail outlet information, aiming to integrate online and offline resources[27] - The company continues to focus on R&D to expand and enhance its lottery hardware product range, maintaining its position as a leading supplier in China[25] - The company plans to expand its lottery distribution channels, explore domestic lower-tier markets, and enhance user experience through customized features on Taobao and Alipay's lottery resource channels[40] - The company is preparing for potential online lottery product distribution, leveraging partnerships with Alibaba Group and Ant Group[28] Electronic Payment Services - Electronic payment services in Macau contributed approximately HKD 116.7 million in revenue, a significant increase from HKD 3.5 million in the same period in 2022, due to the full consolidation of Macau Pass and increased tourist numbers[3] - Electronic payment services revenue soared to 109,471 thousand HKD in Q1 2023, compared to 3,355 thousand HKD in Q1 2022[11] - Electronic payment service revenue surged by HKD 113.2 million to HKD 116.7 million in Q1 2023, primarily due to the full consolidation of Macau Pass's revenue and increased tourist arrivals in Macau[41] - The company's indirect wholly-owned subsidiary, Macau Pass, operates the MPay e-wallet[78] - MPay, the company's e-wallet service, has a registered user base exceeding 90% of Macau's total resident population[31] - MPay has partnered with Alipay+ to enable cross-border payments, allowing Macau residents to use MOP for purchases on Taobao (Macau)[31] - The company provides comprehensive payment terminal and acquiring services, enabling merchants to accept various payment methods, including Alipay and WeChat Pay[32] - The company is committed to supporting Macau's economic recovery by collaborating with the government on initiatives like the "Electronic Consumption Benefit Plan" and facilitating digital transformation for local merchants[39] - Over 90% of Macau merchants have upgraded to the "Easy Pay" system, a government initiative to promote electronic payments, contributing to the growth of Macau's digital payment market[22] - The cumulative issuance of Macau Pass cards has exceeded 4.5 million, covering various payment scenarios including public transportation, retail, and government services[30] Financial Metrics and Expenses - Net financing income increased to HKD 22.7 million, up from HKD 3.4 million in the same period in 2022[3] - Depreciation and amortization expenses increased to HKD 17.2 million, up from HKD 4.9 million in the same period in 2022[3] - Other income increased to HKD 5.0 million, up from HKD 1.2 million in the same period in 2022[6] - Other operating expenses increased by HKD 72.4 million to HKD 92.7 million, primarily due to the inclusion of Macau Pass Group's expenses, including service fees of HKD 39.9 million and marketing expenses of HKD 21.2 million[42] - Employee benefits expenses increased by HKD 20.2 million to HKD 40.7 million, mainly due to the inclusion of Macau Pass Group's employee benefits after the acquisition[42] - The net proceeds from the subscription amounted to approximately HKD 2.38 billion, with HKD 36.8 million used for lottery distribution and general corporate purposes during the quarter[43] - As of March 31, 2023, the remaining net proceeds of HKD 4.1 million were held in the company's bank account[43] - The company expects to utilize the remaining funds allocated to lottery distribution by December 31, 2023[45] Shareholder and Ownership Structure - Sun Hao, the Chairman and CEO, holds approximately 17.584% of the company's shares, including 2,006,250,000 shares held under Maxprofit Global Inc[51][52] - Ali Fortune holds 6,502,723,993 shares, representing 55.71% of the company's total issued share capital[61] - Maxprofit Global Inc holds 2,006,250,000 shares, representing 17.19% of the company's total issued share capital[62] - Rainwood Resources Limited holds 584,515,224 shares, representing 5.01% of the company's total issued share capital[62] - Li Jie holds 22,312,086 shares in Alibaba Pictures Group, representing 0.08% of its total issued share capital[57] - Liu Zheng holds 5,460,000 Class A shares and 6,200,000 Class B shares in Cainiao Smart Logistics Network, representing 1.14% and 3.59% of the respective share classes[58] - Alibaba Investment Limited and API Holdings Limited each hold 60% and 40% of Ali Fortune's issued share capital respectively[63] - Alibaba Holdings holds 100% of the issued share capital of AIL[64] - API (Hong Kong) Investment Limited holds 100% of the issued share capital of API Holdings[64] - Shanghai Yunju Venture Capital Investment Co., Ltd. holds 100% of the issued share capital of API (Hong Kong) Investment Limited[64] - Ant Group holds 100% equity in Shanghai Yunju[64] - Junhan and Junao hold approximately 31.04% and 22.42% equity in Ant Group, respectively, totaling approximately 53.46%[64] - AIL, Alibaba Holdings, API Holdings, API (Hong Kong) Investment Limited, Shanghai Yunju, Ant Group, Junhan, Junao, Yunbo, Jack Ma, Eric Jing, Jiang Fang, and Hu Xiaoming are deemed to have interests in a total of 6,502,723,993 shares[65] - Sun Hao is deemed to have interests in 2,006,250,000 shares through his equity in Maxprofit Global Inc[65] - Zhang Liqun's equity in Rainwood Resources Limited decreased from 100% to 52%, and he is deemed to have interests in 584,515,224 shares[65] - Ant Bank, a joint venture company, is 66.7% owned by two indirect wholly-owned subsidiaries of Ant Group and 33.3% owned by an associate company indirectly owned by the company[68] Strategic Initiatives and Expansion - The company aims to expand its electronic payment, lottery, mobile gaming, and entertainment content services globally, leveraging its expertise as the exclusive lottery platform for Alibaba Group and Ant Group[19] - The company plans to extend its hardware product range beyond lottery to non-lottery retail hardware, while optimizing POS technology for merchants in Macau[20] - The company plans to globalize its business by seeking overseas opportunities, launching proprietary systems, and forming strategic partnerships in Asia[20] - The company will continue to invest in improving its technical infrastructure and explore opportunities in the hardware sector, leveraging its expertise in lottery hardware for retail markets[40] - The company will explore strategic partnerships with Alibaba Group to expand e-commerce and digital media entertainment, aiming to create diversified commercial scenarios and enhance Macau's electronic payment ecosystem[39] - The company collaborated with Alibaba Group and Alibaba Pictures to organize cultural and entertainment events in Macau, aiming to enhance the local entertainment market[34] - The company launched the "Macau Consumption Rewards" campaign, offering discounts and incentives through Alipay+ to attract tourists and boost local businesses[33] - The company is expanding its hardware business into retail smart hardware, leveraging its existing R&D capabilities[35] Market and Industry Trends - Macau's mobile payment transactions grew by 37.8% YoY to 266 million transactions in 2022, with total transaction value increasing by 39.6% YoY to MOP 25.86 billion[22] - China's lottery sales in January and February 2023 reached RMB 75 billion, a 40.8% YoY increase, with sports lottery sales growing by 69.2% YoY to RMB 50.6 billion[23] - Macau's inbound tourists in March 2023 reached 1.96 million, a 271.4% YoY increase, with Q1 2023 total visitors exceeding 4.96 million, up 1.6x YoY[21] - The Macau government's third-round "Electronic Consumption Benefit Plan" provided eligible residents with MOP 5,000 in initial funds and MOP 3,000 in discount subsidies, boosting local demand[30] Share Awards and Corporate Governance - 23 employees were granted 11,300,000 shares under the share award plan, with 600,000 shares vested and 8,950,000 shares forfeited during the quarter[74] - The total number of shares granted under the share award plan cannot exceed 6% of the total issued shares (630,852,526 shares) without shareholder approval[74] - The trustee purchased 5,208,000 shares on the stock exchange during the quarter[74] - The maximum number of new shares that can be issued under the share award plan is 3% of the total issued shares (315,426,263 shares)[74] - The total issued shares as of the adoption date were 10,514,208,770 shares[74] - The company did not purchase, sell, or redeem any of its listed securities during the quarter[74] - Ali Fortune subscribed to 4,817,399,245 new shares and convertible bonds with a total principal amount of HKD 712,582,483, completed on August 10, 2016[79] - The company's shares are listed on the GEM of the Hong Kong Stock Exchange[76] Joint Ventures and Subsidiaries - The company completed the acquisition of Macau Pass in March 2022, making it an indirect wholly-owned subsidiary[69] - The company holds a 30% interest in Ant Bank (Macau) through an associate company[76] - Ant Bank in Macau, a joint venture with 66.7% ownership by Ant Group's subsidiaries and 33.3% by the company's affiliate, officially launched its operations in April 2019, offering mobile payment services, deposits, loans, and remittance services to Macau residents and SMEs[38] - Ant Bank introduced Alipay (Macau) e-wallet payment services in September 2019, providing contactless online financial services to Macau residents and SMEs, leveraging Ant Group's expertise in comprehensive financial services[38] - The company's joint venture, Paytm First Games, saw a 40% revenue increase in 2022 compared to 2021, driven by growth in India's mobile gaming market[37]

Financial Performance - The group's revenue for the three months ended March 31, 2023, was approximately HKD 169.9 million, an increase of about 381.6% compared to HKD 35.3 million for the same period in 2022[3]. - Operating profit for the three-month period was approximately HKD 15.5 million, a turnaround from an operating loss of approximately HKD 12.6 million in the same period last year[3]. - The net profit for the three months was approximately HKD 37.2 million, compared to a loss of approximately HKD 10.8 million in the previous year[3]. - Total comprehensive income for the period was approximately HKD 49.2 million, compared to a loss of approximately HKD 6.8 million in the previous year[6]. - Basic earnings per share for the period was HKD 0.323, compared to a loss per share of HKD 0.10 in the same period last year[6]. - The net financing income increased by approximately HKD 19.3 million to about HKD 22.7 million, compared to HKD 3.4 million in the same period last year[3]. - Operating expenses for the three-month period increased by approximately HKD 72.4 million to about HKD 92.7 million, largely due to costs associated with Macau Tong and marketing expenses[40]. - Employee benefits expenses rose by approximately HKD 20.2 million to about HKD 40.7 million, mainly due to the acquisition of Macau Tong[40]. Revenue Sources - Revenue contributions primarily came from lottery and related businesses amounting to approximately HKD 53.2 million and electronic payment services in Macau amounting to approximately HKD 116.7 million, compared to HKD 31.8 million and HKD 3.5 million respectively in the previous year[3]. - The increase in revenue was primarily due to the consolidation of the results of the wholly-owned subsidiary in Macau, which was only included in the financial statements for a short period in the previous year[3]. - Revenue from lottery and related businesses was approximately HKD 53.2 million, up by HKD 21.4 million, primarily due to increased lottery hardware sales and expanded retail network efforts[39]. - Revenue from electronic payment services reached approximately HKD 116.7 million, an increase of HKD 113.2 million, attributed to the full consolidation of Macau Tong's revenue and the rise in tourist numbers[39]. - The total revenue from gaming and entertainment services was HKD 5,872,000, up from HKD 1,030,000, reflecting a growth of 469%[9]. - Sales of lottery hardware reached HKD 33,854,000, up from HKD 15,735,000, representing a growth of 115% year-over-year[9]. - Electronic payment services generated HKD 109,471,000, a substantial increase from HKD 3,355,000, marking a growth of 3170%[9]. Strategic Plans and Partnerships - The company aims to expand its electronic payment services and lottery technology, leveraging its affiliation with Alibaba Group and Ant Group[16]. - The company plans to enhance its core competencies in online and mobile gaming content, particularly in Macau, while expanding into complementary sectors[16]. - The group aims to strengthen its infrastructure and platforms to support the digital transformation of financial services in the Greater Bay Area[37]. - The group will continue to explore strategic cooperation with Alibaba Group to expand e-commerce and digital media entertainment[37]. - A strategic cooperation agreement was signed with Galaxy Entertainment Group and Alibaba Pictures to enhance the development of Macau's cultural and entertainment industry[31]. - The company continues to explore strategic partnerships with Alibaba Group and Ant Group to expand e-commerce and digital media entertainment[28]. Market and Industry Insights - In March 2023, the number of inbound tourists to Macau reached approximately 1.96 million, a year-on-year increase of about 271.4%[18]. - Macau's mobile payment transactions increased from approximately 193 million in 2021 to about 266 million in 2022, representing a year-on-year growth of approximately 37.8%[18]. - The total transaction value of mobile payments rose from approximately MOP 18.52 billion in 2021 to about MOP 25.86 billion in 2022, a year-on-year increase of approximately 39.6%[18]. - In January and February 2023, China's lottery sales amounted to approximately RMB 75 billion, a year-on-year increase of about 40.8%[20]. - The group reported a 48% increase in revenue from lottery sales through retail outlets in the last three months compared to the same period in 2022[23]. - The number of retail outlets for lottery sales increased by approximately 23% compared to the same period in 2022[23]. Shareholder and Corporate Governance - The board of directors did not recommend the payment of an interim dividend for the three-month period[3]. - The company has a significant concentration of ownership, with major shareholders collectively holding over 55% of the total issued shares[54]. - The agreements among major shareholders may impact future governance and control of the company[56]. - The company is subject to regulatory approvals for any changes in shareholder agreements or ownership structures[56]. - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[71]. - The company emphasizes the importance of shareholder communication and transparency in its operations[71]. Compliance and Regulatory Matters - The company is committed to compliance with the GEM listing rules and relevant securities regulations in Hong Kong[70]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the three-month period and found them to comply with applicable accounting standards[61]. - The company has not entered into any significant contracts with its controlling shareholders during the three-month period[63]. Share Capital and Securities - As of March 31, 2023, the total number of shares issued was 11,672,342,235[47]. - Major shareholder Ali Fortune holds 6,502,723,993 shares, representing 55.71% of the total issued capital of the company as of March 31, 2023[54]. - The company has granted 11,300,000 shares under the share award scheme to 23 employees during the three-month period, with 600,000 shares vesting and 8,950,000 shares being forfeited[65]. - The total number of shares issued under the share award scheme cannot exceed 6% of the total issued shares as of the adoption date, which is 630,852,526 shares[65]. - The company did not purchase, sell, or redeem any of its listed securities during the three-month period[66]. - The company has no unexercised options under any share option plans as of March 31, 2023[64].

Business Commitment and Strategy - The company is committed to providing comprehensive professional lottery hardware and services to enhance lottery sales in the Chinese lottery market[6]. - The company aims to support a healthy Chinese lottery industry by developing legal and regulated lottery channels while combating illegal gambling[8]. - The company is actively involved in the development of new lottery channels to increase market penetration and sales[6]. - The company aims to expand its hardware business by leveraging its R&D capabilities in lottery hardware to include non-lottery hardware for the retail sector[20]. - The company plans to enhance its electronic payment services in Macau and expand its business into complementary areas such as e-commerce, entertainment, and marketing technology services[20]. - The company is committed to globalizing its business by seeking opportunities overseas and forming strategic partnerships with local partners in Asia[20]. - The company aims to enhance its electronic payment services in Macau, contributing to the sustainable growth of local businesses and improving the quality of life for residents and tourists[27]. - The company is focused on diversifying its development, including strategic projects like the leading gaming app Paytm First Games in India and indirect investments in Ant Bank (Macau) Limited[29]. - The company is optimistic about the stronger economic outlook in China compared to the beginning of 2022, aiming to leverage this for growth[29]. - The company is focused on creating value through innovative solutions that benefit individuals and businesses in the digital economy[29]. Corporate Governance and Compliance - The board of directors confirms that the report's information is accurate and complete, with no misleading or fraudulent elements[10]. - The company has a strong focus on risk management and internal controls, as evidenced by the establishment of a dedicated committee[10]. - The company emphasizes the importance of compliance with anti-money laundering and counter-terrorism financing measures[12]. - The company has a clear governance structure with designated committees for audit, remuneration, and nominations[10]. - The company is listed on the GEM with the stock code 8279, indicating its commitment to transparency and regulatory compliance[10]. - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with GEM listing rules[37]. - The company has implemented a robust governance and compliance culture across the group, aligning it with the company's mission and values[44]. - The company has established a platform for communication with shareholders and investors through its official website[34]. - The company has adopted a policy for directors to seek independent professional advice and assistance, with costs covered by the company[42]. - The company has implemented a fraud disclosure mechanism allowing employees to confidentially report concerns related to financial reporting and risk management[72]. Risk Management and Internal Controls - The company has established a risk management and internal control committee to oversee risk management strategies and internal controls[169]. - The Risk Management and Internal Control Committee identified various risk areas, including operational, budget, liquidity, foreign exchange, credit, legal compliance, cybersecurity, and political risks, and submitted acceptable risk levels for board approval[68]. - The internal audit team conducted multiple internal audit projects on the lottery hardware and Macau Tong business segments to review high-risk areas of internal control[70]. - The company has ensured that its risk management and internal control systems are adequate and effective, with no significant deficiencies identified during the annual review[73]. - The company has implemented strict user data security management policies, covering collection, storage, processing, cross-border transmission, and disclosure[175]. Employee Development and Social Responsibility - The company has a strong commitment to social responsibility, actively participating in sports development and charitable activities[25]. - The company emphasizes employee development, providing competitive compensation and training opportunities to enhance professional skills[112]. - The company encourages employee participation in community service activities, fostering a culture of social responsibility[109]. - The company has implemented various health and safety measures, including emergency drills and the provision of first aid kits in the office[167]. - The company has established a performance evaluation system that considers individual performance and experience in determining compensation[155]. Shareholder Communication and Rights - The company maintains a high level of transparency and has adopted a "Shareholder Communication Policy" to encourage timely and effective communication with shareholders[88]. - The company commits to responding to shareholder inquiries within 7 days, unless further investigation is required[89]. - The company allows shareholders to propose candidates for directorship, requiring a written request from shareholders holding at least 10% of the paid-up capital[93]. - The company emphasizes the importance of shareholder rights and communication in its governance report[93]. Environmental and Social Governance (ESG) - The company has a dedicated committee to oversee environmental, social, and governance (ESG) strategies, ensuring alignment with stakeholder interests[108]. - The company has implemented green initiatives, including reducing paper usage through electronic payment solutions, which also help decrease carbon emissions[111]. - The company promotes digital marketing services for merchants to reduce paper waste from traditional marketing activities[148]. - The company has implemented policies to prevent child labor and forced labor, reducing the likelihood of such issues arising[181]. - The company does not anticipate significant risks related to environmental issues due to its outsourcing of production functions to external suppliers[180]. Business Segments and Market Position - The group operates in four main business segments: lottery hardware sales, electronic payment services, gaming and entertainment, and non-lottery hardware supply[99]. - The group aims to integrate development strategies with technological innovation and sustainable growth to enhance long-term business sustainability[96]. - The group is exploring strategic cooperation with Alibaba Group to expand e-commerce and digital media entertainment, creating more diversified business scenarios[200]. - The group continues to innovate in technology and business, expanding channels and distribution, and enhancing data services and other value-added services in the lottery business[200]. - The group believes there is significant potential in internet and mobile distribution channels in the Chinese lottery market[200].

Revenue and Financial Performance - The group's revenue for the year ended December 31, 2022, was approximately HKD 351.4 million, an increase of about 38.8% compared to HKD 253.2 million in 2021[2]. - Revenue contributions primarily came from lottery and related businesses amounting to approximately HKD 171.2 million and electronic payment services in Macau amounting to approximately HKD 180.2 million[2]. - The operating loss for the year was approximately HKD 129.7 million, an increase from HKD 65.8 million in 2021, attributed to increased costs and expenses[2]. - The total loss for the year was approximately HKD 131.1 million, a 107.9% increase compared to HKD 63.1 million in 2021[2]. - The basic and diluted loss per share for the year was HKD 1.11, compared to HKD 0.55 in 2021[5]. - The company reported a revised EBITDA of HKD (9,948,000) for 2022, improving from a loss of HKD (14,997,000) in 2021[16]. - The net loss for the year was approximately HKD 126.7 million, compared to a loss of HKD 63.6 million in 2021, indicating a significant increase in losses[24]. Assets and Liabilities - The total assets as of December 31, 2022, amounted to HKD 6,422.1 million, compared to HKD 3,081.7 million in 2021[6]. - The total liabilities increased significantly to HKD 3,759.3 million in 2022 from HKD 195.5 million in 2021[7]. - Cash and bank balances increased to HKD 4,023.7 million in 2022 from HKD 1,638.1 million in 2021[6]. - Non-current assets totaled HKD 1,987,450,000 in 2022, an increase from HKD 1,220,255,000 in 2021[18]. - The current ratio as of December 31, 2022, was approximately 1.2, a decrease from 12.2 in 2021, indicating a significant change in liquidity management[54]. Revenue Streams and Business Segments - Electronic payment services generated revenue of HKD 162,062,000 in 2022, with no revenue reported in 2021, indicating a new revenue stream[12][16]. - The company restructured its internal reporting to reflect two main operating segments: lottery business and electronic payment services[14][15]. - The company plans to continue expanding its electronic payment services in Macau and enhance its lottery hardware offerings in mainland China[12][15]. - The company identified two major customers contributing over 10% of total revenue, with customer A generating HKD 47,427,000 in 2022[19]. Operational Developments - The company aims to expand its electronic payment services and lottery technology, leveraging its partnership with Alibaba Group and Ant Group[30]. - The company plans to enhance its hardware offerings in the retail sector beyond lottery hardware, aiming to diversify its product range[32]. - The company continues to seek overseas opportunities and strategic partnerships in Asia to globalize its business operations[32]. Market Trends and Industry Insights - In 2022, Macau's mobile payment transactions increased to approximately 266 million, a year-on-year growth of about 37.8% from 193 million in 2021[33]. - The total transaction value of mobile payments in Macau rose to approximately MOP 25.86 billion in 2022, reflecting a year-on-year increase of about 39.6% from MOP 18.52 billion in 2021[33]. - The company expanded its physical lottery sales channels through Alibaba's retail network, achieving a revenue increase of about 58% in 2022 compared to 2021[37]. - The number of retail outlets for lottery sales increased by approximately 23% in 2022, contributing to higher average sales per outlet[37]. Strategic Partnerships and Collaborations - The company has established a collaboration agreement with Alibaba Group to sell sports and welfare lottery products through Alibaba's retail network, effective from January 1, 2022, to December 31, 2023[82]. - The company is actively exploring strategic collaborations with Alibaba Group and Ant Group to enhance its e-commerce and digital media entertainment offerings[42]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the combined role of the chairman and CEO, which is deemed to promote effective strategy formulation and execution[79]. - The company has adopted a code of conduct regarding securities trading by directors, with no known violations during the review year[74]. - The board has determined that further disclosure of senior management compensation details may reduce flexibility in negotiating future compensation packages[81]. Shareholder and Stock Information - The company has not granted any stock options under the stock option plan for the year ended December 31, 2022[76]. - A total of 64,568,900 reward shares were granted under the share award plan during the review year, with 23,863,500 shares vesting to the grantees and 10,780,000 shares being forfeited[78]. - The company purchased a total of 81,624,000 shares at a total cost of approximately HKD 23,600,000 to provide for the reward shares granted under the share award plan[77]. Related Party Transactions - The ongoing related party transactions with Ant Group are influenced by the company's ownership structure, with Ant Group holding a 40% indirect stake[87]. - The total amount of ongoing related transactions with Ant Group for the year ended December 31, 2022, was approximately HKD 19,594,000, which is below the annual cap of HKD 95,000,000[104]. - The total amount of ongoing related transactions with Alibaba Group for the year ended December 31, 2022, was approximately HKD 4,120,000, which is below the annual cap of HKD 4,500,000[102].

Financial Performance - The group's revenue for the nine months ended September 30, 2022, was approximately HKD 247,600,000, an increase of about 70.9% compared to HKD 144,900,000 for the same period in 2021[3] - The operating loss for the nine months was approximately HKD 112,500,000, up from HKD 65,300,000 in the previous year, primarily due to increased costs and expenses despite higher revenue[3] - The net loss for the nine months was approximately HKD 124,600,000, a significant increase of about 168.8% from HKD 46,300,000 in the same period last year[3] - The total comprehensive loss for the nine months was approximately HKD 194,898,000, compared to a loss of HKD 39,017,000 in the previous year[8] - Basic loss per share for the nine months was HKD 1.05, compared to HKD 0.41 for the same period in 2021[8] - The company reported a basic loss per share of approximately HKD 34,599,000 for the three months ended September 30, 2022, compared to a loss of HKD 3,154,000 for the same period in 2021[12] Revenue Sources - Revenue contributions primarily came from lottery hardware sales and electronic payment services, with approximately HKD 104 million from the newly acquired subsidiary, Macau Tong, since its consolidation on March 24, 2022[40] - Revenue for the three months ended September 30, 2022, was HKD 114,331,000, a 70.5% increase compared to HKD 66,982,000 for the same period in 2021[11] - Revenue from electronic payment services, including payment card services, was HKD 28,653,000 for the three months ended September 30, 2022, with no revenue reported in the same period of 2021[11] - Revenue from lottery agency and related services was HKD 14,797,000 for the three months ended September 30, 2022, up 56.2% from HKD 9,493,000 in the same period of 2021[11] - The company reported a revenue of approximately 55,100,000 HKD from virtual lottery game sales, representing a 42.8% increase compared to previous periods[47] Expenses and Losses - The company recorded a fair value loss of approximately HKD 29,600,000 related to convertible loans provided to its joint venture, attributed to rising market interest rates[3] - Employee benefit expenses decreased by approximately 17.3% to about HKD 89,600,000 during the nine-month period, despite the inclusion of expenses from the newly acquired subsidiary[3] - The group experienced a significant foreign exchange loss of approximately HKD 70,332,000 during the nine months[8] - Other operating expenses increased by approximately HKD 92.8 million to about HKD 151.9 million, largely due to costs associated with the Macau Tong group's operations[41] Strategic Initiatives - The company aims to expand its hardware business by leveraging its R&D capabilities in lottery hardware to include non-lottery hardware for the retail sector[18] - The company plans to enhance its electronic payment services in Macau and expand its business into complementary areas such as e-commerce and marketing technology services[18] - The company is committed to globalizing its business by seeking overseas opportunities and forming strategic partnerships with local partners in Asia[18] - The company is focused on developing integrated electronic payment services, lottery, mobile gaming, and entertainment content and technology[18] - The group plans to continue investing in strategic projects, including joint ventures and diversifying its business operations[39] Market Trends - For the nine-month period, the total sales of China's lottery reached approximately RMB 281.2 billion, representing an increase of about 1.0% compared to the same period in 2021[19] - The sales of welfare lottery amounted to approximately RMB 112.2 billion, which is an increase of about 9.8% year-on-year[19] - The sales of sports lottery were approximately RMB 169.0 billion, showing a decrease of about 4.1% compared to the same period in 2021[19] - The integrated digital infrastructure in China has led to significant growth in online payment transactions, with online payment businesses processing 23.5 billion transactions worth CNY 585 trillion in the first quarter of 2022, reflecting a year-on-year growth of 4%[23] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the nine-month period[75] - The company has engaged in continuous related party transactions as per GEM listing rules, ensuring compliance with regulatory requirements[50] - The company has adopted the GEM Listing Rules regarding securities trading by directors[76] Shareholder Information - The total number of shares issued as of September 30, 2022, is 11,672,342,235[58] - Major shareholder Ali Fortune holds 6,502,723,993 shares, representing 55.71% of the total issued share capital[68] - The total issued shares of Alibaba Holdings as of September 30, 2022, is 11,672,342,235[69] Payment Services - Macau Tong provides payment services through Alipay with service fees ranging from 0.1% to 1.8% based on transaction amounts[53] - The annual service fee cap for Macau Tong's payment services is set at HKD 11,250,000 for the period from March 24, 2022, to December 31, 2022, and HKD 12,300,000 for the year ending December 31, 2023[54] - The service fee for successful account openings at Ant Bank ranges from HKD 50 to HKD 300 per new account referred by Macau Tong[54]

Financial Performance - The group's revenue for the six months ended June 30, 2022, was approximately HKD 133,300,000, an increase of about 71.0% compared to HKD 77,900,000 for the same period in 2021[5]. - The operating loss for the six months was approximately HKD 68,500,000, compared to HKD 55,000,000 for the same period in 2021, reflecting an increase in operating loss[5]. - The net loss for the six months was approximately HKD 84,900,000, a 94.6% increase from HKD 43,700,000 in the same period of 2021[5]. - The total comprehensive loss for the six months was approximately HKD 116,491,000, compared to a loss of HKD 37,027,000 for the same period in 2021[9]. - Basic and diluted loss per share for the six months was HKD 0.74, compared to HKD 0.38 for the same period in 2021[9]. - The company reported a loss attributable to owners of approximately HKD 85,194,000 for the six months ended June 30, 2022, compared to a loss of HKD 43,584,000 for the same period in 2021, representing a deterioration of 95%[27]. Revenue Sources - The revenue contribution from the newly acquired subsidiary in Macau, Macau Tong, was approximately HKD 50,700,000 since its consolidation on March 24, 2022[5]. - Lottery hardware sales reached HKD 53,557,000 for the six months ended June 30, 2022, compared to HKD 39,726,000 in the same period of 2021, marking a 35% increase[18]. - Electronic payment services generated revenue of HKD 46,650,000 for the six months ended June 30, 2022, with no revenue reported in the same period of 2021, indicating a new revenue stream[21]. - Revenue from external customers for the first half of 2022 reached HKD 133,267,000, a significant increase from HKD 77,931,000 in the same period of 2021, representing a growth of approximately 71%[24]. Assets and Liabilities - As of June 30, 2022, total assets increased to HKD 6,041,090 thousand, up from HKD 3,081,673 thousand as of December 31, 2021, representing a growth of 96.3%[10]. - Total liabilities increased to HKD 3,281,023 thousand from HKD 195,533 thousand, indicating a significant rise in financial obligations[12]. - The company's equity decreased to HKD 2,760,067 thousand from HKD 2,886,140 thousand, a decline of 4.4%[12]. - Cash and bank balances surged to HKD 3,013,991 thousand, compared to HKD 1,638,143 thousand at the end of 2021, reflecting an increase of 83.7%[10]. Operational Changes - The company completed the acquisition of 100% equity in Macau Tong Group on March 24, 2022, with a total consideration of HKD 778 million[37]. - The restructuring of internal reporting to reflect the new operational segments of lottery and electronic payment services aims to better align with resource allocation and performance evaluation[19]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[24]. Employee and Operational Costs - Employee benefit expenses decreased by approximately 25.9% to HKD 55,500,000 during the six-month period[5]. - Marketing and distribution expenses surged to HKD 38,182,000 in the first half of 2022, up from HKD 13,141,000 in the same period of 2021, reflecting a 190% increase[25]. - The company’s management compensation for the period was HKD 3.9 million, a decrease from HKD 4.654 million in the previous year[46]. Investment and Financing - The company reported a cash inflow from investment activities of HKD 113,347 thousand in the first half of 2021, which turned into a cash outflow of HKD 146,016 thousand in the first half of 2022[15]. - The company issued convertible term loans totaling HKD 34,057,000 during the six months ended June 30, 2022, with a fair value loss of HKD 26,641,000 recognized[33]. - The company plans to invest in the development and promotion of online gaming and entertainment content, with no significant deviations from the intended use of funds[87]. Market Trends and Future Outlook - The total sales of China's lottery during the six-month period reached approximately RMB 182 billion, an increase of about 2% compared to the same period in 2021[49]. - The company aims to expand its hardware business into non-lottery sectors, leveraging its R&D capabilities in lottery hardware[48]. - The group plans to explore opportunities in the domestic sinking market and improve user experience through customized features on its lottery channels[69]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules and has complied with it, with some deviations noted[119]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the six-month period[109]. - The company did not declare any dividend policy due to the lack of distributable reserves as per Bermuda law[122].

Financial Performance - The company's revenue for the three months ended March 31, 2022, was approximately HKD 35,300,000, representing a 70.2% increase compared to HKD 20,700,000 for the same period in 2021[3]. - The operating loss for the three-month period was approximately HKD 12,600,000, a significant reduction from HKD 43,900,000 in the same period of 2021, primarily due to increased revenue and cost control measures[3]. - The net loss for the three months was approximately HKD 10,800,000, down 72.0% from HKD 38,700,000 in the prior year[3]. - The total comprehensive loss for the period was HKD 6,842,000, compared to a loss of HKD 39,397,000 in the previous year[6]. - The basic and diluted loss per share for the period was HKD 0.10, compared to HKD 0.33 in the same period of 2021[6]. - The company did not recommend the payment of an interim dividend for the three-month period[3]. Revenue Sources - The revenue contribution from the newly acquired subsidiary in Macau, Macau Tong, was approximately HKD 3,400,000 since its integration on March 24, 2022[3]. - Lottery hardware sales reached HKD 15,735,000 for the three months ended March 31, 2022, compared to HKD 6,333,000 in the same period of 2021, representing a 148% increase[10]. - Revenue from lottery sales through physical channels was HKD 12,380,000, up from HKD 7,670,000 year-over-year, indicating a 61% growth[10]. - Revenue growth was primarily driven by an increase in lottery hardware sales by approximately HKD 9,400,000 and an increase in lottery agency services by approximately HKD 4,700,000[39]. - The online sales segment, including lottery products, showed a significant contribution, with net income from lottery sales amounting to HKD 95,100,000 in Q1 2022, compared to HKD 17,100,000 in Q1 2021, indicating a growth of approximately 454.4%[44]. Cost Management - Employee benefit expenses decreased by approximately 54.6% to about HKD 20,500,000 during the three-month period[3]. - The company continues to focus on enhancing its competitive position through cost control and operational efficiency improvements[3]. Strategic Initiatives - The company aims to develop its business into a comprehensive payment service and fintech provider, offering quality lottery solutions and mobile gaming content globally[18]. - The company focuses on expanding its market presence in electronic payment services, lottery, mobile gaming, and marketing technology services[16]. - The group aims to enhance its infrastructure and platforms to support the digital transformation of financial services in the Greater Bay Area and beyond[21]. - The company is focused on digital transformation and collaboration with Alibaba Group and Ant Group to strengthen its position in the Chinese lottery industry[36]. - The company plans to continue launching its proprietary system platform and engage in strategic partnerships with local leaders in Asia to globalize its business[21]. Market Expansion - The company has established a subsidiary in India to enhance its market presence and support its investment strategy in the region[45]. - The company is focusing on market expansion and ongoing operations in overseas markets, with a commitment to support these initiatives financially[45]. - The company is a member of the World Lottery Association (WLA) and the Asia Pacific Lottery Association (APLA)[17]. Technological Development - The group plans to enhance its research and development capabilities in gaming and system technology, with a focus on expanding its online user activities[42]. - The group aims to invest in lottery game development and the production of smart hardware and related maintenance services[43]. - The company continues to operate lottery channels on Taobao and Alipay, enhancing user experience and engagement with customized features[37]. Joint Ventures and Partnerships - Ant Bank, a joint venture, began operations in April 2019, providing mobile payment services and financial banking services to residents and SMEs in Macau[35]. - The company holds a 30% indirect interest in Ant Bank, which is a business partner of Macau Tong[65]. - The joint venture Paytm First Games in India is expected to capitalize on the growing online gaming market, with a focus on popular games and expanding its user base[34]. Shareholder Information - As of March 31, 2022, the total number of shares issued was 11,672,342,235, with significant holdings by key executives, including 17.584% owned by Mr. Sun Hao[48][49]. - The total issued share capital of Cainiao consists of 15,212,555,296 ordinary shares, 448,611,835 Class A ordinary shares, and 87,690,047 Class B ordinary shares[55]. - The company has no other directors or senior executives holding any interests in the company's shares or related securities as of March 31, 2022[56]. Compliance and Governance - The audit committee reviewed the unaudited condensed consolidated financial statements for the first quarter of 2022, ensuring compliance with applicable accounting standards[66]. - The company operates under the GEM listing rules and its shares are listed on the GEM[74].

Market Overview - GEM provides a market for small and medium-sized companies, which generally carry higher investment risks compared to companies listed on the main board[3]. - Securities traded on GEM may experience greater market volatility and lower liquidity compared to those on the main board[3]. - In 2021, the total sales of the Chinese lottery industry increased by 11.8% compared to 2020, indicating a strong rebound[33]. - The online gaming market in India grew by 18% in 2020, reaching INR 77 billion (approximately USD 10.3 billion), with projections to reach INR 155 billion (approximately USD 20.7 billion) by 2023, reflecting a compound annual growth rate of 27%[170]. - In 2021, China's total retail sales of consumer goods reached approximately RMB 44 trillion, with a year-on-year growth of 12.5%[171]. Company Strategy and Business Segments - The company has diversified its business into three main categories: lottery hardware sales, gaming and entertainment, and non-lottery hardware sales[20]. - The company aims to enhance its business value by developing a diversified gaming and entertainment platform that integrates unique social games and sports entertainment content[22]. - The group operates in three main business segments: lottery hardware sales, lottery distribution through physical channels, and non-lottery hardware sales[166]. - The group has begun supplying non-lottery hardware products, such as POS terminals, to the retail sector in China starting in 2021[166]. - The company plans to evaluate overseas opportunities and establish strategic partnerships with local leaders in Asia to globalize its business[168]. Corporate Governance - The report confirms that the information provided is accurate and complete, with no misleading or fraudulent elements[3]. - The board of directors collectively and individually assumes full responsibility for the report's content[3]. - The company has adopted corporate governance practices to enhance transparency and protect shareholder interests, including the establishment of various committees[39]. - The board composition includes a balance of independent non-executive directors, ensuring that at least one-third of the board is independent[39]. - The company has committed to regular communication with shareholders, including annual general meetings and timely announcements of financial performance[40]. Financial Performance - The group's revenue for the review year was approximately HKD 253,200,000, an increase of about 56.7% compared to HKD 161,600,000 in 2020[183]. - Revenue growth was primarily driven by an increase in lottery hardware sales by approximately HKD 94,800,000 and an increase in lottery agency services by approximately HKD 18,400,000[183]. - Operating loss for the year was approximately HKD 65,800,000, a reduction from HKD 131,100,000 in 2020, mainly due to increased total revenue and cost control measures[184]. - The group's net loss for the year was approximately HKD 63,100,000, a decrease of about 42.4% from HKD 109,500,000 in 2020[184]. - As of December 31, 2021, the group maintained a strong financial position with a net cash balance of approximately HKD 936,700,000 and a current ratio of about 12.2[186]. Risk Management and Internal Controls - The Risk Management and Internal Control Committee is responsible for executing risk management and internal control systems, reviewing all related financial, operational, and compliance controls[72]. - The internal audit function is deemed effective and sufficient, with no major deficiencies reported during the annual review[79]. - The company has implemented a fraud reporting mechanism allowing employees to confidentially report concerns related to financial reporting and risk management[77]. - The board conducts an annual review of the effectiveness of the risk management and internal control systems, confirming their adequacy and compliance with GEM listing rules[79]. - The company has established policies to prevent bribery, extortion, fraud, and money laundering, ensuring compliance with various laws and regulations[144]. Employee and Diversity Policies - The company has not set specific plans or measurable targets for gender diversity among employees, including senior management, as recruitment is based on qualifications and experience rather than gender[91]. - The group promotes equal opportunities and prohibits discrimination based on age, gender, disability, religion, marital status, pregnancy, sexual orientation, and nationality[135]. - The group has implemented a diversity policy for its board and overall workforce, considering various elements such as gender, age, and nationality[136]. - The company has established comprehensive employment policies that consider government labor laws, including parental leave and additional medical insurance for employees[119]. - The company encourages the use of public transportation for business-related travel to further reduce environmental impact[130]. Sustainability and Community Engagement - The company emphasizes responsible contributions to the lottery and online gaming industry, actively participating in sports development and charitable activities[104]. - The sustainability management goal is to promote business development while managing the environmental and social impacts of the group's operations[108]. - The company has implemented energy efficiency measures, including encouraging employees to turn off electrical devices when leaving the office[150]. - During the COVID-19 pandemic, the company donated 33,000 masks to various sports bureaus to support local communities[145]. - The group actively participates in community investment, focusing on sports development and charitable activities, although donations were zero in the review year compared to HKD 197,000 in 2020[165]. Acquisitions and Partnerships - The company announced a conditional sale agreement on September 10, 2021, to acquire 100% of the equity of Macau Tong Holdings Limited for a maximum cash consideration of HKD 778 million[194]. - The completion of the acquisition will result in the target company becoming a wholly-owned subsidiary of the company, with its financial statements consolidated into the company's financial reports post-completion[194]. - The new cooperation agreement with Alibaba China will last for two years, from January 1, 2022, to December 31, 2023, focusing on selling sports and welfare lottery products through Alibaba's retail digital procurement platform[198]. - The group plans to continue investing additional resources into Paytm First Games to support its future expansion[179]. - The group is committed to improving its technological infrastructure to support its gaming and lottery entertainment initiatives[182].

Financial Performance - The group's revenue for the nine months ended September 30, 2021, was approximately HKD 144,900,000, representing an increase of about 36.6% compared to HKD 106,100,000 for the same period in 2020[4] - The operating loss for the nine months was approximately HKD 65,300,000, a decrease of about 47.6% from HKD 124,500,000 in the same period of 2020[4] - The net loss for the nine months was approximately HKD 46,300,000, a significant reduction of about 70.5% compared to HKD 156,900,000 for the same period in 2020[4] - The total comprehensive loss for the nine months was approximately HKD 39,017,000, compared to HKD 145,950,000 for the same period in 2020[7] - Basic and diluted loss per share for the nine months was HKD 0.41, compared to HKD 1.48 for the same period in 2020[7] - The company reported a basic loss per share of approximately HKD 3,154,000 for the three-month period and HKD 46,738,000 for the nine-month period in 2021, compared to losses of HKD 52,795,000 and HKD 170,161,000 in the same periods of 2020[12] - The total comprehensive loss for the nine-month period was HKD 46,738,000, reflecting a significant improvement from the previous year's loss of HKD 170,161,000[12] Revenue Sources - The revenue contributions primarily came from lottery hardware sales and services in China, lottery agency services, and gaming and entertainment businesses in India[4] - Lottery hardware sales and services increased to HKD 39,113,000 in Q3 2021, up 7% from HKD 36,474,000 in Q3 2020[10] - Revenue from lottery sales through physical channels increased to HKD 9,493,000 in Q3 2021, up 26% from HKD 7,517,000 in Q3 2020[10] - Non-lottery hardware sales and services generated HKD 8,404,000 in Q3 2021, compared to no revenue in Q3 2020[10] - Revenue from lottery sales through retail outlets increased by approximately 90% compared to the same period in 2020, driven by recovery from the COVID-19 pandemic and a 70% increase in the number of retail outlets[23] - Revenue growth was primarily driven by an increase in lottery hardware sales by approximately HKD 30,000,000 and an increase in gaming and entertainment business revenue by approximately HKD 18,000,000[30] Strategic Initiatives - The company aims to expand its market presence and enhance its product offerings in the gaming and entertainment sector[10] - The company is focusing on new product development and technological advancements to drive future growth[10] - The company aims to continue developing diverse gaming and entertainment platforms, integrating unique social gaming and sports entertainment content to enhance business value[17] - The company plans to evaluate overseas opportunities and collaborate strategically with local partners in Asia to globalize its business[17] - The company remains committed to innovation in lottery product development, physical channel expansion, and marketing services to assist lottery authorities[17] - The company is actively transforming and consolidating its leading position in the Chinese lottery industry, leveraging synergies with Alibaba Group and Ant Group[28] Investments and Acquisitions - The group has invested approximately HKD 317,400,000 from the net proceeds of the subscription for various business segments, including investments and acquisitions[33] - The company has allocated approximately HKD 778,000,000 for the acquisition of Macau Tong Holdings Limited, which will enhance its payment services and electronic wallet offerings[47] - The company has identified potential investment projects in overseas markets, particularly in the lottery and gaming sectors, with a focus on expanding its operational footprint[44] - The company expects to complete the acquisition of Macau Tong, which will allow it to integrate the financial results of the target group into its consolidated financial statements[47] Market Trends - In the first nine months, China's lottery sales reached approximately RMB 278.5 billion, an increase of about 20.7% compared to the same period in 2020[18] - The online gaming market in India is projected to grow from 360 million players in 2020 to 510 million by 2022, with industry revenue expected to reach INR 155 billion (approximately USD 20.7 billion) by 2023, reflecting a compound annual growth rate of 27%[19] - The retail payment hardware market in China saw a total retail sales of approximately RMB 21.2 trillion in the first half of 2021, representing a year-on-year growth of 23%[20] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the nine-month period and confirmed compliance with applicable accounting standards[64] - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set out in the GEM Listing Rules[65] - There are no other interests recorded in the company's register as of September 30, 2021, apart from those disclosed by directors and major shareholders[63] Shareholder Information - As of September 30, 2021, the total issued shares of the company amounted to 11,672,342,235, with significant holdings by directors, including Mr. Sun Hao with 2,052,408,000 shares, representing approximately 17.584%[51][52] - The company has a significant interest in Alibaba Group, with various directors holding shares and American Depositary Shares (ADS) in Alibaba[53][54] - As of September 30, 2021, Alibaba Investment Limited and API Holdings Limited collectively own 6,502,723,993 shares, representing approximately 55.71% of the total issued share capital of the company[59]