Financial Performance - The group's revenue for the six months ended June 30, 2021, was approximately HKD 77,900,000, an increase of about 77.6% compared to HKD 43,900,000 for the same period in 2020[5]. - The operating loss for the six months was approximately HKD 55,000,000, a reduction of about 47.9% from HKD 105,600,000 in the previous year[5]. - The net loss for the six months was approximately HKD 43,700,000, down about 60.2% from HKD 109,700,000 for the same period in 2020[5]. - The group recorded a foreign exchange gain of approximately HKD 7,500,000 for the six months, compared to a foreign exchange loss of HKD 14,200,000 in the previous year[5]. - The company reported a loss attributable to owners of approximately HKD 43,584,000 for the six months ended June 30, 2021, compared to a loss of HKD 117,366,000 for the same period in 2020[27]. - The company reported a basic loss per share of HKD 0.05 for the six months ended June 30, 2021, compared to HKD 0.44 for the same period in 2020[12]. - Basic loss per share for the six months ended June 30, 2021, was approximately HKD 0.0040, compared to HKD 0.0100 for the same period in 2020[27]. Assets and Liabilities - The total assets as of June 30, 2021, amounted to HKD 3,091,985,000, a decrease from HKD 3,148,432,000 as of December 31, 2020[13]. - Total liabilities decreased from HKD 205,118,000 to HKD 174,409,000, representing a reduction of approximately 15%[14]. - Total equity decreased from HKD 2,943,314,000 to HKD 2,917,576,000, a decline of approximately 0.9%[15]. - The company's cash and bank balances decreased to HKD 120,036,000 from HKD 166,193,000 as of December 31, 2020[13]. - Net cash and cash equivalents decreased from HKD 501,022,000 to HKD 220,714,000, a decline of about 56%[17]. - The company reported a net cash outflow of HKD 14,358,000, a significant improvement from HKD 628,488,000 in the previous year[18]. Revenue Sources - Revenue from external customers in China reached HKD 68,724,000, up 59.8% from HKD 42,990,000 in the prior year[23]. - Revenue contributions primarily came from lottery hardware sales, which increased by approximately HKD 27.3 million, and lottery agency services, which increased by approximately HKD 12.3 million[53]. - Revenue from gaming and entertainment business from a joint venture was HKD 9,207,000 for the six months ended June 30, 2021, compared to HKD 897,000 for the same period in 2020, representing an increase of approximately 929%[36]. - Revenue from lottery sales through retail outlets increased by approximately 142.6% compared to the same period in 2020, driven by recovery from the COVID-19 pandemic[46]. Operational Changes - Employee benefit expenses decreased by approximately HKD 15,800,000 compared to the same period in 2020[5]. - The total employee count decreased from 342 to 202, resulting in a reduction of employee benefits expenses by approximately 17.5% to about HKD 74.9 million[54]. - Marketing and distribution expenses increased to HKD 13,141,000 for the six months ended June 30, 2021, compared to HKD 7,228,000 in the same period of 2020, reflecting an increase of 81.5%[24]. - Other operating expenses for the six-month period were approximately HKD 38.8 million, an increase from HKD 29.2 million for the same period in 2020[55]. Strategic Initiatives - The company continues to focus on expanding its lottery hardware and gaming services in China and India[20]. - The company aims to expand its hardware product range into non-lottery hardware for the retail industry, leveraging its research and development capabilities in lottery hardware[41]. - The company plans to continue seeking overseas opportunities and strategic partnerships in Asia to globalize its business[41]. - The company is focusing on potential business acquisitions in the lottery and gaming sectors, with expected deployment of funds by December 31, 2022[72]. Market Outlook - The online gaming market in India is projected to grow from 360 million players in 2020 to 510 million by 2022, with revenues increasing by 18% to ₹77 billion (approximately $10.3 billion) in 2020[43]. - The online gaming industry in India is expected to reach ₹155 billion (approximately $20.7 billion) by 2023, with a compound annual growth rate (CAGR) of 27%[43]. - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 15% to 20%[100]. - New product launches are expected to contribute an additional HKD 100 million in revenue by the end of 2021[100]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial statements for the six-month period[90]. - The company has adopted GEM Listing Rules regarding the trading regulations for directors[91]. - The company has complied with the corporate governance code, with some deviations noted regarding the roles of the chairman and CEO, and the rotation of directors[95]. - The chairman and CEO roles are combined, which the company believes facilitates effective strategy formulation and execution[94].

Financial Performance - The group's revenue for the three months ended March 31, 2021, was approximately HKD 20,700,000, representing an increase of about 51.3% compared to HKD 13,700,000 for the same period in 2020[5]. - Operating loss for the three-month period was approximately HKD 43,900,000, a decrease of about 39.1% from HKD 72,000,000 in the same period of 2020[5]. - The net loss for the three months was approximately HKD 38,700,000, down about 40.1% from HKD 64,600,000 in the same period of 2020[5]. - Basic and diluted loss per share for the period was HKD 0.33, compared to HKD 0.58 for the same period in 2020[10]. - The company reported a basic loss attributable to owners of approximately HKD 38,133,000 for the three-month period, compared to a loss of HKD 66,537,000 for the same period last year[15]. - The group recorded a foreign exchange gain of approximately HKD 3,100,000 during the three-month period, compared to a foreign exchange loss of HKD 13,800,000 in the same period of 2020[5]. - The group reported a total comprehensive loss of HKD 38,711,000 for the three-month period[18]. Revenue Sources - Revenue contributions were primarily from lottery hardware, lottery games and systems, distribution and support services in China, and gaming and entertainment in India[5]. - The increase in revenue was driven by a rise in lottery hardware sales by approximately HKD 4,200,000 and an increase in distribution and support services revenue by approximately HKD 5,800,000[5]. - The revenue from lottery hardware was HKD 9,706,000, up from HKD 5,550,000 in the previous year[13]. - Revenue from distribution and support services was HKD 7,670,000, compared to HKD 1,893,000 in the same period last year[13]. Dividend and Shareholder Information - The group did not recommend the payment of an interim dividend for the three-month period[6]. - The company did not recommend the payment of an interim dividend for the three-month period, consistent with the previous year[17]. - As of March 31, 2021, the total number of shares issued was 11,672,342,235[45]. - The total equity held by Mr. Sun Hao, a director, amounted to 2,052,408,000 shares, representing 17.584% of the total shares[44]. - As of March 31, 2021, Ali Fortune holds 6,502,723,993 shares, representing 55.71% of the issued share capital[53]. - Maxprofit Global Inc. is a beneficial owner of 2,006,250,000 shares, accounting for 17.19% of the issued share capital[55]. Market and Business Expansion - The company aims to expand its business globally by launching proprietary systems and platforms and forming strategic partnerships with local partners in Asia[21]. - The company is preparing for potential approval and authorization of online lottery product distribution through its dedicated lottery resource channels on mobile Taobao and Alipay[25][26]. - The company plans to continue exploring opportunities for collaboration with Alibaba Group's retail ecosystem to enhance lottery distribution models[26]. - 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 2.07 billion) by 2023, reflecting a compound annual growth rate of 27%[24]. - The company has a focus on expanding its presence in selected international markets alongside its operations in China[19]. Operational Efficiency - Employee benefits expenses decreased by approximately 12.1% to about HKD 45 million, down from HKD 51.2 million in the previous year[34]. - Other operating expenses increased to approximately HKD 18.9 million, up from HKD 12.9 million in the same period last year, primarily due to increased distribution expenses related to lottery distribution[35]. - The group is focused on digital transformation and collaboration with provincial lottery agencies in China to enhance its lottery business[31]. - The group plans to improve its technological infrastructure and develop internal capabilities through gaming and lottery entertainment[32]. Investment and Proceeds - The net proceeds from the subscription amounted to approximately HKD 2.38 billion, with about HKD 607.5 million remaining in the group's bank accounts as of March 31, 2021[36]. - The company plans to utilize the remaining net proceeds for investment in potential overseas market projects in the lottery and gaming sectors, as well as for business acquisitions in these areas[41]. - The capital investment in the joint venture with One97 Communications Limited in India is part of the planned use of the remaining net proceeds[41]. Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for Q1 2021 and deemed them to comply with applicable accounting standards[60]. - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests and holdings[57]. - No equity interests were held by directors or controlling shareholders in any competing business during the three-month period[60].

Company Overview - The company aims to provide comprehensive professional lottery products and services for the Chinese lottery market, enhancing lottery sales through engaging game offerings [5]. - The company is a comprehensive technology and service provider focused on the lottery, mobile gaming, and entertainment markets in China and selected international markets [16]. - The company is committed to supporting a healthy Chinese lottery industry by developing legal and regulated lottery channels while combating illegal gambling markets [7]. - The company holds a 51% stake in AGT, which is registered in Hong Kong, indicating a significant ownership structure [9]. - The company is listed on the GEM, which is known for higher investment risks associated with smaller companies compared to the main board [2]. Financial Performance - The company’s financial summary and performance analysis are detailed in the report, highlighting key metrics and trends [3]. - The company reported a total capital raise of HKD 712,582,483 through the issuance of convertible bonds, completed on August 10, 2016 [13]. - The group’s revenue for the year was approximately HKD 161.6 million, a decrease of about 7.7% compared to HKD 175.1 million in 2019 [161]. - The operating loss for the year was approximately HKD 131.1 million, a reduction of about 32.7% from HKD 194.9 million in 2019, due to cost control measures [161]. - The group reported a net loss of approximately HKD 109.5 million for the year, a decrease of about 3.6% from HKD 113.6 million in 2019 [162]. Risk Management and Corporate Governance - The company has established a risk management and internal control committee to oversee its operations and ensure compliance [8]. - The company emphasizes the importance of risk management and internal controls in its operational and financial matters [35]. - The company has adopted corporate governance practices to enhance transparency and protect shareholder interests, including the establishment of various committees [30]. - The board is responsible for formulating corporate policies, business strategies, risk management, and significant acquisitions, with a focus on internal controls and compliance with legal regulations [35]. - The company has implemented measures to enhance its risk management and internal control systems, including appointing a senior internal audit manager and establishing a fraud disclosure mechanism [67]. Employee Engagement and Development - The company employs approximately 292 staff with expertise in lottery, mobile gaming, information technology, and other professional fields, establishing a solid business foundation for future breakthroughs [21]. - The company emphasizes the importance of employee engagement and creativity through competitive compensation and incentive programs [21]. - Employee training programs include topics such as information security, human resource management, and advanced project management systems to enhance professional skills [122]. - The company has a strict recruitment policy that prohibits hiring individuals under the age of 18, ensuring compliance with labor laws [123]. - Employees are entitled to paid annual leave after one year of continuous service, in accordance with Chinese regulations [116]. Market Strategy and Expansion - The company is focused on expanding its market presence and enhancing its product offerings to drive growth in the lottery sector [5]. - Future strategies include evaluating overseas opportunities and forming strategic partnerships with local leaders in Asia to globalize its business [17]. - The company aims to expand its lottery products and services in China, leveraging its extensive industry experience to assist lottery authorities in product innovation and market expansion [17]. - The group plans to continue exploring overseas opportunities and strategic partnerships with local leaders in Asia to globalize its business [151]. - The group aims to enhance the attractiveness of its products to local lottery players by customizing offerings to meet local regulations [89]. Social Responsibility and Community Engagement - The company is committed to developing a diversified gaming and entertainment platform, integrating unique social gaming and sports entertainment content to create innovative business models [17]. - The group emphasizes the importance of community involvement through sports sponsorships and charitable activities [93]. - The company donated HKD 197,000 for charitable purposes during the review year [149]. - During the COVID-19 pandemic, the group donated 33,000 masks to sports authorities in Jiangsu, Hunan, Hubei, and Tianjin [127]. - The company is committed to maintaining a low-carbon office environment and encourages employees to adopt energy-saving practices [97]. Compliance and Legal Matters - The company adheres to strict user data privacy regulations, including the Cybersecurity Law of the People's Republic of China and the General Data Protection Regulation (GDPR) [147]. - The company has established comprehensive data security management practices, including encryption protection and systematic access management [147]. - The company has a dedicated email account for reporting potential corruption activities, ensuring confidentiality for employees [148]. - The company actively provides anti-corruption training to its directors and employees, covering the significance of anti-corruption policies and reporting channels [149]. - The company has not experienced any work-related fatalities in the past three years, ensuring a safe working environment [139]. Environmental Sustainability - The company has set targets for paper and electricity consumption starting from the fiscal year ending December 31, 2020, as part of its commitment to environmental sustainability [106]. - The total electricity consumption of the group was approximately 212,502 kWh, a decrease of about 16.9% compared to 255,835 kWh in 2019 [129]. - The company has implemented policies to reduce paper usage by promoting electronic documents and communication, significantly decreasing office paper consumption [110]. - The company promotes the use of public transportation among employees to reduce commuting costs and improve urban air quality [110]. - The company has adopted several new key performance indicators related to environmental and social aspects in compliance with revised GEM listing rules [107].

Financial Performance - The group's revenue for the nine months ended September 30, 2020, was approximately HKD 106,100,000, a decrease of about 10.2% compared to HKD 118,100,000 for the same period in 2019[4] - The operating loss for the nine-month period was approximately HKD 124,500,000, a reduction of about 17.5% from HKD 151,000,000 in the same period of 2019[4] - The net loss for the nine months was approximately HKD 156,900,000, an increase of about 114.6% compared to HKD 73,100,000 for the same period in 2019[4] - The total comprehensive loss for the nine months was approximately HKD 145,950,000, compared to a loss of HKD 90,132,000 in the same period of 2019[7] - The basic and diluted loss per share for the nine months was HKD 1.48 cents, compared to a loss of HKD 0.69 cents in the same period of 2019[7] - The company reported a total loss attributable to owners of approximately HKD 52,795,000 for the three months ended September 30, 2020, compared to a profit of HKD 41,178,000 in the same period of 2019[11] - Basic loss per share for the three months ended September 30, 2020, was approximately HKD 0.0045, compared to a profit of HKD 0.0035 in the same period of 2019[11] Revenue Breakdown - Revenue from lottery hardware sales decreased by approximately HKD 19,900,000, while revenue from the gaming and entertainment segment decreased by approximately HKD 3,600,000[4] - The increase in revenue from lottery games and systems was approximately HKD 10,000,000, attributed to higher sales of virtual sports lottery games[4] - Revenue from lottery hardware for the three months ended September 30, 2020, was HKD 36,474,000, a decrease of 26.6% compared to HKD 49,700,000 in the same period of 2019[10] - Revenue from lottery games and systems increased to HKD 17,178,000 for the three months ended September 30, 2020, up 44.5% from HKD 11,846,000 in the same period of 2019[10] - Total revenue for the three months ended September 30, 2020, was HKD 62,193,000, down 11.6% from HKD 70,342,000 in the same period of 2019[10] - Revenue from games and entertainment decreased to HKD 1,024,000 for the three months ended September 30, 2020, down 72.0% from HKD 3,655,000 in the same period of 2019[10] Dividend and Shareholder Information - The group did not recommend the payment of an interim dividend for the nine-month period[4] - The company did not recommend an interim dividend for the nine months ended September 30, 2020, consistent with the previous year[14] - As of September 30, 2020, the total number of shares issued was 11,672,342,235, with Mr. Sun Hao holding approximately 17.584% of the total shares[50] - The company’s directors and senior executives held a total of 2,052,408,000 shares, with Mr. Sun Hao owning 46,158,000 shares personally[50] - Ali Fortune holds 6,502,723,993 shares, representing 55.71% of the issued share capital[59] - Maxprofit Global Inc. holds 2,006,250,000 shares, accounting for 17.19% of the issued share capital[66] Market and Industry Insights - The lottery market sales in China for the nine-month period amounted to approximately RMB 230.6 billion, a decrease of about 27.0% compared to the same period in 2019[19] - Sales of welfare lottery reached approximately RMB 101.9 billion, down 28.8% year-on-year, while sports lottery sales were around RMB 128.7 billion, down 25.4% year-on-year[19] - The group reported a significant impact on lottery sales due to the COVID-19 pandemic, which led to reduced operating hours for sales points[19] - Despite challenges from the COVID-19 pandemic, the Chinese lottery market is steadily recovering, and the group aims to consolidate its leading position in the industry[26] Strategic Initiatives - The company aims to expand its business globally by launching proprietary systems and platforms, and forming strategic partnerships in overseas markets such as India and Southeast Asia[18] - The company is committed to enhancing its lottery products and services, focusing on innovation in lottery hardware and marketing services to expand coverage in China[17] - The company plans to develop a diversified gaming and entertainment platform that integrates unique social gaming and sports entertainment content[18] - The group is actively developing its online business and user base through various non-lottery games and entertainment content[24] - The partnership with One97 Communications Limited continues to expand the mobile gaming and entertainment platform in India, with significant user base growth expected[25] Compliance and Governance - The company has established a compliance committee consisting of three independent non-executive directors to oversee financial reporting[69] - All directors confirmed compliance with the trading code of conduct during the nine-month period[70] - The audit committee reviewed the financial statements for the nine-month period, ensuring compliance with applicable accounting standards[69] Future Plans and Investments - The group plans to gradually launch a SaaS platform to serve users across the lottery supply chain, anticipating changes in distribution channels[28] - The group aims to enhance its technical infrastructure and internal capabilities through investments in gaming and lottery entertainment[28] - The company has invested in Ant Bank (Macau) Co., Ltd. to strengthen its business and leverage opportunities in Macau and overseas[28] - The expected deadline for utilizing the remaining net funds has been postponed from December 31, 2020, to December 31, 2022, due to the impact of the COVID-19 pandemic[45]

Financial Performance - The group's revenue for the six months ended June 30, 2020, was approximately HKD 43,900,000, a decrease of about 8.0% compared to HKD 47,700,000 for the same period in 2019[4] - The operating loss for the six months was approximately HKD 105,600,000, a reduction of about 12.1% from HKD 120,200,000 in the same period of 2019[4] - The net loss for the six months was approximately HKD 109,700,000, down about 5.5% from HKD 116,100,000 in the same period of 2019[4] - The group reported a total comprehensive loss of HKD 119,971,000 for the six months, compared to a loss of HKD 115,285,000 in the same period of 2019[7] - Basic loss per share for the six months was HKD 1.02, compared to HKD 1.07 for the same period in 2019[7] Revenue Breakdown - Revenue from lottery hardware sales decreased by approximately HKD 6,600,000, while revenue from gaming and entertainment decreased by about HKD 1,000,000, partially offset by an increase of HKD 4,600,000 in lottery games and systems[4] - Revenue for the three months ended June 30, 2020, was HKD 30,191,000, compared to HKD 27,557,000 for the same period in 2019, representing an increase of 5.9%[17] - Revenue from lottery hardware decreased to HKD 6,865,000 for the three months ended June 30, 2020, down from HKD 10,096,000 in the same period of 2019, a decline of 31.5%[17] - Revenue from lottery games and systems increased to HKD 17,449,000 for the three months ended June 30, 2020, compared to HKD 11,589,000 in the same period of 2019, an increase of 50.5%[17] - Revenue from gaming and entertainment business from subsidiaries increased to HKD 184 thousand for the six months ended June 30, 2020, compared to HKD 7 thousand in the same period of 2019[25] Assets and Liabilities - As of June 30, 2020, total assets amounted to HKD 3,105,317 thousand, a decrease of 4.6% from HKD 3,254,718 thousand as of December 31, 2019[8] - Non-current liabilities decreased to HKD 39,845 thousand, down 10.3% from HKD 44,696 thousand in the previous period[9] - The total liabilities of the company decreased to HKD 211,205 thousand, down 11.8% from HKD 239,496 thousand[9] - The total equity of the company as of June 30, 2020, was HKD 2,894,112 thousand, down from HKD 3,015,222 thousand at the end of 2019, reflecting a decrease of 4.0%[9] Cash Flow - The company reported a net cash outflow from operating activities of HKD 118,125 thousand, compared to HKD 154,192 thousand in the same period of 2019[13] - Cash and cash equivalents at the end of the period were HKD 501,022 thousand, a significant decrease from HKD 2,218,580 thousand at the end of 2019[13] - The company experienced a net cash outflow from investing activities of HKD 490,914 thousand, compared to a cash inflow of HKD 28,143 thousand in the same period of 2019[13] Inventory and Receivables - The company’s inventory increased to HKD 26,381 thousand, up from HKD 11,923 thousand, indicating a rise of 121.5%[8] - Trade receivables decreased to HKD 21,907 thousand, down 17.3% from HKD 26,646 thousand in the previous period[8] - Trade receivables as of June 30, 2020, were HKD 21,622,000, down from HKD 24,358,000 as of December 31, 2019, a decrease of 11.3%[23] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial statements for the six-month period[79] - The company has adopted the corporate governance code as per GEM listing rules and has complied with it, except for certain deviations[80] - The roles of the chairman and CEO are held by the same individual, which the company believes is effective for strategy execution[80] - The company maintains a commitment to high standards of corporate governance to enhance transparency and protect shareholder interests[80] Strategic Initiatives - The company aims to expand its business globally by seeking opportunities in overseas markets such as India and Southeast Asia through strategic partnerships[30] - The company plans to continue developing a diversified gaming and entertainment platform to enhance its business value[30] - The company is expanding its mobile gaming and entertainment platform in India through a joint venture with One97 Communications Limited, with significant user base growth expected from the Paytm First Games platform[38] - The company aims to enhance its lottery distribution model through collaboration with Alibaba Group's retail ecosystem, leveraging both physical and online retail channels for synergy and opportunities[34] COVID-19 Impact - The group has implemented continuous monitoring and measures regarding the potential impact of COVID-19 on the expected timing of the use of remaining proceeds[56] - The company is committed to monitoring the development of the pandemic and its business progress to protect its interests[62] - Despite challenges from the COVID-19 pandemic, the domestic lottery market is steadily recovering, and the company aims to consolidate its leading position in China's lottery industry through collaboration with Alibaba and Ant Group[39] Shareholder Information - As of June 30, 2020, the company had issued a total of 11,672,342,235 shares[68] - Ali Fortune holds 6,502,723,993 shares, representing 55.71% of the total issued shares[75] - Maxprofit Global Inc. holds 2,006,250,000 shares, representing 17.19% of the total issued shares[75] - The company has no other individuals holding 5% or more of the voting shares as of June 30, 2020[78] Share Options and Incentives - No share options were granted or exercised during the six-month period, and options involving 10,387,500 shares have expired[86] - The fair value of previously granted share options was calculated using two option pricing models, with significant data including expected volatility ranging from 65.85% to 75.55%[87] - A total of 52,744,000 shares were granted under the share incentive plan, representing approximately 0.45% of the company's issued share capital as of the report date[89]

Financial Performance - The group's revenue for the three months ended March 31, 2020, was approximately HKD 13,700,000, a decrease of about 32.2% compared to HKD 20,200,000 for the same period in 2019[3]. - The operating loss for the three-month period was approximately HKD 72,000,000, compared to HKD 52,500,000 for the same period in 2019, primarily due to currency depreciation resulting in exchange losses[3]. - The net loss for the three months was approximately HKD 64,600,000, a decrease of about 9.0% compared to HKD 71,000,000 for the same period in 2019[3]. - The total comprehensive loss for the period was HKD 73,580,000, compared to HKD 53,819,000 for the same period in 2019[6]. - Basic loss per share was HKD 0.58, compared to HKD 0.65 for the same period in 2019[6]. - The group experienced a foreign currency exchange loss of HKD 8,935,000 during the period, compared to a gain of HKD 17,143,000 in 2019[6]. Revenue Breakdown - Revenue from lottery hardware was HKD 5,550,000, down from HKD 8,968,000 in 2019, representing a decline of approximately 38.5%[9]. - Revenue from lottery games and systems was HKD 5,929,000, down from HKD 7,165,000 in 2019, a decrease of about 17.3%[9]. - Revenue from lottery distribution and supporting services was HKD 1,893,000, down from HKD 3,424,000 in 2019, a decline of approximately 44.7%[9]. Dividend and Equity - The board of directors did not recommend the payment of an interim dividend for the three-month period[3]. - As of March 31, 2020, the total accumulated losses amounted to HKD 636,331,000, with total equity at HKD 3,015,222,000[14]. - The total equity as of January 1, 2019, was HKD 2,943,330,000, indicating a decrease in total equity over the period[14]. Market and Strategic Focus - The company aims to develop a comprehensive lottery, mobile gaming, and entertainment content and technology provider globally[16]. - Future strategies include seeking overseas opportunities and forming strategic partnerships in markets such as India and Southeast Asia[17]. - The company plans to assist lottery authorities in expanding product coverage in China through innovative hardware and marketing services[16]. - The company is actively developing its mobile gaming and entertainment platform in India through a joint venture with One97 Communications Limited, with significant user base growth expected[26]. - The company aims to leverage its technical expertise in lottery to create engaging gaming and entertainment content, enhancing user experience across various online channels[25]. COVID-19 Impact - The lottery sales and operations in China were fully suspended since late January 2020, with some provinces resuming sales in March[21]. - The company is closely monitoring the impact of the COVID-19 pandemic on lottery sales and operations, adapting strategies accordingly[21]. - The ongoing impact of the COVID-19 pandemic is being monitored, with necessary measures being taken to adapt to the changing business environment[48]. - The company anticipates that the progress of potential acquisitions and investment projects may slow down due to the pandemic, with uncertainty regarding when conditions will improve[54]. Investment and Proceeds - The remaining net proceeds from subscription activities as of March 31, 2020, amounted to approximately HKD 904.5 million, held in the group's bank accounts[32]. - The net proceeds allocated to the gaming and entertainment segment amounted to approximately HKD 10,800,000, with slower-than-expected utilization due to regulatory uncertainties in China[33]. - The net proceeds for investment projects and acquisitions were approximately HKD 42,200,000, with overall slower utilization due to ongoing discussions on potential acquisition targets[46]. - The company plans to reallocate approximately HKD 300,000,000 from gaming and entertainment to more stable core businesses, including hardware and lottery systems[51]. Shareholding and Corporate Governance - As of March 31, 2020, the company's directors and senior executives hold a total of 2,052,408,000 shares, representing 17.58% of the total equity[59]. - Major shareholder Ali Fortune holds 6,502,723,993 shares, representing 55.71% of the total shares[75]. - The company has granted 31,848,000 shares and 14,310,000 restricted stock units under the share incentive plan[1]. - The board of directors includes both executive and non-executive members, ensuring diverse oversight[89]. Compliance and Audit - The audit committee reviewed the unaudited condensed consolidated financial statements for the three-month period and deemed them to be prepared in accordance with applicable accounting standards[79]. - The company confirmed compliance with the trading regulations set forth in the GEM Listing Rules during the three-month period[80]. - There were no interests held by directors or major shareholders in any competing businesses during the three-month period[79].

Corporate Strategy and Market Position - AGTech is committed to providing comprehensive gaming software, hardware, and marketing consulting services for the Chinese lottery market[6]. - The company aims to explore new forms of legal and regulated lottery channels[8]. - AGTech's future outlook includes expanding its market presence and developing new products[6]. - The company aims to expand its lottery products and services in China and assist in the overall development of the industry[25]. - The company plans to seek overseas opportunities and establish strategic partnerships in markets such as India and Southeast Asia[25]. - Paytm First Games, the company's mobile gaming joint venture in India, will continue to be a key focus and driver for international expansion[37]. - The company is focused on developing and launching commercialized aggregated games in selected international markets[37]. - The company is actively involved in charitable and sports projects, contributing to the development of a responsible lottery industry in China[29]. - The company is committed to responsible contributions to the lottery and online gaming industry, including sports development and charity activities[116]. - The group operates in the lottery, mobile gaming, and entertainment markets, focusing on China and selected international markets[118]. Financial Performance and Governance - The financial report indicates that AGTech has a 51% ownership stake in AGT, a company registered in Hong Kong[15]. - The report emphasizes the potential risks associated with investing in GEM-listed companies, which are generally smaller and may experience higher market volatility[3]. - The report confirms that all directors have collectively and individually accepted responsibility for the accuracy of the information provided[3]. - The company has adhered to the corporate governance code, with some deviations regarding the roles of the chairman and CEO, and the rotation of directors[43]. - The company has not disclosed specific remuneration details for senior management in its annual report, citing reasons related to flexibility in negotiations for future hires[45]. - The board of directors is responsible for formulating corporate policies, business strategies, and significant financial matters, with a focus on risk management and compliance[49]. - The company has committed to timely announcements and updates on business developments and financial performance to keep shareholders informed[43]. - The board confirmed the effectiveness of the group's financial reporting processes and compliance with GEM listing rules[93]. Risk Management and Internal Controls - The Risk Management and Internal Control Committee identified various risk areas, including operational, budgetary, liquidity, foreign exchange, credit, and legal or political risks, and established acceptable levels for these risks[87]. - The risk management and internal control committee did not identify any significant risks or deficiencies during the review year, confirming the effectiveness of the group's risk management and internal control systems[91]. - The board conducted an annual review of the effectiveness of the risk management and internal control systems, considering factors such as the committee's authority, responsibilities, and risk tolerance levels[93]. - The group has implemented a fraud disclosure mechanism allowing employees to confidentially report any potential misconduct related to financial reporting and risk management[92]. Corporate Governance and Board Composition - The board consists of 9 members, with 7 males (77.8%) and 2 females (22.2%), ensuring gender diversity[79]. - The company has implemented a diversity policy for its board and workforce, focusing on various elements such as gender, age, and nationality[162]. - The company’s nomination policy aims to ensure a balanced skill set, experience, and diversity among board members to meet business needs[67]. - The board includes a mix of executive and independent non-executive directors, with recent changes in board membership noted[50]. - The company has confirmed the independence of all independent non-executive directors, with none serving on the board for over 9 years[61]. Employee Welfare and Corporate Culture - The company has a competitive compensation structure and provides a good working environment to attract talent[30]. - The company provides in-house training and sponsorship for employees to enhance their professional knowledge and skills[173]. - Employees are entitled to paid annual leave after one year of continuous service, in accordance with Chinese labor laws[160]. - The company has established policies to ensure compliance with relevant labor laws and regulations, including those related to employee conduct and termination[153]. - The company emphasizes the importance of adhering to relevant policies, business practices, and internal controls, ensuring compliance with applicable laws and regulations[154]. Environmental Responsibility and Sustainability - The company emphasizes its commitment to creating a low-carbon office environment and encourages employees to adhere to energy-saving policies, including the use of eco-friendly paper and electronic documents[127]. - The company has implemented energy-saving policies, such as encouraging employees to turn off computers and lights when not in use, and promoting the use of public transportation[139]. - The company launched two new lottery games, "Lucky Racing" and "E-Ball," which received official approval from the Ministry of Finance before their launch in Hunan and Jiangsu provinces[186]. - The company is committed to sustainable development and compliance with relevant laws and regulations affecting its operations[185]. - The total electricity consumption of the company for the year ended December 31, 2019, was approximately 255,835 kWh, representing an increase of about 2.5% compared to 2018[198]. Community Engagement and Social Responsibility - The company has engaged in various charitable and sports activities, including sponsoring youth sports teams and participating in charity events[191]. - The company collaborates closely with lottery agencies to combat illegal gambling and raise funds for sports and welfare projects[194]. - The company emphasizes the importance of supplier compliance with environmental, health, and safety regulations during the supplier selection process[181].

Financial Performance - The group's revenue for the nine months ended September 30, 2019, was approximately HKD 118,100,000, a decrease of about 8.9% compared to HKD 129,600,000 for the same period in 2018[4] - The operating loss for the nine months was approximately HKD 151,000,000, a reduction of about 33.0% from HKD 225,500,000 in the same period of 2018[4] - The net loss for the nine months was approximately HKD 73,100,000, compared to a profit of HKD 234,500,000 in the same period of 2018[4] - The group reported a total comprehensive loss of HKD 90,132,000 for the nine months ended September 30, 2019, compared to a total comprehensive income of HKD 192,649,000 for the same period in 2018[8] - The basic loss per share for the nine months was HKD (0.69), compared to earnings of HKD 2.11 per share in the same period of 2018[8] - The company did not declare an interim dividend for the nine-month period, consistent with the previous year[15] Revenue Breakdown - The decrease in revenue was primarily due to a reduction in lottery hardware sales by approximately HKD 14,500,000, partially offset by an increase in revenue from lottery games and systems by approximately HKD 6,100,000[4] - Revenue for the three months ended September 30, 2019, was HKD 70,342,000, compared to HKD 67,965,000 for the same period in 2018[6] - Total revenue for the lottery hardware segment in 2019 was HKD 49,700,000, a 4.3% increase from HKD 47,655,000 in 2018[11] - Revenue from lottery games and systems reached HKD 11,846,000, slightly up from HKD 11,646,000 in the previous year[11] - The total revenue for the gaming and entertainment segment was HKD 3,655,000, an increase from HKD 2,790,000 in 2018[11] - The overall revenue for the nine-month period was HKD 70,342,000, compared to HKD 67,965,000 in the same period of 2018, reflecting a growth of 3.9%[11] Market and Strategic Initiatives - The company is focusing on expanding its market presence and developing new technologies to enhance its product offerings[16] - The lottery market in China recorded sales of approximately RMB 315.8 billion for the nine-month period, a decrease of 17.7% compared to the same period in 2018[20] - The sales of welfare lottery amounted to approximately RMB 143.1 billion, accounting for about 45.3% of total lottery sales, which is a decrease of approximately 13.4% year-on-year[20] - Sports lottery sales reached approximately RMB 172.7 billion, representing about 54.7% of total lottery sales, with a year-on-year decrease of approximately 20.8%[20] - The company has partnered with the Guangdong Sports Lottery Center to apply enterprise intelligent office service platform technology to meet digital management needs[22] - The company is collaborating with the Tianjin Sports Lottery Center to implement promotional marketing strategies for various sports lottery products[22] - The company is working with the China Welfare Lottery Issuing Management Center to research and apply blockchain smart contract technology for electronic lottery drawing systems[23] - The company has launched a dedicated lottery resource channel on mobile Taobao and Alipay, providing a one-stop platform for lottery-related services[24] - The company aims to enhance its online business through the lottery resource channel and maximize the value of its collaboration with Alibaba Group and Ant Financial[24] - The company is focused on developing a diversified gaming and entertainment platform to integrate unique social gaming and sports entertainment content[19] - The company plans to seek opportunities overseas and collaborate with local leading partners in markets such as India and Southeast Asia to globalize its business[19] Investments and Financial Management - The net proceeds from the subscription amounted to approximately HKD 2.38 billion, with a remaining balance of approximately HKD 1.799 billion after adjustments for convertible bonds[36] - Approximately HKD 513 million of the adjusted net proceeds was allocated to the development, operation, and promotion of gaming and entertainment projects, representing about 28.5% of the net proceeds[37] - Approximately HKD 200 million was allocated to the operation and development of lottery hardware and systems, with about HKD 153.4 million already utilized[39] - The company is committed to further expanding its business opportunities in Macau and overseas through increased capital investment in the joint venture Ant Bank (Macau) Limited[33] - The group aims to enhance its technological infrastructure and internal capabilities to integrate its resources, user behavior data, and distribution channels into a comprehensive platform for sustainable value growth for shareholders[33] - Approximately HKD 450,000,000 is allocated for potential investments in lottery and entertainment businesses in overseas markets, with an expected usage of about 25.0% of the net amount[44] - The company has earmarked around HKD 336,000,000 for general corporate purposes, with approximately 18.7% of the net amount designated for employee costs and administrative expenses[46] - The total adjusted remaining income amounts to approximately HKD 1,799,000,000, with HKD 646,800,000 expected to be utilized by December 31, 2020[46] Shareholder Information - Sun Hao holds a total of 2,046,408,000 shares, representing 17.53% of the company's total issued shares as of September 30, 2019[48] - The company has a total of 11,672,342,235 shares issued as of September 30, 2019[50] - The stock options granted to Feng Qing and Gao Qunyao are exercisable at a price of HKD 0.858 per share, with a total of 375,000 shares each[50] - The company has a stake in Alibaba Group, with board members holding a total of 132,056 shares, representing 0.001% of Alibaba's issued shares[52] - Ali Fortune holds 6,502,723,993 shares, representing 55.71% of the total issued shares as of September 30, 2019[56] - Maxprofit Global Inc. has a beneficial ownership of 2,006,250,000 shares, accounting for 17.19% of the total issued shares[56] - The company granted a total of 55,200,000 shares under the share incentive plan, which represents approximately 0.47% of the total issued share capital[62] Corporate Governance and Compliance - The company operates under the GEM listing rules and its shares are listed on the GEM of the Hong Kong Stock Exchange[71] - The company has adopted a share incentive plan on March 17, 2017, to motivate and retain key employees[71] - The company has not purchased, redeemed, or sold any of its listed securities during the nine-month period[63] - The deferred consideration for the acquisition of Score Value could amount to a maximum of HKD 300,000,000, contingent upon certain conditions being met[63] - The profit guarantee for Score Value's subsidiary is an average of RMB 20,000,000 per year for the fiscal years ending December 31, 2015, 2016, and 2017[63] - As of the report date, the gaming approval condition for Score Value has not been met, but the deadline for this condition has been extended to December 31, 2019[63] - The company has not granted any stock options during the nine-month period, with 200,000 stock options being forfeited[61]

Financial Performance - The group's revenue for the six months ended June 30, 2019, was approximately HKD 47,700,000, a decrease of about 22.7% compared to HKD 61,700,000 for the same period in 2018[4]. - The loss for the six months ended June 30, 2019, was approximately HKD 116,100,000, a significant decline from a profit of HKD 157,300,000 in the same period of 2018[4]. - The decrease in revenue was primarily due to a reduction in lottery hardware sales by approximately HKD 16,500,000, partially offset by an increase in revenue from lottery games and systems by approximately HKD 5,900,000[4]. - The company reported a total comprehensive loss of HKD 115,285 for the six months ended June 30, 2019, compared to a comprehensive income of HKD 146,936 for the same period in 2018[9]. - The company reported a basic loss per share of HKD 0.42 cents for the three months ended June 30, 2019, compared to a loss of HKD 0.12 cents for the same period in 2018[9]. - The basic loss per share for the six months ended June 30, 2019, was approximately HKD 0.0107, while for the same period in 2018, the profit per share was HKD 0.0142[29]. - For the three months ended June 30, 2019, the company reported a loss attributable to shareholders of approximately HKD 46,835,000, compared to a profit of HKD 12,826,000 for the same period in 2018[28]. Assets and Liabilities - The total assets as of June 30, 2019, amounted to HKD 3,627,562, a decrease from HKD 3,721,541 as of December 31, 2018[10]. - Total liabilities as of June 30, 2019, amounted to HKD 692,448,000, slightly up from HKD 688,810,000 in 2018, indicating a year-over-year increase of approximately 0.2%[12]. - Net assets decreased from HKD 3,032,731,000 in 2018 to HKD 2,935,114,000 in 2019, reflecting a decline of about 3.2%[13]. - Cash and bank balances as of June 30, 2019, were HKD 2,238,834, down from HKD 2,381,881 as of December 31, 2018[10]. - The company reported a total of HKD 11,798,000 in lease liabilities as of June 30, 2019, which was not present in the previous year[12]. - Deferred tax liabilities increased slightly from HKD 6,778,000 in 2018 to HKD 6,822,000 in 2019, indicating a marginal rise of about 0.6%[12]. - Warranty provisions decreased from HKD 29,132,000 in 2018 to HKD 28,102,000 in 2019, reflecting a reduction of approximately 3.5%[12]. Cash Flow - The net cash used in operating activities for the six months ended June 30, 2019, was HKD (154,192,000), which is a deterioration from HKD (124,944,000) in the same period of 2018[15]. - Cash generated from investing activities was HKD 28,143,000, a significant improvement compared to HKD (69,702,000) in the previous year[15]. - The company experienced a net cash decrease of HKD 136,857,000 for the six months ended June 30, 2019, compared to a larger decrease of HKD 206,057,000 in the same period of 2018[15]. - As of June 30, 2019, the group's cash net amount was approximately HKD 1,573.2 million, down from approximately HKD 1,714.2 million as of December 31, 2018[58]. Revenue Breakdown - Revenue from lottery hardware for the six months ended June 30, 2019, was HKD 19,064,000, down 46.5% from HKD 35,606,000 in the previous year[25]. - Revenue from lottery games and systems increased to HKD 18,754,000 for the six months ended June 30, 2019, compared to HKD 12,831,000 in the same period of 2018, representing a growth of 46.1%[25]. - For the six months ended June 30, 2019, total revenue was HKD 47,722,000, a decrease of 22.5% compared to HKD 61,657,000 for the same period in 2018[25]. - The company reported a total of HKD 27,557,000 in revenue for the three months ended June 30, 2019, down 37.4% from HKD 43,989,000 for the same period in 2018[25]. Corporate Governance and Management - The company has adopted the corporate governance code as per GEM listing rules, maintaining high standards of corporate governance[100]. - The chairman and CEO roles are combined, which the company believes allows for effective strategy formulation and execution[100]. - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting standards[99]. - The company has not disclosed any significant changes in shareholdings or interests among its directors and senior management as of June 30, 2019[92]. Strategic Initiatives - The company aims to expand its lottery services through partnerships with various lottery authorities, including the Guangdong Sports Lottery Center and the Tianjin Sports Lottery Center, focusing on digital management and marketing strategies[44]. - The company is collaborating with the China Welfare Lottery Issuing Administration Center to research and apply blockchain technology for electronic lottery drawing systems[45]. - The company is seeking overseas opportunities, particularly in markets like India and Southeast Asia, through strategic partnerships with local leaders[41]. - The company plans to continue developing a diversified gaming and entertainment platform, integrating unique social gaming and sports entertainment content[41]. Share Capital and Convertible Bonds - The company issued a total of 400,000,000 shares at a conversion price of HKD 0.2493 per share following the exercise of convertible bonds amounting to HKD 99,720,000[63]. - As of June 30, 2019, the total outstanding convertible bonds amounted to HKD 332,328,165, with a maximum potential conversion of 1,332,960,447 shares, representing approximately 11.83% of the issued share capital[65]. - The company is required to redeem the remaining convertible bonds totaling HKD 232,608,165 by the maturity date of August 10, 2019[63]. - The remaining net proceeds from subscription matters amount to approximately HKD 1,458,200,000, exceeding the redemption requirement for the convertible bonds[112].

Financial Performance - The group's revenue for the three months ended March 31, 2019, was approximately HKD 20,200,000, an increase of about 14.1% compared to HKD 17,700,000 for the same period in 2018[5]. - The loss for the three-month period was approximately HKD 71,000,000, a significant decline from a profit of approximately HKD 170,700,000 in the same period of 2018[5]. - Basic loss per share for the three-month period was HKD 0.65, compared to a profit of HKD 1.56 per share in the same period of 2018[10]. - The total comprehensive loss for the period was HKD 53,819,000, compared to a total comprehensive income of HKD 206,466,000 in the previous year[10]. - The diluted loss per share for the three-month period was approximately HKD 60,589,000, resulting in a diluted loss per share of about HKD 4.89, calculated based on an adjusted weighted average of approximately 12,375,701,000 shares[16]. - The company reported a comprehensive loss of approximately HKD 56,300,000 for the period[19]. Revenue Sources - Revenue from lottery hardware sales increased by approximately HKD 3,500,000, while revenue from lottery games and systems increased by approximately HKD 900,000[5]. - Revenue from lottery hardware was HKD 8,968,000, up from HKD 5,452,000 in 2018, while revenue from lottery distribution and supporting services decreased to HKD 3,424,000 from HKD 5,104,000[13]. - The increase in revenue was primarily due to a rise in lottery hardware sales by approximately HKD 3,500,000 and an increase in lottery games and systems revenue by about HKD 900,000, mainly from virtual sports lottery game sales[37]. Dividends - The company did not recommend the payment of an interim dividend for the three-month period[5]. - The board of directors did not recommend the payment of an interim dividend for the three-month period[17]. Strategic Focus - The company is focused on expanding its lottery, mobile gaming, and entertainment services in selected international markets, leveraging its affiliation with Alibaba Group and Ant Financial[20]. - The company aims to enhance its lottery products and services through innovation and marketing, while expanding the coverage of lottery products in China[21]. - The company will continue to develop a diversified gaming and entertainment platform, integrating unique social gaming and sports entertainment content[21]. - The company is committed to assisting lottery authorities in expanding their product offerings and promoting overall industry development[21]. - The group plans to enhance user experience by developing more features on its lottery resource channel launched on mobile Taobao and Alipay, which provides various lottery-related information[35]. - The group aims to leverage Alibaba Group's extensive offline retail network to integrate lottery products and services, enhancing digital management of lottery services across China[35]. - The group is collaborating with Gamepind to introduce more products tailored for the Indian market, including trivia and cricket-related content, to capitalize on the growing mobile entertainment market[36]. - The group expects to benefit from significant potential synergies through collaboration with Alibaba Group and Ant Financial in the lottery business[35]. Market Overview - The lottery market sales in China for the three-month period reached approximately RMB 106.3 billion, representing a year-on-year increase of about 2.1%[23]. - The sales of welfare lottery amounted to approximately RMB 49 billion, accounting for about 46.1% of total lottery sales, which is a decrease of approximately 6.1% compared to the same period in 2018[23]. - The sales of sports lottery were approximately RMB 57.2 billion, making up about 53.9% of total lottery sales, with a year-on-year increase of approximately 10.3%[23]. Technology and Innovation - The company has developed a virtual sports betting platform, AGT, which operates two virtual sports games, "Lucky Racing" and "E-Soccer," in China[29]. - The company has launched a dedicated lottery resource channel on mobile Taobao and Alipay, providing various lottery-related services and resources[27]. - The company has partnered with Guangdong Sports Lottery Center to apply its enterprise smart office service platform technology to meet digital management needs[26]. - The company is preparing for potential approval and authorization of online lottery product distribution, leveraging its technical expertise in the lottery sector[31]. Financial Management - The net proceeds from the subscription amounted to approximately HKD 2,380,000,000, with about HKD 1,579,700,000 remaining in the group's bank accounts as of March 31, 2019[38]. - The total net proceeds allocated for various purposes amounted to HKD 2,032,000,000, with actual usage of HKD 452,300,000 as of December 31, 2019[46]. - The company allocated HKD 746,000,000 for the development of Chinese chess and other gaming activities, with HKD 66,000,000 actually utilized[39]. - For lottery hardware and system development, HKD 200,000,000 was allocated, with HKD 96,000,000 utilized, representing approximately 48% of the allocated amount[41]. - The company plans to invest HKD 450,000,000 in potential acquisitions and projects in the gaming and entertainment sectors, with HKD 67,100,000 already utilized[44]. - A total of HKD 336,000,000 was allocated for general corporate purposes, with HKD 134,300,000 utilized, primarily for employee costs and administrative expenses[46]. Shareholder Information - As of March 31, 2019, the total number of issued shares was 11,272,342,235, with significant holdings by directors, including Sun Hao with 2,046,408,000 shares, representing 18.15%[50]. - Ali Fortune holds a beneficial interest in 7,435,684,440 shares, representing 65.96% of the total issued shares[59]. - Mr. Ma Yun holds a beneficial interest in 2,006,250,000 shares, which accounts for 17.80% of the total issued shares[59]. - The company has convertible bonds amounting to HKD 332,328,165, convertible into a maximum of 1,332,960,447 shares at an adjusted conversion price of HKD 0.2493 per share[60]. - The company has not reported any significant changes in the shareholdings of its directors in Alibaba Group, with negligible percentages held[56]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the three-month period[64]. - The company confirmed compliance with the GEM Listing Rules regarding securities trading by directors during the three-month period[65]. - The company has no other individuals holding interests in its shares or related securities that require disclosure under the Securities and Futures Ordinance[62]. - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[80].