Core Viewpoint - Tianyin Communication Holdings Co., Ltd. plans to issue A-shares to specific investors, which may dilute immediate returns for existing shareholders, but the company has committed to measures to compensate for this dilution [1][4][6]. Group 1: Impact Analysis of Share Issuance - The total amount to be raised from the issuance is 1,708 million yuan [1]. - The analysis of the impact on key financial indicators is based on three scenarios: net profit remaining flat, increasing by 10%, and decreasing by 10% compared to 2024 [1][2][3]. - In the scenario where net profit remains flat, the diluted earnings per share (EPS) would be 0.03 yuan, while the basic EPS would also be 0.03 yuan [2][3]. - In the scenario of a 10% increase in net profit, the diluted EPS would be 0.03 yuan, and the basic EPS would be 0.03 yuan [3]. - In the scenario of a 10% decrease in net profit, the diluted EPS would drop to 0.02 yuan, and the basic EPS would also be 0.02 yuan [3]. Group 2: Necessity and Reasonableness of the Issuance - The issuance is deemed necessary to support projects closely related to the company's main business, including marketing network construction and digital platform development [4][6]. - The projects are expected to enhance the company's market competitiveness and align with its strategic development goals [6][7]. Group 3: Measures to Mitigate Dilution Risk - The company plans to strengthen the management of raised funds to ensure they are used effectively and in compliance with regulations [5][7]. - It aims to ensure the timely progress of investment projects to maximize the efficiency of fund usage and achieve expected benefits quickly [7][8]. - The company will adhere to a strict cash dividend policy to enhance investor return mechanisms [8]. Group 4: Commitments from Management - The company's directors and senior management have committed to fulfilling their responsibilities diligently and protecting the interests of all shareholders [6][9]. - The controlling shareholder has also pledged not to interfere with the company's management and to protect its interests [6][9].

Company Overview - Telling Telecommunication Holding Co., Ltd. is planning to issue A-shares to specific investors, with a total fundraising target of up to 170,800 million yuan [24][30] - The company is controlled by Shenzhen Investment Holdings Co., Ltd., which holds 19.03% of the shares and has a voting power of 28.83% [19][25] Fundraising Purpose - The funds raised will be used for marketing network construction, digital platform development, and continuous research and development in the lottery business, supporting the company's "One Network, One Platform" strategy and "1+N" industry layout [16][18] - The total investment amount for the projects is 220,638.50 million yuan, with 170,800 million yuan allocated from the raised funds [24] Market Context - The Chinese consumer market is experiencing growth, with per capita disposable income reaching 39,218 yuan in 2023, a 6.3% increase year-on-year [10] - The mobile phone market is recovering, with a projected 3.14 billion units sold in 2024, a growth of 8.7% from the previous year [11][12] Industry Trends - The lottery industry is also on the rise, with total sales expected to reach 6,234.86 billion yuan in 2024, reflecting a 7.5% year-on-year growth [13][14] - The development of digital technologies such as 5G and AI is crucial for enhancing productivity and efficiency across various sectors, including telecommunications [11][18] Regulatory Compliance - The issuance plan has been approved by multiple board meetings and requires further approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission [26][30] - The company will adhere to all legal and regulatory requirements regarding related party transactions during the issuance process [25][30]

Group 1 - The Central Committee and State Council issued an opinion on improving the modern enterprise system with the goal of establishing a system suitable for China's national conditions within about five years [1][2] - The opinion emphasizes strengthening the service guarantee system for private enterprises, removing market access barriers, and protecting the legal rights of private enterprises and entrepreneurs [2] - The Ministry of Finance reported that in April, national lottery sales reached 57.745 billion yuan, a year-on-year increase of 4.1%, continuing a stable growth trend [3] Group 2 - The Central Huijin Investment Company held a meeting to summarize its party building and operational management for 2024, emphasizing the integration of party leadership into corporate governance and enhancing the management of state-owned financial capital [4] - The market regulatory authority revised the "Quality Supervision and Management Measures for Fiber Products," prohibiting the use of reprocessed fibers in products for infants and young children [4] - Meituan announced a revenue of 86.557 billion yuan for the first quarter, a year-on-year increase of 18.1%, with adjusted net profit rising by 46.2% [5]

Core Insights - The Ministry of Finance reported that in April 2025, the total lottery sales in the country reached 57.745 billion yuan, an increase of 2.288 billion yuan year-on-year, representing a growth of 4.1% [1] Lottery Sales Breakdown - Welfare lottery sales amounted to 19.175 billion yuan, with a year-on-year increase of 411 million yuan, reflecting a growth of 2.2% [1] - Sports lottery sales totaled 38.57 billion yuan, showing a year-on-year increase of 1.877 billion yuan, which is a growth of 5.1% [1] Cumulative Sales Data - From January to April, total lottery sales reached 206.336 billion yuan, an increase of 1.413 billion yuan year-on-year, indicating a growth of 0.7% [1] - Welfare lottery sales for the same period were 70.451 billion yuan, with a year-on-year increase of 489 million yuan, also reflecting a growth of 0.7% [1] - Sports lottery sales during this period amounted to 135.885 billion yuan, with a year-on-year increase of 924 million yuan, maintaining a growth of 0.7% [1]

Core Viewpoint - The Beijing Sports Lottery Center has acknowledged issues with the timely delivery and supply of instant lottery tickets, primarily due to increased workloads and special circumstances affecting distribution [2][3]. Group 1: Supply Issues - There are reports of shortages of instant lottery tickets in Beijing, with some stores stating that "Top Scratch" tickets have not been restocked for a month, while "Scratch and Win" tickets from the welfare lottery are still available weekly [2]. - The supply of instant lottery tickets is prioritized for the Sports Lottery Experience Centers, which receive a monthly quota of 300,000 yuan, compared to traditional stores that only receive a basic guarantee of 48,000 to 60,000 yuan per month [2]. Group 2: Response Measures - The Beijing Sports Lottery Center plans to enhance supply capabilities and operational efficiency through increased ordering and delivery frequency, as well as optimizing the workflow of dedicated personnel [3]. - Regular checks will be conducted to ensure the timely and stable delivery of instant lottery tickets while managing multiple operational tasks [3]. Group 3: Market Performance - National lottery sales data for January to March 2025 indicates a total sales figure of 148.591 billion yuan, reflecting a year-on-year decrease of 0.6 million yuan [3]. - Instant lottery sales specifically amounted to 33.482 billion yuan, showing a significant decline of 14.1% year-on-year, equating to a drop of 5.493 billion yuan [3].

对此，北京体彩中心回应称，下一步将通过追加订货频次、增加配送频次和优化专管员工作流程三项措 施，提高供给力和综合工作效率。后续，北京市体彩中心将定期检查即开型彩票订购和配送执行情况， 优化专管员工作流程，在保障多项工作有序开展的同时，确保即开型彩票配送的及时性与稳定性。 5月18日，记者就近咨询一家彩票店，该店销售人员对记者表示，体彩即开型彩票最近均为一个月配送 一次，通常两周左右就会卖完。 北京体彩中心还表示， 2025 年1至4月，北京市即开型彩票的供应暂采取与市场需求匹配的方式/专管员 每周通过微信群或电话方式，告知实体店代销者本周配送计划，如每天配送的片区及每个片区配送的时 间和次数等。 4月25日，财政部公布了2025年3月份全国彩票销售情况。数据显示，1—3月累计，全国共销售彩票 1485.91亿元，同比减少8.75亿元，下降0.6%。其中，即开型彩票销售334.82亿元，同比减少54.93亿 元，下降14.1%。 5月18日，北京市体彩中心方面对经济观察报表示，北京存在少量配送不及时或即开票供应数量不足的 现象，一般是因为遇到特殊情况，例如2025年3月至4月，专管员工作量较大，涉及多项巡检及代 ...

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $583 million, down from $661 million in the prior year, primarily due to lower jackpot activity and associated LMA impacts [25][30] - Adjusted EBITDA for the quarter was $250 million, with a margin of 43%, despite the challenges faced [7][24] - Cash conversion ratio was 67%, consistent with the previous fiscal years, generating $168 million in cash from operations [29][30] Business Line Data and Key Metrics Changes - Instant ticket and draw games accounted for about 95% of annual wager-based revenue and nearly 80% of total revenue, with same-store sales rising nearly 1.5% globally [6][10] - iLottery sales increased by 26%, driven by successful game launches in states like Georgia and Kentucky [12][20] - In Italy, normalized same-store sales growth was 2%, with strong performance from Scratch and Win and Lotto games [8][10] Market Data and Key Metrics Changes - U.S. sales were stable, with large jurisdictions like California and Florida experiencing growth due to new game launches [10][11] - The company noted that the macroeconomic environment is uncertain, but lottery sales in the U.S. and Italy have historically shown resilience during recessions [20][21] - The Rest of World segment contributed under 15% of total revenue but showed positive growth driven by strong EuroMillions jackpots [66] Company Strategy and Development Direction - The company is focused on product innovation, including the recent shift of Mega Millions to a $5 price point, which is expected to enhance sales [13][51] - Strategic initiatives include expanding retail touchpoints and optimizing the point of sales network, with investments in self-service lottery vending machines and in-lane purchasing solutions [14][16] - The company is transitioning to a cloud-based iLottery platform to improve player experience and scalability [18][84] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment and its potential impact on consumer spending, while remaining optimistic about long-term growth prospects [20][30] - The company expects full-year 2025 revenue of approximately $2.55 billion and adjusted EBITDA of $1.1 billion at the low end of the outlook range [30][31] - Management anticipates a normalization of jackpot activity in the second half of the year, which should positively impact profit margins [28][42] Other Important Information - The Italian Lotto license process is underway, with economic proposals to be opened on May 19, which is a significant milestone for the company [21][72] - The company successfully issued a new €1 billion term loan to enhance liquidity ahead of the Lotto license award [29][30] - The gaming and digital assets sale is on track to close in Q3, which will further strengthen the company's financial position [22][30] Q&A Session Summary Question: Can you elaborate on the guidance revision and its relation to the macro environment? - Management indicated that the macro environment is fluid, with stability in core player demand, but volatility primarily associated with jackpot performance and related LMA impacts [36][37] Question: What is the impact of the Mega Millions $5 shift? - Management is optimistic about the potential impact of the price increase, noting that historical price changes have led to increased sales volume [51][52] Question: What is the status of the Texas Lottery renewal process? - The legislative session in Texas is ongoing, with clarity expected after June 2, and the procurement process is still proceeding [55][56] Question: Can you provide insights on the Italian market growth? - Growth in the Italian market is attributed to ongoing innovation in lottery products, with a combination of new product launches and volume growth contributing to the increase [88][89] Question: How does the company plan to manage its financial position amid increasing debt? - Management noted that half of the recent debt increase was due to foreign currency translation, and they expect to maintain positive cash flow despite heavy CapEx [83][84]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $250 million with a margin of 43% for Q1 2025, down from $661 million in the prior year due to lower jackpot activity and associated impacts [21][22] - Revenue for Q1 2025 was $583 million, a decrease from $661 million in the previous year, primarily due to the absence of large jackpots [22][24] - Cash generation from continuing operations was strong, with a cash conversion ratio of 67%, delivering $168 million in cash from operations and free cash flow of $92 million [25] Business Line Data and Key Metrics Changes - Instant ticket and draw games accounted for about 95% of annual wager-based revenue and nearly 80% of total revenue, with normalized same-store sales rising nearly 1.5% in the quarter [5][6] - iLottery sales increased by 26%, driven by successful game launches in states like Georgia and Kentucky [9][10] - In Italy, same-store sales growth was 2%, with notable increases in Scratch and Win and Lotto games [6][11] Market Data and Key Metrics Changes - U.S. sales were stable, with large jurisdictions like California and Florida experiencing growth due to new game launches [8][9] - The company noted that the macroeconomic environment is fluid, with ongoing tariff discussions and consumer spending uncertainty impacting projections [32][39] - The Italian market showed resilience, with growth in lottery products alongside sports betting and iCasino [80] Company Strategy and Development Direction - The company is focusing on product innovation, including the recent shift of Mega Millions to a $5 price point, which is expected to enhance sales and player engagement [11][48] - Expansion of retail touchpoints and optimization of the point-of-sale network are key initiatives, including the rollout of self-service lottery vending machines and in-lane purchasing solutions [12][13] - The company is transitioning to a cloud-based solution for iLottery platforms to improve player experience and scalability [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the business despite current macroeconomic challenges, noting historical resilience of lottery sales during recessions [17][18] - The company anticipates a normalization of jackpot activity and expects improved profit margins in the future [25][39] - The upcoming award of the Italy Lotto license is seen as a significant catalyst for growth [19][86] Other Important Information - The company successfully issued a new €1 billion term loan to enhance liquidity ahead of the Italy Lotto award [25] - Net debt rose to $5 billion, with a pro forma net debt leverage of 2.8 times, in line with targets [26] - The company expects full-year 2025 revenue of approximately $2.55 billion and adjusted EBITDA of $1.1 billion at the low end of the outlook range [26] Q&A Session Summary Question: Guidance revision and macro environment impact - Management indicated that the guidance revision was influenced by lower jackpot activity and macroeconomic uncertainty, with expectations for growth in the second half of the year [29][39] Question: Mega Millions $5 shift and player resistance - Management remains optimistic about the $5 Mega Millions price point, noting that the transition was smooth and enhancements are expected to attract players [48][50] Question: Texas Lottery renewal process - The legislative session in Texas is ongoing, with clarity expected after June 2 regarding the future of the Texas Lottery [52][53] Question: Margin expectations and cost impacts - Management confirmed that margins are expected to improve in the second half of the year as jackpot activity normalizes [58][62] Question: Italian market growth and cannibalization concerns - Growth in the Italian market is attributed to ongoing innovation in lottery products, with no significant cannibalization observed between verticals [80][81]

Group 1 - The National Market Supervision Administration launched a unified platform for credit repair, facilitating efficient credit restoration for business entities [1] - The platform allows for "one-stop access" and cross-regional credit repair, enabling businesses to query and apply for credit repair services easily [1] - The platform aims to reduce the burden on businesses by allowing data to be processed more efficiently [1] Group 2 - The National Market Supervision Administration issued a trial guideline for the discretionary power of administrative penalties related to business concentration violations [2] - The guideline clarifies the basis and standards for penalties, aiming to protect the legitimate rights of businesses and enhance compliance awareness [2] - It promotes a comprehensive regulatory approach to business concentration, contributing to a market-oriented and law-based business environment [2] Group 3 - The Ministry of Natural Resources announced the selection of national-level green mines, emphasizing sustainable mining practices [3] - The selection will focus on independent mining enterprises that meet specific ecological and management criteria [3] - The Ministry prohibits third-party assessment agencies from charging fees to mining companies, ensuring fair evaluation processes [3] Group 4 - The National Medical Insurance Administration encourages drug manufacturers to upload traceability information to a unified platform [4] - Over 350 pharmaceutical companies have connected to the platform, enhancing supply chain management through traceability [4] - The platform provides free services for querying traceability information, benefiting the entire pharmaceutical supply chain [4] Group 5 - The Ministry of Commerce reported a stable development trend in the consumer market, supported by ongoing consumption expansion policies [5] - In the first two months of the year, retail sales reached 8.37 trillion yuan, a year-on-year increase of 4.0%, with a notable acceleration compared to the previous year [5][6] - The growth in retail sales was driven by positive performance across various product categories, particularly in the catering sector [6] Group 6 - In February, national lottery sales reached 41.855 billion yuan, marking a year-on-year increase of 15.3% due to a low base from the previous year [8] - Welfare lottery sales increased by 17.4%, while sports lottery sales grew by 14.2% [8] - Cumulatively, lottery sales for January and February totaled 90.374 billion yuan, reflecting a year-on-year decline of 3.7% [8] Group 7 - The National Energy Administration responded to public concerns regarding the price discrepancies in electric vehicle charging stations [9] - The competitive market structure allows for variations in charging fees based on location and operational costs [9] - The administration will monitor charging service prices to ensure fair practices and maintain market order [9]

Core Viewpoint - The article emphasizes that claims of AI predicting lottery numbers are fraudulent and urges lottery players to remain vigilant against such scams [1][2]. Summary by Sections AI Prediction Scam - The Chinese Welfare Lottery warns that recent scams involve individuals claiming to use AI to predict winning lottery numbers, enticing players to pay for these "prediction services" [1]. - The lottery organization asserts that lottery games, such as the Double Color Ball, involve a vast number of possible combinations (over 17.72 million) and that each combination has an equal chance of winning [1]. Nature of Lottery Draws - Each lottery draw is an independent random event, meaning past results do not influence future outcomes [1]. - The article explains that even if AI analyzes historical data, it cannot predict future lottery numbers due to the inherent randomness of each draw [1]. Public Awareness and Caution - The Chinese Welfare Lottery encourages players to maintain a rational mindset and be aware of the psychological manipulation used by scammers [2]. - It highlights the importance of enhancing fraud awareness and the ability to identify various scams to protect personal finances [2]. Comparison with Other Lottery Organizations - In February, the China Sports Lottery also issued a statement debunking the notion that AI can predict winning numbers, reinforcing that both AI-generated and randomly selected numbers have the same probability of winning [2].