AGTech Holdings, a supplier of sports lottery services in China, has released its interim results for the six months ended 30 June 2017.
Turnover for the group is down to HK$54.1m, as compared to HK$76.6m for the corresponding period in 2016, mainly due to fewer sales of lottery hardware, such as terminals, in the region in this period. However, during the past six months, the group has created HK$17.1m turnover from new initiatives launched in the games and entertainment business, which partially offset the decrease in revenue from sales of lottery hardware.
In addition, the gross profit margin increased significantly from approximately 29.7 per cent in the six months ended 30 June 2016 to approximately 59.8 per cent mainly attributable to increased sales with a higher margin from games and systems. Expenses across the group did increase however, due to the employment of additional staff contributing to an overall loss over six months of HK$437.1m, which can also be attributed to the recalculation of the value of convertible bonds and the increase in finance costs.
