GGRAsia – China Vanguard posts US$2.5 mln annual profit

China Vanguard posts US$2.5 mln annual profit

Oct 02, 2015 Newsdesk Industry Talk, Latest News

China lottery equipment and services supplier China Vanguard Group Ltd posted a net profit of HKD19.1 million (US$2.5 million) in the fiscal year ended June 30, up by 28 percent from the prior-year period. The company recorded revenue of HKD123.7 million for the period, an increase of 29 percent from the previous fiscal year.

The lottery-related business “was the major contributor of the profit for the year,” China Vanguard said in a filing to the Hong Kong Stock Exchange on September 30.

China Vanguard’s operating costs – including selling and distribution costs and administrative expenses – increased by 38 percent year-on-year to HKD95 million.

The firm said it has continued to expand its foothold in mainland China’s lottery market “by adding more new contracts for lottery operations to our portfolio”. “These additional contracts have allowed us to expand our reach into 21 municipals and provinces [in mainland China],” China Vanguard said.

The board did not recommend the payment of any dividend for the year ended June 30, 2015. That was consistent with the policy in the prior-year period.

In the latest filing, China Vanguard said that it continues to transform “traditional stores into VIP lounges that would cater to changes in customer behaviour”.

“While that is an on-going process, this year an additional key direction is to offer value-added services to lottery store owners,” the firm said.

Mainland China’s lottery sales grew to approximately RMB187.68 billion (US$30.7 billion) in the first half of 2015, up 5.2 percent year-on-year, show data released by the country’s Ministry of Finance.