China lottery services specialist China Vanguard Group Ltd on Tuesday announced it entered into a cooperation agreement with the Shenzhen Sports Lottery Administration Centre for the provision of several services.
The deal was signed earlier this month via a wholly owned subsidiary of the company, China Vanguard said in a filing to the Hong Kong Stock Exchange.
Pursuant to the cooperation agreement, China Vanguard has been authorised to install LED panels and operate advertising services in lottery stores in Shenzhen under the Shenzhen Sports Lottery Administration Centre. The firm will also provide electronic coupon distribution and physical lottery ticket redemption services in those stores – as part of its strategy, it plans to make use of WeChat, a text and voice mobile phone messaging application very popular in mainland China.
The LED display panels will feature lottery-related information from the Shenzhen Sports Lottery Administration Centre; a portion of the screen time will be allocated for revenue generating advertising, China Vanguard stated in Tuesday’s filing.
“The interactive marketing services will contribute to the group’s revenue through revenue share from advertising screen time on the LED display panels and share of marketing service revenue from third-party social media engagement,” the firm said.
No further financial details of the deal with the Shenzhen Sports Lottery Administration Centre were disclosed.
China Vanguard announced earlier this month it recorded an unaudited HKD25.85 million (US$3.3 million) loss for the six months to December 31.
Mainland China’s total sales of official lottery products fell by 3.8 percent in 2015, to RMB367.9 billion (US$55.9 billion), according to data from the country’s Ministry of Finance.
China Vanguard said in its financial results filing earlier this month that it had successfully secured lottery-related operating agreements in 21 Chinese provinces and regions as at the financial year-end 2015, “accessing 65 percent of the People’s Republic of China’s population”.
Oct 15, 2021A Macau court was told on Friday that a US$12-billion claim against United States-based casino group Las Vegas Sands Corp (LVS) and some of its units, over alleged help securing its Macau gaming...
Oct 15, 2021
Oct 15, 2021
"The Macau recovery continues to be disrupted by false starts, while the lack of [Chinese] public holidays for rest of the year should cap the pace of the rebound”
Andrew Lee and David Katz
Analysts at brokerage Jefferies LLC