AGTech Announces Interim Results For the Six Months Ended June 30, 2018

HONG KONG, Aug. 10, 2018 /PRNewswire/ -- AGTech Holdings Limited ("AGTech" or the "Company", HKEX stock code:08279), the leading integrated lottery, games and entertainment technology company in China, today announced the interim results for the six months ended June 30, 2018.

"We are pleased to announce that AGTech delivered a 14% increase in revenue in the first six months of 2018 compared to the same period last year. In the first half of the year, the Group continued to actively establish and strengthen our industry leading position in the existing and potential lottery and game & entertainment areas, and demonstrate the Group's sustainable competitiveness," said John Sun, Chairman and Chief Executive Officer of AGTech.

"In the first half of 2018, the Group has won ten lottery hardware tenders, and we have nearly half of China Sports Lottery's lottery hardware terminal market share nationwide, reaffirming our industry leading position and continued commitment in China's lottery hardware market. The Group's Lottery Hardware division continues to focus on research and development in order to broaden and improve its product spectrum and develop new hardware ranges. Looking forward, the Group will continue to pursue tenders to supply to the lottery hardware market as opportunities to bid for new contracts arise throughout the year."

"Following the success of the Sports Lottery marketing campaign in the first half of 2018, the Group announced comprehensive strategic cooperation framework agreements with Guangdong and Jiangsu SLACs successively by leveraging Alibaba Group and Ant Financial Group's vast resources, covering a wide range of lottery related initiatives including business innovation, channel expansion, smart hardware terminal, technology and data service, marketing and promotion. The Group believes this cooperation will effectively attract a new breed of customers to experience lottery, and improve the consumption pattern and experience of China Sports Lottery products as a whole. "

"During the Six-Month Period, the Group successfully launched its dedicated lottery resources channel on mobile Taobao and mobile Alipay. Through this channel, we hope to continue growing our online presence, and maximizing the value of our business partnership with Alibaba Group and Ant Financial Group, in anticipation of the potential approval and authorization of online distribution of lottery products in the future."

"In the game & entertainment business, the Group plans to attract local and potential mind sports players by organizing global and regional online/offline competitions and tournaments in cooperation with International Mind Sports Association (IMSA) and Federation of Card Games (FCG), then to increase the awareness and popularity of mind sports in China."

"In addition, Livecast!, our unique sporting-events based social product was launched in June for the 2018 World Cup, aiming to capitalize on the growing trends in the sports entertainment sector. Looking forward, we will continue to leverage this innovative entertainment offering with additional partners globally, and continue to capture the popularity of future sporting events, including football, basketball and cricket, etc."

"With respect to our international business, the Group's joint venture with One97 Communications Limited successfully launched Gamepind in January 2018, an innovative mobile platform offering a host of popular and exciting social and casual games, accessible through Paytm's app by its approximately 300 million and growing customers, as well as through its own standalone app and mobile website. The Group will continue to work with Paytm to add more Indian-tailored games and entertainment offerings across various game categories, and pave the way to monetize this unique platform, thus capitalizing on the significant potential of the fast growing mobile entertainment market in India. "

"Outside India, the Group will continue to seek strong suitable partners in selected international markets to leverage our platforms of games and entertainment offerings and various user engagement activities, as well as technical and operation abilities, to further globalize our business."

FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 JUNE 2018

• Total revenue of the Group for the Six-Month Period amounted to approximately HK$61.7 million, representing an increase of approximately 14.0% over the corresponding period in 2017. Revenue contributions were mainly derived from lottery hardware, lottery games and systems, provision of distribution and ancillary services, games and entertainment business.
• The Group's lottery business has achieved significant growth: (1) the lottery hardware achieved an increase of approximately 43.5% in revenue compared to the corresponding period in 2017; (2) the lottery games and systems achieved an increase of approximately 40.8% in revenue compared to the corresponding period in 2017; and (3) the provision of distribution and ancillary services achieved an increase of approximately 190.1% in revenue compared to the corresponding period in 2017. Such increase was partially offset by a decrease in revenue of approximately 74.8% from games and entertainment .
• The profit for the Six-Month Period was approximately HK$157.3 million (2017: loss of approximately HK$ 437.1 million). The change from loss to profit for the Six-Month Period was mainly attributable to several non-cash and non-operating items related to the Convertible Bonds and contingent consideration payables under the Score Value Transaction.
• During the Six-Month Period, employee benefits expenses were approximately HK$131.5 million (2017: approximately HK$111.9 million). The increase was mainly due to the continued recruitment of staff across the Group to enhance its technical capability to cope with the business growth and expansion.

Note: For complete information, please refer to the company's Interim Results Announcement For The Six Months Ended 30 June 2018 available on the Hong Kong Stock Exchange website at http://www.hkexnews.hk/listedco/listconews/GEM/2018/0810/GLN20180810273.pdf

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About AGTech Holdings Limited

AGTech was incorporated in Bermuda and its shares are listed on the GEM (Stock Code: 08279). AGTech is an integrated technology and services company engaged in the lottery and mobile games and entertainment market with a focus on China and selected international markets. A member of the Alibaba Group with around 400 employees, AGTech is the exclusive lottery platform of Alibaba Group and Ant Financial Group.

AGTech's businesses are broadly divided into two categories:

• Lottery (including hardware, games and systems,  provision of distribution and ancillary services); and
• Games and Entertainment.

AGTech is a Gold Contributor of the World Lottery Association (WLA), an associate member of the Asia Pacific Lottery Association (APLA), and an official partner of the International Mind Sports Association (IMSA).

For more information, please visit www.agtech.com