AGTech gross profit up to 45% to HK$33.4mn

The company achieved a business turnaround with profit from business operation reaching HK$272,000.

AGTech Holdings Limited (“AGTech”), the largest professional services provider in China’s sports lottery market in terms of business scope and geographic coverage, announced its unaudited interim results for the six months ended 30 June 2011.

For the six months under review, the Group’s profit from business operation turned around with approximately HK$272,000 (1H2010: approximately HK$7.9 million loss). The Group’s revenue increased steadily by 9% to approximately HK$43.6 million (1H2010: approximately HK$40.0 million), according to a AGTech report.

Driven by improved profitability and efficiency, gross profit surged by 45% to approximately HK$33.4 million (1H2010: approximately HK$23.1 million), while gross profit margin significantly increased from 58% to 77%. Loss for the period was further narrowed from approximately HK$37.2 million last year to approximately HK$26.4 million.

Mr. John Sun, Chairman & CEO of AGTech, said, “We are excited about the progress the Group has made, especially with the public launch of the ‘Lucky Racing’ game during the period. We are also glad to see AGTech maintain its growth momentum spurred by the rapid growth of the lottery market in China with lottery sales exceeding RMB100 billion in the first half of 2011. With sports betting continuing to be the key growth focus, coupled with the introduction of new rapid-draw lottery games, and the opening up of online and phone lottery distribution and the promulgation of the first lottery regulations, China’s sports lottery industry is entering a new era. With advanced products and a technological advantage, we are well prepared to capitalise on this thriving trend.”