LotSynergy revenue falls in first half of 2021 though profits rise

Sales from lottery terminals and related equipment amounted to HK$19.2m, up from HK$3.5m in 2020.

Food sales contributed HK$2.2m, and the provision of technical and maintenance services raised HK$13.5m. Revenue from contracts with customers came to HK$34.9m, while income from operating leases totaled HK5.9m.

In addition to HK$89.6m worth of general and administrative expenses, operating losses for the company were HK$56.4m. Finance costs also came to HK$25.3m.

After accounting for HK$2.7m of income tax credit, losses for the period were HK$78.9m – up from HK$75.2m in 2020.

Gross profit for the company came to HK$19.8m, up 55.9% from last year. Other income increased significantly, rising from HK$1.8m in 2020 to HK$17.3m this year.

“In the first half of 2021, the group has vigorously expanded the ecotourism business, actively promoted the transformation of the Group’s business to ecotourism, and took a series of actions to lay a solid foundation for the future development,” China LotSynergy explained.

The company also acknowledged the impact of the novel coronavirus (Covid-19), as the consolidation of the lottery side of the business was in response to ongoing developments with the pandemic.

“The group adheres to its diversified development strategy and expands new businesses in line with the national development strategy,” it continued.

“The group has gradually established a development layout at domestic and international levels by making great efforts to open up international markets over the past years.”