AGTech halves losses in H1 as revenue increases

HK$39.7m of the revenue total came from the supply of lottery hardware, compared to HK$8.7m from non-lottery hardware. Lottery distribution and ancillary services generated HK$19.4m, games and entertainment products raised HK$10.1m. HK$17.8m came from other sources.

HK$68.7m of the revenue came from the mainland People’s Republic of China, while the remaining HK$9.2m was raised in Hong Kong.

AGTech’s operating losses for the year have dropped significantly, falling 47.9% to HK$55.0m. The company was able to cut employee expenses by 17.4% to HK$74.9m. Inventory purchasing costs were HK$28.2m. Depreciation expenses came to HK$10.4m, while other expenses – including marketing costs, research and development, and administration – amounted to HK$38.8m.

After accounting for HK$1.9m worth of income tax, net losses for the period came to HK$43.7m – down from HK$109.7m in 2020.

A statement from AGTech said: “AGTech is committed to evolving its business into a comprehensive lottery, mobile games and entertainment content and technology provider to customers around the world.

“Furthermore, the group will continue to develop differentiated games and entertainment platforms with the goal of integrating unique social games and sports entertainment content, ultimately to create an innovative business model to increase the group’s commercial value.

“Looking forward, AGTech will continue to pursue overseas opportunities and globalize our business through offering our proprietary systems and platforms, as well as operational and technical expertise, in addition to seeking strategic partnership with local partners in Asia.”