Our Lottery Platform
We are a leading provider of lottery development and distribution services with strong presence in the entire value chain of the lottery market in China. Our lottery business can be broadly divided into System and Games Development Business ("SGDB") and Distribution and Marketing Business ("DMB").
System and Games Development
Our SGDB is an active participant in the provision of system and equipments for both Computer Ticket Games ("CTG") and scratch cards products in China.
We participate in the Welfare CTG business in China through Shenzhen Sinodata Technology Co Ltd (“Sinodata”). Sinodata is the leading lottery system and specialized equipment supplier for Welfare Lottery in China with coverage of 17 provinces and has a long and proven track record of success in the field of lottery system and games development.
We involve in the validation and printing business of Welfare Scratch Cards in China. The Group has jointly controlled interests, through Beijing Guard Libang Technology Co Ltd ("Guard Libang"), in Welfare Scratch Cards validation services. Guard Libang is a 50:50 joint venture with Scientific Games Corporation ("Scientific Games"), the world's leading instant ticket system and games provider. Our strategic partnership with Scientific Games enables us to bring its expertise and technology know-how to the scratch cards market in China.
Through a cooperative venture with Shijiazhuang Offset Printing House, one of the three entities authorized to print for the Welfare Scratch Cards programs, the Group has involved in Welfare Scratch Cards printing business.
Our SGDB is also one of the qualified Sport CTG terminal suppliers in China and we have introduced CTG terminals with high price/performance ratio and advanced functionality to support the development of Sports CTG market serving both traditional CTG segment and Single Match Games ("SMG") market.
Distribution and Marketing Business
We have developed a strong market presence in the distribution channels of lottery tickets and products by establishing both a physical distribution network consisting of cooperative point-of-sale, franchise stores and electronic platforms comprising mobile platform and internet operations. We pledged to provide reliable, efficient and innovative lottery services to address the needs of lottery end consumers in China and assist lottery authorities to promote and develop the China Lottery market in sustainable manner.
We have expanded our physical distribution network with a widely diversified and recognized sales network located in selected prime locations in China under our Cooperation Distribution Business. We cooperate with selective distribution channel partners who have already established a widely diversified and recognized retail network throughout the country to distribute scratch card products of China Welfare Lottery and China Sports Lottery.
We have been making good progress in our drive to strengthen our presence in the paperless and electronic lottery distribution channels. On the back of our online lottery portal and physical distribution network, we are now one of the largest players in the SMG market. We conduct our SMG business through franchised SMG shops across 7 key provinces in China together with our strong presence in the electronic platform.
We believe that electronic lottery distribution channels such as mobile phone and internet channels are essential to the sustainable development of lottery market in China. Being a pioneer in this area, our DMB has been well positioned to benefit from the growth of these channels.
On the mobile front, our traditional mobile lottery business provides subscribers with the latest lottery information and allows them to purchase lottery tickets through SMS text messaging. Since the successful commercial launch of our Mobile Electronic Lottery Platform ("Mobile ELP") for Welfare Lottery in 2012, our Mobile ELP is making lottery more accessible to various types of lottery customers through the customer interface available on different mobile phone platforms.