29th Sep 2014 09:40
LONDON (Alliance News) - DJI Holdings PLC said Monday that it has been awarded a contract to supply Xinhuacai Technology Company with a technology platform and a comprehensive range of mobile lottery games and lottery services.
Xinhuacai is a subsidiary of Xinhuatong Software Development (Beijing) Company, a subsidiary of Xinhua News Agency, the official Chinese Government news and media authority. Xinhuacai has the stated objective to become a leading provider and distributor of lottery products in China.
Xinhuacai intends to provide a wide variety of new lottery products and games for both the Welfare and Sports Lotteries to be distributed through numerous sales channels.
DJI Holdings, which provides lottery services in the Chinese lotteries market, listed on AIM in July, as part of its plans to drive growth and capture market share in the expanding mobile lottery sales market.
"We believe that our technology platform, marketing expertise and tailored lottery games for both Welfare and Sports lotteries, along with Xinhua's position in China, will provide an ideal platform to capitalise on the rapidly expanding market for mobile lottery sales," said DJI Group Chief Executive Darren Mercer.
No financial terms of the deal were disclosed.
Last week the AIM-listed company said sales in the second quarter surged, driving overall growth in first-half revenue and its gross profit, helping the company to narrow its first-half pretax loss.
DJI reported a pretax loss of GBP2.6 million for the six months to June 30, compared with a GBP3.6 million loss in the first-half of last year. Revenue in the period increased to GBP3.4 million, up from only GBP517,710 in the first-half of 2013, driven by a strong second quarter, which contributed GBP2.7 million to first-half revenue.
Its gross profit for the first-half was GBP2.1 million, compared with only GBP462,349 a year earlier.
"Our progress in the first half of 2014 affirms the Board's expectations for the full year. We look forward with considerable confidence to continued success in the second half of this year," the company said in a statement last week.
Shares in DJI Holdings were Monday trading 5.52% higher at 141.93 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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