500.com 15Q2 net revenues nil as net losses grow

500. com announced that its 15Q2 net revenues were nil, compared with RMB98.8 million ($15.9 million) in 15Q1, and RMB156.1 million in 14Q2.

The company’s operating loss was RMB96.4 million, compared with an operating profit of RMB59.5 million in the same period in 2014, while its net loss grew to RMB81.4 million from a year-on-year net profit of RMB75.4 million in 14Q2.

Zhengming Pan, 500. com CEO, said the temporary suspension of online lottery sales operations in response to the promulgation of the Self-Inspection Notice by the Chinese government has “materially and adversely impacted our results of operations and financial conditions of the second quarter of 2015.” 

“We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center.” 

On June 9, 2015, the company entered into a purchase agreement with Tsinghua Unigroup for the sale of more than 63 million newly issued ordinary shares in the company.