AGTech net profit increases 18.8 percent in 2016

Hong Kong-listed AGTech Holdings Limited recorded profit attributable to owners of the company of approximately HK$333 million (US$42.9 million) for the year ended December 31, 2016, up from HK$280.2 million in 2015.

The company posted approximately HK$251.5 million in the full year 2016, down around 16.6 percent from HK$301.6 million recorded in 2015.

Most of the revenue was derived from lottery games and systems, hardware, distribution and ancillary services in the PRC, said the company in its filing.

”The decrease in revenue was mainly due to the reduced sales of lottery hardware products during the year,” it added.

Last year, the company became the exclusive lottery business platform of Alibaba Group and Ant Financial Group.

“We believe that the transaction enhances our ability to develop and expand our existing business and we expect that both our physical and remote lottery and other game business will benefit from significant potential synergies resulting from the cooperation with Alibaba Group and Ant Financial Group,” said the group in its annual results.

“Detailed work is currently taking place to identify the short, medium and long-term opportunities available to the parties in order to fully capture the potential synergies,” it continued.