China’s Huiyin continues lottery expansion with Anhui province deal22nd August 2014 7:42 am GMT
Chinese electronics distributor Huiyin Household Appliance continues to expand its operations into the Chinese lottery sector following a sales agreement with the Anhui Provincial Welfare Lottery Issuing Centre.
Through its subsidiary Jiangsu Huiyin Lottery Network Technology, the deal will see company authorised to sell welfare lottery products as an agent through its sales channel which includes self-operated shops, franchised shops and other distribution networks totally approximately 686 points of sales in Anhui Province.
Huiyin will receive a sales commission, while Anhui Provincial Welfare Lottery Issuing Centre will provide sales terminal equipment.
It is the latest deal in the lottery sector by the Chinese electronics distributor after it entered into an agreement with the Jiangsu Provincial Sport Lottery Administration Centre earlier this year.
Huiyin is principally engaged in the retail and bulk distribution sale of household appliances in China, which helped the company generate revenue of RMB1,538.3m (€188.1m) for the first half of 2014, an increase of 17 per cent versus the previous year. Profit for the period amounted to RMB41.3m compared to a loss of RMB104.0m a year ago.
As well as its recent entry into the Chinese lottery market, the company has also targeted the mobile telecommunications re-sale business, leveraging on the group’s established channel of retail sales and experience on sales of mobile phones.
“The group will engage in household appliances, mobile telecommunication re-sale and lottery sales business to seek strong growth drivers,” said the company in its interim results for H1. “Through these strategies, the directors believe that the group can achieve sustainable business expansion and fully improve its operational efficiency and profitability, thus creating better returns for its shareholders and investors.”
As at June 30th the company held cash and cash equivalents of RMB58.5m, compared to RMB152.2m last year.
Shares in Huiyin Household Appliance Limited (HKG:1280) soared by 15.48 per cent to $0.47 per share in Hong Kong earlier today following the release of its first half results.