AGTech’s Hardware division primarily supplies both Sports Lottery and Welfare Lottery, and has lottery hardware deployed in multiple provinces, cities, municipalities and autonomous region across China. The Group is one of the leading manufacturers and suppliers in China of traditional lottery terminals, and paper scratch card sales hardware (instant ticket verification terminals, “IVT(s)”). The Group’s Hardware division continues to focus on research and development in order to broaden and improve its product spectrum and develop new hardware ranges.
In 2019, the Group won 12 lottery hardware tenders, accounting for over 32% of the overall sports lottery terminal tenders in China during the same period, calculated by the number of terminals. We did especially well in new android sports lottery terminal tenders in China, winning over 43% of such tenders during the same period, calculated by the number of terminals. These winnings further strengthened the Group’s top-tier position in China’s lottery hardware market and demonstrated the continued competitiveness of the Group’s lottery terminals. Looking forward, the Group will continue to pursue tenders to supply to the lottery hardware market as opportunities to bid for new contracts arise throughout the year.
Alibaba Group’s new retail initiatives present a great opportunity for the further development of the Group’s hardware business. Many of the hardware supplies required under such new retail initiatives share similar technology and components that underlie the lottery hardware products supplied by the Group throughout the years. We believe our Hardware division continues to be well positioned to take advantage of such opportunities in the foreseeable future.