China Vanguard acquires interest in tech firm

Monday 29th of June 2015

China_Welfare_Lottery_sign_outside_a_convenience_store_in_Shanghai_0

China Vanguard Group Limited announced that it has entered into agreement to acquire equity interest in Caimi (Beijing) Science and Technology Co., Ltd. for RMB13 million ($2 million), representing 51 percent of the enlarged share capital of Caimi.

CVG said Caimi’s services, which includes data marketing, data analytics, software and application development and consultation services, will complement CVG’s core business in lottery-related operations.

“Caimi will, through its proven expertise in mobile applications development and application-based data marketing for lottery operations, actualize the Group’s offline-to-online strategies for Sports and Welfare lottery operations in the future, should it become accessible within the regulatory and legal framework in the People’s Republic of China.”

As China’s Internet penetration rate continues to grow, industry research indicates that over half of the Chinese population is expected to become internet users in 2015 with a significant portion expected to access the Internet through mobile phones, the company said.

“Hence the Board is of the view that Internet Lottery will be a key industry trend within the realms of the regulatory framework. The existing customer base from Sports and Welfare lottery distribution channels will serve as a strong base and prime potential clients for enriched services provided through mobile applications, as part of the Group’s vision to build a comprehensive, end-to-end lottery solution.”

The company said it is not engaged in Internet lottery operations at present and does not plan to do so until it is provided for within the regulatory and legal framework in China.