500.com more than doubles 2014 net revenue

Lottery company 500. com posted an increase in its yearly net revenue, rising to RMB579.7 ($93.4 million) million in 2014 from RMB259.5 in the 12 months of 2013, according to the company’s annual filing.

The company’s operating profit last year rose to RMB149.5 million from 59.9 in 2013, while net income went from RMB106 million in 2103 to RMB157 million in 2014.

Despite the company’s positive performance last year it says that since April it has not been generating any revenue due to a decision in March by the government for all provincial sports lottery administration centers, to which the company provides sport lottery sales services, to temporarily suspend accepting online purchase orders for lottery products while an inspection into unauthorized dealers gets underway.

“We have temporarily suspended all of our online lottery sales operations since April 4, 2015, and currently we are not generating any revenue. There is no clear indication how long the temporary suspension will last.”

The company conceded that the company is exposed to certain risks and that the company’s growth may not return to previous levels.

“In particular, our net revenues in 2012 were RMB171.5 million, a 26.2% decrease as compared to 2011, and we recorded net income of RMB4.2 million in 2012, as compared to RMB13.6 million in 2011 primarily due to the adverse impact of voluntary suspension.

“ We cannot assure you that our users’ purchasing activities for sports lottery products will return to previous levels and continue to grow at a comparable pace as compared to that of the period prior to the voluntary suspension.”

 

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