We are a leading provider of lottery development and distribution services with strong presence in the entire value chain of the lottery market in China. Our lottery business can be broadly divided into System and Games Development Business ("SGDB") and Distribution and Marketing Business ("DMB").
System and Games Development
Our SGDB is an active participant in the provision of system and equipments for both Computer Ticket Games ("CTG") and scratch cards products in China.
We participate in the Welfare CTG business in China. In 2016, we announced a plan to realise one of its long-term investments in the traditional Welfare CTG market which covered business operations of the manufacturing and provision of Welfare CTG machines and supporting systems for the traditional lottery market and reposition our operations in this market segment. After the restructuring, we continue to engage in the non-traditional Welfare CTG business.
We involve in the validation and printing business of Welfare Scratch Cards in China. The Group has jointly controlled interests, through Beijing Guard Libang Technology Co Ltd ("Guard Libang"), in Welfare Scratch Cards validation services.
Through a cooperative venture with Shijiazhuang Offset Printing House, one of the three entities authorized to print for the Welfare Scratch Cards programs, the Group has participated in the design and printing of Welfare Scratch Cards.
Our SGDB is also one of the qualified Sport CTG terminal suppliers in China and we have introduced CTG terminals with high price/performance ratio and advanced functionality to support the development of Sports CTG market serving both traditional CTG segment and single match games market.
Distribution and Marketing Business
Our DMB is principally engaged in the distribution of lottery products which include CTG games, scratch card games, single match games, high frequency games and video lottery products. We pledged to provide reliable, efficient and innovative lottery services to address the needs of lottery end consumers in China and assist lottery authorities to promote and develop the Chinese lottery market in sustainable manner.
We develop and conduct our scratch cards distribution business through a widely diversified and recognized sales network located in selected prime locations in China.
We operate single match games business through physical distribution network. Single match games, which was launched in 2009 in China, has successfully evolved to be the single largest lottery product in the Chinese market and displayed its huge potential.
We believe that paperless electronic lottery distribution channels such as mobile phone and internet channels are essential to the sustainable development of lottery market in China. Being a pioneer in this area, our DMB has been well positioned to benefit from the growth of these channels.
We are honored to be chosen as one of the first companies to play an active role in supporting the launch of Sports Video lottery. Our franchised lottery outlet, located at the unique prime location to serve both domestic and in-bound tourists, benefits from the favorable development of this relative new lottery product.