AGTech Holdings subsidiary Beijing GOT Technology has entered into an agreement with its parent company Alibaba Group to supply equipment including point-of-sale (POS) terminals and facial recognition payment equipment.
According to the agreement, AGTech may provide equipment and maintenance services to Alibaba through open bidding and commercial negotiations.
Such equipment include, but not limited to, POS terminals and face recognition payment equipment, which may be applied to offline retail sales and lottery sales.
Alibaba Group’s new retail initiatives, said AGTech, present a “great opportunity for the further development of the Group’s lottery hardware business”.
It added: “New retail represents the convergence of online and offline retail by leveraging digitalised operating systems, in-store technology, supply chain systems, consumer insights and the mobile ecosystem to provide a seamless shopping experience for consumers.
“In particular, new retail initiatives require the supply of an enormous amount of hardware supplies, such as POS terminals, and payment and settlement devices. Many of these hardware supplies share similar designs, technologies and components that underlie the lottery hardware products supplied by the Group throughout the years.”
The Group has been collaborating with Alibaba Group’s retail ecosystem including Lingshoutong to enhance lottery distribution models. Through Alibaba Group’s physical new retail distribution channel and networks, supplying the relevant hardware products can bring lottery opportunities and resources to more customers.
Lottery hardware business has become a critical component of the AGTech Group’s business. It supplies the Sports Lottery and the Welfare Lottery and has lottery hardware deployed in multiple provinces, cities and municipalities across the PRC.
In 2018, the Group won 19 lottery hardware tenders, accounting for over 41% of the overall Sports Lottery terminal tenders in the PRC as calculated by the number of terminals tendered. The Group did especially well with new Android sports lottery terminals tenders, winning over 67% of such tenders.