HONG KONG SAR - EQS Newswire - 5 February 2024 - After the market closed on February 2, 2024, AGTech Holdings Limited (08279.HK, hereinafter referred to as "AGTech") announced a positive profit forecast for the twelve months ended December 31, 2023 ("2023 Second Interim"). The forecast indicates that AGTech will record a profit of no less than HK$22 million for the period, as compared to a loss of HK$131 million in the FY2022. The substantial increase in revenue and profit in the 2023 Second Interim for AGTech, with a revenue increase of no less than HK$237 million, is primarily due to the full consolidation of the financial statements of Macau Pass Group into AGTech's financial statements for 2023 compared to the FY2022, contributing a revenue increase of about HK$106 million. Additionally, in Macau, the electronic payment, lifestyle services, and gaming and entertainment businesses benefited from the increase in tourists in Macau in 2023 and the Macau SAR government's decision not to extend the exemption of transaction service fees for small and medium-sized enterprises from the end of February 2023, resulting in a year-on-year increase in revenue of no less than HK$68 million. Moreover, the steady growth of lottery hardware sales and lottery distribution businesses contributed to a year-on-year increase in revenue of no less than HK$60 million. Overall, with the strong support of the electronic payment, lifestyle services, and gaming and entertainment businesses in Macau, coupled with the stable growth of the lottery businesses, the company is being driven to develop a diversified pattern of electronic payments, lottery, lifestyle services, gaming and entertainment, marketing technology services, and e-commerce. For AGTech, which was selected at the end of November 2023 to be included in the MSCI Global Micro Cap Index and is gradually becoming more well-known in the international capital market, this holds significant real-world and long-term strategic value. Next, it would be worth conducting a detailed analysis of the above two main business sectors to further explore the commercial value and development prospects of AGTech's business. 1. Electronic Payment Business: Strong Growth, Expanding Coverage, and Potential Sustained Benefits from Policy Support Based on the Third Quarterly report published by AGTech in November 2023, AGTech's electronic payment business, operated through Macau Pass, has significantly surpassed its lottery business in terms of proportion. The electronic payment business revenue has become a critical support and primary value driver for the continued growth of AGTech, achieved in just one and a half years. In my view, this rapid growth can be attributed to two main reasons: Firstly, Macau Pass is accelerating strategic cooperation with Alibaba Group and Ant Group, who support AGTech, in e-commerce and digital media entertainment, gradually realizing cross-synergistic effects at the business and market levels. As a leading mobile payment electronic wallet in Macau, Macau Pass' MPay Macau Wallet and Alipay+ launched a comprehensive innovative cross-border digital solution in 2023, striving to create a smart wallet for Macau residents for global travel, addressing overseas payment pain points, enhancing payment experiences, and facilitating global travel and safe consumption for Macau residents. In February 2023, the company signed strategic cooperation agreements with Galaxy Entertainment, Damai, and Alibaba Pictures. Leveraging Macau Pass' electronic payment convenience and inclusive development, the company aims more users through Galaxy Entertainment's infrastructure resources, Damai's online ticketing platform, and Alibaba Pictures' full-industry chain entertainment platform. This move not only builds a larger user base for Macau Pass but also creates favorable conditions for the long-term development of its fee-based payment field. B2B cooperation doesn't stop there. In May 2023, Macau Pass and Samsung Electronics Hong Kong Company Limited signed a memorandum of understanding for cooperation. Both parties agreed to use their respective resources, advantages, and experiences to cooperate in fields like electronic finance, e-commerce, marketing, development of a smart city and Internet of Things. They aim to achieve comprehensive interaction in digital finance, promote the construction of a smart city in Macau, provide high-quality products or services to users, and promote the development of the Hong Kong and Macau markets. In November 2023, Macau Pass made a brilliant appearance at Macau's first Asia Performance Entertainment Industry Expo. Centered in Macau, it gathered the strength of the cultural tourism and performance entertainment industry from across the Asia-Pacific, achieving high-quality integrated development of culture and tourism. The event empowered the sustainable development of the Asia-Pacific performance entertainment industry, promoting excellent...