The Beijing GOT Technology subsidiary of AGTech Holdings has signed 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, through open bidding and trade negotiations, AGTech may provide Alibaba with equipment and maintenance services.
These equipment includes, but not limited to, POS terminals and facial recognition payment systems that can be used for off-line retail and lottery transactions.
The new retail initiatives of the Alibaba Group, AGTech said, offer a “great opportunity for the further development 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 worked with the retail ecosystem of Alibaba Group including Lingshoutong to improve models of lottery distribution. Providing the relevant hardware products can bring lottery opportunities and resources to more customers through the physical new retail distribution channel and networks of Alibaba Group.
The lottery hardware business has become a critical component of the business of the AGTech Group. It supplies the Sports Lottery and the Welfare Lottery, and lottery hardware is deployed across the PRC in multiple provinces, cities, and municipalities.
The Group won 19 lottery hardware tenders in 2018, representing over 41 percent of the PRC’s total Sports Lottery terminal tenders as calculated by the number of tendered terminals. The Group has done extremely well with new contracts for Mobile sports lottery terminals, winning over 67 percent of such tenders.