Microsoft Word - Eng - Announcement.docx

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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(Stock Code: 1371)

UPDATE ON THE LATEST DEVELOPMENT OF VIDEO LOTTERY BUSINESS

Reference is made to the announcements (the "Announcements") published by China LotSynergy Holdings Limited (the "Company") dated 7 June 2015 and 17 June 2015. Unless the context otherwise requires, terms used in this announcement shall have the same meanings as those defined in the Announcements.
The Board wishes to state that the ownership and disposal rights of all 40,000 plus units of currently operating VLT terminals belong to the Company's subsidiary, Dongguan Tianyi Electronics Company Limited. As at the date of this announcement, the Group has not received any notification from China Welfare Lottery Centre regarding a suspension of

"中福在線/VLT" sales after the expiry of the Supply Contract on 28 June 2015. To sustain

the healthy development of "中福在線/VLT", the Board has decided to maintain the VLT
terminals provided by the Group in fully operational condition for China Welfare Lottery
Centre's continued use after the expiry of the Supply Contract.
The Group is currently consulting with China Welfare Lottery Centre on interim arrangements after the expiry of the Supply Contract on 28 June 2015 and before the finalization of the new supply contract (the "New Contract"). As at the date of this announcement, the interim arrangements are under discussion and have not been finalized.
The "中福在線/VLT" business is an important source of revenue for the Company. The Company expects that there will be a material impact on its financial position if the Group is unable to obtain the New Contract. The Company has a strong cash position, and other business segments are well managed and generating stable cash flow.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

By order of the Board

China LotSynergy Holdings Limited LAU Ting

Chairperson of the Board

Hong Kong, 26 June 2015

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As at the date of this announcement, the Board comprises Ms. LAU Ting, Mr. WU Jingwei, Ms. CHAN Tan Na, Donna and Mr. LI Zi Kui as Executive Directors; Mr. HOONG Cheong Thard as a Non-Executive Director; and Mr. HUANG Shenglan, Mr. CHAN Ming Fai and Mr. CUI Shuming as Independent Non-Executive Directors.

* For identification purposes only

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