China LotSynergy : • Established Strategic Cooperation with E-Capital

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(Stock Code: 1371)

Established Strategic Cooperation with E-Capital

The Board is pleased to announce that the Group has successfully entered into a cooperation agreement with E-Capital. The two will initiate in-depth strategic cooperation in the fields of lottery and financial securities, joint exploration of business scopes and applications as well as opening up new form of lottery sales.

The board of Directors (the "Board") of China LotSynergy Holdings Limited (the "Company", together with its subsidiaries, the "Group") is pleased to announce that it has successfully entered into a cooperation agreement with E-Capital Transfer Co., Ltd. (證通股份有限公司) ("E-Capital"). The two will initiate in-depth strategic cooperation in the fields of lottery and financial securities, joint exploration of business scopes and applications as well as opening up new form of lottery sales.

The Group and E-Capital join forces to develop a new cross-industry cooperation model between lottery and securities sectors through sharing of resources and competitive strengths, providing lottery services to a board range of securities users nationwide, offering the lottery industry a convenient and secure designated payment service, coupled with authoritative credit reporting system, and also value added services such as e-coupons, vouchers and reward scheme etc. to lottery players.

E-Capital is an integrated financial services provider, which was established by a number of Chinese securities firms, internet enterprises and financial institutions by a way of marketization, offering integrated financial solutions to securities bodies with a focus primarily on an array of financial institutions and internet companies.

The rise of electronic payments in recent years has attributed to the bottleneck for traditional lottery sales growth. Lottery authorities proposed new initiatives of "adhere to reform and innovation, facilitate distribution channels development, bring forth new ideas in sale methods, and use new technology to foster the lottery business development". The Group actively responded to the lottery authorities, in collaboration with buoyant sectors of business, services, financial and retail, by exploration of new channels and opening up of new sales approaches, in adjunction to empowerment of the existing bricks-and-mortar stores through new applications of electronic payments and others, in order to revive those stores and better serve lottery players.

As a front runner in the lottery market, the Group is actively carrying out cross-industry cooperation and tapping the lottery market potential in fields of anew retail, securities, and services etc. in response to the prevalent industry situation and development. "New Retail" will become a major growth driver of lottery industry and play a positive role in promoting the healthy development of Chinese lottery market.

By order of the Board

China LotSynergy Holdings Limited

CHAN Tan Na, Donna Chairperson of the Board

Hong Kong, 5 February, 2018

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

* For identification purposes only