• Lottery-related businessIn response to the adjustments to the...

• Lottery-related business
In response to the adjustments to the state policies in lottery-related business in 2012, the
partners of VODone adjusted the management structure of the lottery-related business by
adopting the principles of autonomous operation, and independent and professional approach
of operations. Vigorous and proactive efforts were made to mitigate the adverse impact and
pressure of the changes in the policies on the lottery-related business, thereby restoring
a steady growth of operating revenue. On 1 January 2013, the Ministry of Finance of the
People’
s Republic of China promulgated a new policy to officially include internet sales
as a legitimate channel for lottery sales and distribution, thus presenting immense business
opportunities for the lottery-related business of the partners of VODone. The partners of
VODone are currently making active endeavours to comply with the regulatory adjustments
and attain necessary qualifications for the lottery-related business and striving to become
anchor enterprises in China’
s internet lottery sales.
Zhongguozucaiwang(?????)(www.zgzcw.com)
Since the end of 2011, Zhongguozucaiwang has been continuously enhancing and enriching
its content by adding more experts’ predictions and analyses, which were highly regarded and
well received by users, which took Zhongguozucaiwang’
s scope of professional service to a
new level. Moreover, pre-games information was updated on a daily basis to provide more
precise and relevant reference for soccer games betting, which were highly popular among
sports fans. A good variety of original contents had helped characterize our website and
enabled us to stay ahead among the competitive websites in the sector.27
To boost lottery sales volume and enhance users’ cohesion and degree of activeness, we
continued develop and enhance the website’
s products. These efforts started with the
development of “
The Fight of Hundred Regiments(”??????)(group lottery) project.
Since the launch of group lottery, users have taken greater initiatives towards “combination of
lottery placements and greater sum of lottery placements(”????,????)(i.e. collective
group purchase of a series of lotteries), which drew the attention of more sports fans. In
addition, with the launch of a new version of “
The Forecasts from All Directions(”???
???), further improvement and enhancement were achieved by the inclusion of match
details such as match schedules and player lineup, featuring an easy browsing of all important
information including soccer team information and league match information by sports fans.
As such, the needs of users have been better catered for, whereas users’ experiences and the
chance of lottery winning have been enhanced. In addition, following the introduction of
the new version of “
Guess Forum(??????), the number of average daily postings has
increased to 5,000. The forum created an open platform for sports fans to chat and exchange
their ideas freely.
In 2012, Zhongguozucaiwang had established collaboration with more than 30 media
including Sohu(??), Beijing Evening News(????), China Sports Lottery News(?
????), NetEase(??), Sina(??), Hexun(??), Beijing Youth Daily(???
??), China News Service(???), People’
s Daily(????)and The Beijing News
(???)for the exchange and sharing of articles, laying a solid foundation for the promotion
and page viewing volume of the website. During the European Cup, the cooperation with
PPTV brought the daily page viewing volume to nearly 100,000. There was a steady growth in
both monthly page viewing volume and sales volume, and the results in the second half of the
year were particularly remarkable.
Zhongguozucaiwang has been committed to launching promotion activities to boost sales
volume and number of users. On average, two activities were launched each month. Of which
the “
Award of Extra 50 for Each Winning of Lottery Money of 400, with No Cap(”???
?400?50????)was in particular attracted to soccer fans. Activities like “
Shengfucai
and Renxuanjiu, with Prizes for Unsuccessful Betting(”??????????????),
“
Guess PK Game(”???PK??)and “
Lottery Match(”??????)were highly popular
with soccer fans. These promotional activities substantially uplifted the active participation of
sports fans.28
Diyicai(???)(www.diyicai.com)
Diyicai is a paperless platform that comprehensively covers the country’
s mainstream welfare
lottery tickets. Enriched information and contents are embodied in the website through
continuous improvement and introduction of new technologies. In order to promote wider
use of Diyicai among lottery players, Shuangseqiu Dingtou(?????), Shuangseqiu
Dedicated Page, NBA Topics Page, Digital Lottery Topics Page and European Cup Topics
Page have been launched, thereby providing convenient and diversified betting options for
lottery players.
In 2012, Diyicai reached a cooperation agreement with China National Broadcasting Network
(?????????)(
“
CNBN”). In addition, we worked with Talkweb Information
System(??????)to introduce SMS betting system in Heilongjiang. Also, we
partnered with a number of websites including hao123, Taobao(??), Etao(??), ku6
(???), 139 Community(139??), PaiGou(??)and Quanmama(???)in respect
of the marketing of lottery money coupons. Lottery money coupons were given as present
through collaborative platforms. This had greatly enhanced the page viewing volume of the
website. Moreover, there was an addition of 430,000 new registered users, among them,
200,000 new users were active users.
Lottery 365(??365)
A brand new milestone product “
Lottery 365” was officially launched in 2012. It is a mobile
application which is the first of its kind that integrates weibo interactivity, live match
broadcasting, sports events betting, lottery sales and experts’ analyses.
Lottery 365 entered into a cooperation agreement with TCL Mobile Payment Platform. In
June 2012, Lottery 365 was officially launched for the first time on China Telecom’
s E surfing
platform(????)covering 60 million 3G phone users of China Telecom. Since its launch,
Lottery 365 had been immediately recommended by dozens of applications stores, including
Apple iOS App Store, “
91 Shoujizhushou(”
91????), Android market, GoMarket(?
???), aMarket(????), E surfing, Baidu App Engine(????), waptw.com
(UC??), Tencent App Center(?????)and Sohu App Center(??????)
and soon become highly popular amongst lottery players and soccer fans. When searching
“?? (lottery)” on Apple iOS App Store, Lottery 365 appears in a top-rank position, and
has attained a top 10 ranking among free applications for a number of times. Lottery 365 is
also at the forefront of the “lottery” category among Android platforms and major mobile
applications market in China.29
From the initial launch of Lottery 365 to 31 December 2012, the number of users
downloading Lottery 365 had exceeded 4.5 million. Lottery 365 has now become the mobile
lottery-buying application with the highest downloading volume and the largest number of
active users in China.
Lottery 365 had already received positive feedbacks from millions of users since its roll out
for only six months, and won increasing recognition and applause from industry experts
and the media. In 2012, we were granted a number of honours, including the “
2012 Product
Innovation Award(?2012????????)” from the China Institute of Communications
of the Ministry of Communications, the “
Editor’
s Recommendation Award for Other
Applications for Mobile Phone In China(”?????????????????)in the
selection activities of “
The Event of M-World Top App” (?91????????2012??
??)organized by SJ.91.com(91????), the “
2012 Excellent Mobile Application Award
(?2012??????????)” at the Mobile Internet Annual Meeting hosted by the Global
Mobile Internet Union, as well as the “Internet Top 10 Service Innovation Award in PRC in
2012(?2012?????????????)” from the Internet Society of China.
Lottery 365 features the following eight innovative functions:
1. Live scores: Synchronization of live scores with betting on match results and the
provision of goals score alerts in a prompt manner enable users to keep closely abreast
of the development of matches.
2. Live broadcasting of matches: Live broadcasting is provided for focused sport events
such as the European Cup/Olympic Games/European Championship.
3. Notification of lottery results: Synchronization of lottery results notification with that
of the China Welfare Lottery Center and Sports Lottery Administration Center enables
users to have immediate access to lottery results.
4. “
The Forecasts from All Directions”: It releases trend analyses on Shuangseqiu and
predictions on football lottery exclusively by renowned media specialists.
5. Weibo interactivity: It provides lottery players with an interactive platform that enables
lottery players everywhere to share information among themselves. The platform is the
most active lottery weibo community for lottery players in China.
6. Joint lottery-buying in voice form: Voice elements are added by introducing “
365 Good
Voice(”?365????), which makes suggestions on joint lottery-buying proposals in
voice mode to users of Lottery 365.30
7. Lucky number selection: Users may randomly select their lucky numbers by “
Shaking
Mobile Phones(”?????). Users may also select their lucky numbers with a unique
shaking function named “
A Blow(”?????), which is based on the calculation of
their constellation, date of birth or name.
8. Lottery betting: It covers the nation’
s mainstream welfare lotteries and sports lotteries
such as Shuangseqiu, Daletou(???), Selection of 5 out of 11(11?5), Fucai
3D(??3D), Shengfucai(???), Basketball Lottery(????)and Football
Lottery(????). It also provides trend analyses on numbers, past track records of
soccer teams and live betting proportion for users’ reference.
Intra-site services
Our lottery-related business has proactively upgraded a number of services, including a series
of new features such as website bets, intra-site messaging and personal secretary, which
has greatly enhanced the speed of response of the website services. The optimization and
improvement of the customer service, SMS support, channel and agency departments had
facilitated user enquiry, data compilation and company promotion, thereby improving the
efficiency of interaction between users and the website.
To benefit from celebrity effect, the Group cemented respective partnerships with Huang
Jianxiang(???), a celebrated sports commentator in China and the Chief Marketing
Officer of Diyicai of VODone, and Zhou Liang(??), a popular football commentator in
China. Accordingly, Jianxiang Bet Club(????)and Zhou Liang Bet Club(????)
had been set up and attracted many sports supporters and fans, adding fresh impetus to drive
for sales growth.
Targeting on the recharge users of the website, we have put into place a half-year user
loyalty reinforcement plan. Through the Group’
s business partnership, marketing efforts and
improvement in customer services, we have reactivated nearly 100,000 idle users and regained
nearly 20,000 active users.
These business partnerships and marketing efforts have further promoted the popularity
of Zhongguozucaiwang, Diyicai and Lottery 365 and laid a solid foundation for future
development. this was in the vodone 2012 annual results 27 mar 2013