DJI targets secondary listing on NASDAQ

21 October 2015

DJI Holdings plc 

("DJI" or the "Company")

DJI targets secondary listing on NASDAQ exchange

DJI Holdings plc (AIM: DJI, "the Group", "DJI"), a licensed promoter and distributor of Chinese sports and welfare lottery products to third party retailers and direct to consumers, is pleased to announce its decision to obtain a secondary listing of its shares on the NASDAQ Exchange in the United States.

The Board of DJI believes that a NASDAQ listing, and the enhanced market liquidity that it would bring, will assist the Group in developing a stronger institutional shareholder base. This is a benefit already enjoyed by DJI's sector peers on major international exchanges and one that the Board expects to be of great value to the Group.

A formal evaluation process for a secondary listing was announced and commenced by DJI in December 2014, with investor discussions held in both Hong Kong and the US. Encouraged by the Group's successful diversification outside lottery sales, exploiting the strengths of its technology platform to generate significant complementary revenues, supported by deep and long-standing relationships in China with Government agencies and key channel partners, the Board believes that the NASDAQ exchange is best suited to recognise the positioning of the business in the technology sector and afford DJI an appropriate market valuation.

The timing of this decision is, DJI believes, reinforced by the Chinese State Council's Public Announcement of 14 October regarding faster approval and administrative processes for operators, while allowing provincial lottery centres more flexibility in increasing pay-outs for their own games. This is the first major policy change for China's lottery industry since online sales were suspended in March and DJI views it as significant progress towards the announcement of new regulation and the recommencement of sales. The Group therefore believes it is appropriate to conclude the secondary listing process in readiness for the new regulatory landscape.

It is hoped that since DJI expects to join NASDAQ as a Foreign Private Issuer, it should be possible to complete the secondary listing process during Q1 2016. Advisers have commenced work and the Board will keep shareholders fully appraised of progress.

Commenting on this development, Chief Executive Darren Mercer said:

"The Board outlined at the end of 2014 that it wished to seek a secondary listing on a more liquid exchange and we believe that this process would have already been concluded had it not been for the temporary suspension of the sale of online lottery products in China. Now, with the first steps towards regulatory change already taken, DJI is progressing a secondary listing in order to focus fully in 2016 on the opportunities that we expect the new lottery landscape to present.

While lottery sales continue to be a key part of the Group, the recent exciting developments in our business underline the diverse application of our technology across numerous sectors. Our new Joint Venture with the Heilongjiang Sports Bureau is already being promoted through three of China's largest websites, while discussions are taking place with a number of other provinces in connection with the use of our strong online and mobile platform to undertake other non-lottery business streams. With this in mind, the Board believes that NASDAQ, as the world's leading stock exchange for technology companies, is the most appropriate through which to recognise the true value of DJI."

ENDS

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Notes to Editors

DJI's strategy is to capitalise on the rapidly expanding Chinese lottery market and the opportunity to deliver lottery ticket fulfilment sales to its substantial client base of large Chinese corporations (B2B) and individual consumers via the Group's owned and operated websites (B2C), within the online and mobile environment.

Through the Group's long-standing relationships with the Chinese regulators, portfolio of lottery contracts and reliable technology platform, the Group is well positioned to capture the market opportunity.

The principal activities of the Group are the development, promotion and distribution of authorised lottery products in China. DJI's subsidiaries are licensed and/or contractually authorised to distribute and promote Sports and Welfare lottery products online, via mobile and through physical retail outlets across China.

The Group has a differentiated approach to the Chinese lottery market in that DJI operates throughout the promotion and distribution value chain. The Group offers:

· front-end lottery ticket sales via websites owned and operated by the Group, third party websites, mobile applications and physical retail outlets

· back-office lottery ticket fulfilment services to large online and offline lottery partners

Beyond the Group's lottery activities, DJI has a joint venture with the Heilongjiang Provincial Sports Bureau (HSB) to provide support services to all of HSB's commercial activities. These include football and winter sports in the province, including China's largest ski resort, Yabuli.

The HSB joint venture includes, for the first time in a Chinese province, a Business-to-Business (B2B) online booking system for sports, based on DJI's technology. The JV has agreed terms with three of China's largest online portals to sell and promote this B2B system from 1 November 2015.