Trading Update

7 April 2015  

DJI Holdings plc

Trading update

Further to the announcement from DJI Holdings plc (AIM:DJI, "the Company", "DJI") dated 10 March 2015 regarding the Chinese government's Notice on "Issues Related to Self-Inspection and Self-Remedy of Unauthorised Online Lottery Sales", the Company welcomes the Public Announcement of 3 April 2015 by eight government authorities in China outlining their commitment to promoting legal and licensed participants in the lottery industryand the importance of an integral online element.

While the temporary suspension of online lottery sales that followed March's government Notice has not yet been lifted, the Public Announcement is the first step in the process towards better regulation and the elimination of a large number of unauthorised operators undermining the integrity of the market. While no firm timeline has been provided as to when online sales will resume and a protracted suspension could have a materially adverse effect on 2015 earnings, the Company continues to sell welfare and sports lottery tickets through mobile channels and land-based outlets. At present, we remain confident that 2015 results are not impacted and we are hopeful that trading will resume in the near future. 

The Board of DJI believes that the Company will benefit significantly from the positive long-term effects of robust regulation on the industry and that, together with other previously authorised operators, it will be well positioned in the new regime. The Company continues to engage actively with all relevant authorities and will provide a further update when additional information is available.

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Note 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