Concerns arise as 500.com reports consecutive quarter with no revenues & earnings

500Investor concerns continue to mount for troubled New York listed Chinese lottery operator 500.com, following the announcement of a further quarter with no revenues and earnings for Q3 2015.

The Shenzhen based lottery operator posted its second earnings results, since the temporary sales suspension of provincial lottery services by China’s Ministry of Finance, which was imposed in February.

Due to having no active sales channels, 500.com governance would report an operating loss of RMB 79 million ($ 12.5 million), compared to the RMB 40 million profit posted in Q3 2014.

At present China’s Ministry of Finance has yet to indicate whether it will reinstate 500.com provincial lottery sales provisions.

Since its October 2013 IPO, 500.com has met a turbulent existence. The operator has faced charges of inadequate accounting procedures (September 2014), trading of director shares under pseudonyms (November 2014) and numerous investor lawsuits regarding misrepresentation of its IPO filing (March 2015).

In May 500.com founder Man San Law stepped down as CEO following a dismal Q1 2015 opening. In June Zhengming Pan would be confirmed as new CEO, with the company further announcing that it had gained $120 million in investment from Tsinghua Unigroup International for a 15.2 stake.  

At present 500.com reports that it has RMB 650 million ($120) in cash reserves.

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