Sino Strategic International Ltd., which said it has divested its other operations to focus on retail lottery sales in Shanghai, hailed successful cost reductions. The Australian-listed company said that sales have been stable at its 30 sales outlets. It said it had temporarily lost control over the business but had regained control through legal action.
More cost reduction is expected to continue throughout the third quarter in China, “to achieve even leaner operations and improve the profitability of the business”. The company said it cut overheads already by 70 percent after it “successfully outsourced its Australian and Hong Kong corporate office to professional accounting firms”.
The company said that it had finally completed its 2010 financial reports and was working to finalize its 2011 reports “as soon as possible” and was in talks with creditors to whom it owes more than $3 million to convert debt into equity. While the company is seeking to cut costs, it is also considering expansion opportunities in lottery retail and other business areas.