500.com Limited (NYSE:WBAI)

SHENZHEN, China, Jan. 8, 2020 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that the The Multi Group ("TMG"), a Malta-based subsidiary of the Company, has temporarily suspended its operations in Sweden as TMG did not complete the eGaming license renewal before its expiration.

TMG is in close communication with Sweden's eGaming regulatory authority and expects to renew its license and resume operations in Sweden in mid-February 2020.

The Company expects that revenues from TMG during the first quarter of 2020 will be materially and adversely impacted by the temporary suspension of operations in Sweden. Revenue generated by TMG accounted for approximately 99.1% of the Company's total net revenues during the third quarter of 2019, of which approximately 61.3% was generated from Sweden.

Third Quarter 2019 Financial Results

• Net revenues were RMB9.8 million (US$1.4 million), compared with net revenue of RMB9.7 million for the second quarter of 2019, and net revenue of RMB30.1 million for the third quarter of 2018.
• Basic and diluted losses per ADS were RMB2.23 (US$0.31).
• Non-GAAP basic and diluted losses per ADS were RMB1.16 (US$0.16).

[1] Non-GAAP financial measures exclude the impact of share-based compensation expenses and impairment of goodwill. Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in the table at the end of this release.

Mr. Zhengming Pan, the CEO of 500.com, stated, "Since we voluntarily suspended our online lottery sales operations in April 2015, we have continued to engage in new and promising initiatives to increase our revenue base. For example, we acquired The Multi Group, or TMG, in July 2017, and revenue from TMG is a major component of our current revenue. In addition, in March 2018, we entered into a framework agreement with CSLA, pursuant to which we will cooperate with CSLA to develop physical channels to sell sports lottery tickets. In that regard, we have entered into framework agreements with Tianjin, Hunan and other provinces and cities in China to assist them in developing physical sales channels of sports lottery tickets. We also have started operations in Tianjin, Hunan, Hubei and Guangxi in China. We released the Blue Paper on Blockchain Technology for China's Lottery Industry in November 2019, which provides an in-depth study on the current state and needs of China's lottery industry and outlines plans to drive its sustainable development using blockchain technology."

The Blue Paper provides an in-depth study on the current state and needs of China's lottery industry and outlines plans to drive its sustainable development using blockchain technology. The Paper is primarily based on 500.com's wealth of experience and insights into the lottery industry gained over its many years of operations and leverages its recent research and exploration into the application of blockchain technology. Upon such technical strength, the team designed the framework of Chinese Lottery Chain (CLC), a blockchain solution specifically tailored to China's lottery industry. CLC was designed to be applied across the lottery industry where it will enhance lottery information management security, reduce operational costs and increase efficiency, strengthen the credibility of lottery results in China, and reduce lottery theft and fraud.

We will continue to look for additional opportunities to enhance value for our shareholders.

Business Outlook

The Company does not expect to issue any earnings forecast until it receives clear instructions as to the resumption date of online sports lottery sales from the Ministry of Finance.

SHENZHEN, China, Nov. 4, 2019 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today released its Blue Paper on Blockchain Technology for China's Lottery Industry (the "Paper").

The Paper, a first of its kind in the sector, provides an in-depth study on the current state and needs of China's lottery industry and outlines plans to drive its sustainable development using blockchain technology. The Paper is primarily based on 500.com's wealth of experience and insights into the lottery industry gained over its many years of operations and leverages its recent research and exploration into the application of blockchain technology.

As a leading player in online sports lottery service in China, 500.com assembled an independent research team in 2015 dedicated to the research, validation, development, and application of blockchain technology to lottery products. Upon such technical strength, the team designed the framework of Chinese Lottery Chain (CLC), a blockchain solution specifically tailored to China's lottery industry.

CLC was designed to be applied across the lottery industry where it will enhance lottery information management security, reduce operational costs and increase efficiency, strengthen the credibility of lottery results in China, and reduce lottery theft and fraud.

500.com strongly supports the application of blockchain technology throughout China's lottery industry and is committed to working independently or in conjunction with other industry players to develop innovative solutions. The Company believes that blockchain technology has unique advantages that will create a new impetus for innovation and development of China's lottery industry.

Second Quarter 2018 Financial Results

• Net revenues were RMB30.4 million (US$4.6 million), compared with RMB38.4 million for the first quarter of 2018, and RMB4.6 million for the second quarter of 2017.
• Non-GAAP basic and diluted losses per ADS were RMB0.80 (US$0.10).

Mr. Zhengming Pan, the CEO of 500.com, stated, "Since we voluntarily suspended our online lottery sales operations in April 2015, we have continued to engage in new and promising initiatives to increase our revenue base. For example, we acquired TMG in July 2017, and this acquisition has significantly increased our revenue. In addition, in March 2018, we entered into a framework agreement with CSLA, under which, both parties plan to cooperate to develop physical channels to sell sports lottery tickets. In that regard, we have entered into framework agreements with Tianjin, Hunan and several other provinces and cities in China, to assist them in developing physical sales channels of sports lottery tickets. In addition, we have started a trial operation in Tianjin Municipality. We will continue to look for opportunities to enhance shareholders' value."

Business Outlook

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

SHENZHEN, China, May 18, 2018 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, announced that, Shenzhen E-Sun Sky Network Technology Co., Ltd. ("E-Sun Sky"), a subsidiary of a consolidated affiliated entity of the Company, and the Hunan Provincial Sports Bureau Sports Lottery Administration Center ("Hunan Sports Lottery Center") entered into a cooperation agreement (the "Agreement") today, under which Hunan Sports Lottery Center shall support E-Sun Sky to assist in developing physical sales channels in Hunan Province, in order to enhance the convenience of sports lottery ticket purchases, enlarge customer base and optimize user experience for lottery purchasers. The Company shall develop and operate the physical sales channels in accordance with local development plans for sports lottery business and requests of Hunan Sports Lottery Center, leveraging the strength and experience in user operation and information provision and assisting Hunan Sports Lottery Center on the marketing of sports lottery brand, products and activities, etc.

Hunan Sports Lottery Center agrees that E-Sun Sky shall establish several physical sales channels of sports lottery tickets and start operation. The operation period is three years starting from the date of the Agreement.

Hunan Provincial Sports Bureau Sports Lottery Administration Center is under the jurisdiction of Hunan Provincial Sports Bureau, and is in charge of the sales and administration of sports lottery products in Hunan area.

SHENZHEN, China, May 17, 2018 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, announced that, Shenzhen E-Sun Sky Network Technology Co., Ltd. ("E-Sun Sky"), a subsidiary of a consolidated affiliated entity of the Company, and the Tianjin Municipality Sports Lottery Administration Center (the "Tianjin Sports Lottery Center") entered into a cooperation agreement (the "Agreement") today, under which Tianjin Sports Lottery Center shall support the Company to assist in developing physical sales channels in Tianjin, in order to enhance the convenience of sports lottery ticket purchases, enlarge customer base and optimize user experience for lottery purchasers. The Company shall develop and operate the physical sales channels in accordance with local development plans for sports lottery business and requests of Tianjin Sports Lottery Center, leveraging the strength and experience in user operation and information provision and assisting Tianjin Sports Lottery Center on the marketing of sports lottery brand, products and activities, etc.

Tianjin Sports Lottery Center agrees that E-Sun Sky shall establish several physical sales channels of sports lottery tickets and start trial operation. The trial operation period is one year starting from the date of the Agreement. A cooperation agreement for formal operation could be signed at any time when both parties are satisfied with the trial operation. The duration of the Agreement shall not exceed 3 years for trial operation and formal operation combined.

Tianjin Sports Lottery Center is under the jurisdiction of Tianjin Municipality Sports Bureau, and is in charge of the issuance, sales and administration of sports lottery products in Tianjin area.

First Quarter 2018 Financial Results

• Net revenues were RMB38.4 million (US$6.1 million), compared with RMB34.9 million for the fourth quarter of 2017, and RMB3.5 million for the first quarter of 2017.
• Non-GAAP basic and diluted losses per ADS were RMB1.20 (US$0.15).

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such voluntary suspension materially and adversely impacted our financial results for the first quarter of 2018. We want to re-emphasize that we are one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official reinstatement of online lottery sales in China. The Company has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release." In addition, on March 6, 2018, we entered into a framework agreement with CSLA, under which, both parties plan to cooperate to develop physical channels to sell sports lottery tickets.

SHENZHEN, China, May 2, 2018 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that a wholly-owned subsidiary of the Company entered into a framework agreement (the "Framework Agreement") with Loto Interactive Information Technology (Shenzhen) Limited ("Loto Shenzhen" and together with the Company, the "Purchasers"), a wholly-owned subsidiary of Loto Interactive Limited, a company listed on the Hong Kong Stock Exchange (stock code: 8198) and 40.65% owned by the Company and Shenzhen General Lottery Technology Co., Ltd. ("Shenzhen GenLot"), a subsidiary of Telling Telecommunication Holding Co., Ltd, a company listed on the Shenzhen Stock Exchange (stock code: 000829) on May 2, 2018.  Pursuant to the Framework Agreement, Shenzhen GenLot will supply sports lottery terminals ("Lottery Terminals") approved by the China Sports Lottery Administration Centre ("CSLA") to the Purchasers for onward sales and distribution in the PRC; and Shenzhen GenLot shall provide maintenance services for the Lottery Terminals supplied during warranty period. The term of the Framework Agreement is five years. Under the Framework Agreement, the Purchasers intend to purchase up to 10,000 units of Lottery Terminals in total from Shenzhen GenLot pursuant to separately executed purchase agreements. The Purchasers have already placed an order to purchase 1,000 units of Lottery Terminals.

Fourth Quarter 2017 Financial Results

• Net revenues were RMB48.1 million (US$7.4 million), compared with RMB43.2 million for the third quarter of 2017, and RMB7.5 million for the fourth quarter of 2016.
• Basic and diluted losses per ADS were RMB7.77 and RMB7.77, respectively.
• Non-GAAP basic and diluted losses per ADS were RMB5.53 and RMB5.53, respectively.

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial results for the fourth quarter and full year of 2017. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

"As part of our efforts to expand the scope of our business and diversify our revenue streams, we acquired approximately 40.65% of the issued share capital of Loto Interactive Limited (formerly known as "Melcolot Limited") in the second quarter of 2017 and 93.0% of the equity shares of The Multi Group Ltd in the third quarter of 2017. On March 6, 2018, we entered into a framework agreement (the "Framework Agreement") with the China Sports Lottery Administration Center, under which, both parties plan to cooperate to develop physical channels to sell sports lottery tickets. We believe that these new businesses and strategic acquisitions will create strong synergies with our existing operation platform, and the Framework Agreement will bring us strong growth potential."

Business Outlook

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

SHENZHEN, China, Feb. 9, 2018 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that, Ernst & Young Hua Ming LLP ("EY") has resigned as its auditor on February 1, 2018, and the Company has appointed Friedman LLP ("Friedman") to conduct the audit and review the effectiveness of its internal control over financial reporting for the fiscal year ended December 31, 2017 on February 9, 2018. Pursuant to 500.com's articles of association, the decision to appoint a new auditor was unanimously approved by the directors of the Company, including all members of the Company's Audit Committee, on February 9, 2018. The change was not made due to any disagreements with EY.

EY's audit reports on the Company's consolidated financial statements for each of the fiscal years ended December 31, 2015 and 2016 do not contain an adverse opinion or a disclaimer of opinion, or was qualified or modified as to uncertainty, audit scope, or accounting principles. During EY's term of audit engagement from January 1, 2014 to April 28, 2017, EY did not have any disagreements on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of EY, would have caused EY to make reference to the subject matter of the disagreements in connection with its audit reports. During each of the fiscal years ended December 31, 2015 and 2016, there have been no reportable events requiring disclosures, as defined in Item 16F(a)(1)(v) of Form 20-F.

We provided a copy of the above statements contained in the first and second paragraphs to EY and requested that EY furnish a letter addressed to the SEC stating whether it agrees with the above statements, and if not, stating the respects in which it does not agree.

During each of the fiscal years ended December 31, 2015 and 2016 and the subsequent period prior to our engagement of Friedman, neither we nor anyone on our behalf consulted Friedman regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on our financial statements, or (ii) any matter that was either the subject of a disagreement with Friedman or a reportable event. Also, during each of the fiscal years ended December 31, 2015 and 2016 and the subsequent period prior to our engagement of Friedman, we have not obtained any written report or oral advice that Friedman concluded was an important factor considered by us in reaching a decision as to the accounting, auditing or financial reporting issue.

As used herein, the term "reportable event" means any of the items listed in paragraphs (a)(1)(v)(A)-(D) of Item 16F of Form 20-F, and the term "disagreement" shall be interpreted in accordance with Item 16F(a)(1)(iv) of Form 20-F and related instructions to Item 16-F of Form 20-F.

Disposal of Qufan

On February 9, 2018, the Company announced that it has disposed of its 51% equity interest in Qufan Internet Technology Inc., and Shenzhen Qufan Network Technology Co., Ltd, for a total consideration of RMB127.5 million.

SHENZHEN, China, Dec. 18, 2017 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that Mr. Min Yu has resigned as Chief Financial Officer of the Company, effective today, to pursue other opportunities. Mr. Yu's duties will be assumed by Mr. Qiang Yuan, senior vice president of the Company.

Mr. Yuan has served in various positions within the Company since 2001. Mr. Yuan was a vice president in charge of financial matters for the Company from June 2014 to July 2016 and has served as a senior vice president since July 2016.

"I would like to thank Min for his invaluable service and contribution to the Company," commented by Mr. Yonghong Zhang, Chairman of the Board of Directors of 500.com, "I wish him all the best in his future endeavor."

Third Quarter 2017 Financial Results

• Net revenues were RMB43.2 million (US$6.5 million), compared with RMB19.3 million for the second quarter of 2017, and nil for the third quarter of 2016.
• Non-GAAP basic and diluted losses per ADS were RMB1.44 and RMB1.44, respective vs. last years same loss of $1.01. 

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial results for the third quarter of 2017. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes that it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

"As part of our efforts to expand the scope of our business and diversify our revenue streams, we launched a sports information and mobile gaming business during the fourth quarter of 2016, which has generated steady revenue growth. We also acquired approximately 40.65% of the issued share capital of Loto Interactive Limited (formerly known as "Melcolot Limited") in the second quarter of 2017 and 93.0% of the equity shares of The Multi Group Ltd in the third quarter of 2017. We believe that these new businesses and strategic acquisitions will create strong synergies with our existing operation platform."

Business Outlook

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

Second Quarter 2017 Financial Results

• Net revenues were RMB19.3 million (US$2.8 million), compared with RMB18.4 million for the first quarter of 2017, and RMB1.2 million for the second quarter of 2016.
• Basic and diluted losses per ADS were RMB1.29 and RMB1.29, respectively.

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial results for the second quarter of 2017. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes that it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

"As part of our effort to expand our business scope and create additional revenue sources, we have commenced our sports information and mobile gaming businesses since the fourth quarter of 2016, and have witnessed steady revenue growth from them. We have also acquired approximately 40.65% of the issued share capital of MelcoLot Limited in June 2017 and completed the acquisition of 93.0% equity interest of The Multi Group Ltd in July 2017. We believe that these businesses and strategic acquisitions will create strong synergies with our existing operation platform."

Business Outlook

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

SHENZHEN, China, May 29, 2017 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that it entered into a share purchase agreement ("Share Purchase Agreement") pursuant to which it has conditionally agreed to purchase from Melco LottVentures Holdings Limited an aggregate of 1,278,714,329 shares (the "Sale Shares") of MelcoLot Limited ("MelcoLot"), a company listed on the Hong Kong Stock Exchange (Stock Code: 8198), representing approximately 40.65% of MelcoLot's existing issued share capital as of the date of this announcement. The total consideration for the Sale Shares is approximately HK$322.2 million (US$41.3 million), equivalent to approximately HK$0.252 per Sale Share. Closing of the acquisition of the Sale Shares is subject to certain conditions set out in the Share Purchase Agreement.

Pursuant to Rule 26.1 of the Hong Kong Code on Takeovers and Mergers, upon the completion of the acquisition of the Sale Shares, we will be required to make a cash offer to acquire all the shares of MelcoLot in issue (other than those already owned or agreed to be acquired by us and our parties acting in concert) at HK$0.252 per share. Furthermore, pursuant to Rule 13.5 of the Hong Kong Code on Takeovers and Mergers, upon completion of the acquisition of the Sale Shares, we will also be required to make cash offer to cancel all the outstanding options granted by MelcoLot pursuant to its share option schemes.

SHENZHEN, China, May 26, 2017 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that it has entered into a share purchase agreement (the "Share Purchase Agreement"), pursuant to which it has conditionally agreed to purchase approximately 93.0% of the outstanding shares of The Multi Group Ltd. ("Multi Group") for a total consideration of approximately EUR49.8 million (approximately US$56.0 million) in cash. Closing of the acquisition is subject to approval by relevant regulatory authorities and customary conditions set out in the Share Purchase Agreement.

Headquartered in Malta, Multi Group operates Multilotto.com ("Multilotto") which is considered one of the top online lottery betting and online casino platforms in the Nordic countries where it holds substantial market share. Operating under a Curacao eGaming license, Multilotto has a strong and balanced customer portfolio that has created a solid foundation for its expansion across Europe. Multi Group was recently granted remote gambling licenses from Malta, remote operating licenses from the UK and a remote bookmaker's license from Ireland, which will further strengthen its market position and ability to rapidly expand into new geographic regions. Multilotto does not accept bets from U.S. and PRC residents, including Hong Kong and Macau residents.

Multilotto offers players the ability to bet on the outcomes of eleven of the world's largest lotteries through its proprietary and scalable platform. Leveraging its easily adaptable state-of-the-art technology and proprietary financial hedging solution, Mulilotto is able to tightly control risk, handle significant betting volumes and offer a broad portfolio of products. This allows it to easily customize its platform and products to new markets and jurisdictions.

Multi Group has grown rapidly since it began operating in 2015. In 2015 and 2016, Multi Group generated unaudited net revenues of EUR4.0 million (approximately US$4.5 million) and EUR10.0 million (approximately US$11.2 million), respectively; unaudited net profits of EUR1.2 million (approximately US$1.4 million) and EUR5.4 million (approximately US$6.1 million), respectively; and EBITDA of EUR1.2 million (approximately US$1.4 million), and EUR5.7 million (approximately US$6.4 million), respectively. Multi Group's financial performance is not indicative of its future financial performance.

First Quarter 2017 Financial Results

• Net revenues were RMB18.4million (US$2.7 million), compared with RMB7.5 million for the fourth quarter of 2016, and RMB2.2 million for the first quarter of 2016.
• Non-GAAP basic and diluted losses per ADS were RMB0.82 and RMB0.82, respectively.

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial results for the first quarter of 2017. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

Business Outlook

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

Fourth Quarter 2016 financial Results

• Net revenues were RMB7.5 million (US$1.1 million), compared with nil for the third quarter of 2016, and RMB0.7 million for the fourth quarter of 2015.
• Basic and diluted losses per ADS were RMB0.14 and RMB0.14, respectively.

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial results for the fourth quarter of 2016. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

Business Outlook

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

SHENZHEN, China, Jan. 22, 2017 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that effective January 20, 2017, Mr. Man San Law, Chairman of the Board of Directors of 500.com and Mr. Weiguo Zhao, the chairman of Tsinghua Unigroup Co., Ltd. ("Tsinghua Unigroup"), have stepped down from the Board. Mr. Lian Qi has been appointed as a director and Chairman of the Board of Directors of the Company (the "Board") and Mr. Bo Yu has been appointed as a director of the Board, both effective January 20, 2017. Mr. Qi will join the Compensation Committee and join and chair the Strategy Committee of the Board, and Mr. Yu will join and chair the Compensation Committee and the Nominating and Corporate Governance Committee of the Board.

Effective January 20, 2017, Mr. Qian Sun has resigned from the Nominating and Corporate Governance Committee and will join the Strategy Committee, and Mr. Yu Wei has resigned from the Strategy Committee and will join the Nominating and Corporate Governance Committee.

Mr. Qi is the Co-President and a director of Tsinghua Unigroup and the Chairman of Unisplendour Technology (Holdings) Limited (365.HK). In addition, Mr. Qi served various positions within the Tsinghua Unigroup since 1992 and has accumulated substantial experiences in management, investment and strategic planning. Mr. Qi received a master's degree in business administration from the Chinese University of Hong Kong in 2002, a master of science degree in engineering and a bachelor of science degree in engineering from Tsinghua University in 1992 and 1990, respectively.

Mr. Yu was the Company's general counsel. Mr. Yu received a master's degree in law from the University of Iowa, and a master's degree in law and a bachelor's degree in science from the University of Wuhan. Mr. Yu is admitted to the Bar of the State of Michigan.

"I would like to thank Man San and Weiguo for his invaluable service and contribution to the Company," commented by Mr. Lian Qi, Chairman of the Board of Directors of 500.com. "We warmly welcome Bo to the Board. His extensive experience in legal affairs and compliance will certainly benefit the Company going forward."

Third Quarter 2016 Financial Results

• Net revenues were nil, compared with RMB1.2 million for the second quarter of 2016, and nil for the third quarter of 2015.
• Non-GAAP basic and diluted net losses per ADS were RMB1.01 and RMB1.01, respectively.

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial and operational results for the third quarter of 2016. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

Temporary Suspension of Online Lottery Sales

Since March 2015, all provincial sports lottery administration centers to which the Company provides sports lottery sales services have temporarily suspended accepting online purchase orders for lottery products in response to the Notice related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales, (the "Self-Inspection Notice"), which was jointly promulgated by the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports of the People's Republic of China on January 15, 2015.

On February 24, 2015, the Company was informed by certain provincial sports lottery administration centers that, as part of their respective self-inspection processes, such provincial sports lottery administration centers planned to temporarily suspend accepting online purchase orders for lottery products starting from February 25, 2015. On March 2, 2015, the Company was further informed by the remaining provincial sports lottery administration centers to which it provides sports lottery sales services that they also planned to temporarily suspend accepting online purchase orders for lottery products, in response to the Self-Inspection Notice.

As a result of the provincial sport lottery administration centers' decision to temporarily suspend accepting online lottery orders, or temporary suspension, the Company did not generate any revenue from sports lottery sales in the third quarter of 2016. The Company recorded an operating loss for the third quarter of 2016.

SHENZHEN, China, Nov. 8, 2016 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today made an announcement in reaction to a recent negative trend in the Company's publicly traded share prices. The Company notes that while there remains no clear indication as to how long the Company's voluntary temporary suspension of online sports lottery sales services will last, the Company has continued to carry on its businesses, including without limitation, developing and improving its product and service offerings, and to work with the China Sports Lottery Administration Center to develop an online lottery sales management system as part of the pilot program mandated by the Notice on the Commencement of the Pilot Program of Online Sales of Sport Lottery issued by the Ministry of Finance in 2012

Second Quarter 2016 Financial Results

• Total purchase amount of sports lottery was nil, compared with nil for the first quarter of 2016, and nil for the second quarter of 2015.
• Net revenues were RMB1.2 million (US$0.2 million), compared with RMB2.2 million for the first quarter of 2016, and nil for the second quarter of 2015.
• Net loss attributable to 500.com was RMB27.7 million (US$4.2 million), compared with net loss attributable to 500.com of RMB90.9 million for the first quarter of 2016, and net loss attributable to 500.com of RMB81.4 million for the second quarter of 2015.

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial and operational results for the second quarter of 2016. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

First Quarter 2016 Financial Results

• Net revenues were RMB2.2 million (US$0.3 million), compared with RMB0.7 million for the fourth quarter of 2015, and RMB98.8 million for the first quarter of 2015.
• Non-GAAP basic and diluted net loss per ADS were RMB1.03 and RMB1.03, respectively.

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our financial and operational results for the first quarter of 2016. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

Business Outlook

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

SHENZHEN, China, Nov. 24, 2015 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that it has agreed to invest in Zhejiang Shangmeng Technology Limited Company ("Sumpay.cn"), a company licensed to provide third-party payment services in China. 500.com is investing in ordinary shares representing 63.0% of equity interest in Sumpay.cn for a cash consideration of approximately US$35.6 million. The consummation of the investment is subject to certain conditions, including the filing of regulatory notices.

500.com will cooperate with Sumpay.cn to help grow and diversify its online payment services business.  By leveraging Sumpay.cn's online payment capabilities, the investment will enable 500.com to reduce cost related to third-party payment transactions on its platform.

Second Quarter 2015 Financial Results

• Net revenues were nil, compared with RMB98.8 million for the first quarter of 2015, and RMB156.1 million for the second quarter of 2014.
• Non-GAAP basic and diluted net loss per ADS, which excludes share-based compensation expenses, were US$0.14 and US$0.14, respectively.

Mr. Zhengming Pan, the CEO of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our results of operations and financial conditions of the second quarter of 2015. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

Business Outlook

The Company will not make earnings forecast until it receives clear instruction on the resumption date of online sports lottery sales from the Ministry of Finance.

SHENZHEN, China, June 29, 2015 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced the closing of its previously announced sale of newly issued ordinary shares to Tsinghua Unigroup International Co., Ltd. ("Tsinghua Unigroup"), a subsidiary of Tsinghua Unigroup Co., Ltd

The Company issued 63,500,500 Class A ordinary shares at a price of US$1.95 per share (corresponding to US$19.5 per American Depositary Receipt), for gross proceeds of approximately US$123.8 million.  The Class A ordinary shares issued are subject to a six-month lock-up period.

WBAI ($23.18, marked up to $25.70) announced this morning that it entered into a definitive purchase agreement with Tsinghua Unigroup International, Co. where they will purchase 6.35 million ADR shares for $19.50 per ADR. Tsinghua Unigroup has been involved in major acquisitions, like that of SPRD and RDA, and is believed to have close ties to the Chinese government. Tsinghua is also putting one of its executives onto WBAI’s board of directors. From this morning’s press release:

“Upon closing, Tsinghua Unigroup will hold 15.2% of the Company's issued and outstanding ordinary shares. Pursuant to the purchase agreement, the Company agreed, and the board of directors of the Company approved, to appoint Mr. Weiguo Zhao, the chairman of Tsinghua Unigroup, as a director of the Company upon closing.”

As we’ve stated in the past, we were hedged into our short position and will look at potentially purchasing addition call protection while we reevaluate our underlying short.

As a reminder, we tweeted out that the company’s COO sold $650k worth of stock based on the Form 144 filed on June 5th, indicating a sale in late May.

SHENZHEN, China, June 9, 2015 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that it has entered into a definitive purchase agreement with Tsinghua Unigroup International Co., Ltd. ("Tsinghua Unigroup"), a subsidiary of Tsinghua Unigroup Co., Ltd, for the issuance and sale of newly issued ordinary shares of the Company.

Pursuant to the purchase agreement, Tsinghua Unigroup International Co., Ltd. will purchase 63,500,500 newly issued Class A ordinary shares of the Company for a total purchase price of approximately US$123.8 million in cash. The per share purchase price of US$1.95 (corresponding to US$19.5 per American Depository Receipts) represents a 1.4% discount of the average closing trading price of the Company's ordinary shares for the 30 trading days ended June 8, 2015, or a 17.9% discount of the closing trading price of the Company's ordinary shares on June 8, 2015, the day prior to the date of the purchase agreement.

Unigroup International has agreed to subject all the shares it or its affiliate will acquire in the transaction to a contractual lock-up restriction for six month after the closing. The closing is expected to take place on or before June 30, 2015, upon satisfaction of customary closing conditions.

Upon closing, Tsinghua Unigroup will hold 15.2% of the Company's issued and outstanding ordinary shares. Pursuant to the purchase agreement, the Company agreed, and the board of directors of the Company approved, to appoint Mr. Weiguo Zhao, the chairman of Tsinghua Unigroup, as a director of the Company upon closing. Since 2009, Mr. Weiguo Zhao has served various management roles in Tsinghua Unigroup, including CEO and chairman. Mr. Weiguo Zhao also serves as a senior vice president of Tsinghua Holdings Ltd. Mr.Weiguo Zhao serves as the chairman and CEO of Beijing Unis Communications Technology Group Ltd. Mr.Weiguo Zhao has served as the chairman of Beijing Jian Kun Investment Corporation Ltd. since 2003. Mr Zhao also serves as a director of TCL Corporation and Tongfang Co., Ltd. from 2015. Mr. Weiguo Zhao is 48 years old and holds a Master of Science degree in electronics engineering from Tsinghua University.

Tsinghua Unigroup Co., Ltd. is majority owned by Tsinghua Holdings Co., Ltd. which is 100% owned by Tsinghua University.

Mr. Zhengming Pan, the chief executive officer of the Company, commented, "We want to welcome Tsinghua Unigroup as a shareholder to our company and to express our appreciation to Tsinghua Unigroup's confidence in our company. We believe the partnership between Unigroup and our company will be long term and mutually beneficial. The partnership will also bring Tsinghua University's strong technical and research capabilities to 500.com."

First Quarter 2015 Financial Results

• Net revenues were RMB98.8 million (US$15.9 million), representing an increase of 10.0% from RMB89.8 million during the first quarter of 2014, and a decrease of 32.4% from RMB146.2 million during the fourth quarter of 2014.
• Non-GAAP basic and diluted net loss per ADS excluding share-based compensation expenses were US$0.06 and US$0.06, respectively.

Mr. Man San Law, the Founder and Chairman of 500.com, stated, "We voluntarily and temporarily suspended our online lottery sales operations in response to the promulgation of the Self-Inspection Notice. Such temporary and voluntary suspension materially and adversely impacted our results of operations and financial conditions of the first quarter of 2015. We want to restate that the Company was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes it has been working and will continue to work with the China Sports Lottery Administration Center to develop the management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this earnings release."

Mr. Man San Law added, "I would like to express my gratitude to Mr. Qi Li for his enormous contribution to the Company during his tenure as a director and I wish Mr. Qi Li all the best in his future endeavors."

Business Outlook

Due to the temporary suspension of online lottery sales, the Company expects the total purchase amount to be zero during the second quarter of 2015. There is no clear indication how long the temporary suspension will last. These estimates reflect the Company's current and preliminary view, which is subject to possible material changes.

SHENZHEN, China, April 6, 2015 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today made an announcement in furtherance to the announcement the Company made on April 3, 2015. The Company wants to restate that it was one of the two entities approved by the Ministry of Finance in 2012 to provide online lottery sales services on behalf of the China Sports Lottery Administration Center. In particular, such approval mandated that the China Sports Lottery Administration Center use its best effort to develop an online lottery sales management system as part of a pilot program for online lottery sales in China, and once such a management system is finished, the China Sports Lottery Administration Center should apply again for approval from the Ministry of Finance for official commencement of online lottery sales in China. The Company notes it has been working and will continue to work with the China Sports Lottery Administration Center to develop such a management system. To the best of the Company's knowledge, the approval by the Ministry of Finance for the Company to provide online lottery sales services on behalf of the China Sports Lottery Administration Center is valid and has not been revoked or amended as of the date of this announcement.

The Company believes the public announcement jointly released by eight competent government authorities on April 3, 2015 is a further step by the competent government authorities to sanction unauthorized online lottery sales and to ensure the healthy development of the lottery market in China. In particular, the Company believes the close proximity of the release of such public announcement and the promulgation of the Notice on Issues Related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales on January 15, 2015 signals a potential significant change of regime in the online lottery market in China. In light of such potential change of regime, the Company decided to voluntarily and temporarily suspend all of its online lottery sales services. To the best of the Company's knowledge, as of the date of this announcement, all online lottery sales service providers in China have temporarily suspended their operations.

The Company further notes that as of December 31, 2014, the Company had cash in the amount of RMB914.2 million, which the Company estimates would be sufficient to sustain the Company's operations for approximately 10 years without taking into account any revenue, and given the Company's estimated annual operational overhead of RMB80 million to RMB90 million.

$WBAI ($10.42, marked up to $12.15 premarket) - 500.com is marked up this morning on rumors and speculation out of China that Chinese online lottery sales will be commencing again. The source of these rumors appear to be this small note and this Huatai securities write-up. These articles coincide with what we expect - that China online lottery sales will eventually resume - but they fail to offer a exact time frame for the resumption, or even directly mention WBAI. We contend that online lottery sales will eventually resume, but only on a nation-wide IT platform that makes it simple and easy for the government to track cash as it moves through the system. This system, to our knowledge, could still take time to develop and implement. It is still very unclear as to what role WBAI will play within this system as we also think that once online lottery sales restarts, larger names including Taobao (subsidiary of BABA) could offer significant competition against WBAI. To our knowledge, WBAI still has not been granted a permanent license and most operations still remain suspended.

Recall, we published this article yesterday detailing the suspension of the business as well as questionable trading up to and around materially adverse news.

SHENZHEN, China, March 2, 2015 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today made an announcement in furtherance to the Company's announcement on February 25, 2015 with regard to the suspension of sales by certain provincial sports lottery administration centers. On February 28, 2015 the Company was further informed by the remaining provincial sports lottery administration centers to which the Company provides sport lottery sales services that such provincial sports lottery administration centers also plan to temporarily suspend accepting online purchase orders for lottery products, in response to the Notice on Issues Related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales. The Company notes that during the temporary suspension period the Company plans to continue processing online orders for lottery products that are distributed by local lottery stations and represented by paper lottery tickets. As a result, the Company expects transaction volume to decrease significantly and in turn the Company's financial results will likely be materially and adversely impacted during the temporary suspension period. The Company plans to actively engage in conversation with the competent government authorities with regard to such temporary suspension and will make announcements with updates on the situation once available.

SHENZHEN, China, Feb. 26, 2015 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that its board of directors approved a share repurchase program, effective immediately.

Under the program, the Company is authorized to repurchase up to US$30 million worth of outstanding American depositary shares ("ADSs") from time to time depending on market conditions and other factors as well as subject to relevant rules under United States securities regulations. The share repurchase program will be funded with the Company's available working capital. As of December 31, 2014, the Company had approximately 23.4 million ADSs outstanding including 3.5 million restricted ADSs and cash(1) of approximately RMB914.2 million (US$146.2 million) (2).

SHENZHEN, China, Feb. 25, 2015 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that it had recently come to the Company's attention that certain provincial sports lottery administration centers to which the Company provides sport lottery sales services plan to temporarily suspend accepting online purchase orders for lottery products, in response to the Notice on Issues Related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales (the "Notice"), which was jointly promulgated by the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports of the People's Republic of China on January 15, 2015.

The Notice requires provincial and municipal government branches, including financial, civil affairs and sports bureaus, to conduct inspection and take remedial measures for unauthorized online lottery sales within their respective jurisdictions. The scope of inspection includes, among other things, commercial contract arrangements, online lottery products, lottery sales data exchange, online lottery sales channels, and sales commission fees in connection with unauthorized engagements of online sales agents by lottery administration centers. The Notice further requires a formal report on the result of the self-inspection and self-remedy be submitted by each provincial or municipal government to the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports of the People's Republic of China by March 1, 2015.

The Company was informed by certain provincial sports lottery administration centers that as part of their respective self-inspection processes, such provincial sports lottery administration centers plan to temporarily suspend accepting online purchase orders for lottery products starting from February 25, 2015. Four high frequency lottery products for which the Company currently provides online services are affected as a result and the Company will not be able to accept online purchase orders for such suspended lottery products. Aggregate revenue generated from the four suspended lottery products accounted for approximately 10.6% and 9.6% of the Company's total revenue in 2013 and 2014, respectively. The Company is closely monitoring the development of the matter and will disclose relevant information in a timely manner once available.

The Company notes that, as stated in the preamble of the Notice, the promulgation of the Notice is an important step by the competent government authorities to sanction unauthorized online lottery sales and to ensure healthy development of the lottery market in China. Although there is uncertainty involved in the implementation of the Notice, the Company believes such measures would have long-term beneficial effects on the lottery market in China.  In addition, the Company wishes to reiterate that the Company has obtained the approval from the Ministry of Finance to provide online sports lottery services on behalf of China Sports Lottery Administration Center.

Fourth quarter 2014 Financial Results

• Net revenues were RMB146.2 million (US$23.6 million), representing an increase of 52.1% from RMB96.1 million during the fourth quarter of 2013, and a decrease of 22.1% from RMB187.6 million during the third quarter of 2014.
• Non-GAAP basic and diluted earnings per ADS excluding share-based compensation expenses were US$0.24 vs and US$0.23 vs. last years same quarter of US$0.16 and US$0.14.

"We finished the year on a strong note with net revenues increasing 52.1% year-over-year," commented Mr. Man San Law, Founder, Chairman and Chief Executive Officer of 500.com. "Total purchase amount during the quarter increased 63.7% from the same period last year to US$283.3 million as non-GAAP net income grew significantly, increasing 98.5% to US$8.3 million. We continue to invest in the marketing of our mobile app as purchases made through mobile channels rapidly approaches half of all purchases. We expect to see this trend continue as we roll out new functions and games to enhance the overall user experience."

Business Outlook

For the first quarter of 2015, the Company expects the total purchase amount to be between RMB1,700.0 million (US$274.0 million) and RMB1,800.0 million (US$290.1 million), representing a sequential 3.3% decrease to 2.4% increase, and a year-over-year increase of 61.2% - 70.6%. These estimates reflect the Company's current and preliminary view, which is subject to possible material changes.

Third Quarter 2014 Financial Results

• Net revenues were RMB187.6 million (US$30.6 million), representing a 20.2% increase from the second quarter of 2014 and a 171.1% increase from the third quarter of 2013.
• Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders excluding share-based compensation expenses were US$0.37 and US$0.36, respectively

"I am pleased to report another solid quarter of growth as our business continues to gain momentum," commented Mr. Man San Law, Founder, Chairman and Chief Executive Officer of 500.com. "Total purchase amount reached a new record high of US$365.7 million, a 205.1% increase from the same period last year. We are seeing a very real and rapid shift towards mobile as mobile traffic increase at a faster pace than PC traffic. While active users of our mobile app increased only slightly sequentially, they now account for almost half of the total purchase amount, a 74.8% increase from last quarter. With traction for our mobile products increasing rapidly, we will continue to invest in their redesign, service development and marketing as we work to create a great user experience. We are confident that our mobile strategy and its enhanced services will strengthen our position as China's leading online sports lottery service and generate sustainable, long-term revenue."

Business Outlook

For the fourth quarter of 2014, the Company expects the total purchase amount to be between RMB1,650.0 million (US$268.8 million) and RMB1,750.0 million (US$285.1 million), representing a sequential decrease of 16.4% - 21.2% and a year-over-year increase of 54.1% - 63.4%. These estimates reflect the Company's current and preliminary view, which is subject to possible material changes.

SHENZHEN, China, Nov. 7, 2014 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, announced today it has been brought to the Company's attention that there were claims on the internet that Mr. Qi Li, one of the Company's directors, sold the Company's shares using 'pseudonyms,' namely, Lionel Rim and John Richard.  

500.com is aware and had pre-approved of the sale by Mr. Li of the Company's shares held through Lionel Rim and John Richard, which are both limited liability companies incorporated by Mr. Li under the laws of the Cayman Islands on August 11, 2011. The Company was informed by Mr. Li that the referenced sales would be executed by an independent brokerage firm pursuant to a Rule 10b5-1 plan implemented by Mr. Li in September 2014. Pursuant to the relevant Form 144 filings, the aggregate number of ADSs Lionel Rim and John Richard registered to sell was approximately 1.0 million, instead of 1.3 million as claimed. Mr. Li continues to be a shareholder.

The Company is committed to providing full and accurate disclosures to investors and to vigorously rebutting any allegations or speculation that attempt to negatively impact the Company's public image and valuation.  

SHENZHEN, China, Sept. 10, 2014 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that it came to the Company's attention that there was a recent online article which made several unsubstantiated speculations on various aspects of the Company's business operations. The Company hereby refutes each of such unsubstantiated speculations and reiterates that (i) it has obtained all relevant and necessary licenses and approvals to legally provide online sports lottery services in China; and (ii) it has made accurate and full disclosures on its business operations.

Legality of providing online sports lottery services in China

The online article stated that the status of the authorization for the Company to operate its business is "not clear". The Company wished to reiterate that,  as disclosed in the Company's Form 20-F annual report for year 2013 and Form F-1 Registration Statements previously filed with the SEC, the Company has obtained the approval from the Ministry of Finance of the People's Republic of China, or the MoF, to provide online sports lottery services on behalf of China Sports Lottery Administration Center, the government authority in charge of the issuance and sale of sports lottery products in China. The MoF is the ultimate regulator of China's lottery industry and oversees the operation of China Sports Lottery Administration Center. This authorization can be confirmed through the MoF's official website at the following link:

The legality of the Company's business is endorsed by its PRC legal counsel, whose opinion was included in the Company's most recent F-1 registration statement filed with the SEC on April 2, 2014 and the Company's F-1 registration statement in connection with its initial public offering filed with the SEC on October 22, 2013.

In addition, CCTV, the central and most watched television station in China, broadcasted a recent news clip that covered the current regulatory landscape of online lottery service industry in China, in which it confirmed that the Company is one of the two entities that were granted the authorization to operate online lottery service by the MoF. A link of such special report can be found at the following links:

Moreover, a news report issued by Xinhua News Agency in May 2014 contained an interview with a competent official from the MoF. The official confirmed that the Company has been approved by the MoF to operate an online sports lottery service in China. The official further clarified that such approval by the MoF, instead of issuing "licenses" to online lottery service providers, is implemented under the new regulatory regime. The news report can be found at the following link:

Prize money collected in pool purchase mode

The online article further stated that the Company also buys lottery products and wins prizes for itself. As disclosed in the Company's Form 20-F annual report for year 2013 and Form F-1 Registration Statements previously filed with the SEC, the Company buys lottery products for the sole purposes of completing pool purchases when necessary and as a service to its users who participate in such pool purchases. As disclosed on page 52 and page 66 in the Form 20-F annual report for year 2013, the Company spent RMB13.7 million(approximately US$2.3 million) to complete pool purchases for its users and as a result was entitled to  RMB8.3 million (approximatelyUS$1.4 million) in 2013, such purchase amount and resulting prize were recorded as deductibles to net revenue and  other operating income in the Company's income statements, respectively.

Collection of prize money by using employees' bank account

The online article pointed out that the Company collects prize money by using the employees' bank accounts. As disclosed in the Company's Form 20-F annual report for year 2013 and Form F-1 Registration Statements previously filed with the SEC, such arrangement was made due to the fact that under the current regulations and implementation procedures of national and provincial lottery products in China, prizes can only be claimed by natural persons who present the winning lottery tickets at the time of collection and the Company . Since the Company does not distribute physical tickets to individual users, it needs to collect prizes on behalf of such winning users. As disclosed on page 36 in the Form 20-F annual report for year 2013, the Company has adopted several measures to ensure that such individual employee accounts are under the strict control, such as strict record keeping, immediate transfer of prize money to the Company's corporate account upon collection, and real-time monitoring of the employee bank accounts by accounting managers. Such measures are specifically designed to prevent any potential fraud and the Company has never had an incident where prize money deposited in an employee's account was misappropriated in its 13 years of operating history.

Tax benefit recognized for fiscal year 2013

The online article pointed out that 72% of the Company's 2013 net income came from tax benefit. As disclosed in the Form 20-F annual report for year 2013, such tax benefit was a reversal of deferred tax liabilities arising from the aggregate outside basis differences between the Company's subsidiaries and VIEs in the amount of RMB88.8 million (approximately US$14.7 million). On December 28, 2013, the Company agreed to provide unlimited financial support to the VIEs and replaced one of its subsidiaries as the primary beneficiary of the VIEs. As the Company is indefinitely reinvesting the undistributed earnings of its subsidiaries, the deferred tax liabilities arising from the aggregate outside basis differences between its subsidiaries and VIEs of RMB88.8 million (approximately US$14.7 million) were reversed. As further disclosed in the Form 20-F annual report for year 2013, the Company's adjusted non-GAAP net income, which excluded such tax benefit, among other thing, increased by 86.0% from RMB29.9 million in 2012 to RMB55.6 million(approximately US$9.2 million) in 2013.

Accumulative App download reached 20 million in the second quarter of 2014

The online article claimed that the Company stated it had over 20 million app download in the second quarter of 2014. Such claim was due to a mistake of fact.  Mr. Zhengming Pan clearly stated in the earning release called for the second quarter of 2014 held on August 11, 2014, that "accumulative downloads of our mobile apps exceeded 20 million during the quarter", which means that the accumulative downloads of the Company's mobile app since its launch in April 2011 reached 20 million in the second quarter of 2014.

In addition, the Company disclosed in its earning release for the second quarter of 2014 filed on Form 6-k with the SEC on August 11, 2014 that the Company had a total of 710,000 active mobile app users during the quarter, an increase of 193.4% from 242,000 active mobile app users during the first quarter of 2014.

The Company would like to reiterate that it operates a legitimate and growing business in China and is committed to providing full and accurate disclosures to investors and to vigorously rebutting any false speculations that attempt to undermine confidence in the Company's business, management, and operations.

Second Quarter 2014 Financial Results

• Net revenues were RMB156.1 million (US$25.2 million), representing a 73.8% increase from the first quarter of 2014 and a 185.4% increase from the second quarter of 2013.
• Basic and diluted earnings per ADS[1] attributable to ordinary shareholders were US$0.37 and US$0.34, respectively.

SHENZHEN, China, Aug. 7, 2014 /PRNewswire/ -- 500.com Limited (WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that it has signed a strategic partnership agreement with China Mobile Limited ("China Mobile"), to become the sole provider of online sports lottery products to China Mobile Points Mall ("Points Mall"), an online marketplace where China Mobile subscribers can redeem loyalty points. The agreement will provide easy and convenient access for China Mobile's 770 million subscribers to purchase 500.com's online sports lottery products using loyalty points.

According to the terms of the agreement, the Company's online sports lottery products will become available for redemption with loyalty points on the Points Mall for a period of up to two years, upon which the agreement can be renewed. The online sports lottery products provided by the Company will be available in all of China's 31 provinces, municipalities and autonomous regions.  China Mobile will reimburse 500.com for the products purchased in cash. The Company already provides lottery purchase and information services to China Mobile users through its internet, mobile apps, WAP and SMS channels.

As of January 2014, approximately two-thirds of China Mobile's 770 million subscribers have redeemed loyalty points on the Points Mall.

Mr. Man San Law, Founder, Chairman and Chief Executive Officer of 500.com commented, "We are incredibly proud to have been selected as the sole provider of online sports lottery products for China Mobile's Points Mall. We expect to see sales volumes increase significantly as our products become available to China Mobile's 770 million subscribers. We look forward to developing an even deeper relationship with China Mobile as we work to integrate our products into their vast ecosystem."

In January 2014, 500.com signed a strategic partnership agreement with China Mobile E-commerce Limited ("China Mobile E-commerce), a subsidiary of China Mobile, allowing payments to be made for 500.com's mobile sports lottery products on China Mobile's vast network.

SHENZHEN, China, May 8, 2014 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that it fervently denies the allegations made in unsubstantiated rumors regarding the legality of the Company's operations that have been circulated in the Chinese media.

The Company reiterates that it has obtained all relevant approvals to legitimately operate an online sports lottery service in China. In particular, the Company has obtained approval from the Ministry of Finance of the People's Republic of China ("Ministry of Finance"), which is the ultimate regulator of China' s lottery industry and oversees the operation of China Sports Lottery Administration Center. This information can be confirmed through the Ministry of Finance's website at the following link:

In addition, a news report issued by Xinhua News Agency today contained an interview with a competent official from the Ministry of Finance. The official confirmed that the Company has been approved by the Ministry of Finance to operate an online sports lottery service in China. The official further clarified that such approval by the Ministry of Finance, instead of issuing "licenses" to online lottery service providers, is implemented under the new regulatory regime. The news report can be found at the following link:

500.com has entered into commercial contracts with a number of provincial sports lottery centers which clearly lay out the Company's roles and responsibilities. The legality of the Company's business is endorsed by its legal counsel, whose opinion was filed with the SEC on April 2, 2014 in 500.com's most recent F-1 registration statement.   

The Company confirms that the information regarding the Company's approvals and other aspects of operations is accurately and fairly described in the Company's Form 20-F filed on March 26, 2014.

500.com Limited Announces Proposed Offerings of Convertible Senior Notes and

American Depositary Shares

SHENZHEN, China, March 26, 2014 – 500.com Limited (“500.com” or the “Company”) (NYSE: WBAI), today announced that it has filed registration statements with the U.S. Securities and Exchange Commission (the “SEC”) with regard to (i) a proposed underwritten public offering by the Company and certain shareholders of the Company of American Depositary Shares, each representing 10 Class A ordinary shares, par value $0.00005 per share, of the Company (the “ADSs”), and (ii) a proposed underwritten public offering by the Company of its convertible senior notes (the “Notes”).

Subject to market and other conditions, the Company and certain shareholders of the Company propose to offer ADSs. A selling shareholder intends to grant to the underwriters of the proposed ADS offering a 30-day option to purchase additional ADSs. The Company will not receive any proceeds from the proposed sale of the ADSs by the selling shareholders.

Concurrently with the proposed offering of the ADSs and subject to market and other conditions, the Company proposes to offer the Notes. The Company intends to grant to the underwriter of the proposed Notes offering a 30-day option to purchase additional principal amount of the Notes.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. International plc are acting as representatives of the underwriters for the proposed offering of the ADSs, and Deutsche Bank Securities Inc. is acting as the representative of the underwriters of the proposed offering of the Notes.

In connection with the above proposed offerings, Deutsche Bank Securities Inc., the sole bookrunning manager in the Company’s initial public offering of 66,539,000 ADSs representing the Company’s ordinary shares, are releasing the lock-up restrictions with respect to up to 49,627,409 Class B ordinary shares of the Company held by two directors of the Company. The release will take effect on or about April 8, 2014, and the ADSs representing such ordinary shares may be sold on or after such date.

Fourth Quarter 2013 Financial Results

• Net revenues were RMB96.1 million (US$15.9 million), up 38.9% quarter-over-quarter and 135.5% year-over-year.
• Basic and diluted earnings per ADS₁ attributable to ordinary shareholders were US$0.53 and US$0.48, respectively.
• Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders excluding share-based compensation, deferred tax benefit and costs incurred on the convertible note were US$0.16 and US$0.15, respectively.

"I am happy to announce strong quarterly results in our first quarter as a public company," commented Mr. Man San Law, founder, chairman and chief executive officer of 500.com. "Our business continued to pick up momentum as we set new records for total active users, active mobile users and total purchase amount during the quarter. Our comprehensive and innovative mobile services form a key part of our overall strategy. Mobile-registered users increased significantly, accounting for approximately 67% of active users during the quarter. Mobile purchases now represent approximately 18% of our total purchase amount. Results like these demonstrate the enormous potential that our mobile services offer and are indicative of the direction we are headed. We recently signed an agreement with China Mobile E-Commerce that will greatly expand the reach of our mobile lottery products by providing convenient, safe and reliable payment services. We are also eager to take advantage of any opportunities that arise to invest in our mobile strategy as we work to prepare for this summer's FIFA World Cup and build upon the solid foundation we have created as China's leading online sports lottery service."

Business Outlook

For the first quarter of 2014, the Company expects the total purchase amount to be between RMB880.0 million (US$145.4 million) and RMB900.0 million (US$148.7 million), representing a sequential decrease of 16.0% - 17.8% and a year-over-year increase of 63.0% -66.7%. These estimates reflect the Company's current and preliminary view, which is subject to possible material changes.

SHENZHEN, China, January 29, 2014 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), a leading online sports lottery service provider in China, today announced that it has signed a strategic partnership agreement with China Mobile E-commerce Co. Ltd ("China Mobile E-commerce"), a subsidiary of China Mobile Limited ("China Mobile"), to expand the reach and ease with which payments can be made for the Company's mobile sports lottery products. The agreement will provide easy and convenient payment services to users regardless of device, through China Mobile's vast network.

According to the terms of the agreement, 500.com will work in close cooperation with each of China Mobile E-commerce's provincial branches, leveraging their on-the-ground knowledge of local market conditions to localize its mobile sports lottery products. The Company will provide lottery purchase and information services to China Mobile users through its internet, mobile apps, WAP and SMS channels. 500.com will maintain full control of the product design, development, operation and promotion.

China Mobile E-commerce is the sole provider of payments services to China Mobile's network. In 2013, China Mobile E-commerce's mobile payment services had over 100 million registered users, 31 million monthly active users, and monthly and annual transaction volumes exceeding RMB10 billion and RMB130 billion, respectively.

Mr. Man San Law, Founder, Chairman and Chief Executive Officer of 500.com commented, "We are extremely excited to have reached such a mutually beneficial agreement with China Mobile E-commerce. China Mobile E-commerce's vast payment services network of over 100 million registered users will greatly expand the reach of our mobile lottery products by allowing users to pay using their convenient, safe and reliable payment services. By working with each provincial branch, we are focused on providing a localized lottery product with easy payment services to every user, regardless of device or geographical location. We are confident that this partnership will increase shareholder value as we leverage and integrate these capabilities with our leading online sports lottery platform, innovative purchase tools and technology, and superior mobile services."