Intuitive Investments Group Reports Hui10's Explosive Growth and Key Milestones in Chinese Lottery Digitalisation

Partnerships look strategically aligned. Hui10’s Lucky World secured rights to promote TEAM CHINA and its merchandise online and in dedicated lottery shops, with five TEAM CHINA Sports Lottery+ Flagship Stores already open, including in Beijing and Shanghai. This dovetails with the State Council’s directive to grow China’s sports industry to RMB 7 trillion annually and should support brand visibility and footfall.

On the plumbing side, a cooperation with Yinsheng Payment (YSEPay) enables real-time settlement – vital for scaling a high-volume payments platform. Commercially, agreements have been signed with Junhe Technology (a licensed distributor of CP Group), Diageo Shuijingfang, Sichuan Tuopai Shede Group Co., Ltd, Sinopec Easy Joy, China Poly Group and Urbrew. These partners should help drive traffic, merchandising and loyalty on the Lucky World omnichannel platform.

Funding runway: £56 million raised and committed

IIG has secured meaningful capital support for Hui10. The Helikon Investments agreement provides up to £30 million in equity funding in three tranches tied to milestones, with the first £5 million drawn after the CFCA contract. A further £15 million was raised on 13 January 2026, taking the past 12 months’ total raises and commitments to £56 million.

Management says no further funding requirements are currently anticipated to reach strategic targets. That is a clear positive, reducing dilution risk and allowing execution focus. As ever, keep in mind that ramping physical infrastructure and payments systems is capital intensive, so meeting milestones to access remaining Helikon tranches remains important.

2026 outlook: aggressive scaling plans and the pilot push

• Near term, the focus is on provincial deployment of the Paperless Play Lottery pilot in H1 2026, subject to Ministry of Finance direction, while continuing to roll out Lucky World and UGO.
• Q2 2026 target: connect a further 6,000-8,000 Lucky World shops, taking the network to over 15,000, and expand UGO terminals to more than 2,750.
• By end 2026: over 70,000 Lucky World shops and approximately 19,000 UGO terminals expected, positioning Hui10 for broader paperless rollout.
• Longer term objective: operate across China’s c.200,000 lottery shops and over 3 million UGO UnionPay POS terminals.

My take: the step-up plans are bold but consistent with the 2025 delivery. The single biggest swing factor is timely regulatory progression of the pilot. If that lands, the existing footprint and payments integrations could translate into sustained transaction and user growth.

Governance and incentives: Main Market ambitions and scheme changes

IIG is exploring a move from the Specialist Fund Segment to an Official Listing on the Main Market. To make that work, it has amended Hui10’s incentive schemes to allow acceleration in certain scenarios and better align with corporate events.

• Management Incentive Plan (MIP): participation rate in the growth of Shareholder Value increases from 15% to 25%, while maintaining the existing overall maximum share dilution for IIG shareholders at 15%, in aggregate. A company call option has been introduced to enable acceleration before 2034.
• Warrants: the instrument covering 3,996,779 potential new IIG ordinary shares of £0.10 each now lapses if not exercised after certain corporate events, and the subscription price per Hui10 B Share is reduced from £1.8868 to £0.01 in consideration for these adjustments.

These are related party transactions. The independent directors – Malcolm Gillies, Richard Kilsby and Colin Willis – unanimously approved the amendments. IIG is not required to comply with Chapter 11 of the Listing Rules but has adopted a related party policy that requires approval by independent directors.

Opinion: the ability to accelerate incentives should smooth any Main Market move and corporate actions. The trade-off is a higher participation rate under the MIP, albeit with overall dilution capped at 15%. Clarity on alignment and control is helpful for investors.

Investment view: why this update matters for IIG holders

Positives first. Hui10’s operational metrics are moving in the right direction – shop connections, terminals, users and transactions all sharply higher. The CFCA agreement is the key enabler for paperless play, and funding of £56 million raised and committed takes pressure off the balance sheet while execution continues.

There are risks to watch. The provincial pilot is subject to Ministry of Finance direction, and scaling to 70,000 shops and 19,000 terminals by year end is an ambitious lift. Incentive changes increase the management participation rate in value creation, though with a stated cap on dilution.

Overall, IIG’s update presents a stronger, better-capitalised Hui10 with growing national reach and the regulatory credentials needed to go paperless. If the pilot proceeds and the rollout maintains pace, the prize is substantial – Hui10 ultimately targets increasing lottery participation from c.10% to more than 30%, with a long-term vision of over RMB 900 billion in annual ticket sales. Execution remains key, but the trajectory into 2026 looks encouraging.