Hui10’s rapid scale-up in China’s lottery market – what IIG just told us
Intuitive Investments Group (IIG) has delivered a punchy trading update centred on its primary investment, Hui10 Inc. The headline is simple: operational momentum is building fast. Lottery transaction value through Hui10’s Lucky World platform jumped from RMB 0.8 million in 2024 to RMB 305.9 million in 2025, terminal rollout is tracking to plan, and the regulatory plumbing for paperless lottery play has taken a big step forward.
For IIG shareholders, this matters. Hui10 is the core asset, and the update blends strong commercial growth, validation from high-level Chinese partners, and a clearer funding runway. There is still execution risk – especially around the Paperless Play Lottery pilot – but the direction of travel is positive.
Key numbers that stand out
| Metric | 2025 | 2024 |
|---|---|---|
| Connected Lucky World lottery shops | 9,017 | 2,339 |
| UGO UnionPay POS terminals | 700 | 323 |
| Total registered users | 925,302 | 249,521 |
| Lottery transaction value through Lucky World (RMB) | 305,926,210 | 787,825 |
| UGO scratchcard sales (RMB) | 9,918,894 | 5,519,700 |
| Lucky World merchandise revenue (RMB) | 840,976 | 226,909 |
Momentum carried into January 2026: 9,151 connected shops, RMB 129,124,083 in lottery payment transaction value for the month, registered users passing the 1,000,000 milestone at 1,011,987, UGO Lotto sales of RMB 853,674, and RMB 176,625 in merchandise sales.
CFCA green light and paperless lottery – why this is pivotal
Hui10 has signed a milestone agreement with the China Financial Certification Authority (CFCA) – the national security certification agency overseen by the People’s Bank of China and other state bodies. In plain English, that is serious regulatory-grade validation for Hui10’s patented platform and signals the go-ahead towards deploying the Paperless Play Lottery pilot in 2026.
Paperless play is the crux of digital transformation here. It enables electronic ticket issuance and settlement, integrated with UnionPay’s national payments network. Benefits are threefold: regulatory compliance and auditability, better user experience and engagement, and a push towards sustainability by reducing paper, transport and storage. If the pilot proceeds smoothly at provincial level in H1 2026 – subject to Ministry of Finance direction – it sets the stage for broader rollout.
Network expansion, commercial traction, and TEAM CHINA branding
Hui10’s physical and digital footprint expanded across China in 2025. The company entered four provinces including Liaoning and Inner Mongolia, unlocking an estimated potential market of 175 million consumers, and launched the first stage of UGO Lotto’s rollout via ride-hailing taxis in Shanxi with 700 POS terminals in taxis and other retail by November 2025.
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.
