(Yicai Global) Feb. 27 -- Shares of Jiangsu Jinling Sports Equipment jumped after the Chinese company said it won the bidding to operate a sports lottery system and related businesses in China’s southern Hainan province.

Jinling Sports [SHE: 300651] closed 3 percent up at CNY24.60 (USD3.53) a share today, after surging by as much as 8 percent at one point.

Jinling Sports will form a consortium with unit Jinling Lecai Technology to develop, operate, and maintain electronic lottery terminals for the sports lottery manager under the Hainan government, the Nanjing-based firm announced today.

The consortium’s fee will be 3 percent to 4 percent of total sales, the company added.

This is the second contract to operate a lottery system in Hainan that Jinling Sports has secured. It announced in August 2019 that it had won a similar project, though that was run in cooperation with a different partner.

The Chinese government approved the start of sports-related lotteries in 1994. The proceeds are mainly used build public sports facilities as well as to maintain and equip venues.

Editor: Futura Costaglione