Valuation Reshaping and Strategic Leap, the new starting point of TANWAN (09890) in the billions.

As a leading company in the digital entertainment sector of the Hong Kong stock market, TANWAN (09890) has once again become the focus of the market with its sharp market insights and resolute strategic execution. Recently, TANWAN has released two strong market signals in succession: successfully completing a convertible bond issuance totaling 468 million Hong Kong dollars, and its market value historically breaking the one billion Hong Kong dollar mark. Since TANWAN announced the capital operation on December 18, 2025, the secondary market has quickly given positive feedback, and the company's stock price has continued to show a steady upward trend. Behind this trend is the capital market's rediscovery of the company's intrinsic value. Through ten years of deep cultivation, TANWAN has grown into a vivid epitome of China's game industry's initiative and innovation. Now, standing at the new starting point of a billion-dollar market value, the company is demonstrating to global investors its ambition to evolve from a single game publisher to a comprehensive entertainment ecosystem platform through precise capital operations and forward-looking technological layout. Behind this shift in growth momentum is the company's inclination towards the "AI+ gaming" track, as well as the financial structure optimization achieved through high-quality capital introduction, signaling the opening of a new growth cycle driven by technology at the bottom level, with globalization as the spatial dimension. Behind the capital premium, the successful delivery of the high premium convertible bond and the valuation attraction The keen sense of the capital market is often reflected in the most representative transaction terms. On January 8th, TANWAN officially announced the successful delivery of convertible bonds totaling 468 million Hong Kong dollars, which not only brought substantial cash flow to the company but also became a landmark event in the Hong Kong capital market due to its "ceiling-level" premium level. As early as December 18, 2025, when the company first announced the issuance plan, the initial conversion price of 23.5 Hong Kong dollars caused a sensation, with a premium of approximately 38.24% compared to the closing price of the previous trading day, and a premium of over 40% compared to the average price of the previous five trading days, setting a record for the highest premium in the Hong Kong market for similar one-year convertible bonds. By observing the secondary market performance from the announcement on December 18 to the official delivery on January 8, it can be seen that the company's stock price has shown a clear trend towards the conversion target price of 23.5 Hong Kong dollars, indicating the logic of "stock price chasing conversion price," which is essentially the market digesting the credit endorsement brought by top international institutions. According to GMTEightapp, the sole subscriber of this transaction, LMR Partners, a well-known investment management fund based in London with assets under management exceeding 11 billion US dollars, not only brought long-term stable and high-quality international capital to the company but also directly enhanced the company's strategic positioning and visibility in the global capital market. This financing arrangement of "high premium + zero interest" is extremely rare in the Hong Kong stock market. It not only greatly reduces the company's financing costs but also serves as a positive signal from international investors supporting the company's continued investment in the "AI+ gaming" track, reflecting the investors' recognition of the company's current value, backed by the continuous improvement of the company's fundamentals. It also conveys a strong confidence in the company's long-term strategy and growth prospects. In 2025, TANWAN's overseas business experienced explosive growth, successfully launching classic IPs such as "Legend", "Blood and Blade", and "Miracle" in Southeast Asia, Japan, Korea, and Europe, proving the powerful replication capability of its global five-stage distribution strategy. With the successful arrival of 468 million Hong Kong dollars, the company's capital structure has been further optimized. Based on the already abundant operating cash flow, additional funds have been earmarked to support future strategic investments. Breaking the one billion mark in market value is not only a financial milestone but also a phase of recognition from the capital market for the correctness of the company's past decisions, proving that after entering the capital market, the company has achieved a balance between financial stability and innovative investment through tools that consider both debt rights and equity attributes. The full-chain reshaping of the AI engine: from cost reduction and efficiency enhancement to building a comprehensive entertainment ecosystem loop If capital operation is the booster of the company's value, then the company's tilt towards AI technology is the core underlying logic of TANWAN's billion-dollar market value. According to the company's strategic plan, the net proceeds from the issuance of convertible bonds will be used entirely for AI-related business investment and industrial equity investment. TANWAN does not view AI as a simple gimmick but deeply embeds it into the business framework of "self-operation + interconnection", building an AI technology foundation that covers the entire life cycle of game distribution, operation, and development. It is understood that with the systematic construction of the multi-dimensional AI entity "AI Agent," the company has achieved a full-chain intelligent transition from AIGC material generation, AI operation to delivery algorithm optimization. Specifically, the company has fully integrated top-notch AI models from both domestic and foreign markets and upgraded its self-developed tools such as the "Hetu," "Luoshu" systems, and the "X Smart Marketing Platform" with its own data advantages, realizing the application of these tools in business intelligence analysis and intelligent delivery. This has helped boost the company's core business profit margin. In addition to the internal iteration of technology, TANWAN is strategically expanding its investments in the AI industry through its wholly-owned subsidiary Yuanda Future. By investing in Great Model AI in the gaming industry, such as "SOON," and deepening cooperation with industry leaders like Kingnet Network, the company is exploring the boundaries of AI engine application in the gaming field. Furthermore, this technological ambition has extended to the reconstruction of a comprehensive entertainment ecosystem. Under the "game + trendy play" strategy, the company is using AI technology to give trendy products a "life temperature," linking the emotional connections of virtual world IPs to the physical trend field through the two concepts of "emotional interaction design" and "scene social experience." From exclusively signing global-level IP "Garfield Family" to integrating over two hundred artists to build a system of "classic IP + artist IP," the advantages of AI in precision marketing and efficiency improvement are helping the company break the barriers between digital entertainment and real-world consumption. Looking ahead, TANWAN is standing at a new starting point on a completely new course. With a lineup of heavyweight IPs such as "Tianlong Ba Bu 2: Flying Dragon Battle" and "Douluo Continent: The Legend of Extinguishing Evil," combined with content production and player service that is fully empowered by AI technology, the company will continue to drive the smart upgrade of game experiences. Breaking the one billion market value mark is just a milestone in the company's ten-year journey. Guided by the initial aspiration of "rediscovering the young TANWAN in you," TANWAN is driving towards a longer-term strategy through AI technology, laying out a more extensive plan in the chess game of "globalization" and "diversification." As the company conveyed at its tenth anniversary celebration, the future TANWAN will no longer be just a gaming company but an entertainment ecosystem platform driven by AI, creating fun experiences for users and providing quality services for game developers.