TANWAN(09890) announces profitable news, with an expected significant increase in net profit to no less than 1.5 billion yuan in 2025.

TANWAN (09890) announced that the group is expected to achieve a net profit of not less than RMB 1.5 billion for the year ending December 31, 2025, showing a significant increase compared to the net profit of RMB 44 million in the same period of 2024. The group achieved a significant increase in net profit during the reporting period, mainly attributed to the following factors: (i) a significant increase in fair value gains on financial assets measured at fair value related to other listed company shares held by the group; (ii) increased revenue generated by the overseas game publishing business with a higher operating profit margin; (iii) a decrease in sales and distribution expenses, attributed to (a) the application of AI technology and optimization of model algorithms in game publishing operations; (b) ongoing optimization and adjustment of some reserved game products by the group, which have not been widely promoted yet; (c) some game product portfolios entering maturity with reduced brand effects leading to lower customer acquisition costs. These reasons collectively led to a decrease in sales and distribution expenses, a decrease in marketing expense ratio, and ultimately driving the growth of game business profits; however, (iv) some historical game copyright royalties were offset by impairment provisions.