HK Stock Market Move | TANWAN (09890) stock rose by over 11% after its profit increase, with an estimated net profit expected to reach no less than 1.5 billion yuan by 2025.

TANWAN (09890) rose by more than 11% after the announcement of good earnings. As of the time of writing, it has risen by 1.88% to HK$17.91, with a turnover of HK$33.52 million. On the news front, TANWAN announced that the company expects a net profit of no less than 1.5 billion yuan in 2025, a significant increase compared to 44 million yuan in the same period in 2024. This is mainly due to the increase in fair value gains from holding shares in other listed companies; the increase in profits generated by overseas game publishing business with higher operating profit margin; and a decrease in sales and distribution expenses. The announcement stated that the main reason for the decrease in sales and distribution expenses is the application of AI technology in game publishing operations and the optimization of investment model algorithms; the ongoing optimization and adjustment of some reserve game products within the group, which have not yet been widely promoted; and some game product portfolios have entered a mature stage, reducing the cost of acquiring new customers through brand effects.