As a leading enterprise in Hong Kong's digital entertainment sector, TANWAN (09890) has once again captured the market's attention with its acute market insight and steadfast strategic execution. Recently, TANWAN has released two powerful market signals in quick succession: the successful completion of a HK$468 million convertible bond issuance and the historic breakthrough of its market capitalization past the HK$10 billion mark. Since the company announced the related capital operation on December 18, 2025, the secondary market has swiftly responded positively, with the company's stock price showing a steady upward trend. Behind this momentum lies the capital market's rediscovery of the company's intrinsic value. Through a decade of dedicated effort, TANWAN has evolved into a vivid microcosm of ambition and innovation within China's gaming industry. Now, standing at the new starting point of a HK$10 billion market cap, the company is demonstrating to global investors its ambition to transform from a single-game publisher into a pan-entertainment ecosystem platform spanning the entire industry chain, achieved through precise capital operations and forward-looking technological deployment. The shift in growth drivers is underpinned by the company's strategic allocation of resources to the "AI + gaming" track and the optimization of its financial structure via the introduction of high-quality capital, signaling the commencement of a new growth cycle driven by technology at its core and globalization as its spatial dimension.
The capital premium is evident in the successful settlement of the high-premium convertible bond and the resulting valuation appeal. The capital market's sharp instincts are often reflected in the most representative transaction terms. On January 8, TANWAN officially announced the successful settlement of a HK$468 million convertible bond. This move not only provided the company with substantial cash flow but also became a landmark event in the Hong Kong capital market due to its "top-tier" premium level. When the company first announced the issuance plan on December 18, 2025, the initial conversion price of HK$23.50 caused a stir. This price represented a premium of approximately 38.24% over the closing price the day before the announcement and exceeded a 40% premium over the average price of the preceding five trading days, setting a historical record for the highest premium on a one-year convertible bond in the Hong Kong market. Observing the secondary market performance from the announcement on December 18 to the formal settlement on January 8 reveals a notable trend of the stock price advancing towards the HK$23.50 conversion price target. This dynamic, where the "stock price chases the conversion price," essentially reflects the market digesting the credit endorsement brought by top-tier international institutions. It is understood that the sole subscriber of this transaction—LMR Partners, a well-known London-based investment management fund with assets under management exceeding $11 billion—has not only injected long-term, stable, high-quality international capital into the company but has also directly elevated TANWAN's strategic positioning and recognition in the global capital market. This financing arrangement, characterized by a "high premium + zero coupon," is extremely rare in the Hong Kong stock market. It significantly reduces the company's financing costs and serves as a positive signal of international investors' support for the company's continued investment in the "AI + gaming" track, reflecting their recognition of TANWAN's current value. This confidence stems from the continuous improvement in the company's fundamentals and conveys firm belief in its long-term strategy and growth prospects. In 2025, TANWAN's overseas business experienced explosive growth. By successfully launching classic IPs such as "Legend," "ReXue JiangHu," and "MU" into markets across Southeast Asia, Japan, South Korea, Europe, and the United States, the company demonstrated the powerful replicability of its five-step global publishing strategy. With the successful injection of HK$468 million in funds, the company's capital structure has been further optimized. Building upon an already sufficient operational cash flow, TANWAN has now secured additional capital reserves to support future strategic investments. Breaking the HK$10 billion market cap milestone is not merely a leap in a financial figure; it is a阶段性嘉奖 from the capital market affirming the correctness of the company's past decisions. It proves that since entering the capital market, TANWAN has achieved a balance between financial stability and innovation investment by utilizing instruments that combine debt and equity characteristics.
The AI engine is driving a full-chain transformation: from cost reduction and efficiency gains to building a pan-entertainment ecosystem closed-loop. If capital operations are the booster for the company's value, then the strategic allocation of resources to AI technology constitutes the core underlying logic of TANWAN's HK$10 billion valuation. According to the company's strategic plan, the net proceeds from this convertible bond issuance will be entirely allocated to investments in AI-related businesses and industrial equity investments. TANWAN does not treat AI as a mere gimmick; instead, it deeply embeds AI into the framework of its "self-operation + joint operation" business model, constructing an AI technology foundation that covers the entire lifecycle of game publishing, operation, and R&D. It is understood that through systematically built diverse AI agents ("AI Agent"), the company has achieved an intelligent leap across the entire chain, from AIGC material generation and AI operations to advertising algorithm optimization. Specifically, TANWAN has fully integrated leading domestic and international large AI models and upgraded its self-developed "Hetu," "Luoshu" systems, and the "X Smart Marketing Platform" by leveraging its own data advantages. The application of these proprietary tools in business intelligence analysis and intelligent advertising has further boosted the profit margins of the company's core businesses. Beyond internal technological iteration, TANWAN is making deep inroads into the AI industrial investment sector through its wholly-owned subsidiary, Yuanda Future. This includes investments in companies like JiYi AI, which possesses the game industry-specific large model "SOON," and deepening cooperation with industry leaders such as Kingnet Network to jointly explore the application boundaries of AI engines in gaming. Furthermore, this technological ambition extends to the reconstruction of a pan-entertainment ecosystem. Under the "Game + Trendy Toys" strategy, the company uses AI technology to imbue trendy toy products with "life and warmth." Through the two concepts of "Emotional Interactive Design" and "Scenario-based Social Experience," TANWAN extends the emotional connection of virtual world IPs into the physical realm of trendy products. From exclusively securing the global-level IP "Garfield Family" to integrating over 200 artists to build a "Classic IP + Artist IP" system, the advantages of AI in precision marketing and efficiency enhancement are helping the company break down the boundaries between digital entertainment and real-world consumption. Looking ahead, TANWAN stands at the starting point of a new course. The company has a pipeline of heavyweight, high-quality IPs, including "Tian Long Ba Bu 2: Fei Long Zhan Tian," "Douluo Dalu: Zhu Xie Chuan Shuo," and "ReXue JiangHu: Jue Xing." These upcoming products, combined with AI-empowered content production and player services, will continuously drive the intelligent upgrade of the gaming experience. Surpassing a HK$10 billion market cap is merely a milestone in the company's ten-year journey. Guided by its original aspiration to "rediscover the playful you from your youth," TANWAN is leveraging AI technology to make strategic moves for the long term on the chessboard of "globalization" and "diversification." As conveyed during its tenth-anniversary celebration, the future TANWAN aims to be more than just a game company; it envisions itself as an AI-driven pan-entertainment ecosystem platform that creates fun experiences for users and provides high-quality services for game developers.
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