Jiangxi Tanwan Information Technology Co., Ltd. (“Jiangxi Tanwan”), a subsidiary of Tanwan Inc. (9890.HK), has completed a strategic investment in the developer of The Demi-Gods and Semi-Devils 2: Flying Dragon Battles against the Heavens (《天龙八部2：飞龙战天》) and obtained exclusive distribution rights for the App version of the game in Chinese Mainland.

Jiangxi Tanwan has entered into a series of agreements with Shanghai Yuelong Zhiyu Culture and Technology Co., Ltd. (“Shanghai Yuelong”) and a subsidiary of Perfect World Co., Ltd. (“Perfect World”). Pursuant to the agreements, Jiangxi Tanwan will acquire from Perfect World a 35% equity interest in Shanghai Yuelong for a consideration of RMB15.0 million, and will pay RMB30.0 million to Shanghai Yuelong, the developer of the game, in exchange for exclusive distribution rights for the App version of The Demi-Gods and Semi-Devils 2: Flying Dragon Battles against the Heavens (《天龙八部2：飞龙战天》) in Chinese Mainland.

Deepening the “Premium Major Ips and Multi-terminals Layout” Strategy and Strengthening Its Position in the Martial Arts RPG Publishing Segment

Adapted from the classic martial arts masterpiece The Demi-Gods and Semi-Devils by Jin Yong, The Demi-Gods and Semi-Devils 2: Flying Dragon Battles against the Heavens leverages advanced technologies to create an expansive open world, faithfully recreating the original storyline and the distinctive atmosphere of the jianghu (the martial arts world), and delivering players a highly immersive martial arts adventure experience with a high degree of freedom.

Tanwan has already launched a duly licensed mini-program version of the game. Securing exclusive Chinese Mainland distribution rights for the App version of The Demi-Gods and Semi-Devils 2: Flying Dragon Battles against the Heaven represents an important step in the Group's implementation of its “Premium Major Ips and Multi-terminals Layout” strategy. The move not only marks the Group’s completion of full terminal coverage across mini-program and App mobile platforms, but also significantly enhances its product portfolio and competitive advantages within the martial arts RPG segment.

To date, Tanwan has successfully operated and has in reserve a number of top-tier martial arts IP resources, including The Demi-Gods and Semi-Devils (《天龙八部》), The Smiling Proud Wanderer (《笑傲江湖》) and the Condor Trilogy (《射雕三部曲》). Taking the exclusive distribution of The Demi-Gods and Semi-Devils 2: Flying Dragon Battles against the Heavens as a starting point, the Group is advancing the serialised publishing and long-term operation of its Game Matrix of Jin Yong Martial Arts IPs in an orderly manner, laying the foundation for the scaled rollout of subsequent Jin Yong martial arts titles, and gradually building a premium IP ecosystem spanning multiple categories, terminals and user communities.

Capital Synergy Reinforcing the Moat Around its Game R&D Pipeline

The deeper strategic value of this transaction lies in the establishment of a value chain that combines “premium content sourced through external development with distribution rights secured through capital”. Through the strategic investment in the developer, Tanwan has extended its reach upstream from publishing into R&D. This premium content supply ecosystem, driven by capital synergy and upstream R&D collaboration, further strengthens the Group’s ability to secure a stable and sustainable pipeline of high-quality IP-based game products, providing solid support for the continuous development of IP value and full lifecycle operations.

Focusing on Long-Term Value and Building the Future of a Global IP Ecosystem

Looking ahead, Tanwan will continue to centre on its core strategy of “long-term operation of premium IP”, steadily advance product diversification and global market expansion, strengthen its publishing and refined operations capabilities, and further integrate its IP and user ecosystems, with the aim of delivering more immersive and emotionally resonant gaming experiences to players worldwide and generating sustainable, high-quality long-term returns for investors.