TANWAN (HKEX: 09890) shares rose over 6% in the morning trading session. At the time of writing, the stock was up 6.02% to HK$10.390, with a turnover of HK$7.8923 million.

The increase follows news that the company has participated in establishing a new technology firm. Recently, Xinchen Yunzhi (Lanzhou) Technology Co., Ltd. was incorporated with a registered capital of 1 billion yuan. The company's business scope covers artificial intelligence application software development, AI theory and algorithm software development, AI innovation and entrepreneurship service platforms, as well as the manufacturing and sales of integrated circuit chips and products.

The new entity is jointly held by TANWAN's affiliated company, Jiangxi TANWAN Information Technology Co., Ltd., among others. This move signals that TANWAN's AI strategy is extending further into more foundational, underlying technological capabilities.

It is worth noting that TANWAN has been consistently increasing its investment in the AI field in recent years. AI has reportedly begun to have a tangible impact on the company's operational efficiency. Internally, TANWAN has self-developed two core systems, named "Hetu" and "Luoshu," which are used for generating art assets and optimizing advertising placements.

Currently, the penetration rate of AI in the company's art asset generation and advertising placement processes has each exceeded 80%. This adoption has led to an efficiency improvement of over 70% in the related business areas.