Tanwan Inc. (9890) entered into an equity transfer agreement whereby Jiangxi Tanwan Information Technology Co., Ltd. acquired 35% of Shanghai Yuelong Zhiyu Cultural Technology Co., Ltd. for 15.00 million RMB. Shanghai Yuelong is a subsidiary of Perfect World Co., Ltd. and a leading game developer in China.

Under related agreements, Shanghai Yuelong granted Jiangxi Tanwan the exclusive operation rights to the App version of “The Demi-Gods and Semi-Devils 2: Flying Dragon Battles against the Heavens.” Tanwan Inc. will pay 30.00 million RMB in royalty fees and receive exclusive distribution rights for the Chinese mainland. The mini-program version of the licensed game has already been launched, and this new arrangement extends Tanwan Inc.’s capabilities to the native mobile version.

This transaction aligns with Tanwan Inc.’s strategy to strengthen its portfolio of Jin Yong martial arts intellectual property (IP) game offerings, including both App and mini-program versions. The company maintains that integrating into the upstream game development segment through strategic investment in Shanghai Yuelong will help ensure a stable supply of high-quality IP products for ongoing releases.

According to Tanwan Inc., all relevant applicable percentage ratios under Hong Kong Listing Rules remain under 5%, so the acquisition does not trigger additional disclosure obligations. The board believes the terms are fair and in the interests of shareholders.