TANWAN (09890) experienced a sharp increase of over 17% in afternoon trading. At the time of writing, the stock was up 11.39%, trading at HKD 13.51 with a turnover of HKD 112 million.

The surge follows the company's recent positive profit alert. TANWAN forecasts its full-year net profit for 2025 to be no less than RMB 1.5 billion, marking a substantial increase from the RMB 44 million reported for the same period in 2024.

Analysts note that the company has a robust pipeline of new games scheduled for 2026, which is expected to drive a return to high revenue growth. Furthermore, the application of new technologies like AI is anticipated to significantly enhance operational and marketing efficiencies.

In a related strategic move, the company previously announced the issuance of zero-coupon convertible bonds totaling HKD 468 million. The proceeds from this issuance are earmarked specifically for strategic layout and investment in AI-related industries.

Industry observers believe AI technology, in the form of intelligent agents, is already deeply integrated into various aspects of TANWAN's operations. This includes AIGC content generation and the optimization of AI-driven operations and marketing algorithms. This integration is expected to fully empower the company's core business growth.