TANWAN (09890) has announced that the Group expects to achieve a net profit of no less than RMB 1.5 billion for the fiscal year ending December 31, 2025. This represents a significant increase compared to the net profit of RMB 44 million recorded in the same period of 2024. The substantial growth in net profit during the reporting period is primarily attributable to the following factors: (i) a notable increase in fair value gains on financial assets at fair value through profit or loss, related to shares in other listed companies held by the Group; (ii) increased revenue generated from the overseas game publishing business, which operates with a higher operating profit margin; (iii) a reduction in sales and distribution expenses, driven by (a) the application of AI technology in game publishing operations and the optimization of advertising models and algorithms, (b) the Group's ongoing optimization and adjustment of some reserved game products, which have not yet undergone large-scale promotion, and (c) certain game product portfolios having reached a mature stage, where brand effects have lowered new customer acquisition costs. These factors collectively led to a decrease in sales and distribution expenses and a lower marketing expense ratio, thereby boosting the profitability of the game business; however, (iv) these gains were partially offset by impairment provisions made for certain historical game copyright fees.