TANWAN (09890) announced that Jiangxi Tanwan Information Technology Co., Ltd., a Chinese operating entity controlled by the group through contractual arrangements, has entered into an equity transfer agreement with Shanghai Yuelong Zhiyu Culture Technology Co., Ltd. and a subsidiary of Perfect World Co., Ltd. Under this agreement, Jiangxi Tanwan acquired a 35% equity stake in Shanghai Yuelong for a consideration of RMB 15 million. Concurrently, Shanghai Yuelong, Jiangxi Tanwan, and Perfect World signed an operational rights handover agreement. Through this, Shanghai Yuelong granted Jiangxi Tanwan the exclusive operational rights to the App version of "Demi-Gods and Semi-Devils 2: Flying Dragon Combat." Shanghai Yuelong terminated the previous exclusive operational rights granted to Perfect World for the App version, and Perfect World agreed to cooperate in transferring these rights to Jiangxi Tanwan.

In 2024, the group had already signed an Exclusive Agency Cooperation Agreement and an Online Game Cooperation Agreement with Shanghai Yuelong, securing the exclusive agency cooperation rights for the H5 version of the authorized game. Now, Jiangxi Tanwan and Shanghai Yuelong have signed a new Exclusive Agency Cooperation Agreement for the App version. Accordingly, Jiangxi Tanwan will pay Shanghai Yuelong a copyright fee of RMB 30 million for the exclusive operational rights. Shanghai Yuelong has agreed to grant Jiangxi Tanwan the exclusive distribution rights for the App version in mainland China. All revenue generated from the operation of the App version will be shared between the two parties according to the agreed terms.

Shanghai Yuelong is a limited liability company duly established and validly existing under Chinese law. It is a leading game developer in China, specializing in the development of high-quality massively multiplayer online games. The project company has obtained legal and effective authorization to adapt, develop, and operate games based on the IP of Mr. Zha Liangyong's novel "Demi-Gods and Semi-Devils." It holds the development and exclusive operational rights for the authorized game in mainland China, possesses the copyright for the authorized game, and has the right to license the game to third parties for operation.

The group's successful acquisition of the exclusive operational rights for both the App and mini-program versions of "Demi-Gods and Semi-Devils 2: Flying Dragon Combat" is not only a crucial component of its strategic focus on building a "Jin Yong Martial Arts IP Game Matrix" for 2025 but also a key milestone in the deep implementation of its "High-Quality Major IP + Multi-Platform Deployment" strategy. This move lays a solid foundation for the group's subsequent systematic distribution and long-term operation of the Jin Yong martial arts IP game series. Currently, the group's successfully operated and pipeline Jin Yong IP games include "Demi-Gods and Semi-Devils 2: Flying Dragon Combat," "The Legend of the Swordsman," and "The Trilogy of Condor Heroes."

Furthermore, through the strategic investment in Shanghai Yuelong, a leading Chinese game developer, the group has extended its reach from the distribution end upstream to the development end. This further strengthens its capability to secure a stable supply of high-quality IP products and provides a robust foundation for the subsequent serialized development of IP value and full lifecycle operation.