Shares of TANWAN (HKEX: 09890) have surged more than 8% against the broader market trend. At the time of writing, the stock is up 5.67%, trading at HK$11.75 with a turnover of HK$20.73 million.

Key Drivers for the Move

The rally is supported by data from the China Audio-Video and Digital Publishing Association's Game Working Committee, indicating that the overall adoption rate of AI in China's game development sector has reached 86.36%.

Company's AI Integration Strategy

According to reports, Qiu Junwen, head of the AI efficiency department at TANWAN Games, stated that the company deeply integrates AI into its operations and advertising placement processes. The strategy does not involve large-scale workforce adjustments. Instead, the company equips employees with AI Agents as assistants, freeing them from repetitive tasks. This allows staff to focus on high-value work such as core content creation and analyzing user needs, thereby enhancing individual professional value.

Proprietary Systems and Performance Metrics

Public information shows that TANWAN Games has independently developed two core systems named "Hetu" and "Luoshu." The AI penetration rate for generating art assets and for advertising placement both exceed 80%, with efficiency in these two business areas improving by over 70%.

Financial Performance and Outlook

TANWAN Games reported a net profit of 1.56 billion yuan for 2025. The company attributed this performance growth to the application of AI technology in game publishing and operations, as well as the optimization of advertising models and algorithms, which significantly reduced sales and marketing expenses.