Announcement • 9h
Tanwan Inc. Launches Yulgang Awakening Mobile Game And Announces Open Beta Testing Tanwan Inc. made an announcement that the Group operates and publishes a brand-new Q-style martial arts mobile game based on the classic IP “Yulgang” (????), named “Yulgang: Awakening” («????:??»), and the open beta testing across all platforms for the New Game will be officially launched on July 31, 2026. “Yulgang Online” («????Online») was launched in 2005 by a South Korean company Mgame Co. Ltd. With its lighthearted and humorous martial arts style, distinctive character settings and rich gameplay, the game attracted a large number of players. Consequently, “Yulgang” has gradually evolved into a classic martial arts game IP with broad market recognition and a solid user base. Through over two decades of continuous operation and diversified product development, “Yulgang” has established a mature IP content ecosystem. Its refreshing and vibrant Q-style martial arts art direction and multiplayer social gameplay have carried the gaming memories and emotional resonance of multiple generations of players. As a brand-new martial arts mobile game based on the classic IP “Yulgang”, “Yulgang: Awakening” retains the original Q-style martial arts aesthetics, classic class system and martial arts world view. Meanwhile, it has been optimized and upgraded in aspects such as character progression, equipment systems and mobile control experience to meet the current demands of mobile game users. While inheriting the core content and signature gameplay of the classic IP, the New Game enhances its playability and long-term operational potential through optimized product pacing and enriched in-game content, thereby injecting new vitality into the sustainable development of the classic IP in the mobile game market. In recent years, the Group has continuously explored the long-term value of the “Yulgang” (????) IP and has successively released multiple “Yulgang” IP popular mobile game products, including “All People’s Jianghu” («????») and “Yulgang: Return” («????:??»). Among them, “Yulgang: Return” has achieved remarkable performance in multiple international markets: in South Korea, it successfully topped the App Store Free List; in Thailand, it topped the Free Lists across Google Play, App Store, and LDPlayer; in the Taiwan region of China, it grabbed the Top One spot on the App Store Free List and Top Two spot on the Top-Grossing List. The outstanding market performance of the game product further validates the user base and sustainable development potential of the “Yulgang” IP across different international markets. Against the backdrop of the current mobile game market, the sustainable development of classic IP products requires not only the effective inheritance of core IP content but also continuous optimization of product pacing, control experience and long-term operational mechanisms to align with contemporary user gaming habits. The research, development and publishing of “Yulgang: Awakening” represent the Group’s further deployment in the Q-style martial arts game category and the youthful operation of classic IPs built upon its “AI + Game” capability system. The Group will continue to focus on the long-term development of classic IPs. Through product iterations and content innovation, it aims to continuously enrich game content, optimize user experience and refine its product matrix, thereby driving the continuous release of classic IP value. The launch of “Yulgang: Awakening” reflects the Group’s development philosophy of creating premium games and extending product lifecycles through innovative iterations, which will further enrich the Group’s product pipeline in the classic IP sector. Announcement • Jul 17
Tanwan Inc. Launches Open Beta Testing For Space Hunter: Awakening Mobile Game Tanwan Inc. had published and operated a brand-new side-scrolling fighting mobile game based on the premium IP “Space Hunter", named Space Hunter: Awakening, and the open beta testing across all platforms for the New Game has been officially launched. Space Hunter, the first game under the IP “Space Hunter”, is China’s original classic phenomenal side-scrolling fighting mobile game. Since its official launch in 2013, it achieved the hightest monthly gross billings of over RMB 200 million and global cumulative gross billings of over RMB 6,000 million, and has accumulated more than 250,000,000 registered users. It has built deep brand recognition and emotional resonance among a broad player base, making it one of the most representative products in China’s side-scrolling fighting mobile game sector. “Space Hunter” was developed by Guangzhou Yinhan Technology Co. Ltd. (“Yinhan Technology”), one of the earliest Chinese developers to specialize in side-scrolling fighting mobile games. As a brand-new side-scrolling fighting mobile game that carries forward the core essence of the original IP, Space Hunter: Awakening fully inherits the original game’s core gameplay system and combat mechanics, while undergoing comprehensive iterative upgrades across multiple dimensions, including engine technology architecture upgrades, refined art quality, optimized control responsiveness, and systematic operational philosophy. The development and release of the new game reflect the Group’s strategic assessment of the long-term value of the side-scrolling fighting genre. The iteration and revitalization of premium IPs relies not only on robust underlying technological capabilities but also on precise insight into and effective response to the demands of core users. The launch of the New Game represents the Group’s further deployment in the side-scrolling fighting track built upon its “AI + Game” capability system. The Group has long been deeply engaged in the field of high-quality game publishing and operations, consistently prioritized user experience as a core guiding principle, and continuously advanced the development of premium IPs and the construction of a diversified product matrix. Leveraging its systematic “AI + Game” capabilities, the Group has built a full-chain business capabilities covering user insights, content optimization, user acquisition and refined operations. These capabilities will provide sustained impetus for subsequent version iterations, content updates and long-term operations of the New Game, helping the product achieve a long-term and stable lifecycle performance. In terms of IP operations, the Group will continue to adhere to the core strategy focusing on classic IP development and diversified product matrix. Centered on premium IPs including “Legend”, “MU”, “Yulgang”, “Soul Land”, “Jin Yong Martial Arts” and “Space Hunter”, the Group has built a systematic publishing and operation system, continuously transforming core copyright resources into iterable and reusable content assets. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$15.08, the stock trades at a trailing P/E ratio of 4.6x. Average trailing P/E is 10x in the Entertainment industry in Hong Kong. Total returns to shareholders of 39% over the past year. Recent Insider Transactions • May 17
Key Founder recently bought HK$2.1m worth of stock On the 14th of May, Xubo Wu bought around 144k shares on-market at roughly HK$14.89 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Xubo has been a buyer over the last 12 months, purchasing a net total of HK$3.6m worth in shares. New Risk • May 07
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 84% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. 
