TANWAN(09890) acquires exclusive operating rights for "Demi-Gods and Semi-Devils 2: Flying Dragon Battle" and invests in game developer Shanghai Dragon Read.

TANWAN (09890) announced that Jiangxi TANWAN Information Technology Co., Ltd. (a China operating entity controlled by the group through contract arrangements) (Jiangxi TANWAN) has signed a "Equity Transfer Agreement" with Shanghai Yuelong Zhiyu Culture Technology Co., Ltd. (Shanghai Yuelong, project company) and a subsidiary of Perfect World Co., Ltd. (Perfect World). According to this, Jiangxi TANWAN paid RMB 15 million to acquire 35% equity of Shanghai Yuelong. At the same time, Shanghai Yuelong, Jiangxi TANWAN, and Perfect World signed a "Game Operation Rights Transfer Agreement", in which Shanghai Yuelong granted exclusive operation rights of the game app version "TLB2: Flying Dragon Battle" to Jiangxi TANWAN; Shanghai Yuelong terminated the exclusive operation rights previously granted to Perfect World for the game app version; Perfect World agreed to cooperate with Shanghai Yuelong to transfer the exclusive operation rights of the game app version to Jiangxi TANWAN. In 2024, the group has signed an "Exclusive Agency Cooperation Agreement" and a "Online Game Cooperation Agreement" with Shanghai Yuelong, thereby obtaining exclusive agency cooperation rights for the authorized game H5 version (i.e., mini game version). Now, Jiangxi TANWAN and Shanghai Yuelong have once again signed a new "Exclusive Agency Cooperation Agreement" for the authorized game app version. According to this, Jiangxi TANWAN paid RMB 30 million to Shanghai Yuelong for the exclusive operation rights copyright fee. Shanghai Yuelong agreed to grant Jiangxi TANWAN the exclusive distribution rights of the authorized game app version in mainland China, and the revenue generated by the operation of the authorized game app version will be shared between the two parties as agreed. It is reported that Shanghai Yuelong is a legitimate limited liability company established and existing in accordance with Chinese laws, and is a leading game developer in China, focusing on the development of high-quality multiplayer online games. The project company has obtained legitimate and effective authorization to adapt and develop a game based on the novel "TLBB" by Mr. Jin Yong (pen name: Louis Cha) and has the right to develop and exclusively operate the authorized game in mainland China. The project company owns the copyright of the authorized game and has the right to license the authorized game to third-party operators. The group has successfully obtained the exclusive operating rights for both the app version and mini-program version of "TLB2: Flying Dragon Battle." This is not only an important part of the group's key layout of the "Jin Yong Martial Arts IP Game Matrix" in 2025, but also a key milestone in the group's deep implementation of the "high-quality big IP + multi-platform layout" strategy. This move has laid a solid foundation for the orderly promotion and long-term operation of the series of Jin Yong martial arts IP games by the group. Currently, the group has successfully operated and reserved Jin Yong martial arts IP games including "TLB2: Flying Dragon Battle," "The Smiling, Proud Wanderer," and "The Legend of the Condor Heroes." Furthermore, through strategic investment in Shanghai Yuelong, a leading game developer in China, the group has extended its reach from the distribution side to the upstream development side, further strengthening its ability to supply high-quality IP products steadily. This provides a solid foundation for the series development and full life cycle operation of IP value in the future.