Offshore Trust Insight | TANWAN (09890.HK) Down 2.75% Intraday at a 52-Week Low; Controlling Shareholder Wu Xubo Holds 52% via a TMF Cayman Trust

On October 22, 2026, the gaming and internet theme traded weakly, and TANWAN (09890.HK) weakened. As of 13:50, the company was quoted at HKD 7.965, down 2.75%, with a turnover of about HKD 3.30 million and a market capitalisation of about HKD 4.113 billion based on the latest price. The stock touched a low of HKD 7.980 and a high of HKD 8.380 during the day, with an amplitude of 4.88%.

On the news front, according to the HKEx disclosure of interests platform, the long position declared by Wu Xubo has increased continuously in recent sessions, with increases recorded on every trading day from October 2 to October 12; over the same period, the company continued to file next-day disclosure returns, with on-market share buybacks still ongoing. On August 25, the company released its interim results, with profit for the period down 67.2% year on year.

It is understood that TANWAN (Tanwan Inc., formerly Zhongxu Future) listed on the Main Board of HKEX on September 28, 2023 at an offer price of HKD 14.00, offering 18.976 million shares globally, raising net proceeds of about HKD 138 million; four cornerstone investors — Shangrao High-speed Rail Economic Pilot Zone Industry Investment and Development Co., Ltd., 4399 Network Co., Ltd., Hong Kong Longxin Limited and Aofei Data International Limited — subscribed for a total of about HKD 88.91 million. The company is a Chinese mobile game product publishing platform, ranking fifth in China by 2022 revenue with a market share of 3.5% (Frost & Sullivan). As at the intraday quote on October 22, the share price was HKD 7.965, down 43.1% cumulatively from the offer price, with a market capitalisation of HKD 4.113 billion; the 52-week low of HKD 7.980 was recorded today.

In terms of shareholding structure, according to the HKEx disclosure of interests platform, Wu Xubo declared a long position of 286,567,357 shares on October 12, 2026, representing 53.62% of the issued voting shares; his declared long position has increased continuously during the year, standing at 278,434,157 shares on February 13, 2026. The prospectus shows that co-founder Wu Xuan held 7.20% after listing.

Public listing documents show that, according to the HKEx disclosure of interests platform, TMF (Cayman) Ltd., as trustee, declared holdings of 277,933,000 shares on July 14, 2026, representing 52.00%, with the corresponding holding platforms being WxLand Holding Limited, WxLand International Ltd and WxLand Limited; Wu Xubo declared a long position of 282,188,157 shares, or 52.80%, on the same day, filing for the same number of shares as the trustee. The name, establishment date, protector and scope of beneficiaries of the trust have not been disclosed.

Regarding offshore trusts, on July 24, 2026, the Ministry of Finance and the State Taxation Administration jointly issued the Announcement on Matters Concerning Individual Income Tax on Offshore Trusts (Announcement No. 21 of 2026), bringing the entire life cycle of an offshore trust — establishment, existence and termination — into the individual income tax administration system, establishing three look-through points of establishment, existence and termination with a uniform 20% tax rate. The announcement specifies that during the existence of an offshore trust, income generated by an individual resident's offshore trust and by overseas entities held or controlled by that trust, whether actually distributed or not, is taxable to that individual resident, who must file and pay individual income tax on an annual basis. Article 6 of the announcement specifies that where, during the existence of an offshore trust of an individual resident, the individual resident becomes a non-resident individual, the taxable income is the balance after deducting the original value from the market value of the offshore trust's property on the day the individual becomes a non-resident, and individual income tax must be filed and paid. The 90-day supplementary filing window set by the announcement runs from July 24, 2026.

On the operating side, the company's revenue in the first half of 2026 was RMB 1.884 billion, down 6.0% year on year; profit for the period was RMB 213 million, down 67.2% year on year; net profit attributable to the parent was RMB 185 million, down 69.2% year on year; the gross margin was 53.2%, down 7.3 percentage points year on year; overseas revenue was RMB 352 million, up 12.2% year on year, with its share of total revenue rising to 18.7%. As at June 30, cash and cash equivalents were RMB 694 million. In the first half, the company repurchased 4.25 million shares for HKD 75 million, at an average repurchase price of HKD 17.62; during the period it completed the issuance of HKD 468 million zero-coupon convertible bonds; the board did not declare an interim dividend.

China Post Securities believes that the company's legacy product decline coupled with cost investment has put main-business profitability under stage-by-stage pressure, and there is a time lag between new product revenue release and prior investment; new products are expected to supplement revenue in the second half, overseas business maintained growth, and AI applications provide a direction for subsequent observation.