Giant Network(SZ:002558) Mei Ri Jing Ji Xin Wen·2025-05-07 14:20Core Viewpoint - The financial troubles of Giant Investment Co., a key platform under entrepreneur Shi Yuzhu, have raised concerns in the market, particularly with a recent court ruling involving a debt of over 490 million yuan [2][3]. Group 1: Company Background - Giant Investment was established in April 2001, with Shi Yuzhu holding approximately 97.9% of the shares, while its business scope includes industrial investment and asset management [3]. - Shi Yuzhu is a notable figure in Chinese business, having gained fame through health products and later expanding into gaming and financial investments [3]. Group 2: Financial Performance - Giant Network, a major company under Shi Yuzhu, has seen a decline in revenue from 25.71 billion yuan in 2019 to 20.38 billion yuan in 2022, reflecting a decrease of 31.96% to 4.07% year-on-year [3]. - In the first quarter of 2025, Giant Network reported a revenue of 724 million yuan, a year-on-year increase of 3.94%, with a net profit of 348 million yuan, remaining stable compared to the previous year [6]. Group 3: Debt and Legal Issues - Giant Investment and Purple Crystal Investment Management Co. have been listed as defendants in a court case with a claim amounting to over 490 million yuan, indicating potential shared debt or guarantee relationships [2][3]. - Shi Yuzhu has faced multiple financial issues, including the freezing of shares worth 65 million yuan in December 2024, further indicating pressure on his capital structure [5]. Group 4: Market Reaction - Following the news of the legal case, Giant Network's stock fell by 1.94%, although there was no significant volatility in the stock price [6]. - The market is reacting cautiously to the ongoing financial issues within the "Giant System" [6]. Group 5: Strategic Initiatives - Giant Network is focusing on revitalizing its core IPs, with the game "Wang Zhe Zheng Tu" attracting over 25 million new users since its launch on a mini-program platform [7]. - The company is also investing in AI technologies to enhance gameplay experiences, which could lead to increased player engagement and revenue [8].