Giant Network(002558) Chang Jiang Shang Bao·2025-05-19 00:49Core Viewpoint - The article discusses the recent financial troubles faced by Shi Yuzhu, a prominent figure in the Chinese business landscape, particularly due to his involvement in guaranteeing loans for friends, leading to a significant execution amount of over 490 million yuan for his investment company, Giant Investment [1][4]. Company Overview - Giant Investment, led by Shi Yuzhu, has been identified as a core investment platform, with Shi holding approximately 97.9% of the shares [1]. - Despite Shi's personal financial issues, Giant Network (002558.SZ) has shown stable performance, reporting a profit of 1.425 billion yuan in 2024, although it has not launched any major new products recently and continues to rely on the "Journey" IP [1][7]. Historical Context - Shi Yuzhu's entrepreneurial journey began with the establishment of Zhuhai Giant High-Tech Group in 1991, where he made his first fortune through software development [2]. - The construction of the Giant Building, intended to be the tallest in China, led to financial difficulties and the eventual bankruptcy of Giant Group, resulting in a debt of 250 million yuan [2]. - Shi later found success in the health supplement market with the launch of "Brain Platinum" in 1997, which became a household name through extensive advertising [3]. Business Strategy - Shi transitioned from health supplements to the online gaming industry, launching the game "Journey" and employing aggressive marketing strategies that led to significant revenue [3]. - Giant Network went public in the U.S. in 2007 and later entered the A-share market in 2016, marking significant milestones in its growth [3]. Recent Developments - The recent execution order against Giant Investment highlights ongoing financial challenges linked to Shi's personal guarantees for friends, with the amount reaching over 490 million yuan [1][4]. - Despite these challenges, Giant Network's financial performance remains stable, with a reported revenue of 2.923 billion yuan in 2024, maintaining a net profit growth of 31.15% year-on-year [7]. - Shi has returned to the gaming sector, focusing on diversifying beyond the "Journey" IP and has initiated AI projects within the company [7].