Giant Network(002558) Nan Fang Du Shi Bao·2025-05-19 15:29Core Viewpoint - The recent execution case involving 4.91 billion yuan against Giant Investment, a company owned by Shi Yuzhu, has drawn significant market attention regarding the current status and future direction of Shi's enterprises, collectively known as the "Giant System" [2][7]. Group 1: Legal and Financial Issues - Giant Investment and Zijing Real Estate have been listed as defendants in a civil case with an execution amount of 4.91 billion yuan, as disclosed by the Beijing Financial Court [2]. - Shi Yuzhu holds approximately 97.86% of Giant Investment, which is the largest shareholder of Giant Network Group Co., Ltd. (002558 SZ), making the execution case particularly impactful on market sentiment [7]. - Shi Yuzhu has previously faced similar legal challenges, including a 1.14 billion yuan equity freeze in 2023 due to personal guarantees for friends, which has led to significant financial strain [8][9]. Group 2: Company Performance and Strategy - Giant Network reported a revenue of 2.92 billion yuan for 2024, nearly unchanged from the previous year, while net profit increased by 31.15% to 1.42 billion yuan, largely driven by investment income [13][14]. - The company’s investment income for 2024 reached 661 million yuan, accounting for 45.69% of total profit, reflecting a 38.60% increase from the previous year [13]. - In the first quarter of 2025, Giant Network achieved a revenue of 724 million yuan, a year-on-year growth of 3.94%, while net profit remained stable at 348 million yuan [15]. Group 3: Product Development and Market Position - Giant Network has been focusing on its core products, primarily the "Zhengtu" series and "Qiuqiu Battle," but lacks new flagship products to drive future growth [13]. - The game "Original Journey," which Shi Yuzhu has been involved in revamping, has shown strong performance and contributed to user growth through innovative marketing strategies [15].