E-Soul(SH:603258) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-12 15:32Core Viewpoint - The recent share reduction by the actual controller and chairman of Dianhun Network, Hu Jianping, highlights ongoing concerns regarding the company's declining financial performance and the potential impact on investor confidence [2][4][11]. Group 1: Share Reduction - Hu Jianping completed a share reduction of 4.8692 million shares between July and October, cashing out 101 million yuan, with share prices ranging from 18.49 to 22.73 yuan per share [2]. - Other executives, including director Yu Xiaoliang and secretary Zhang Jiliang, also announced share reductions, with a total planned reduction exceeding 200 million yuan in the past six months [4]. - The cumulative share reduction by core management since 2019 has reached 850 million yuan, raising market concerns despite the company's claim that these actions are due to personal financial needs [4]. Group 2: Financial Performance - Dianhun Network's revenue has halved from 1.024 billion yuan in 2021 to 550 million yuan in 2024, with net profit plummeting by 88.11% from 454 million yuan to 29.29 million yuan [6]. - The company's first half of 2025 showed a revenue drop of 28.69% year-on-year, resulting in a net loss of 9.34 million yuan, marking the first loss since its listing in 2016 [6]. - The decline is primarily attributed to the decreasing revenue from its core product, the "Dream Three Kingdoms" series, which generated 359 million yuan in 2024, a year-on-year decrease of 18.46% [6]. Group 3: Product Development and Investment - Dianhun Network has invested over 100 million yuan in research and development over seven years, launching 21 self-developed games, but with limited success [8]. - The recent release of "Barbarian Battle 2" initially performed well but quickly declined, generating only 152.87 million yuan in total revenue [8]. - The company is also exploring new areas such as AI, with a strategic investment in Hangzhou Hunyue Technology, aiming to develop an AI scheduling platform [8][10]. Group 4: Industry Challenges - The gaming industry is highly competitive, with over 30% of new games failing within three months, while the top 10% of products dominate over 75% of the market [10]. - Dianhun Network's internal cost-cutting measures include reducing R&D personnel from 637 in 2021 to 302 and decreasing R&D investment from 210 million yuan to 130 million yuan [10]. - The combination of aging core products, lack of breakthroughs in new business areas, and cash flow pressures may further undermine market confidence and financing capabilities [11].