OURGAME(HK:06899) Nan Fang Du Shi Bao·2025-10-14 09:46Core Viewpoint - The stock price of Lianzhong International Holdings Limited has experienced significant volatility, dropping 13.24% to HKD 0.295 per share after a brief recovery following its resumption of trading after a prolonged suspension due to delayed financial disclosures [1][2]. Group 1: Stock Performance - Lianzhong's stock price fell by 13.24% on October 14, closing at HKD 0.295 per share, marking a continued decline after a brief surge post-resumption [2]. - The stock had previously surged over 150% on its resumption day, closing up 92.11% at HKD 0.365 per share, but could not maintain this momentum [1][6]. Group 2: Financial Disclosure Issues - Lianzhong was suspended from trading for 561 days starting March 28, 2024, due to its failure to timely disclose its 2023 annual report [4]. - The company cited that releasing unaudited management accounts at that time would not accurately reflect its financial performance [4]. - In its latest disclosures, Lianzhong reported a revenue of RMB 88.996 million for 2023, a 12.4% decrease year-on-year, and has faced consecutive years of losses [4][5]. Group 3: Management and Operational Challenges - The company has faced significant operational challenges, including a delay in the release of its annual report due to unresolved major issues, including improper payments made by the former CEO [5]. - An internal investigation revealed that approximately RMB 8.38 million was improperly paid, including RMB 5.58 million in legal fees and RMB 2.8 million in severance payments, which were not correctly recorded in previous financial statements [5]. - Lianzhong's financial performance has been declining, with a reported loss of RMB 89.191 million for the year, a 42.1% increase in losses year-on-year, and a basic loss per share of 8.32 cents [8]. Group 4: Historical Context and Market Position - Founded in 1998, Lianzhong was one of the earliest internet companies in China, initially dominating the online gaming market with over 200 million registered users and a market share of 85% by 2003 [7]. - The company has struggled to maintain its market position due to increased competition, particularly from Tencent's QQ platform, which surpassed Lianzhong in user engagement [7][8]. - Despite a management buyout (MBO) that led to a brief recovery, Lianzhong has faced ongoing financial difficulties, with recent reports indicating a revenue of RMB 92.188 million for 2024, a 3.6% increase, but still resulting in significant losses [8].