Hello (US:MOMO) Xin Lang Ke Ji·2025-12-24 02:26Core Viewpoint - The recent stock sell-off by the president of Zhihui Group, Wang Li, amid declining financial performance highlights significant growth pressures on the company, particularly in its core products, Momo and Tantan, which are experiencing a sharp decline in paid user numbers [1][9][12]. Group 1: Stock Sell-off - Wang Li has sold approximately 2.25 million yuan worth of shares over four consecutive trading days, indicating a trend of stock reduction [1][6]. - In total, Wang Li has cashed out nearly 5.68 million yuan through two rounds of stock sales within a year and a half, reflecting a significant reduction in his holdings [7][8]. - Other executives, including founder Tang Yan and COO Zhang Sicuan, have also participated in stock sell-offs, with their combined cash-out exceeding 7.38 million yuan [8]. Group 2: Financial Performance - Zhihui Group's total revenue has declined for three consecutive years, dropping from 12.7 billion yuan in 2022 to an estimated 10.563 billion yuan in 2024 [1][10]. - The third-quarter revenue for 2025 was reported at 2.65 billion yuan, a decrease of 0.9% from the previous year, with net profit down 22.27% [9][10]. - The number of paid users for Momo has nearly halved year-on-year to 3.7 million, while Tantan's paid users decreased by 22.2% to 700,000, indicating a significant contraction in user willingness to pay [12][13]. Group 3: User Engagement and Market Challenges - The decline in paid users is attributed to a shift in user demographics and preferences, with older users moving towards other social platforms like WeChat [13]. - Reports of scams and fraudulent activities on Momo have raised concerns about user safety and trust, further impacting user engagement [14][15]. - The company has faced criticism for its handling of these issues, with customer service representatives avoiding questions about proactive measures to address the problem [15].