Core Viewpoint - The recent share reduction by the actual controller of Perfect World, Chi Yufeng, has raised concerns in the capital market, especially given the company's previous poor performance and the recent stabilization of its financials. Chi Yufeng's reduction has resulted in a cash-out of nearly 500 million yuan [2][3]. Shareholder Actions - Chi Yufeng plans to reduce his holdings by up to 32,979,500 shares, accounting for 1.7% of the total share capital, citing "personal funding needs" as the reason. As of the announcement date, he holds 14,912,240 shares, representing 7.69% of the total [3][4]. - Since June 2019, Chi Yufeng has cumulatively reduced his holdings by 76,929,900 shares, cashing out approximately 2.5 billion yuan. Including the current planned reduction, the total cash-out will exceed 3 billion yuan [4]. Financial Performance - In 2024, Perfect World reported a revenue of 5.57 billion yuan, a year-on-year decrease of 28.5%, and a net loss of 1.29 billion yuan, compared to a profit of 491 million yuan in 2023. The company has shut down several projects due to poor expected returns and has significantly reduced its workforce from over 5,700 to under 4,000 [5]. - However, in the first three quarters of this year, the company achieved a revenue of 5.42 billion yuan, a year-on-year increase of 33%, and a net profit of 666 million yuan, marking a return to profitability. The gaming segment generated 4.48 billion yuan in revenue, up 15.64% year-on-year [5][6]. Market Reactions - Following the announcement of the share reduction, Perfect World's stock price fell over 7% on November 28, closing at 17.17 yuan per share, a decline of 6.59%. The stock price rebounded slightly to 14.56 yuan on December 1, with a 2.75% increase, although large orders showed a net outflow [7]. Industry Context - Several A-share gaming companies have also announced share reductions recently, indicating a trend among major shareholders to cash out amid a rising market. Analysts suggest that this is a cyclical issue, as many gaming companies face challenges with older game products declining and new releases lacking strength [8][10]. - Perfect World is currently working on several projects, including the highly anticipated game "Yihuan," which is facing significant competition in the market. The success of "Yihuan" remains uncertain, especially given the high failure rate of domestic two-dimensional games [11].

Group 1 - The major shareholder of Zhangqu Technology, Liu Huicheng, plans to reduce his stake by up to 27.2 million shares, which is approximately 1% of the total share capital, due to personal financial needs [1][2] - Following the announcement, Zhangqu Technology's stock price fell by 1.64%, closing at 4.81 yuan per share, indicating a potential cash-out of around 130 million yuan for Liu Huicheng [1][2] - Liu Huicheng currently holds 169 million shares, representing 6.23% of the company's total share capital, and the reduction period is set from June 5, 2025, to September 4, 2025 [1][2] Group 2 - Zhangqu Technology reported a revenue of 819 million yuan for 2024, a decline of 16.61% year-on-year, and a net profit of 111 million yuan, down 40.68% from the previous year [3][4] - The company's revenue has decreased for four consecutive years since 2021, with the current revenue being halved compared to 2020, when it was 1.789 billion yuan [2][4] - In the first quarter of 2025, Zhangqu Technology achieved a revenue of 162 million yuan, a year-on-year decrease of 36.62%, and a net profit of 27.86 million yuan, down 50.04% [4]