Core Viewpoint - The stock price of Xinghui Entertainment surged after the announcement of a compensation payment from a player transfer, which is expected to positively impact the company's net profit by approximately 1.56 billion RMB [1][3]. Group 1: Financial Impact - Xinghui Entertainment's subsidiary, Espanyol Football Club, will receive a compensation payment of 26.34 million euros due to a player's unilateral contract termination, contributing to a net profit of no less than 18.75 million euros after tax [1][3]. - The player transfer is anticipated to enhance the club's liquidity for daily operations, positively affecting the company's financial status and operational results [3]. - The club has not yet received the aforementioned compensation payment as of the announcement date [3]. Group 2: Player and Contract Details - The player involved, Garcia, had previously represented the Spanish U23 national team and was valued at 20 million euros according to data from the German transfer market [5]. - Espanyol signed a labor contract with Garcia on November 3, 2023, which is valid until the end of the 2027/2028 season, with a stipulated unilateral termination compensation of 25 million euros [2]. Group 3: Company Overview - Xinghui Entertainment holds a 99.59% stake in Espanyol, making it the first A-share listed company to control a club in one of Europe's top five leagues [6]. - The company reported a significant decrease in player transfer income for 2024, amounting to 33.11 million RMB, down 87.09% from the previous year, attributed to reduced player transactions to maintain competitive strength in La Liga [6].