Core Viewpoint - After divesting its football business, Xinghui Entertainment's controlling shareholders plan to reduce their stake in the company, indicating a shift in focus and financial strategy [1][2]. Group 1: Shareholder Actions - Xinghui Entertainment's controlling shareholders, Chen Yansheng and Chen Dongqiong, plan to sell up to 36.03 million shares, representing 2.9% of the total share capital, within three months starting from December 16, 2025 [1]. - As of November 24, 2023, the couple holds 431 million shares, accounting for 34.70% of the total share capital, and the planned sale could yield over 200 million yuan [1]. Group 2: Business Performance - The company has successfully divested its football business, which included the sale of its 99.66% stake in the Spanish club Espanyol for approximately 1.3 billion euros (about 1.08 billion yuan), leading to a significant increase in net profit [4]. - In 2023, Xinghui Entertainment reported a net profit of 27.71 million yuan, recovering from previous losses of 663 million yuan in 2021 and 310 million yuan in 2022 [4][5]. - The company's revenue for the third quarter of 2023 reached 592 million yuan, a year-on-year increase of 41.26%, while net profit surged by 317.56% to 113 million yuan [5]. Group 3: Financial Challenges - Despite the recovery, the gaming segment has shown weak performance, with revenue failing to exceed 500 million yuan from 2022 to 2024, and a net loss of 165 million yuan in 2024 [6]. - The gaming business recorded a significant increase in sales expenses, which rose by 99.66% to 455 million yuan, accounting for 26.35% of total revenue [8]. - The newly launched game "Three Kingdoms: Strategy of the Nine Provinces" has not performed well, with low ratings and rankings, indicating challenges in the competitive gaming market [8]. Group 4: Toy Business Stability - The toy segment remains a stable revenue source for Xinghui Entertainment, achieving a revenue of 201 million yuan in the first half of the year, a year-on-year increase of 8.46% [9]. - The toy business has shown consistent growth in both revenue and net profit in the latest quarterly reports [9].