On the evening of October 8th, Hangzhou Electronic Soul Network Technology Co.,Ltd. (SH603258, previous closing price: 21.05 yuan, market value: 5.137 billion yuan) disclosed the share reduction activities of Chairman Hu Jianping. Between July 4th and October 3rd, Hu Jianping reduced his holdings by a total of 4.8692 million shares through centralized bidding and block trading, representing 2.00% of the company's current total share capital, with a total reduction amount of approximately 101 million yuan. Previously, Director Yu Xiaoliang, Board Secretary Zhang Jiliang, and CFO Wu Xiaojun also planned to reduce their holdings in the company. These reduction activities have attracted widespread market attention.
Hangzhou Electronic Soul Network Technology Co.,Ltd., a game developer and operator integrating creative planning, art design, and technical development, has been facing performance pressure in recent years since its A-share listing in October 2016. From 2021 to 2024, the company's revenue and net profit attributable to shareholders declined for four consecutive years. In the first half of 2025, the company achieved revenue of 194 million yuan, a year-on-year decrease of 28.69%; net profit attributable to shareholders was -9.3381 million yuan, a year-on-year decline of 115.75%, marking the first interim report loss since the company's listing. The company stated that revenue from some older games declined year-on-year in the first half, while promotional effects for new games fell short of expectations.
Under performance pressure, executive share reductions undoubtedly bring greater challenges to the company. On one hand, executive reductions may lead to increased short-term stock price volatility, affecting the interests of retail investors and triggering market doubts about the company's future business prospects, further weakening market confidence in the company. On the other hand, executive reduction behavior may suggest concerns about the company's future development, which to some extent affects investors' judgment of company value and leads to diminished investor confidence.
Facing the dual pressure of declining performance and executive share reductions, Hangzhou Electronic Soul Network Technology Co.,Ltd. needs to actively take measures to address these challenges. The company should strengthen internal management, optimize operational efficiency, reduce costs and expenses, and improve profitability. Through refined management, the company can improve resource allocation efficiency, reduce unnecessary expenditures, and enhance risk resistance capabilities. Meanwhile, the company needs to intensify market development efforts and actively expand into new business areas and customer segments. Against the backdrop of increasingly fierce competition in the gaming market, Hangzhou Electronic Soul Network Technology Co.,Ltd. should enhance customer experience through innovative products and services, attract more users, and increase market share.
Additionally, the company needs to strengthen investment in technological research and development to enhance product competitiveness. By continuously optimizing product structure, improving product quality and added value, the company can strengthen its core competitiveness in the market. The company should reasonably plan fund utilization, optimize capital structure, and avoid affecting normal operations and development due to shareholder reductions. At the same time, the company should regularly disclose business conditions and development plans to investors, enhance market confidence, and stabilize stock price trends.
In conclusion, when facing the dual challenges of performance issues and executive share reductions, Hangzhou Electronic Soul Network Technology Co.,Ltd. needs to address these challenges from multiple aspects including internal management, market development, and technological research and development, actively responding to difficulties and striving to emerge from the predicament.
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