Giant Interactive Network and three of its executives, including its chairman, have been issued a warning letter by regulators concerning the disclosure of a connected transaction.
On April 30, after market close, Giant Interactive (002558) announced that the company received a "Decision on Administrative Regulatory Measures" from the Chongqing branch of the China Securities Regulatory Commission. The action was taken because a September 2020 transaction, in which a wholly-owned subsidiary transferred 100% equity of Hefei Lingxi Interactive Network Technology Co., Ltd. to a related party, constituted a connected transaction. However, the company failed to follow the requisite review procedures and disclosure obligations. Consequently, the company itself, Chairman Shi Yuzhu, General Manager Liu Wei, and Board Secretary Meng Wei were issued a warning letter, and the violation has been recorded in the securities and futures market integrity archive.
Separately, Giant Interactive recently released its 2025 annual report. During the reporting period, the company achieved operating revenue of 5.047 billion yuan, a year-on-year increase of 72.69%. Net profit attributable to shareholders reached 1.755 billion yuan, up 23.13% year-on-year, while adjusted net profit was 2.127 billion yuan, an increase of 31.10%. Both revenue and net profit for 2025 reached record highs since the company's listing.
It is noteworthy that Giant Interactive's performance is highly dependent on its product "Supernatural Action Team." Launched in January 2025, the game found market success with its differentiated gameplay described as "Chinese-style mild horror + search, combat, extract." It has consistently remained in the iOS free chart Top 10, peaked at number 4 on the top-grossing chart, and achieved a peak daily active user (DAU) count exceeding 10 million. By the end of the first quarter of 2026, "Supernatural Action Team" had accumulated over 200 million registered users and generated total gross revenue exceeding 5 billion yuan, making it a primary driver of the company's performance growth.
According to the company's recently released Q1 2026 report, Giant Interactive reported revenue of 2.329 billion yuan, a surge of 221.70% year-on-year. Net profit attributable to shareholders reached 1.080 billion yuan, a significant increase of 210.58% compared to the same period last year.
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