In 2024, the China Securities Regulatory Commission (CSRC) successively released the "Management Rules for Shares Held by Directors, Supervisors and Senior Management of Listed Companies and Changes Thereof" and the "Interim Measures for the Management of Share Reduction by Shareholders of Listed Companies," further regulating the share reduction behavior of listed company shareholders, protecting the legitimate rights and interests of investors, and maintaining securities market order.
Meanwhile, the CSRC published "Listed Company Supervision Guidelines No. 10 - Market Value Management," encouraging controlling shareholders and actual controllers to hold shares of listed companies for the long term and maintain relative stability of listed company control rights. Controlling shareholders and actual controllers can boost market confidence through legally implementing share increase plans, voluntarily extending share lock-up periods, voluntarily terminating reduction plans, or committing not to reduce shareholdings.
Taking A-share gaming industry as an example, according to Wind data statistics, from 2024 to date, a total of 5 listed companies have disclosed share increase situations by controlling shareholders, actual controllers, directors, supervisors, and senior management personnel. All transactions were conducted through centralized bidding, with increase reasons including long-term optimism about the high-quality development of China's gaming industry, confidence in the company's future development prospects, and high recognition of company value.
Giant Network General Manager Zhang Dong Earns Annual Salary of 3.3716 Million Yuan, Increases Holdings by 94,800 Yuan
As of now, relevant shareholders of A-share gaming companies have collectively increased holdings by approximately 211 million yuan using personal funds, with specific details as follows:
On January 15, 2024, 37 Interactive Entertainment General Manager Xu Zhigao increased company shareholdings by 2.5431 million shares, representing 0.1147% of the company's total share capital, with an increase amount of 45.4222 million yuan. Two days later, Vice Chairman Zeng Kaitian increased company shareholdings by 1.1297 million shares, representing 0.05% of the company's total share capital, with an increase amount of approximately 20 million yuan.
From February 1 to July 30, 2024, Century Huatong Chairman Wang Ji, President Xie Fei, Chief Strategy Officer Fang Hui, Board Secretary Huang Yi, and core personnel collectively increased company shareholdings by 6.3331 million shares, representing 0.0850% of the company's total share capital, with an increase amount of 20.2314 million yuan.
On February 6, 2024, Lian Sheng Technology's controlling shareholder's acting-in-concert party Wan Jiugen purchased 2.1752 million company shares, representing 0.59% of the company's total share capital, with an increase amount of 14.9781 million yuan. On the 7th, Vice General Manager Tang Jinglei purchased 26,700 company shares, representing 0.01% of the company's total share capital, with an increase amount of approximately 200,000 yuan. On the 8th, Vice General Manager Zhang Weiwei purchased 15,000 company shares, representing 0.0041% of the company's total share capital, with an increase amount of approximately 105,000 yuan.
From March 7 to March 27, 2024, Kingnet Network Co.,Ltd. actual controller and Chairman Jin Feng cumulatively increased company shareholdings by 9.7031 million shares, representing 0.45% of the company's total share capital, with a cumulative increase amount of approximately 110 million yuan.
On June 21, 2024, Giant Network Group Co.,Ltd. General Manager Zhang Dong increased company shareholdings by 10,000 shares, representing approximately 0.0005% of the company's total share capital, with an increase amount of 94,800 yuan.
Ranked by increase amount, Kingnet Network Co.,Ltd. actual controller and Chairman Jin Feng had the highest increase amount, exceeding the total increase amounts of controlling shareholders, actual controllers, directors, supervisors, and senior management personnel of other companies combined.
Giant Network Group Co.,Ltd. General Manager Zhang Dong had the lowest increase amount, less than 100,000 yuan, while his 2024 compensation reached 3.3716 million yuan, about 1 million yuan higher than Jin Feng's.
Kingnet Network Actual Controller and All Senior Management Increase Holdings by 131 Million Yuan Through Dividend Reinvestment
Additionally, Kingnet Network Co.,Ltd. is the only listed company in the A-share gaming industry where shareholders conduct cash dividend reinvestment increases.
On July 3, 2024, Kingnet Network Co.,Ltd. released "Announcement on the Company's Controlling Shareholder, Actual Controller and Acting-in-Concert Parties' Commitment Not to Reduce Company Shares for the Next Five Years" and "Announcement on All Senior Management Personnel's Commitment Not to Reduce Company Shares for the Next Five Years During Their Tenure."
The announcement shows that Kingnet Network Co.,Ltd. controlling shareholder, actual controller, and Chairman Jin Feng committed to use after-tax dividend income received by Jin Feng (including the portion attributable to Jin Feng from acting-in-concert party Shaoxing Anshen Zhonggui) from January 1, 2024, to December 31, 2028, for continuously increasing company shareholdings annually. Vice Chairman and General Manager Shen Jun, Director and Vice General Manager Zhao Fan, Director and Vice General Manager Qian Junfa, Vice General Manager Lin Bin, Vice General Manager Tang Yue, CFO Huang Zhenfeng, and Board Secretary Liu Honglin committed to use after-tax dividend income received from January 1, 2024, to December 31, 2028, for continuously increasing company shareholdings annually.
According to statistics, from July 2024 to June 2025, the aforementioned Kingnet Network Co.,Ltd. shareholders have completed the first cash dividend reinvestment increase in 2024, the second cash dividend reinvestment increase in 2024, and the first cash dividend reinvestment increase in 2025, collectively increasing company shareholdings by 12.148 million shares, with a total increase amount of approximately 131 million yuan.
In summary, Kingnet Network Co.,Ltd. controlling shareholder, actual controller, and Chairman Jin Feng has collectively increased company shareholdings by 21.5737 million shares using personal funds and cash dividends, with a total increase amount approaching 240 million yuan, ranking highest among A-share gaming company actual controllers.
Kingnet Network All Senior Management Commit Not to Reduce Holdings for Next Five Years
Regarding non-reduction commitments, Article 44 of the Securities Law stipulates that listed companies and companies whose stocks are traded on other national securities trading venues approved by the State Council, shareholders holding more than 5% of shares, directors, supervisors, and senior management personnel who sell their company stocks or other equity securities within six months after purchase, or repurchase within six months after sale, shall return the resulting profits to the company, and the company's board of directors shall recover such profits.
Therefore, the aforementioned increase participants will not actively reduce their company shareholdings within 6 months from the completion of the increase.
Beyond this, Kingnet Network Co.,Ltd. is the only gaming company where controlling shareholders, actual controllers, and all senior management personnel voluntarily committed not to reduce shareholdings.
On July 2, 2024, Kingnet Network Co.,Ltd. controlling shareholder, actual controller, Chairman Jin Feng, and all senior management personnel made commitments: (during their tenure) for the next five years (from July 3, 2024, to July 2, 2029), they will not reduce directly held company shares in any form, including new shares generated during the commitment period from capital reserve conversion, stock dividend distribution, rights offerings, additional issuances, and other matters.
Based on stock price performance, from 2024 to date (January 1, 2024, to the latest closing date, data source: Wind), the top three listed companies by gaming industry gains are Giant Network Group Co.,Ltd., ST Huatong, and Kingnet Network Co.,Ltd., with gains of 174.86%, 166.09%, and 84.77% respectively, potentially partially related to their controlling shareholders', actual controllers', directors', supervisors', and senior management personnel's increase actions.
As of the latest closing date, Kingnet Network Co.,Ltd. has a total market value of approximately 42.9 billion yuan, a substantial increase of approximately 18.9 billion yuan compared to early 2024.
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