On the day of its Q3 earnings release, Giant Network announced a major leadership change: General Manager Zhang Dong resigned for personal reasons, less than two years after taking the role in January 2024.
Veteran executive Liu Wei will succeed Zhang Dong, marking her third tenure as CEO of Giant Network.
The leadership transition coincided with strong Q3 results: revenue surged 115.63% year-on-year to RMB 1.706 billion, while net profit rose 81.19% to RMB 640 million.
**Drivers Behind Explosive Growth** Giant Network delivered an impressive Q3 performance, with revenue growth hitting a recent high. The surge was primarily driven by the success of its self-developed game *Paranormal Squad*, which launched on January 23, 2025. The game's unique "Chinese-style horror + multiplayer co-op" gameplay quickly gained traction, peaking at over 1 million concurrent users during summer and consistently ranking in the top five of iOS free games and top four in grossing charts.
Beyond new releases, Giant Network’s legacy IPs, such as *ZT Online*, maintained steady operations through long-term engagement strategies, boosting user retention and monetization. The company also saw a 151.90% YoY increase in net operating cash flow.
**Sudden Leadership Shift: Zhang Dong’s Exit and Liu Wei’s Return** Zhang Dong’s departure came as a surprise. When he succeeded Liu Wei in January 2024, Shi Yuzhu, Giant Network’s founder, had praised him as "a successor Liu Wei spent years selecting." With nearly two decades of gaming industry experience, including roles at Tencent and NetEase overseeing *Hearthstone* and *Overwatch* in China, Zhang Dong spearheaded *Paranormal Squad* and advanced the company’s AI strategy during his tenure.
Liu Wei, a long-time associate of Shi Yuzhu since the Zhuhai Giant Mansion era, has deep experience across the *Brain Platinum* and *ZT Online* franchises.
**Strategic Continuity: Youth Focus and AI Expansion** Giant Network’s "youth-oriented" strategy extends beyond products to team development, with titles like *Paranormal Squad* and *Generals Arena* led by post-95s teams. Liu Wei plans to enhance internal rotation mechanisms, empowering R&D leaders in decision-making—aligning with Shi Yuzhu’s philosophy of prioritizing user engagement over revenue.
AI integration remains a priority, with *Space Kill* incorporating Tencent’s Hunyuan and ByteDance’s Volcano models to pioneer "multi-user vs. AI agent" competitive gameplay. Shi Yuzhu has stated, "Beyond gaming, AI is now our second-largest business." In 2024, Giant Network completed registration for GiantGPT, the industry’s first gaming-focused AI model, enabling code generation and voice synthesis.
**Challenges: Overseas Market Gaps and Future Tests** Despite robust performance, Giant Network faces hurdles. Overseas revenue accounts for just 0.36% of total sales, lagging behind peers. Its sole overseas hit, *Super Sus* (the global version of *Space Kill*), highlights product concentration risks. Breaking this globalization bottleneck will be critical for Liu Wei.
The company still relies heavily on legacy IPs like *ZT Online* and *Balloon Bash*, which have extended their lifespans through mini-game adaptations. However, sustaining hit releases remains uncertain. Balancing legacy IP maintenance with innovation—while securing stable cash flow—is key.
Moving forward, Liu Wei must focus on three areas: maximizing *Paranormal Squad*’s commercial potential, deepening AI adoption in R&D and operations, and solving the overseas expansion puzzle to establish a true second growth curve.
For Giant Network, strategic continuity post-leadership transition and its youth talent cultivation will determine whether it can fulfill Shi Yuzhu’s vision of "achieving even greater success" in the competitive gaming industry.
*(Note: This article was generated with AI assistance and does not constitute investment advice. Market risks apply.)*
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