On the evening of September 28, Hangzhou Electronic Soul Network Technology Co.,Ltd. announced stock reduction plans by shareholders, directors, and senior executives. Director Yu Xiaoliang, Board Secretary Zhang Jiliang, and Chief Financial Officer Wu Xiaojun plan to reduce their shareholdings within specified timeframes due to personal financial requirements.
Specifically, Director Yu Xiaoliang plans to reduce holdings by no more than 3.9181 million shares through centralized bidding and block trading, representing 1.61% of the company's total share capital. Board Secretary Zhang Jiliang plans to reduce holdings by no more than 22,500 shares through centralized bidding, accounting for 0.01% of total share capital. Chief Financial Officer Wu Xiaojun plans to reduce holdings by no more than 25,000 shares through centralized bidding, also representing 0.01% of total share capital. The reduction prices will be determined based on market conditions, with the reduction period spanning three months starting 15 trading days after the announcement disclosure, from October 29, 2025, to January 28, 2026.
Notably, on June 11, Hu Jianping, one of the company's actual controllers, chairman, and general manager, also planned to reduce holdings due to personal financial needs through centralized bidding and block trading, with reduction quantities not exceeding 4.8906 million shares, representing no more than 2% of the company's total share capital.
Behind these multiple shareholder and executive reductions lies Hangzhou Electronic Soul Network's continuously declining operating performance. The company reported its first loss during a semi-annual reporting period this year.
Founded in 2008, Hangzhou Electronic Soul Network is an internet company engaged in online game development and operation. The company went public on the Shanghai Stock Exchange in October 2016. Its core product is "Dream of Three Kingdoms," a real-time strategy online game incorporating RPG elements.
Combining the Three Kingdoms theme with MOBA gameplay mechanics and traditional Chinese artistic style, "Dream of Three Kingdoms" has received widespread acclaim since its 2009 launch, creating the concept of "Chinese-style esports." Public data shows that in 2013, "Dream of Three Kingdoms" achieved peak concurrent users exceeding 500,000. The sequel "Dream of Three Kingdoms 2," launched in 2015, broke historical recharge records in 2020 and was selected as an esports event for the 19th Hangzhou Asian Games in 2021.
"Dream of Three Kingdoms" PC game was once among the explosive products in China's MOBA sector, delivering impressive performance for Hangzhou Electronic Soul Network. In 2020, the company achieved record-high performance with revenue and net profit attributable to shareholders reaching 1.024 billion yuan and 395 million yuan, respectively.
However, Hangzhou Electronic Soul Network's performance has declined steadily since then. From 2021 to 2024, the company's revenue was 996 million yuan, 791 million yuan, 677 million yuan, and 551 million yuan, respectively. Net profit attributable to shareholders was 339 million yuan, 201 million yuan, 56.84 million yuan, and 30.58 million yuan, respectively.
The continuous decline in revenue and net profit points to the core product "Dream of Three Kingdoms" PC game's diminishing monetization capability and traffic, with the blockbuster product's lifecycle nearing its end.
Notably, Hangzhou Electronic Soul Network's dependence on "Dream of Three Kingdoms" PC game has drawn attention from the Shanghai Stock Exchange. In June, the exchange issued an inquiry letter regarding the company's 2024 annual report information disclosure.
In its response announcement, Hangzhou Electronic Soul Network disclosed that from 2022 to 2024, its core product "Dream of Three Kingdoms" generated revenue of 508 million yuan, 440 million yuan, and 359 million yuan, respectively. Total transaction volumes were 535 million yuan, 501 million yuan, and 308 million yuan, respectively, all showing gradual decline. Meanwhile, in 2024, "Dream of Three Kingdoms" monthly active users dropped to 566,400, down 3.9% year-over-year, while monthly paying users fell to 64,200, down 26.15% year-over-year.
The company explained that "Dream of Three Kingdoms" PC game has been operating for over ten years, and as the game ages, new users gradually decrease while some veteran players are lost. The company will continue to adjust and optimize operational strategies based on player feedback and market performance to improve gaming experience and extend the product's lifecycle.
However, the latest financial results show Hangzhou Electronic Soul Network's decline continues. The 2025 semi-annual report shows that in the first half of this year, the company's revenue fell 28.69% year-over-year to 194 million yuan. Net loss attributable to shareholders was 9.3381 million yuan, compared to a net profit of 59.3068 million yuan in the same period last year, turning from profit to loss. The company stated in its semi-annual report that the revenue decline was mainly due to reduced game recharge income compared to the same period last year.
Additionally, Hangzhou Electronic Soul Network's current revenue dilemma stems from the continued decline in "Dream of Three Kingdoms" PC game revenue without any major products or new games to fill the gap. In recent years, the company has made various attempts around "Dream of Three Kingdoms" PC game, launching products such as "Dream of Three Kingdoms" mobile game and "Duel Three Kingdoms," but market and player reception has been lukewarm. According to the 2024 annual report, the "Dream of Three Kingdoms" series PC games remain Hangzhou Electronic Soul Network's revenue pillar, accounting for as much as 65.27% of total operating revenue.
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