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 standardizing share reduction behavior by shareholders of listed companies, protecting the legitimate rights and interests of investors, and maintaining securities market order.
Simultaneously, the CSRC published "Listed Company Regulatory 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 control. Controlling shareholders and actual controllers can boost market confidence through legally compliant implementation of share increase plans, voluntary extension of share lock-up periods, voluntary termination of reduction plans, or commitments not to reduce holdings.
Taking the A-share gaming industry as an example, according to Wind data statistics, from 2024 to date, a total of 7 listed companies have disclosed reduction plans by controlling shareholders, actual controllers, directors, supervisors, and senior management, with all reduction reasons being personal funding needs.
**Beijing Ultrapower Software Vice Chairman Li Li Cumulatively Reduces Holdings for 450 Million Yuan Cash-out**
As of now, related shareholder reduction plans for Dianwu Network, Mingchen Health, Shengtian Network, Beijing Ultrapower Software, and Fuchun Stock have been completed, with specific details as follows:
From July to December 2023, Mingchen Health's controlling shareholder and actual controller Chen Qinfa reduced 30,000 company shares through centralized competitive trading, with a reduction amount of 1.0701 million yuan; Vice Chairman and CFO Peng Xiaoqing reduced a total of 369,000 company shares through centralized competitive trading and block trading, with a reduction amount of 12.6974 million yuan; Director, Vice General Manager, and Board Secretary Chen Dongsong reduced 283,000 company shares through block trading, with a reduction amount of 9.9475 million yuan.
From July 2023 to January 2024, Dianwu Network's former actual controller, Director, and Vice General Manager Hu Yubiao reduced 1.53 million company shares through centralized competitive trading, with a reduction amount of 49.4496 million yuan.
In August 2024, Shengtian Network's Director, Vice General Manager, CFO, and Board Secretary Wang Junfang reduced 64,900 company shares through centralized competitive trading, with a reduction amount of 649,600 yuan.
From December 2024 to January 2025, Beijing Ultrapower Software Vice Chairman and Director Li Li reduced a total of 39.15 million company shares through centralized competitive trading and block trading, with a reduction amount of 449.4814 million yuan.
In May 2025, Fuchun Stock Director, Vice President, and CFO Lin Mei reduced 51,500 company shares through centralized competitive trading, with a reduction amount of 315,700 yuan.
In summary, from 2024 to date, controlling shareholders, actual controllers, directors, supervisors, and senior management of gaming companies have cumulatively cashed out approximately 524 million yuan through share reductions. Among them, Beijing Ultrapower Software Vice Chairman Li Li had the highest cash-out amount from reductions, while his 2024 compensation reached 3.6388 million yuan, an increase of 500,000 yuan from the previous year.
Additionally, Chen Qinfa has pledged a total of 14.644 million Mingchen Health shares, accounting for 15.69% of his holdings and 5.49% of the company's total share capital, potentially reflecting significant funding pressure.
**3 Gaming Companies' Shareholder Reduction Amount Ceiling May Reach 537 Million Yuan**
As of now, Zhangqu Technology, Dianwu Network, and Wuxi Boton Technology have disclosed related shareholder reduction plans, with specific details as follows:
On May 13, 2025, Zhangqu Technology disclosed a shareholder reduction plan, with Chairman and General Manager Liu Huicheng planning to reduce no more than 27.2017 million company shares from June 5 to September 4, 2025, through centralized competitive trading or block trading, representing no more than 16.06% of his holdings; based on the latest closing price, the reduction amount ceiling is expected to reach 160 million yuan.
On June 11, 2025, Dianwu Network disclosed a shareholder reduction plan, with one of the actual controllers, Chairman, and General Manager Hu Jianping planning to reduce no more than 4.8906 million company shares from July 4 to October 3, 2025, through centralized competitive trading or block trading, representing no more than 20.76% of his holdings; based on the latest closing price, the reduction amount ceiling is expected to reach 160 million yuan.
On July 7, 2025, Wuxi Boton Technology disclosed a shareholder reduction plan, with controlling shareholder and actual controller, Director, and General Manager Bao Zhifang planning to reduce no more than 8.3749 million company shares from July 29 to October 28, 2025, through centralized competitive trading or block trading, representing no more than 10.1% of his holdings; based on the latest closing price, the reduction amount ceiling is expected to reach 224 million yuan. Director and Vice General Manager Tang Yu plans to reduce no more than 1.527 million company shares through centralized competitive trading or block trading, representing no more than 25.00% of his holdings; based on the latest closing price, the reduction amount ceiling is expected to reach 40.8625 million yuan.
In summary, the combined ceiling for intended reduction amounts by related shareholders of Zhangqu Technology, Dianwu Network, and Wuxi Boton Technology may reach as high as 537 million yuan.
Looking at stock price trends, since disclosing shareholder reduction plans to date, Dianwu Network's stock price has cumulatively declined 5.18% (July 4, 2025 to latest closing date), while Zhangqu Technology and Wuxi Boton Technology stock prices have risen 10.76% (June 5, 2025 to latest closing date) and 6.12% (July 29, 2025 to latest closing date) respectively, compared to gaming industry interval gains of 29.78% and 9.66% respectively during the same periods (calculated by total market value weighted average, data source: Wind).
Note: For shareholders with staged reductions, reduction amounts are calculated by summing reduction amounts across each reduction period; where reduction average prices are within ranges, calculations use the midpoint of price upper and lower limits as the standard.
