Eight game companies shot in one day: to enhance investor confidence, they plan to repurchase or increase their holdings by a total of more than 500 million yuan

After the crash in game stocks, the chairmen of a number of online game companies disclosed buybacks and shareholding plans.

As of the evening of December 25, including Perfect World (002624. SZ), Gigabit (603444. SH), Sanqi Mutual Entertainment (002555. SZ), Giant Network (002558. SZ), Chinese Media (600373. SH), Electric Soul Network (603258. SH), Keying Network (002517. SZ), Rastar Entertainment (300043. SZ) and other 8 game companies announced the repurchase and increase of shares.

According to the surging news reporter, the amount of 8 companies to repurchase and increase their holdings exceeded 530 million yuan. Among them, the above-mentioned 7 companies that plan to participate in share repurchase have a total repurchase amount of 430 million yuan to 860 million yuan, and the repurchased shares are mainly used for equity incentives, employee stock ownership plans or for cancellation to reduce the company's registered capital. The company that intends to increase its shareholding will increase its shareholding by 100 million yuan.

Specifically, Chi Yufeng, the actual controller and chairman of Perfect World, proposed to repurchase shares for 100 million to 200 million yuan, and the repurchased shares were intended to be used for equity incentives or employee stock ownership plans.

Lu Hongyan, the actual controller and chairman of Gigabit, proposed to repurchase shares for 50 million yuan to 100 million yuan, and the repurchased shares would be used for employee stock ownership plans and/or equity incentive plans, which would be decided by the board of directors in accordance with relevant laws and regulations.

Shi Yuzhu, the actual controller and chairman of Giant Network, proposed to repurchase 100 million yuan to 200 million yuan of shares, which will be used for employee stock ownership plans or equity incentive plans, and the board of directors will decide on the implementation method in accordance with relevant laws and regulations.

Hu Jianping, one of the actual controllers and chairman of the board of directors of the electric soul network, proposed to repurchase shares of 20 million yuan to 40 million yuan, and the repurchased shares will be used for the equity incentive plan, which will be implemented by the board of directors in accordance with relevant laws and regulations.

Chen Chuanghuang, chairman of Rastar Entertainment, plans to repurchase shares for 10 million yuan to 20 million yuan for the implementation of equity incentives or employee stock ownership plans.

Li Weiwei, the actual controller, chairman and shareholder of more than 5% of Sanqi Mutual Entertainment Company, proposed to repurchase 100 million yuan to 200 million yuan of the company's shares, and all the repurchased shares will be cancelled to reduce the registered capital.

Chinese Media intends to repurchase shares for 50 million yuan to 100 million yuan, and all the repurchased shares will be used for cancellation and reduce the company's registered capital.

Jin Feng, the actual controller and chairman of Kaiying Network, has completed the plan to increase his shareholding by about 20.0024 million yuan, and plans to continue to increase his holdings of 100 million yuan in the company's shares. On the evening of December 22, Kaiying Network announced that Jin Feng, the actual controller and chairman, intends to continue to increase his holdings by no less than 20 million yuan.

It is worth noting that the above-mentioned game company repurchase announcement shows that the reason for repurchasing shares is mostly optimistic about the company's prospects and the performance of restoring confidence in the market.

Perfect World announced that based on the confidence in the company's future development prospects and the high recognition of the company's value, in order to safeguard the interests of investors, enhance investor confidence, improve the company's long-term incentive mechanism, improve team cohesion and competitiveness, and effectively promote the company's long-term development, the chairman of the company proposed that the company use its own funds to repurchase the company's shares through centralized bidding, which is intended to be used for equity incentive or employee stock ownership plan.

Giant Network also said in the announcement that the purpose of the repurchase is to effectively safeguard the interests of shareholders, enhance investor confidence, and effectively improve the return on investment of the company's shareholders.

Gigabit also pointed out that based on the long-term optimism about the high-quality development of China's game industry and the recognition of the company's value, in order to protect the interests of all shareholders of the company, enhance investor confidence, stabilize and enhance the company's value, it decided to repurchase shares.

On the news side, on December 22, the "Measures for the Administration of Online Games" (draft for comments) drafted by the National Press and Publication Administration was released to the public for comments. It mentions that online games are not allowed to set inducing rewards such as daily login, first recharge, and continuous recharge. Online game publishing business units must not provide or condone high-priced transactions of virtual props through methods such as speculation or auctions. All online games must set user recharge limits and publicize them in their service rules, and pop-up warnings should be given to users' irrational consumption behaviors.

In terms of "Norms for the Publicity and Promotion of Online Games", Article 29 of the Draft for Comments proposes that. Online game live streaming must not have high tips. For the protection of minors, the Consultation Draft proposes eight provisions, including that minors must not tip online game livestreams.

On December 24, according to the China Press, Publication, Radio and Television News, the relevant person in charge of the State Press and Publication Administration said that the draft for comments is based on ensuring and promoting the prosperity and healthy development of the online game industry, clarifying the solution to issues such as the access of online game business units, setting up a special chapter on "protection and rewards", and proposing a series of incentive measures. At the same time, provisions are made for the protection of the rights and interests of minors and consumers. In the process of drafting the draft for comments, the opinions of relevant departments, industry associations, enterprises and other parties were widely listened to through a variety of methods.

The person in charge said that the public solicitation of opinions on departmental rules is a process of listening to opinions more widely and improving the provisions of the regulations. The State Press and Publication Administration will carefully study the concerns and opinions raised by all parties on Articles 17, 18 and other contents of the Draft, and will further revise and improve them on the basis of continuing to listen to the opinions of relevant departments, enterprises, users and other parties.

"The Draft for Comments is extremely accurate and pertinent in its observation of the pain points of the game industry. A chief analyst of a brokerage previously told The Paper, "If the officially introduced management measures are strictly implemented, it is expected to cover most game manufacturers in the industry and have a wide impact on the entire game industry." ”

On December 22, the day of the release of the Consultation Paper, A-shares and H-share game stocks fell sharply. On the first trading day after the release of the Consultation Paper, as of the close of trading on December 25, game stocks continued to adjust. Among them, Giant Network and Kaiying Network fell for 2 consecutive trading days, Sanqi Mutual Entertainment fell 7.87%, Electric Soul Network fell 6.47%, Perfect World fell 4.92%, Gigabit fell 3.72%, Xinghui Entertainment fell 1.38%, and Chinese Media fell 0.93%.