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Dianhun Network Chairman Splits Nearly 100 Million Yuan in Shares After Divorce, Cashed Out Over 60 Million Six Weeks Earlier
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Dianhun Network, a Chinese A-share listed gaming company, announced on September 16 that its actual controller and Chairman Hu Jianping has divorced Chen Fang, transferring approximately 7.28 million shares (3% of total share capital) to her, valued at about RMB 95.19 million based on the closing price. Despite the divorce, both signed a 36-month concerted action agreement and remain the company's actual controllers, with Hu continuing as Chairman and Chen as Director and General Manager. Notably, just one and a half months prior, Hu had reduced his holdings by 4.65 million shares, cashing out approximately RMB 64.36 million. The company, known for its 'Dream Three Kingdoms' game series, has seen declining revenues and net profits from 2021 to 2025, shifting to a net loss of RMB 214 million in 2025. The company attributed losses to lower game income and goodwill impairment from a subsidiary. In 2026, the downward trend continues with a first-half net loss of RMB 58.77 million. Dianhun Network is exploring a 'merchandise economy' through its subsidiary Shanghai Manhun, operating 23 physical stores selling IP-related merchandise.
Source report
Share Transfer Details
On September 16, A-share gaming company Dianhun Network announced that its actual controller, Hu Jianping, and Chen Fang had completed divorce proceedings and made arrangements for the division of shares.
According to the divorce agreement, Hu Jianping transferred approximately 7.2829 million shares—representing 3% of total share capital—to Chen Fang. The transfer was conducted as a non-trading transaction and did not trigger a tender offer. Based on Dianhun Network's closing price of RMB 13.07 per share on September 16, the market value of the divided shares was approximately RMB 95.19 million.
Post-Transfer Shareholding Structure
Following the equity change:
- Hu Jianping: Shareholding decreased from 14.0405 million shares (5.78%) to 6.7575 million shares (2.78%)
- Chen Fang: Shareholding increased from 26.1785 million shares (10.78%) to 33.4614 million shares (13.78%)
- Combined holdings: Unchanged at 40.219 million shares, representing 16.56% of total share capital
Concerted Action Agreement
The two parties also signed a 36-month Concerted Action Agreement. Under this agreement, before exercising voting rights as shareholders, both parties must consult in advance, reach consensus on relevant voting matters, and exercise their voting rights at shareholders' meetings in accordance with agreed-upon positions.
Governance and Operations Unaffected
The announcement emphasized that both before and after the equity change, Hu Jianping and Chen Fang remain the actual controllers of the company. Hu Jianping will continue as Chairman of the Board of Directors for the fifth term, while Chen Fang will retain her roles as Director and General Manager. The equity change will not alter the company's governance structure, affect its orderly operations, or have a material impact on management, operations, or strategic decision-making.
Recent Share Reduction by Hu Jianping
Notably, just one and a half months before the divorce announcement, Hu Jianping had completed a round of share reductions:
- Between May 19 and August 3: Reduced holdings by 2.4274 million shares through centralized bidding and 2.22 million shares through block trades
- Ownership ratio: Decreased from 7.66% to 5.78%
- Total proceeds: Approximately RMB 64.3645 million
Company Background and Core Product
Dianhun Network was established in 2008 as an internet company focused on the research, development, and operation of online games. It listed on the Shanghai Stock Exchange in October 2016.
Its core product, "Dream Three Kingdoms", is a real-time strategy online game incorporating RPG elements. Launched in 2009, it combined the Three Kingdoms theme with MOBA mechanics and Chinese-style artistic aesthetics, pioneering the concept of "Chinese-style esports."
- 2013: Peak concurrent users exceeded 500,000
- 2015: Sequel "Dream Three Kingdoms 2" launched
- 2020: Sequel broke historical revenue records
- 2021: Selected as an esports event for the 19th Asian Games in Hangzhou
The PC version of "Dream Three Kingdoms" was once among the top domestic MOBA products, delivering strong financial performance for Dianhun Network.
Financial Performance Decline
In 2020, Dianhun Network achieved record highs with revenue of RMB 1.024 billion and net profit attributable to parent company shareholders of RMB 395 million.
However, affected by the lifecycle of hit products, both monetization capability and traffic of the PC version have declined, leading to consecutive drops in revenue and net profits:
| Year | Revenue (RMB) | Net Profit Attributable to Parent (RMB) | |------|---------------|----------------------------------------| | 2021 | 996 million | 339 million | | 2022 | 791 million | 201 million | | 2023 | 677 million | 56.84 million | | 2024 | 551 million | 30.58 million | | 2025 | 385 million | -214 million (loss) |
The company attributed the revenue decline to lower game income compared to the prior year. Losses were primarily driven by a significant drop in game top-up revenue at its wholly-owned subsidiary, Xiamen Youdong Network Technology Co., Ltd., which led to substantial goodwill impairment provisions.
2026 Performance
The downward trend continues in 2026:
- First-half operating revenue: RMB 183 million, down 5.67% year-on-year
- Net loss: Widened from RMB 9.338 million to RMB 58.77 million
- Net cash flow from operating activities: Negative RMB 87 million
Exploring New Growth: Merchandise Economy
Beyond its gaming business, Dianhun Network is exploring the "merchandise economy" as a second growth curve. According to its 2026 semi-annual report, the company completed the acquisition and integration of Shanghai Manhun, developing cultural creative merchandise around popular IPs. Operations use a combination of online e-commerce stores, offline themed shops, and pop-up stores. As of now, Shanghai Manhun operates 23 physical stores, offering derivative products related to works under CAPCOM, SNK, and game/anime IPs such as "Arknights" and "Wuthering Waves."
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网易财经Neutral / independent
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Dianhun Network chairman transfers 95 million yuan in shares to ex-wife after divorce