Perfect World Co Ltd

Perfect World released its 2026 interim report, with net profit attributable to the parent company at negative 118 million yuan, swinging from profit to loss. Total operating revenue was 2.751 billion yuan, down 25.47% from the same period last year. Net profit attributable to the parent company decreased by 622 million yuan year-on-year, a decline of 123.54%. Net cash inflow from operating activities was 647 million yuan, up 28.89% year-on-year, marking a second consecutive year of growth. The company's latest asset-liability ratio was 40.31%, gross margin was 69.71%, and diluted earnings per share was negative 0.07 yuan.

Perfect World has released its semi-annual performance forecast, projecting a net loss attributable to the parent company of 80 million to 120 million yuan for the first half of 2026, compared with a profit of 503 million yuan in the same period last year. The company's second-quarter net loss attributable to the parent is expected to reach 183 million to 223 million yuan, primarily because marketing and promotion expenses for its key title Neverness to Everness were fully recognized in the current period following its global launch in April, while gross revenue from in-game purchases must be recognized as revenue in installments, resulting in a temporary mismatch between revenue and expenses. As of June 30, Neverness to Everness had accumulated over 1.4 billion yuan in global gross revenue, with official channels accounting for more than 60 percent of the total. Its earnings contribution will gradually materialize starting from the third quarter. In addition, gross revenue from several existing games declined naturally due to lifecycle effects, and the film and television business is expected to post a net profit attributable to the parent of approximately 10 million yuan, with a non-recurring net loss of about 10 million yuan. The company expects non-recurring gains of around 100 million yuan for the first half, mainly consisting of government subsidies and other items.