While investors in Perfect World Co.,Ltd. were still anxious about the performance of its new game "Yihuan," more startling data has emerged: since 2019, the company's actual controller, Chi Yufeng, has cashed out over 11.8 billion yuan through eight intensive share reductions, equivalent to nearly one-third of the company's current total market capitalization. Against the backdrop of the major shareholder's "massive exit" and the company's continued decline in performance, Perfect World is staging a lamentable capital game.
Over eight years, Chi Yufeng cashed out over 10 billion yuan, with dividends far exceeding industry peers. Starting from the end of the share lock-up period in 2019, Chi Yufeng embarked on an almost "frenzied" path of share reduction. Methods such as competitive bidding transactions, agreement transfers, and exchangeable bond conversions were employed in succession, converting his equity holdings into billions in cash within just eight years.
| Reduction Period | Method | Shares Reduced (10k shares) | Amount Cashed Out (100M yuan) | Average Reduction Price (yuan/share) | |------------------|--------|----------------------------|-------------------------------|--------------------------------------| | June 2019 | Competitive Bidding | 2561 | 5.96 | 23.27 | | November 2019 | Competitive Bidding | 2580 | 7.94 | 30.78 | | March 2020 | Competitive Bidding | 1980 | 7.80 | 39.39 | | June 2020 (1) | Competitive Bidding | 1330 | 5.94 | 44.66 | | June 2020 (2) | Agreement Transfer | 6466.39 | 28.71 | 44.39 | | 2020 | Exchangeable Bond Conversion | — | 10.77 | — | | 2022 | Block Trade | 5742.58 | 7.20 | 12.54 | | February 2026 | Centralized Bidding + Block Trade | 3297.93 | 5.83 | 17.68 | | **Total** | **-** | **23957.9** | **118** | **-** |
In addition to share reductions, Chi Yufeng has never missed out on dividends. Over the ten years from 2016 to 2026, Perfect World distributed over 5.5 billion yuan in dividends, with Chi Yufeng personally profiting approximately 1.7 to 1.8 billion yuan. Even in 2024, when the company reported a massive loss of 1.288 billion yuan, it still insisted on distributing over 400 million yuan in dividends, with a dividend payout ratio as high as 130%, far exceeding the A-share gaming industry average of 40%. In comparison, despite higher net profits at peers like 37 Interactive Entertainment and G-bits, their actual controllers' total cash-outs and dividends are significantly lower than Chi Yufeng's.
Behind the major shareholder's frenzied cash-out is Perfect World's continuously deteriorating performance. The first-quarter 2026 financial report shows company revenue of 1.171 billion yuan, a sharp year-on-year decline of 42.11%; net profit attributable to shareholders was 103 million yuan, down 66.02% year-on-year. Revenue from the gaming business decreased by 24.12% year-on-year due to the declining lifecycle of "Zhu Xian World," while the film and television business nearly stagnated, with revenue plummeting 84.78%.
The stock price has followed a downward trajectory. Since the beginning of 2026, Perfect World's stock price has fallen approximately 15.6%, with total market capitalization shrinking by over 5.4 billion yuan. Particularly after the launch of "Yihuan," the stock price experienced consecutive limit-downs, once falling to 15.21 yuan, nearly 60% below its 2020 peak. Investor confidence has collapsed, with institutions like Hong Kong Securities Clearing Company reducing their holdings in the first quarter, further exacerbating the stock's decline.
Betting on the new game has become the "last straw that breaks the camel's back." To salvage its performance, Perfect World pinned all its hopes on "Yihuan," a game developed over five years. This highly anticipated anime-style open-world game had over 35 million pre-registrations across all channels before launch, with a TapTap rating as high as 9.0, and was seen as a blockbuster product capable of rivaling "Genshin Impact."
However, the first-day public testing data dealt a heavy blow to the market. Although "Yihuan" topped the iOS free chart, its highest ranking on the bestseller chart was only 13th, and it began to decline the next day, dropping to 24th by April 29. The TapTap rating quickly fell to 6.4, with players complaining about issues such as mobile lag, bland storylines, and weak character development. More awkwardly, the PC version accounted for 65% of the user base, severely limiting mobile revenue.
Securities firms subsequently significantly lowered profit forecasts, reducing the 2026 net profit attributable to shareholders from 2.818 billion yuan to 1.690 billion yuan. This new game, which was supposed to be the "savior," may instead become the last straw that breaks investor confidence.
With the major shareholder "fading out," where is Perfect World headed? Today, Perfect World may be trapped in a vicious cycle of "major shareholder neglect, management turmoil, and performance decline." Rumors suggest that Chi Yufeng has long shifted his focus to Hongen Education, nearly "fading out" of Perfect World's daily management. When asked whether he participated in the decision-making for "Zhu Xian World," the company did not provide a direct response.
On one hand, the founder is cashing out frantically; on the other, the company is launching an employee stock ownership plan requiring core employees to meet stringent performance growth targets. This stark contrast has led investors to question: Is Chi Yufeng saving the company or "harvesting" one last wave of dividends?
Once a gaming giant on par with Tencent and NetEase, Perfect World has now become a capital discard. Faced with continued performance declines, the failure of its new game, and major shareholder reductions, whether this veteran gaming company can overcome its difficulties may only be answered by time.
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