During the first half of 2026, Perfect World Co.,Ltd. (002624.SZ) delivered a weak financial performance, marked by declining revenue and a swing into losses. Both the gaming and film divisions experienced revenue contractions. A key factor was the annual flagship title Anomaly, where a timing mismatch between initial launch costs and revenue recognition triggered a doubling of sales expenses, pushing the gaming segment into a temporary loss. Meanwhile, the game's domestic performance has shown a high-open, low-close trajectory, and several existing titles saw their gross billings decline due to life-cycle and operational factors, further weighing on the gaming business. Notably, amidst the downturn, the company also faced share reductions by its actual controller and senior executives.
Sales expenses surge, Anomaly loses momentum
Public filings show that Perfect World focuses on the development, publishing, and operation of online games, while also engaging in TV drama and short-form series production. The 2026 semi-annual report reveals total revenue of 2.751 billion yuan, down 25.47% year-on-year, with a net loss attributable to shareholders of 118 million yuan, reversing from a profit. In the second quarter alone, revenue reached 1.58 billion yuan, down 5.28% year-on-year, and the company recorded a net loss of 221 million yuan. Both the gaming and film segments, the company's two pillars, faced significant pressure.
In the film segment, a limited number of new titles launched in the first half, and productions such as Night Is Deep and Nine Bullet Holes failed to achieve widespread breakout, limiting their overall reach. Film segment revenue for the period stood at 103 million yuan, down 86.56% year-on-year, with net profit attributable to shareholders at 9.56 million yuan, a decline of 77.08%. The gaming business, the company's revenue mainstay, also struggled. Gaming revenue reached 2.639 billion yuan in the first half, down 9.19% year-on-year, while the segment reported a net loss of 88.79 million yuan, reversing from a profit.
The gaming segment's temporary loss is tied to the annual key title Anomaly. The self-developed supernatural urban open-world game launched globally in April, accompanied by intensive marketing campaigns. These costs were recognized upfront in the period, while top-up proceeds are recognized as revenue gradually over the player life cycle, creating a temporary mismatch in the early launch phase and resulting in accounting losses. This expense growth underscores the company's increased investment in new products. Due to higher marketing and distribution costs from Anomaly's launch, sales expenses surged 213.05% year-on-year to 1.032 billion yuan in the first half.
Market feedback shows that Anomaly generated substantial billings after launch, surpassing 1.4 billion yuan globally by June 30, 2026. However, industry analyst Zhang Shule notes that compared to open-world anime-style products like Genshin Impact and Wuthering Waves, Anomaly only differentiates itself in the urban immersive theme, with limited overall innovation. The game integrates multiple gameplay elements like racing, PVE, and PVP, showing a patchwork design approach without a standout player experience. Additionally, its initial billing scale falls in the mid-range for popular anime-style games. As competition in the open-world genre intensifies, simply expanding exploration maps is no longer sufficient to sustain player interest, and Anomaly has yet to deliver compelling narrative content, a key driver for anime-style titles. Data from Qimai shows that since launch, Anomaly's ranking, downloads, and billings on China's iOS platform have all declined to varying degrees, reflecting a high-open, low-close pattern. In June 2026, domestic iOS estimated revenue was $1.13 million, down 80% month-over-month.
Existing titles see billings drop, controller and executives cash out
In the first half of 2026, several of Perfect World's live games continued long-term operation strategies with content updates and refined marketing, but due to product life cycles and operational rhythms, their billings naturally declined compared to the same period in 2025, offsetting the revenue growth from Anomaly. The Zhu Xian IP, a cornerstone of the company's evergreen portfolio, has been operating for two decades, spawning titles like Zhu Xian PC, Dream Zhu Xian PC, Zhu Xian Mobile, Dream New Zhu Xian Mobile, Zhu Xian World PC, and Zhu Xian 2 Mobile. Among them, Zhu Xian Mobile celebrated its 10th anniversary, while Dream New Zhu Xian Mobile marked its 5th anniversary. Qimai data shows that in the first half of 2026, estimated iOS revenue for Zhu Xian and Dream New Zhu Xian was $2.69 million and $2.03 million respectively, down 25% and 21% year-on-year.
The anime-style urban adventure JRPG Persona 5: The Phantom X, which contributed growth last year, also faced market pressure. Qimai data indicates its domestic iOS revenue was $713,500 in the first half, down 61% year-on-year. Additionally, PC online games, including the new Chinese-style xianxia MMORPG Zhu Xian World, generated revenue of 1.454 billion yuan in the first half, down 21.47%. The company's pipeline includes projects like Dream New Zhu Xian: Lite, Codename Castle, and Codename Puer. Industry views suggest the company's gaming strategy remains anchored in its strengths: xianxia/fantasy MMORPGs and turn-based card games. As competition intensifies, the company faces pressure from leading players eroding its market share, alongside rising risks of core user attrition.
Perfect World is also ramping up its overseas expansion, deepening its international strategy focused on premium products and global reach. Back in 2006, Perfect World International was exported to over 100 countries and regions, becoming an early benchmark for Chinese game exports. However, this first-mover advantage has not been sustained, and overseas contributions have remained limited over the years. In the first half of 2026, overseas revenue was 511 million yuan, accounting for 18.58% of total revenue.
Notably, amid the performance decline, the company saw share reductions by its actual controller and executives. Between January and February 2026, actual controller Chi Yufeng sold a total of 32.98 million shares through block trades and centralized bidding, cashing out 583 million yuan. After the reduction, Chi and his concert parties held 30.65% of the company. Subsequently, on February 10, independent director Sun Ziqiang sold 44,300 shares via centralized bidding, netting approximately 991,400 yuan.
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