On July 14th, Perfect World Co.,Ltd. released its performance forecast for the first half of 2026.
In April this year, the company's key product, "Yihuan," initiated its global public testing. Leveraging its differentiated strengths such as a supernatural urban open-world theme and rich city management gameplay, it achieved favorable market performance.
As of June 30, 2026, the global cumulative gross revenue for "Yihuan" exceeded 1.4 billion Chinese yuan, with over 60% of that total coming from global official channels, including official PC and official Android platforms.
By utilizing its city management gameplay, "Yihuan" has effectively expanded its revenue sources beyond character gacha mechanics, demonstrating a significantly diversified product monetization structure.
Since the public test began, the company has consistently ensured substantial investment, focusing on player reputation and long-term operations. It has released multiple version updates covering popular limited-time characters, collaborations with well-known brands like Porsche, new maps, and unique gameplay features.
Regarding overseas expansion, "Yihuan," supported by continuous content iteration and a comprehensive, multi-faceted global distribution strategy, has frequently ranked within the top five of the iOS game bestseller charts in key domestic and international regions. It has also topped the PS console popularity charts multiple times in overseas markets like Japan, validating the product's long-term operational logic.
However, as "Yihuan" commenced its global public test at the end of April, following industry norms, new games typically undergo intensive marketing campaigns during the initial launch phase.
According to relevant accounting standards, these marketing expenses are recognized as a one-time cost in the current period, while the game's gross revenue is recognized as income over the player lifecycle. This mismatch between revenue and expenses has resulted in a period of net loss on the company's financial statements for the first half of the year. In the same period last year, the company's main games did not experience such a mismatch. The announcement stated that the performance contribution from "Yihuan" will gradually materialize starting from the third quarter.
According to the forecast, for the first half of the year, Perfect World expects an attributable net loss between 80 million and 120 million Chinese yuan, and an adjusted net loss between 180 million and 220 million Chinese yuan.
Within this, the gaming business is expected to report an attributable net loss between 50 million and 90 million Chinese yuan, and an adjusted net loss between 100 million and 140 million Chinese yuan.
The company anticipates non-recurring gains and losses of approximately 100 million Chinese yuan for the first half, compared to about 185 million Chinese yuan in the same period last year, which was primarily composed of disposal gains from the sale of the Chengfeng Studio.
Furthermore, several existing games, operating with a focus on long-term sustainability, have continued with content updates and refined marketing. However, influenced by factors such as product lifecycle and operational cadence, their gross revenue has naturally declined compared to the first half of 2025, leading to a corresponding year-on-year decrease in their performance contribution.
Regarding the pipeline of new games, Perfect World will actively advance its games in development, building a competitive portfolio of subsequent products in the MMO and trending new game segments.
Concurrently, it will explore new growth areas with smaller-scale, lighter investments and strengthen its game publishing business overseas.
The company's current pipeline includes projects such as "Dream New Zhu Xian: Light Edition," "Code: Pu'er," "Code: MT1," "Code: J1," "Code: F," "Code: U1," and "Code: ZH." These span genres including light MMO, anime-style card games, simulation management card games, SLG, and casual games.
The company emphasizes differentiated market positioning in terms of product creativity and gameplay design. It will promptly validate, adjust, and iterate quickly to enhance product success rates across multiple dimensions.
In the esports business, Perfect World will adhere to a development path of "esports driving product growth and overseas expansion." It will meticulously cultivate this area from the dimensions of product operation, market promotion, technological enablement, and esports ecosystem upgrades, continuously deepening the evolution of its esports system.
In August 2026, the world-class tournament DOTA2 The International (TI 2026) is scheduled to be held in Shanghai. The company will continue to focus on user community building and game ecosystem operations, consistently providing players with an exciting gaming experience.
For its film and television business, the first half is expected to yield attributable net profit of approximately 10 million Chinese yuan, with an expected adjusted net loss of around 10 million Chinese yuan.
The company's film and TV business is guided by a core principle of "reducing quantity while improving quality." It is steadily advancing its development through three key strategies: deepening long-form series, refining short-form series, and fostering symbiotic growth.
Since the beginning of 2026, series produced by Perfect World Pictures, such as "The Night is Deep" and "Nine Bullet Holes," have been broadcast, receiving audience acclaim.
Currently, the company's pipeline of film and TV works, including "Why Not Sail Together," "Fang Ming San Jiu," "The Legend of Yun Xiang: Drink Up," and "The Lark's Call to Heaven," are in various stages of production, distribution, and scheduling.
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