Perfect World (002624) Q1 2026 earnings summary

Executive summary

• Q1 revenue was RMB 1.171bn, down 42.11% YoY; net income attributable to shareholders was RMB 102.68m, down 66.02% YoY.

• Adjusted net income attributable to shareholders was RMB 61.39m, down 62.40% YoY; operating cash flow was an outflow of RMB 149.73m.

• Q1 financial statements were unaudited.

Financial highlights

• Revenue fell 42.11% YoY; operating costs declined 59.61% as revenue decreased, while gross margin rose 14.42% YoY to 66.71%.

• Net income attributable to shareholders was RMB 102.68m versus RMB 302.19m; basic and diluted EPS were RMB 0.05 versus RMB 0.16.

• Adjusted net income attributable to shareholders was RMB 61.39m versus RMB 163.26m.

• R&D expense declined 30.37% YoY, reflecting fewer R&D staff after project and process optimization and lower accrued compensation.

Segment performance

• Gaming revenue was RMB 1,076.12m, down 24.12% YoY; gaming attributable net income was RMB 104.12m and adjusted attributable net income was RMB 98.88m.

• Film and television revenue was RMB 90.69m, down 84.78% YoY, as fewer productions were released and recognized; attributable net income was RMB 31.59m, while adjusted attributable net income was a RMB 4.45m loss.