Perfect World (002624) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue fell 25.47% YoY to RMB2.751bn; attributable net loss was RMB118.4m versus net income of RMB503.2m a year earlier.

• New game NTE supported strong player spending, but launch-period marketing costs and deferred revenue recognition weighed on reported earnings; film releases were also fewer YoY.

Financial highlights

• Revenue was RMB2.751bn, down 25.47% YoY; operating costs fell 8.5% to RMB2.913bn, including RMB1.032bn in selling expense, up 213.05% YoY.

• Attributable net loss was RMB118.4m; excluding non-recurring gains of RMB92.2m, attributable net loss was RMB210.6m, versus adjusted net income of RMB318.1m in H1 2025.

• Operating cash flow rose 28.89% YoY to RMB647.3m; investing cash flow was RMB59.3m and financing cash flow was negative RMB668.1m.

• NTE global cumulative billings exceeded RMB1.4bn through June 30 and RMB2.0bn through August 18; official PC and Android channels contributed over 60% and nearly 60%, respectively.

Outlook and guidance

• NTE’s H1 launch-period revenue contribution is expected to be recognized progressively from Q3 as player spending is recognized over player lifetimes.

• Dream New Zhu Xian: Light Enjoy is scheduled for public launch on September 3, 2026; the development pipeline spans light MMO, card, SLG, casual and mini-game formats.

• Film titles in production, distribution or scheduling include Awake, Skylark Calls Heaven, Yunxiang Legend: Let’s Drink, Fragrance Name 39 and Why Not Cross Together.