Perfect World (002624) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 19.55% to ¥6.66bn; attributable net income recovered to ¥730.9m from a ¥1.29bn loss, while adjusted net income was ¥564.5m.

• Growth reflected game launches and ongoing esports contributions, improved film operations, and lower costs; non-recurring gains, including the sale of Chifeng Studio, also lifted reported earnings.

• Q4 revenue was ¥1.24bn, attributable net income ¥65.3m, adjusted net income ¥81.3m, and operating cash flow ¥204.0m.

Financial highlights

• FY2025 operating cash flow increased 89.57% YoY to ¥1.09bn; cash and cash equivalents rose ¥425.8m to ¥3.54bn.

• Reported non-recurring gains totaled ¥166.4m, mainly from the Chifeng Studio disposal and government grants; adjusted net income was ¥564.5m.

• Operating costs fell to ¥5.57bn from ¥5.94bn; selling, management, and R&D expenses declined 23.54%, 18.81%, and 15.70%, respectively.

• Total assets were ¥10.47bn at year-end, down 7.89% YoY; attributable net assets increased 5.57% to ¥7.13bn.

Outlook and guidance

• 2026 priorities include deepening operations of existing games, advancing selected development projects, expanding overseas publishing, and exploring SLG and casual genres through smaller-scale investment.

• NTE launched domestically on Apr. 23, 2026, and is scheduled for overseas release Apr. 29 across 180+ countries and regions on PC, Android, iOS, PS5, and Mac.

• Planned esports events include CAC 2026 in Shanghai in May and DOTA2 The International in Shanghai in August; film plans emphasize selective production, short-form content, and AI-assisted cost and efficiency improvements.