PWRD(002624)2023-04-06 16:00Financial Performance - Revenue for 2022 decreased by 9.95% year-on-year to RMB 7,670,402,228.08, primarily due to the adjustment of overseas game business layout and the sale of US R&D studios and related European and American local distribution teams[13] - Game business revenue increased by 6.09% year-on-year to RMB 7,198,995,100, while film and television business revenue decreased by 66.33% year-on-year to RMB 320,654,200[13] - Net profit attributable to shareholders of the listed company increased by 273.07% year-on-year to RMB 1,377,187,150.37[13] - Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses increased by 580.20% year-on-year to RMB 691,341,448.11[13] - Basic earnings per share increased by 278.95% year-on-year to RMB 0.72[13] - Total assets at the end of 2022 decreased by 8.24% year-on-year to RMB 15,635,994,534.06[13] - Net assets attributable to shareholders of the listed company at the end of 2022 decreased by 10.99% year-on-year to RMB 9,159,081,350.00[13] - Revenue for Q1, Q2, Q3, and Q4 were 2.128 billion yuan, 1.795 billion yuan, 1.788 billion yuan, and 1.959 billion yuan respectively[17] - Net profit attributable to shareholders for Q1, Q2, Q3, and Q4 were 840.23 million yuan, 297.24 million yuan, 304.48 million yuan, and -64.77 million yuan respectively[17] - Non-recurring gains and losses for 2022 amounted to 685.85 million yuan, primarily due to gains from the disposal of overseas subsidiaries and government subsidies[18][19] - Revenue for the reporting period was 7.67 billion yuan, a decrease of 9.95% year-on-year[38] - Net profit attributable to shareholders was 1.38 billion yuan, an increase of 273.07% year-on-year[38] - Adjusted revenue for the gaming business was 7.20 billion yuan, an increase of 6.09% year-on-year[39] - Gaming business net profit attributable to shareholders was 1.59 billion yuan, an increase of 120.97% year-on-year[40] - The company's gaming business achieved a non-GAAP net profit of 1.08 billion yuan, an increase of 321.78% year-on-year[40] - The company's film and television business revenue was 320.65 million yuan, a decrease of 66.33% year-on-year[39] - Total revenue for 2022 was RMB 7,670,402,228.08, a decrease of 9.95% compared to 2021[52] - Game revenue accounted for 94.42% of total revenue in 2022, with mobile games contributing 65.98% and PC games 24.81%[52] - Overseas revenue decreased by 16.26% to RMB 927,085,206.79, but excluding the impact of divested subsidiaries, it increased by 87.22% to RMB 883,612,300[52][53] - Game-related other business revenue increased by 59.60% to RMB 253,346,391.26[52] - Game business achieved a gross margin of 70.75%, an increase of 4.13 percentage points year-on-year[54] - Mobile game revenue increased by 10.97% to RMB 5,060,774,274.38, with a gross margin of 73.88%[54] - PC game revenue decreased by 19.71% to RMB 1,903,027,597.32, with a gross margin of 69.95%[54] - Domestic revenue accounted for 87.91% of total revenue, a decrease of 9.01% year-on-year[52] - Perfect World Game Co., Ltd. achieved a total revenue of 7,250,945,457.75 yuan and a net profit of 1,591,721,058.57 yuan in 2022[78] - The company sold Perfect World North America Corporation and Perfect World Publishing B.V., resulting in a net gain of 424.83 million yuan[79] - The company sold Beijing Perfect Xile Culture Media Co., Ltd., resulting in a net loss of 1.3011 million yuan[79] Cash Flow and Dividends - The company's cash flow from operating activities increased by 5.24% year-on-year to RMB 1,155,208,642.79[13] - Net cash flow from operating activities for Q1, Q2, Q3, and Q4 were 87.34 million yuan, 330.71 million yuan, 270.27 million yuan, and 466.88 million yuan respectively[17] - The company plans to distribute a cash dividend of RMB 3.5 per 10 shares (tax included) based on the total share capital after deducting shares in the company's repurchase securities account and shares that have expired and not been unlocked under the 2021 employee stock ownership plan[4] - Operating cash flow increased by 5.24% to 1.16 billion yuan, driven by improved performance in the gaming business[63] - Investment cash flow surged by 130.71% to 1.36 billion yuan due to reduced investments in financial products and office building renovations[64] - Financing cash outflow increased by 168.18% to 3.02 billion yuan, primarily due to higher dividend payments[64] - Cash and cash equivalents decreased by 388.05 million yuan, influenced by operating, investing, and financing activities[64] - Total cash dividends distributed: RMB 2.29 billion, with RMB 12.00 per 10 shares[136] - Cash dividend distribution of RMB 666,035,605.55, with RMB 3.5 per 10 shares (tax included)[138] - Total cash dividends (including other methods) amount to RMB 917,498,785.38, accounting for 100% of the total profit distribution[138] - Parent company's distributable profit as of December 31, 2022, is RMB 2,897,486,458.44, and consolidated financial statements show RMB 5,402,865,731.11[138] Game Business Performance - Game business revenue increased by 6.09% year-on-year to RMB 7,198,995,100[13] - The company's game business has a cumulative global revenue of nearly 9 billion yuan for "Zhu Xian" mobile game since its launch in August 2016[28] - "Dream New Zhu Xian" mobile game has achieved a cumulative global revenue of over 3 billion yuan since its domestic launch in June 2021[28] - The company's self-developed VR game "Subnautica" was launched in 2016, showcasing its early adoption of VR technology[30] - "Tower of Fantasy" mobile game, launched globally in August 2022, topped the iOS download charts in 36 countries and regions on its release day[34] - The game "Huan Tower" entered the iOS game bestseller list Top 10 five times, with a highest ranking of 4th[42] - The game "Dream New Zhu Xian" ranked 6th in the domestic iOS game bestseller list during its anniversary celebration[42] - The company plans to launch the game "Dragon Oath 2: Flying Dragon Battle Sky" on April 14, 2023[43] - The game "Dream New Zhuxian" was launched overseas in March 2022, achieving significant success in multiple regions[44] - The game "Tower of Fantasy" topped the iOS download charts in 36 countries and regions on its launch day in August 2022[44] - The company's Steam platform held its first game showcase in July 2022, featuring over 80 new games[44] - The company plans to host the first Eastern Game Culture Week in April 2023, promoting Eastern games globally[44] - The company has hosted 17 major esports events in the past 5 years, with 100,000 live attendees[45] - The company is focusing on a "MMO+X" and "Card+X" strategy, with multiple games in development covering various genres and platforms[81] - The company plans to launch 13 new games in 2023, including "Perfect New World" and "Dragon Oath 2: Flying Dragon Battle Sky"[86] - The new Chinese-style MMORPG "Zhu Xian World" has completed its first test with positive player feedback[87] - The company's proxy game "Demi-Gods and Semi-Devils 2: Flying Dragon Battle" is expected to launch on April 14, 2023[87] - The company is actively developing multiple games, including "Perfect New World," "Zhu Xian 2," and "Code: New World"[87] - The company's esports products, including "DOTA2" and "CS:GO," will leverage offline event recovery and the upcoming Asian Games in September 2023[88] Film and TV Business Performance - Film and television business revenue decreased by 66.33% year-on-year to RMB 320,654,200[13] - The company has over 200 outstanding film and television works, winning more than 300 professional awards[27] - The company's film and television business has expanded its overseas distribution, with works like "Ashes of Love" gaining both critical acclaim and market popularity[35] - The company is focusing on quality over quantity in its film and TV business, with 12 projects in post-production and 4 in pre-production[90][91] Technology and Innovation - The company is actively exploring the application of AI, VR, AR, and MR technologies in game development, including intelligent NPCs, scene modeling, AI painting, AI storytelling, and AI dubbing[32] - The company has multiple games under development based on Unreal Engine 5, with "Tower of Fantasy" being the first Unreal Engine 4 mobile product launched in China in December 2021[30] - The company is actively integrating AI technology into game development, including smart NPCs, scene modeling, AI painting, AI storytelling, and AI voiceovers[84] - The company is investing in cloud gaming and metaverse-related projects, with "Tower of Fantasy" cloud gaming entering testing in March 2023[84] - The company is committed to technological innovation, particularly in PC, console, VR, and cloud gaming, to maintain its competitive edge[84] - The company has established an AI center to further explore AI applications in game development and operations[48] - The company has integrated AI technology into game development, including smart NPCs and AI-generated weather systems[47] - The company established an AI center to explore AI applications in game development, including smart NPCs, scene modeling, and AI-generated content[88] - The company has signed an agreement with Microsoft for Azure services and shared AIGC application scenarios at GDC2023[88] Corporate Governance and Leadership - The company's board of directors consists of 5 members, including 2 independent directors, and has established four specialized committees: Strategy, Compensation and Evaluation, Audit, and Nomination[102] - The company's board of directors has established rules and regulations for the operation of the board and its committees, including the Rules of Procedure for Board Meetings, the Work System for Independent Directors, and the Implementation Rules for the Board's Specialized Committees[102] - The company's board of directors has established a performance evaluation system for senior management, linking their work performance to income[104] - The company's board of directors has established a system for information disclosure and transparency, with the board secretary as the first person responsible for information disclosure[105] - The company ensures the independence of its personnel, with senior management such as the General Manager, Deputy General Manager, CFO, and Board Secretary working exclusively for Perfect World and not holding positions or receiving salaries from controlling shareholders or their affiliated enterprises[106] - Perfect World maintains independent assets, ensuring all assets are under its control and not used to provide guarantees for the debts of controlling shareholders or their affiliated enterprises[107] - The company has established an independent financial department and accounting system, with separate bank accounts and financial decision-making processes, ensuring no interference from controlling shareholders or their affiliated enterprises[107] - Perfect World has a complete and independent organizational structure, with its shareholders' meetings, board of directors, independent directors, and supervisory board operating independently according to laws and regulations[107] - The company guarantees independent business operations, with controlling shareholders only exercising their rights through legal procedures and minimizing related-party transactions[107] - The 2021 Annual General Meeting had a 39.84% investor participation rate, held on May 16, 2022, with resolutions disclosed on May 17, 2022[109] - Chi Yufeng, the Chairman, holds 149,122,401 shares, with no changes in shareholding during the reporting period[110] - Xiao Hong, the Director and CEO, holds 283,950 shares, with no changes in shareholding during the reporting period[110] - Lu Xiaoyin, the Director, Co-CEO, and President, holds 63,600 shares, with no changes in shareholding during the reporting period[110] - Lian Jie, the former Co-CEO, resigned on March 22, 2022, due to health reasons, and Lu Xiaoyin was appointed as the new Co-CEO on March 28, 2022[111][112] - Chi Yufeng has been the Chairman of Perfect World (Beijing) Network Technology Co., Ltd. since 2004[113] - Chi Yufeng has been the Chairman of Perfect World Co., Ltd. since 2006[113] - Chi Yufeng has been the Chairman of iHuman Inc. since June 2020[113] - Xiao Hong has been the CEO of Perfect World Co., Ltd. since January 2019[114] - Lu Xiaoyin has been the CEO of Perfect World Games Co., Ltd. since 2017[114] - Lu Xiaoyin has been the Co-CEO of the company since March 2022[114] - Ma Jun has been the Vice President of the company since August 2015[117] - Wang Xiangyu has been the CFO of the company since August 2021[118] - Chi Yufeng serves as the Executive Director and General Manager of Shihzhi Happy Forever Equity Investment Co., Ltd.[119] - Chi Yufeng serves as the Executive Director and General Manager of Perfect World Holdings Group Co., Ltd.[119] - Chairman Chi Yufeng received a total pre-tax remuneration of 7.15 million yuan[124] - CEO Xiao Hong received a total pre-tax remuneration of 7.12 million yuan[124] - Co-CEO and President Lu Xiaoyin received a total pre-tax remuneration of 7.17 million yuan[124] - The total pre-tax remuneration for directors, supervisors, and senior management in the reporting period was 28.91 million yuan[124] - The company held five board meetings during the reporting period, with resolutions disclosed on the official website[125] - Number of board meetings attended by directors: 5, with 3 in-person and 2 via teleconference[126] - Number of audit committee meetings held: 5, all proposals unanimously approved[128] Employee and Talent Management - Total number of employees at the end of the reporting period: 6,061, including 77 at the parent company and 5,984 at major subsidiaries[130] - Number of employees in game R&D and film production: 4,356, accounting for 71.9% of total employees[132] - Number of employees with a bachelor's degree or higher: 4,619, representing 76.2% of total employees[132] - Number of employees in game and film distribution/operations: 1,072, accounting for 17.7% of total employees[132] - Number of employees with postgraduate degrees: 728, representing 12.0% of total employees[132] - Number of financial personnel: 150, accounting for 2.5% of total employees[131] - Employee stock ownership plan holds 9,370,000 shares, accounting for 0.48% of the total share capital, with no funding required from employees[141] - 2021 employee stock ownership plan failed to meet 2022 performance targets, resulting in the recovery of 1,874,000 shares[142] - Stock option incentive plan granted 1.65 million shares at RMB 29.18 per share to 134 employees in 2015[139] - Adjusted stock option exercise price to RMB 17.59 per share due to profit distribution adjustments[140] - The company emphasizes the importance of talent as the primary productivity driver for cultural and creative enterprises, highlighting the need for experienced and creative talent to maintain core competitiveness[96] - The company has established a comprehensive mechanism to attract, care for, motivate, and assess talent, which has helped in building a strong and cohesive team with excellent R&D and production capabilities[96] - Despite the established mechanisms, the company faces risks of losing core talent and insufficient talent reserves due to increased industry competition and higher demand for high-end talent[96] - The company plans to continue its "people-oriented" approach, using a combination of internal cultivation and external recruitment to enhance its talent pool[96] - The company aims to strengthen its attractiveness to talent through a creative culture, stable content production mechanisms, and flexible talent incentives and assessment systems[96] Corporate Social Responsibility and Sustainability - The company migrated 312 servers to the cloud by the end of 2022, reducing energy costs and carbon emissions[151] - The company closed over 200 servers in its self-built data centers, contributing to lower energy consumption[151] - The average PUE (Power Usage Effectiveness) of the company's data centers in 2022 was 1.4, with a minimum PUE of 1.25[153] - The company implemented various energy-saving measures, including peak-shifting elevator operations, paperless office practices, and encouraging double-sided printing[155] - The company organized environmental activities, such as the "Plant for Perfection" project, which involved employees planting trees to enhance carbon sequestration and support China's "3060" carbon neutrality goals[157] - The company developed educational board games focused on environmental protection and biodiversity, distributed to employees as part of Children's Day benefits[158] - Perfect World launched the "Nature and Me, Perfect Together" biodiversity employee volunteer activity in November 2022 to promote public awareness and participation in biodiversity conservation[159] - The company raised over 90,000 yuan through the 5th Perfect World Employee Charity Flea Market in July 2022, all of which was used for the Perfect World Growth Scholarship program[162] - The Perfect World Growth Scholarship