PWRD(SZ:002624) Qi Lu Wan Bao·2025-05-26 14:55Core Insights - The National Press and Publication Administration announced the approval of 619 domestic online games from January to May 2025, with 130 games approved in May alone, setting a new monthly record for domestic game approvals [1] - Perfect World’s game "Yihuan" is highlighted, having reached 2.8 million global platform reservations in its first week, with a planned launch by the end of 2025 or early 2026 [1] - Perfect World reported significant losses in its 2024 financial results, with a revenue of 5.57 billion yuan, a year-on-year decline of 28.5%, and a net profit loss of 1.288 billion yuan, marking a 361.98% decrease [1][2] Company Performance - The losses for Perfect World stem from underperforming domestic games and film projects, leading to the cancellation of several initiatives and workforce optimization [2] - Investment losses also contributed to the profit decline, as the company invested in multiple small to medium-sized enterprises in the gaming and film sectors, which faced poor performance due to industry changes [2] - Perfect World has struggled to capitalize on mobile and mini-game trends, missing key market opportunities compared to competitors like Tencent and NetEase [3] Management Changes - The company has undergone significant leadership changes, with the resignation of CEO Xiaohong and co-CEO Lu Xiaoyin, alongside a major workforce reduction of 32% [3] - The transition in leadership began over a decade ago when the founder shifted focus to film, leading to a lack of game development experience in the new management [2][3]