Summary of Perfect World Conference Call Company Overview - Perfect World is one of the first domestic PC game manufacturers in China, with a strong technical foundation and rich gaming operation experience, particularly in product quality and long lifecycle operations, laying a solid foundation for future development [2][4] Key Points Industry and Company Performance - The company's performance exhibits significant product cyclicality, with major new game launches leading to substantial performance boosts, while older products may experience a decline, resulting in flat performance [2][4] - Anticipated new game "Yi Huan" is expected to significantly enhance company performance upon its launch at the end of the year, with early signs of performance improvement already visible [2][3][5] Upcoming Products - The highly anticipated open-world RPG "Yi Huan" combines elements of anime and cyberpunk, showing promising test results with strong core metrics, expected to contribute significantly to performance post-launch [2][6][7] - Other notable products include "Persona," "Night Shadow," and "P5X," which have performed well in overseas markets, with "P5X" ranking high on Japan's iPhone sales charts [2][9] Historical Context and Future Outlook - Perfect World has a rich history and strong R&D capabilities, having been a key player in the rise of online gaming in China since the early 2000s [4] - The company is expected to enter a phase of sustained performance growth starting in 2025, particularly with the launch of "Yi Huan," which is projected to accelerate profit growth [3][11] Business Adjustments - Recent years have seen performance impacted by business adjustments and impairment provisions, particularly in the overseas console team and film business, which have now stabilized [10][12] - The film business has shifted towards a quality-over-quantity strategy, focusing on high-quality platform-customized dramas, which has helped stabilize operations and support the core gaming business [12] Investment Recommendations - Investors are advised to consider early positioning in Perfect World due to its low current valuation and the potential growth opportunities arising from the launch of "Yi Huan," which could lead to dual-driven performance and valuation growth [3][13]

Summary of the Conference Call on "Yi Huan" by Perfect World Company and Industry - The conference call discusses "Yi Huan," a game developed by Perfect World, which is currently in the testing phase. The game is positioned within the urban fantasy genre and incorporates elements of open-world gameplay. Core Points and Arguments - **Game Engine and Graphics**: "Yi Huan" utilizes the UE5.5 engine, offering high-quality graphics and a blend of Chinese and Japanese design elements. However, there are concerns about frame drops and high memory usage that need optimization in future updates [2][5][4]. - **Gameplay Mechanics**: The game features a variety of gameplay mechanics, including open-world exploration, character development, gacha mechanics, and combat systems. The aim is to provide a rich and engaging gaming experience [3][7]. - **Storytelling Approach**: Unlike traditional games, "Yi Huan" focuses on daily interactions rather than a grand narrative. The episodic structure resembles a series of short stories, enhancing player immersion through cinematic techniques [6][7]. - **Vehicle System**: The game includes a detailed vehicle system allowing players to purchase, modify, and race vehicles. Future updates will introduce more customization options [8][9]. - **Economic Gameplay**: Players can engage in economic activities such as currency management, real estate, and shop ownership. The current system is simple but will be expanded in future tests to increase complexity without overwhelming players [9][10]. - **World Exploration**: The game aims to enhance immersion through urban exploration, although it currently lacks depth in internal interactions. Future updates will add more interactive elements [10][11]. - **Combat System**: Significant improvements have been made to the combat system, including strategic depth and character switching mechanics. However, the complexity may pose challenges for new players, necessitating better onboarding [12][18]. - **Character Development**: The game implements various optimization measures to reduce the burden of character development, making it more accessible and enjoyable for players [13][14]. - **Gacha System Innovations**: "Yi Huan" features a unique gacha system with both permanent and limited pools, enhancing player engagement through a fun and transparent experience [15][16]. - **Market Potential**: The game shows promise in competing within the top tier of the anime game market, thanks to its strong graphics, deep combat system, and innovative gameplay mechanics [17][19]. Other Important but Possibly Overlooked Content - **Future Development Concerns**: Despite its strengths, "Yi Huan" faces challenges such as maintaining story quality, enhancing world exploration depth, balancing economic gameplay complexity, and addressing the steep learning curve for combat mechanics [18][19]. - **Player Experience Focus**: The design philosophy emphasizes reducing player burden and enhancing user experience, which is crucial for retaining player interest and satisfaction [13][14]. This summary encapsulates the key aspects of the conference call regarding "Yi Huan," highlighting its innovative features, potential challenges, and overall market outlook.

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **media industry** and highlights significant opportunities in **AI** and **AI glasses** for the second quarter and second half of 2025, particularly following positive guidance from President Xi Jinping regarding AI glasses, which may catalyze the industry [1][2] - The **gaming sector** is noted for its strong performance, with several companies exceeding market expectations in the first quarter of 2025 [2] Core Insights and Arguments - **AI and AI Glasses**: The media industry should pay attention to AI and AI glasses, with a projected market size of **4.71 billion** yuan by 2027, and **Inpaas** expected to generate over **90 million** yuan in net profit, contributing to a market capitalization increase of **2.8 billion** yuan [1][5] - **Film and Gaming Projects**: Anticipated summer releases include animated films like **"Three Kingdoms Starry Sky"** and **"Wang Wang Island,"** along with games such as **"One Ring"** and **"SLG 5,000 Years,"** which are expected to drive revenue for related companies [1][4] - **Fengjun Media**: Reported first-quarter revenue of **2.858 billion** yuan, a **4.7%** year-on-year increase, and a net profit of **1.135 billion** yuan, up **9.14%** year-on-year, with a dividend yield exceeding **6%** [1][8] - **Gaming Sector Performance**: The gaming sector reported a profit of **3.476 billion** yuan in Q1 2025, a **41.7%** increase year-on-year, with notable performances from companies like **Kying Network**, **Perfect World**, **ST Huayun**, and **Jibite** [1][11] Additional Important Insights - **Mergers and Acquisitions**: Fengjun Media's recent acquisition of **Xinchao** is expected to enhance overall efficiency and bargaining power, positively impacting future performance [1][9] - **Education Sector**: The education sector is highlighted for its strong domestic demand characteristics, with recommendations to focus on high-performance, high-dividend stocks like **Oriental Education**, which saw a **15%-35%** increase in spring enrollment [2][12] - **Doushen Education**: As the first AI+ education application stock in A-shares, its **AI class** product is expected to launch in Q2, potentially replacing online language courses and driving significant revenue growth [2][15][16] - **Market Dynamics**: The K12 education sector is advised to focus on AI-enabled education, with companies like **Doushen Education** and **Shengtong Co.** showing promise for future growth [2][14][17] This summary encapsulates the key points discussed in the conference call, providing insights into the media and gaming industries, as well as emerging opportunities in AI and education sectors.