Group 1 - The GTC2025 Global Flow Conference was held in Shanghai on November 6, where Perfect World (002624) was awarded the title of "Outstanding Overseas Game Publisher of the Year" [1] - Perfect World adheres to an international strategy of "product refinement and global expansion," continuously optimizing its global distribution system and promoting high-quality cultural products worldwide [1] - In esports, Perfect World emphasizes "events driving products and events driving overseas expansion," with the 2024 Shanghai Major event achieving record scale, selling out finals tickets in 10 seconds and semi-finals tickets in 25 seconds, attracting over 70,000 offline viewers and nearly 10,000 overseas viewers [1] Group 2 - The online game "Perfect World International" has been operating for nearly 20 years, becoming an early benchmark for China's gaming industry going global [2] - The game "Persona 5: Phantom X" launched in Japan, Europe, and Southeast Asia, achieving top rankings in iOS free charts across 35 countries, including Top 4 in Japan's iOS overall sales chart [2] - The upcoming game "Eternal Loop" has completed domestic and overseas testing, showcasing at major gaming exhibitions, and is expected to launch on multiple platforms globally, enhancing the company's global expansion efforts [2] Group 3 - The GTC Global Flow Conference has been successfully held for nine sessions, with the 2025 "Whale Sound Award" covering nine categories, including gaming, short dramas, AI, cross-border e-commerce, marketing, and overseas services, with 83 award-winning companies selected from nearly 1,000 applicants [3]

Core Viewpoint - The article highlights Perfect World's immersive film production experience project at the 2025 China International Service Trade Fair, showcasing the integration of cutting-edge technology and cultural content, emphasizing the company's "technology + culture" strategy [1][3]. Group 1: Immersive Experience and Technology Integration - Perfect World created an immersive 2.5D film production experience based on its popular IP "No Regrets Today," allowing visitors to see themselves in a completed film by reading lines in front of a green screen [3]. - The project exemplifies the company's commitment to transforming viewers from passive observers to active participants, enhancing audience engagement through interactive experiences [3][4]. - The use of XR virtual shooting technology is not just a future concept but is already being applied in mainstream film and television production, increasing efficiency and breaking spatial limitations [4]. Group 2: Cultural and Technological Synergy - Perfect World is actively exploring the deep integration of digital content and cultural tourism, creatively transforming traditional Chinese cultural IPs through digital means to enhance real-world tourism experiences [5]. - The company has successfully integrated real-world cultural sites and intangible cultural heritage into its gaming experiences, enhancing player engagement with traditional culture [5][6]. - The rise of AI is viewed as a core driving force in the digital cultural industry, with Perfect World leveraging AI tools across game development and film production to optimize processes and enhance user experiences [6][7]. Group 3: Global Expansion and Localization - Perfect World has established itself as a pioneer in the global digital culture market, with a focus on high-quality, multi-platform, and localized content since its international debut in 2006 [7]. - The company’s recent global releases, such as "Tower of Fantasy," demonstrate its ability to deliver integrated experiences across multiple platforms, validating its development and distribution capabilities [7][8]. - The emphasis on cultural exchange and localization is crucial for resonating with global audiences, as seen in the integration of local cultural elements in esports and film events [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The company is expected to achieve a significant turnaround in profitability in the first half of 2025, with a forecasted net profit attributable to shareholders of 480-520 million yuan and a non-GAAP net profit of 290-330 million yuan, marking a year-on-year recovery [3] - The core gaming business is projected to perform steadily, with a non-GAAP net profit of 320-360 million yuan expected in the first half of 2025, driven by the new game "Zhu Xian World" and continued growth in esports revenue [3] - The upcoming release of the supernatural urban open-world RPG "Yihuan" is anticipated to contribute significantly to the company's revenue growth, with positive market feedback from recent tests [3] Financial Summary - The company forecasts revenues of 6,862 million yuan in 2025, a year-on-year increase of 23.2%, and net profits of 788 million yuan, representing a year-on-year growth of 161.2% [4][6] - The gross margin is expected to be 60.6% in 2025, with a net margin of 11.5% [4] - Earnings per share (EPS) are projected to be 0.41 yuan in 2025, with a price-to-earnings (P/E) ratio of 35.8 times [4][6] Product Pipeline - The product pipeline is clear, with "Yihuan" expected to accelerate its launch, potentially driving rapid revenue growth [3] - The sequel to the "Zhu Xian" IP, "Zhu Xian 2," is scheduled for public release on August 7, further solidifying the company's position in the MMORPG segment [3]