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]