Core Viewpoint - Perfect World has shown a significant turnaround in its financial performance, with a notable increase in revenue and a return to profitability in the first quarter of 2025, following the release of its annual report for 2024 [1][2] Financial Performance - In 2024, Perfect World achieved a revenue of 5.57 billion yuan, with a net profit attributable to shareholders of -1.288 billion yuan, aligning with its earnings forecast [1] - For the first quarter of 2025, the company reported a revenue of 2.023 billion yuan, representing a year-on-year growth of 52.22%, and a net profit attributable to shareholders of 302 million yuan, marking a return to profitability [1] - The operating profit in the first quarter saw a significant increase, primarily driven by the performance of the game "Zhu Xian World," which was launched in December of the previous year [1] Game Business Insights - The gaming segment generated a revenue of 1.418 billion yuan in the first quarter, reflecting a year-on-year increase of 10.37%, with a net profit attributable to shareholders of 292 million yuan [1] - The revenue growth in the gaming sector was supported by stable performances from esports titles like "DOTA2" and "CS:GO," although mobile game revenues declined due to product lifecycle impacts [1] Film and Television Business - The film and television segment achieved a revenue of 590 million yuan in the first quarter, a staggering year-on-year increase of 1616.29%, with a net profit of 28.83 million yuan [2] - The growth in the film and television sector was attributed to successful inventory reduction and the airing of multiple productions that confirmed revenue [2] Future Outlook - The company is expected to benefit from the long player lifecycle of its PC games, particularly "Zhu Xian World," which allows for deferred revenue recognition and potential long-term growth [2] - Several institutions, including Huatai Securities and Galaxy Securities, anticipate that Perfect World will focus on high-quality game development and continue to launch new projects, which may contribute positively to future earnings [2]