Core Insights - Perfect World Games and Hotta Studio are set to launch their urban open-world RPG, NTE (Neverness to Everness), on April 29, 2026, across multiple platforms including PC, PlayStation 5, iOS, and Android, with pre-registration now available [1][9] Game Features - NTE features a vast, seamless open world in the city of Hethereau, utilizing Unreal Engine 5, where players can explore and interact with supernatural anomalies through episodic comedy-drama storylines [5][6] - The game includes enhanced graphics with updates to Unreal Engine 5.7, support for NVIDIA DLSS 4, and improved character models [6] - Players can engage in various activities such as racing, collecting, modding sports cars, and running businesses, ensuring an immersive and dynamic gameplay experience [8] Pre-registration Campaign - A pre-registration campaign has been launched with milestone rewards based on the number of sign-ups, including Beetle Coin, Elite Hunter Guide, and exclusive characters [7] - The campaign aims to enhance community engagement and reward players for their feedback during the beta testing phase [3][5] Company Background - Perfect World Games specializes in game development, operations, and publishing, with a diverse portfolio across various genres and platforms [10] - Hotta Studio, known for developing the open-world game Tower of Fantasy, brings experience in creating rich gaming experiences [11]

Core Insights - The closed beta for the urban open-world RPG "NTE" (Neverness to Everness) is now open for PC and PlayStation 5, with pre-registration available for iOS and Android versions [1][5] Game Features - "NTE" features a vast open world in the city of Hethereau, utilizing Unreal Engine 5, where players interact with supernatural anomalies and engage in episodic storylines [3] - Players can participate in various activities such as collecting, modding, racing sports cars, designing city getaways, and running businesses, ensuring an immersive experience [4] - New gameplay mechanics include crime elements that affect the player's wanted level, vehicle modifications, and urban activities like fishing, taxi driving, and participating in heists [7] Company Background - Perfect World Games specializes in game development, operations, and publishing across multiple genres and platforms, including PC, mobile, and consoles [6] - Hotta Studio, known for developing "Tower of Fantasy," is also involved in the creation of "NTE," showcasing their expertise in open-world gaming [8]

Summary of Earnings Preview for China Internet and Other Services Industry Overview - The report focuses on the China Internet and Other Services sector, particularly highlighting companies involved in gaming and entertainment, such as Damai Entertainment, 37 Interactive Entertainment, G-bits, Perfect World, IQIYI, JOYY, Huya, and Focus Media [2][10]. Key Company Insights Damai Entertainment (1060.HK) - Forecasted 27% YoY total revenue growth in 1HF26, driven by 90% growth in IP business and 13% growth in offline entertainment [3]. - Expected net profit growth of 45% YoY [3]. 37 Interactive Entertainment (002555.SZ) - Anticipated 14% YoY revenue growth and 30% YoY adjusted net profit growth, attributed to new game releases [4]. G-bits (603444.SS) - Forecast aligns with preliminary announcements, with a focus on deferred revenue and 2026 pipelines [4]. Perfect World (002624.SZ) - Expected 34% revenue growth with a shift from a net loss of Rmb189 in 3Q24 to a net profit of Rmb326 in 3Q25 [5]. IQIYI (IQ.O) - Total revenue expected to be largely flat QoQ (-7% YoY), with a forecasted non-GAAP operating loss of Rmb23 million [6]. - Membership revenue projected to increase by 3% QoQ [6]. JOYY (JOYY.O) - Total revenue expected to grow 6% QoQ (-4% YoY), with net income remaining flat [7]. - Focus on advertising revenue and expense control [7]. Huya (HUYA.N) - Anticipated total revenue rebound in 3Q25 with an 11% YoY increase and a narrowing net loss [7]. Focus Media (002027.SZ) - Forecasted revenue growth of 4% YoY, driven by stronger demand from internet advertisers [8]. - Expected net profit growth of 10% YoY [8]. Financial Metrics and Projections - **Damai Entertainment**: Total revenue projected at Rmb3,879 million for 1HF26, with a normalized net profit margin of 12.8% [14]. - **37IE**: Revenue expected at Rmb4,674 million for 3Q25, with a gross margin of 79% [15]. - **G-bits**: Revenue forecasted at Rmb1,631 million for 3Q25, with a gross margin of 92% [17]. - **Perfect World**: Revenue expected at Rmb1,766 million for 3Q25, with a gross margin of 65% [18]. - **IQIYI**: Total revenues projected at Rmb6,688 million for 3Q25, with a gross profit margin of 18% [20]. - **Huya**: Total revenues expected at USD 1,710 million for 3Q25, with a gross profit margin of 13% [21]. - **JOYY**: Total revenues projected at USD 537 million for 3Q25, with a gross margin of 36% [24]. Additional Insights - The report emphasizes the importance of management comments on revenue growth momentum and normalized margin levels across companies [3][4][5]. - The potential for upside surprises in revenue growth for several companies, particularly in the context of new game releases and advertising demand, is highlighted [12][13]. - The overall industry view remains attractive, with a focus on the evolving landscape and potential regulatory impacts [10]. This summary encapsulates the key points from the earnings preview, providing a comprehensive overview of the anticipated performance and strategic focus of the highlighted companies within the China Internet and Other Services sector.

Core Insights - Perfect World Games and Hotta Studio are launching a Closed Beta test for their new RPG NTE (Neverness to Everness) from July 3-16, 2025 [1] - The game features a supernatural urban open-world setting in the city of Hethereau, utilizing Unreal Engine 5 for its development [6] Group 1: Game Features - A new vehicle requisition and wanted system has been introduced, allowing players to commandeer vehicles, with law-breaking actions triggering a multi-level warning system [3] - The game includes online street racing challenges where players can compete against friends and various racing crews [4] - An updated dynamic weather system features sophisticated snow mechanics, enhancing realism with real-time PBR snow materials [4] Group 2: Gameplay and Activities - Players can engage in a variety of activities beyond the core story, such as collecting and modding sports cars, designing city getaways, and running businesses [7] - The game promises an immersive experience with episodic comedy-drama storylines, allowing players to explore supernatural anomalies [6] Group 3: Company Background - Perfect World Games specializes in game development, operations, and publishing across multiple platforms, including PC, mobile, and consoles [9] - Hotta Studio is known for developing the open-world game Tower of Fantasy, which features a light sci-fi art style and was created with Unreal Engine 4 [10]