Communication Author: EqualOcean News, Qasim khan Editor: 张宇喆 Aug 17, 2021 02:58 PM (GMT+8)

The Chinese online gaming firm, Perfect World released its H1 2021 financial report on August 16.

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- Operating revenue was about CNY 4.20 billion, a year-on-year decrease of 18.22%.

- Net profit attributable to the shareholders of the listed company was about CNY 258 million, a year-on-year decrease of 79.72%.

- Revenue of Perfect World film and television business in the first half of the year was CNY 729 million, down 7.14% year-on-year.

- Operating revenue of the game business was CNY 3.40 billion, a year-on-year decrease of 21.75% with a net profit of CNY 223 million, a year-on-year decrease of 80.71%. 

- The sales cost of the firm was CNY 903 million, up 20.77% year-on-year, mainly due to the centralized marketing of new games in the early stage of the launch and the corresponding increase in market costs.

Perfect world said that it is facing management risks brought by changes in industrial policies, intensified industrial competition, insufficient reserves and scale expansion.

In recent years, the state has issued a series of policies aimed at guiding the standardized and healthy development of the industry. In the long run, stricter supervision will promote the industry to accelerate the realization of supply-side reform and accelerate the concentration of market share to leading enterprises. However, in the future, if the company fails to quickly adjust its business strategy in time according to the changes in industrial policies, it will have an adverse impact on the company's operation.

Perfect world emphasized in the report that the target positioning and user group of its game products are mainly adult users and the income from minors accounts for a very low proportion of the total income.

It is worth noting that the share price of the firm has nearly halved in about six months. On January 5, 2021, the share price reached CNY 31.54/ share. As of the closing on August 16, 2021, the share price was CNY 14.7/ share, with a total market value of CNY 28.5 billion.

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