Perfect World Co. Ltd. (NASDAQ:PWRD)

BEIJING, July 28, 2015 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced the completion of merger contemplated by the previously announced agreement and plan of merger dated April 26, 2015 (the "Merger Agreement"), among the Company, Perfect Peony Holding Company Limited ("Parent") and Perfect World Merger Company Limited. As a result of the merger, the Company became a wholly owned subsidiary of Parent.

Under the terms of the Merger Agreement, which was approved by the Company's shareholders at an extraordinary general meeting held on July 28, 2015, each of the Company's ordinary shares issued and outstanding immediately prior to the effective time of the merger (the "Shares") was cancelled and ceased to exist in exchange for the right to receive US$4.04 in cash without interest and net of any applicable withholding taxes, and each American depositary share of the Company (the "ADS"), representing five class B ordinary shares of the Company, was cancelled in exchange for the right to receive US$20.20 in cash without interest and net of any applicable withholding taxes, except for (a) the Shares held by Perfect Human Holding Company Limited, a British Virgin Islands company controlled by Mr. Michael Yufeng Chi and the Shares held by Parent, the Company or any of their subsidiaries (including such Shares represented by ADSs) immediately prior to the effective time of the merger, which were cancelled and ceased to exist without payment of any consideration or distribution therefor, and (b) the Shares held by shareholders who had validly exercised and not effectively withdrawn or lost their rights to dissent from the Merger in accordance with Section 238 of the Companies Law of the Cayman Islands (the ''Dissenting Shares''), which were cancelled and ceased to exist in exchange for the right to receive payment of the fair value of such Shares as determined in accordance with the provisions of Section 238 of the Companies Law of the Cayman Islands.

Registered shareholders entitled to the merger consideration will receive a letter of transmittal and instructions on how to surrender their share certificates in exchange for the merger consideration and should wait to receive the letter of transmittal before surrendering their share certificates. As to ADS holders entitled to the merger consideration, payment of the merger consideration will be made to ADS holders as soon as practicable after Deutsche Bank Trust Company Americas, the Company's ADS depositary, receives the merger consideration.

The Company also announced today that it requested that trading of its ADSs on the NASDAQ Global Select Market ("NASDAQ") be suspended beginning at the close of business on July 28, 2015 (New York City time). The Company requested that NASDAQ file a Form 25 with the U.S. Securities and Exchange Commission (the "SEC") notifying the SEC of the delisting of its ADSs on NASDAQ and the deregistration of the Company's registered securities. The deregistration will become effective 90 days after the filing of the Form 25 or such shorter period as may be determined by the SEC. The Company intends to suspend its reporting obligations under the Securities Exchange Act of 1934, as amended, by filing a Form 15 with the SEC. The Company's obligation to file with the SEC certain reports and forms, including Form 20-F and Form 6-K, will be suspended immediately as of the filing date of the Form 15 and will terminate once the deregistration becomes effective.

BEIJING, July 28, 2015 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that, at an extraordinary general meeting held today, the Company's shareholders voted in favor of the proposal to authorize and approve the previously announced agreement and plan of merger dated April 26, 2015 (the "Merger Agreement"), among the Company, Perfect Peony Holding Company Limited ("Parent") and Perfect World Merger Company Limited ("Merger Sub"), pursuant to which, Merger Sub will be merged with and into the Company with the Company continuing as the surviving corporation and becoming a wholly owned subsidiary of Parent (the "Merger"), and the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands (the "Plan of Merger") and the transactions contemplated thereby, including the Merger.

Approximately 98.0% of the total votes voted in person or by proxy at today's meeting were in favor of the proposal to authorize and approve the Merger Agreement, the Plan of Merger and the transactions contemplated thereby, including the Merger.

Completion of the Merger is subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement.  The Company will work with various other parties to the Merger Agreement to satisfy all other conditions precedent to the Merger set forth in the Merger Agreement and complete the Merger as quickly as possible.  If and when completed, the Merger would result in the Company becoming a privately held company and its American depositary shares, each representing five class B ordinary shares of the Company, would no longer be listed on the NASDAQ Global Select Market.

EIJING, July 16, 2015 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that Institutional Shareholder Services Inc. ("ISS") and Glass Lewis & Co., LLC ("Glass Lewis") have recommended that Perfect World shareholders vote FOR approval of the Company's agreement and plan of merger dated April 26, 2015 (the "Merger Agreement") with Perfect Peony Holding Company Limited ("Parent") and Perfect World Merger Company Limited ("Merger Sub"), pursuant to which Parent will acquire Perfect World for US$4.04 per ordinary share of the Company or US$20.20 per American depositary share, representing five class B ordinary shares of the Company (an "ADS"), and Merger Sub will be merged with and into the Company with the Company continuing as the surviving corporation and becoming a wholly owned subsidiary of Parent (the "Merger").

ISS and Glass Lewis are leading independent international proxy advisory firms and their voting analyses and recommendations are relied upon by thousands of major institutional investment firms, mutual funds and fiduciaries throughout the world.

The Company's extraordinary general meeting of shareholders (the "EGM") to consider and vote on, among other things, the Merger Agreement, the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands (the "Plan of Merger") and the transactions contemplated thereby, including the Merger, will be held on July 28, 2015 at 10:00 a.m. (Hong Kong time) at 42nd Floor, Edinburgh Tower, The Landmark, 15 Queen's Road, Central, Hong Kong.

Shareholders of record at the close of business in the Cayman Islands on July 6, 2015 will be entitled to attend and vote at this EGM and any adjournment thereof. The record date for ADS holders entitled to instruct Deutsche Bank Trust Company Americas, the ADS depositary, to vote the shares represented by the ADSs is the close of business in New York City on June 25, 2015. ADS holders are reminded that the deadline to vote is 5:00 p.m. (New York City time) on July 23, 2015.

The Company's shareholders and ADS holders are urged to read carefully and in their entirety the Company's definitive proxy materials, as they contain important information about the Company, the proposed Merger and related matters.

BEIJING, April 30, 2015 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its recent business developments as of April 30, 2015.

Press Release Issued During the Period:

January 2, 2015 - Perfect World Appoints Mr. Yunfan Zhang as Chief Operating Officer

MOBILE GAMES

In November 2014, Perfect World launched its action MMORPG mobile game "Forever Mars."

In December 2014, Perfect World launched three mobile games, including two 3D action MMORPG mobile games "Dawn after Dark" and "Swordsman Mobile," and a card mobile game "Saint Seiya Mobile."

In March 2015, Perfect World launched its side-scrolling fighting mobile game "Adorable Battlers."

In April 2015, Perfect World launched its puzzle card mobile game "Mega Pudding."

EXPANSION PACKS FOR CLIENT-BASED ONLINE PC GAMES

Recently, Perfect World released expansion packs for two client-based online PC games.

• On April 17, 2015, Perfect World released the expansion pack "Master Dugu" for its 3D martial arts MMORPG "Swordsman Online."
• On April 28, 2015, Perfect World released the expansion pack "True Legend" for its 3D MMORPG "Legend of the Condor Heroes."

CONSOLE GAME

Launch of console game "Neverwinter" through the Xbox One platform in North America, Europe and Russia

Perfect World launched console game "Neverwinter" through the Xbox One platform in North America, Europe and Russia in March 2015 through its U.S. subsidiary.

OVERSEAS OPERATIONS

Launch of "Saint Seiya Online" in Singapore, Malaysia and Thailand

Perfect World launched "Saint Seiya Online" in Singapore and Malaysia in November 2014, and in Thailand in December 2014, respectively, through its subsidiaries in Southeast Asia. First launched in May 2013 in mainland China, "Saint Seiya Online" is Perfect World's 3D comic-based MMORPG based on the world-famous comic series "Saint Seiya."

BEIJING, April 27, 2015 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that it has entered into an Agreement and Plan of Merger (the "Merger Agreement") with Perfect Peony Holding Company Limited ("Parent"), an exempted company with limited liability incorporated under the laws of the Cayman Islands and beneficially owned by Mr. Michael Yufeng Chi, the Company's founder and chairman of the board of directors, and Perfect World Merger Company Limited ("Merger Sub"), a wholly owned subsidiary of Parent.

Subject to satisfaction of the Merger Agreement's terms and conditions, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly owned subsidiary of Parent (the "Merger"). Pursuant to the Merger Agreement, at the effective time of the Merger, each of the Company's ordinary shares issued and outstanding immediately prior to the effective time of the Merger (the "Shares") will be cancelled and cease to exist in exchange for the right to receive US$4.04 in cash without interest, and each American Depositary Share of the Company (the "ADS"), which represents five class B ordinary shares, will be cancelled in exchange for the right to receive US$20.20 in cash without interest, except for (a) Shares, including such Shares represented by the ADSs, held by entities controlled by Mr. Michael Yufeng Chi, Parent, the Company or any of their subsidiaries, which will be cancelled and cease to exist and no payment or distribution will be made with respect thereto, and (b) Shares held by shareholders who have validly exercised and not effectively withdrawn or lost their rights to dissent from the Merger pursuant to Section 238 of the Companies Law of the Cayman Islands (the "Dissenting Shares"), which will be cancelled and cease to exist in exchange for the right to receive the payment of fair value of the Dissenting Shares in accordance with Section 238 of the Companies Law of the Cayman Islands. The merger consideration represents a premium of 28.2% over the Company's closing price of US$15.76 per ADS on December 31, 2014, the last trading day prior to the Company's announcement of its receipt of a "going-private" proposal.

Mr. Michael Yufeng Chi intends to fund the Merger with the proceeds from a committed loan facility in the amount of US$900 million arranged by China Merchants Bank Co., Ltd., New York Branch, China Merchants Bank Co., Ltd., Offshore Banking Center and Wing Lung Bank, pursuant to a debt commitment letter.

The Company's board of directors (the "Board"), acting upon unanimous recommendation of a committee of independent directors established by the Board (the "Special Committee"), approved the Merger Agreement and the Merger and resolved to recommend that the Company's shareholders vote to authorize and approve the Merger Agreement and the Merger. The Special Committee, which is composed solely of independent and disinterested directors, negotiated the terms of the Merger Agreement with the assistance of its financial and legal advisors.

The Merger, which is currently expected to close during the second half of 2015, is subject to customary closing conditions including the approval of the Merger Agreement by an affirmative vote of holders of Shares representing at least two-thirds of the voting power of the Shares present and voting in person or by proxy at a meeting of the Company's shareholders which will be convened to consider the approval of the Merger Agreement and the Merger. Mr. Michael Yufeng Chi has agreed to vote all of Shares (including Shares represented by the ADSs) he beneficially owns in favor of the Merger Agreement and the transactions contemplated thereby. If completed, the Merger will result in the Company becoming a privately-held company and its ADSs will no longer be listed on the NASDAQ Global Selected Market.

In connection with the Merger, China Renaissance Securities (Hong Kong) Limited and Duff & Phelps (Duff & Phelps, LLC and Duff & Phelps Securities, LLC) are serving as financial advisors to the Special Committee; Skadden, Arps, Slate, Meagher & Flom LLP is serving as U.S. legal advisor to the Special Committee; Maples and Calder is serving as Cayman Islands legal advisor to the Special Committee; Paul Hastings LLP is serving as U.S. legal advisor to the Company; Orrick, Herrington & Sutcliffe LLP is serving as U.S. legal advisor to Mr. Michael Yufeng Chi; Conyers Dill & Pearman is serving as Cayman Islands legal advisor to Mr. Michael Yufeng Chi; Davis Polk & Wardwell, Hong Kong Solicitors is serving as legal advisor to China Renaissance Securities (Hong Kong) Limited; and Akin Gump Strauss Hauer & Feld LLP is serving as legal advisor to Duff & Phelps.

BEIJING, January 9, 2015 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that the special committee (the "Special Committee") of the Company's board of directors (the "Board") has retained China Renaissance Securities (Hong Kong) Limited and Duff & Phelps (Duff & Phelps, LLC and Duff & Phelps Securities, LLC) as its financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP as its legal counsel in connection with its review and evaluation of the preliminary non-binding proposal letter dated December 31, 2014 from Mr. Michael Yufeng Chi, the Company's founder and chairman of the Board, to acquire all of the outstanding shares of Perfect World not currently owned by him in a going private transaction (the "Proposal"). In addition, the Company has retained Paul Hastings LLP as its legal counsel in connection with the potential going private transaction contemplated by the Proposal.

Perfect World's Board cautions the Company's shareholders and others considering trading in its securities that no decisions have been made by the Special Committee with respect to Perfect World's response to the Proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

BEIJING, January 2, 2015 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that its board of directors (the "Board") has received a preliminary non-binding proposal letter dated December 31, 2014 from its founder and chairman of the Board, Mr. Michael Yufeng Chi, to acquire all of the outstanding shares of Perfect World not currently owned by him in a going private transaction for $20.00 per American Depositary Share ("ADS") or $4.00 per ordinary share in cash. A copy of the proposal letter is attached hereto as Annex A.

Perfect World's Board has formed a special committee of independent directors (the "Independent Committee") consisting of three independent directors, Mr. Daniel Dong Yang, Dr. Bing Xiang and Mr. Han Zhang, to consider this proposal. The Independent Committee intends to retain a financial advisor and legal counsel to assist it in its work. The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the preliminary non-binding proposal from Mr. Chi and no decisions have been made by the Independent Committee with respect to Perfect World's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

BEIJING, January 2, 2015 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that the Company has appointed Mr. Yunfan Zhang as the Company's Chief Operating Officer.

Mr. Zhang joined Perfect World in February 2013. He served as the Company's vice president and later became senior vice president, in charge of the Company's mobile game publishing business. Prior to joining Perfect World, Mr. Zhang served as the CEO of Beijing Zhizhu Network Technology Co., Ltd. from 2008 to 2012. He served as a general manager of Duowan.com from 2005 to 2008. From 2003 to 2005, he served as a product supervisor at NetEase, Inc. Mr. Zhang received his bachelor's degree in Economics from Jiangxi University of Finance and Economics in 2003 and MBA degree from National University of Singapore in 2013.

Third Quarter 2014 Unaudited Financial Results

• Total revenues were RMB974.3 million (USD158.7 million), compared with RMB928.4 million in the previous quarter and RMB820.2 million in the same quarter last year.
• Non-GAAP basic and diluted earnings per ADS[2] were RMB2.55 (USD0.42) and RMB2.49 (USD0.41), respectively, compared with RMB3.47 and RMB3.41, respectively, in the previous quarter, and RMB2.89 and RMB2.82, respectively, in the same quarter last year.

Mr. Robert Xiao, CEO of Perfect World commented, "We are pleased to announce our third quarter results. Total revenues rose by 5% quarter-over-quarter, which came in line with our expectations. The sequential revenue growth was mainly attributed to our newly launched mobile games 'CrossGate Mobile' and 'Forsaken World.' 'DOTA2,' a world-class title for which we have obtained exclusive rights to operate in mainland China, also continued to perform well."

"During the third quarter, we continued to expand our portfolio by launching new games and releasing expansion packs for our existing games. In addition to launching 'CrossGate Mobile' early in the quarter, we launched 'Legend of the Condor Heroes,' a 3D MMORPG based on one of Louis Cha's classic martial arts novels, and the mobile game 'Touch' toward the end of the quarter. We also launched the console version of 'Neverwinter' in mainland China through the Xbox One platform, and we are working on localizing a PC version of the game for China. Moreover, we have a variety of upcoming titles in our mobile game pipeline, such as 'Forever Mars,' 'Dawn after Dark,' 'Swordsman Mobile,' and 'Saint Seiya Mobile.' "

"Research and development continues to be our main competitive advantage. In order to further bolster our competitive edge in this area, we recently restructured our R&D teams to form five new subsidiaries. We believe this new structure will help better incentivize top talent, support game design flexibility, allow faster reaction to changing market trends, and boost game development productivity."

"During the quarter, we continued to make progress in launching our games in various markets through our overseas partners and subsidiaries. At the same time, we face fierce competition in the global market. In view of U.S. subsidiary's recent performance and near-term business outlook that are below our expectations, we recognized acquisition-related impairments in this quarter. However, we are still confident in the long-term prospects of our U.S. subsidiary given its strong R&D and operational capabilities as well as promising pipeline. With our extensive overseas network that covers more than 100 countries and regions around the world, we remain committed to further expanding our overseas penetration and bolstering our global presence."

"We are constantly on the lookout to identify new market trends as we endeavor to position ourselves to capture growth opportunities in the global market. We believe our strategies will bring long term value to our shareholders as we seek to create captivating entertainment experiences for gamers worldwide."

Business Outlook

Based on the Company's current operations, total revenues for the fourth quarter of 2014 are expected to be between RMB1,023 million and RMB1,072 million, representing an increase of 5% to 10% on a sequential basis. This takes into consideration the expected growth from the continued strength of the Company's mobile games.

BEIJING, October 28, 2014 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its restructuring of R&D teams under which five new subsidiaries have been formed. The structure of forming new subsidiaries that are majority-owned by Perfect World is aimed to help attract and motivate top talent by granting them direct stake in the subsidiaries under the new incentive scheme. Perfect World will support these subsidiaries with the Company's proprietary technology, graphic design, integrated platform, distribution channels and other valuable resources. The Company believes that the new structure will help invigorate the game development process, support game design flexibility, allow faster reaction to changing market trends, and boost game development productivity.

Mr. Robert Xiao, Chief Executive Officer of Perfect World commented, "We believe that our decision to allow R&D teams to establish new subsidiaries will not only encourage our current employees, attract new talent, and help maximize development potential, but also enhance our competitive edge by creating a more flexible structure that helps us to respond more quickly to market trends. In the long term, we believe the restructuring will help accelerate the Company's future growth while simultaneously cultivating a corporate culture that embraces entrepreneurial spirit."

BEIJING, September 3, 2014 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that it has entered into a definitive agreement to sell a total of 30,326,005 class A ordinary shares of Shanda Games Limited (NASDAQ: GAME) ("Shanda Games"), being the entire equity interest that Perfect World previously acquired. Pursuant to the agreement, the Company will sell these shares to Shanghai Buyout Fund L.P., a third party unrelated to Perfect World, at a premium for a total consideration of US$104,624,717 in cash. The transaction is expected to be consummated in 30 days, subject to the satisfaction of customary closing conditions.

In addition, Perfect World has also entered into an agreement to withdraw from a consortium (the "Consortium") to which the Company had joined per an adherence agreement to the consortium agreement dated as of January 27, 2014 between Shanda Interactive Entertainment Limited, the controlling shareholder of Shanda Games, and Primavera Capital (Cayman) Fund I L.P., an affiliate of Primavera Capital Limited, in the proposed "going private" transaction with respect to Shanda Games. The Consortium had submitted a preliminary non-binding proposal letter dated January 27, 2014 (the "Proposal") to the board of directors of Shanda Games, whereby the Consortium proposed to acquire Shanda Games in a "going private" transaction for US$3.45 per class A or class B ordinary share of Shanda Games, or US$6.90 per ADS. The Proposal constitutes only a preliminary indication of the interest of the Consortium and is subject to negotiation and execution of definitive agreements relating to the proposed acquisition transaction. Upon the withdrawal on September 1, 2014, Perfect World ceased to be a member of the Consortium.

Second Quarter 2014 Unaudited Financial Results

• Total revenues were RMB928.4 million (USD149.6 million), compared with RMB891.1 million in the previous quarter and RMB700.1 million in the same quarter last year.
• Basic and diluted earnings per ADS[3] were RMB3.26 (USD0.53) and RMB3.21 (USD0.52), respectively, compared with RMB4.07 and RMB3.98, respectively, in the previous quarter, and RMB1.66 and RMB1.65, respectively, in the same quarter last year. Non-GAAP basic and diluted earnings per ADS[2] were RMB3.47 (USD0.56) and RMB3.41 (USD0.55), respectively, compared with RMB4.45 and RMB4.35, respectively, in the previous quarter, and RMB2.01 and RMB2.00, respectively, in the same quarter last year.

Mr. Robert Xiao, CEO of Perfect World commented, "We are pleased to announce our second quarter results. Total revenues came in line with the high end of our expectations. Our PC client-based games, such as our flagship title 'Swordsman Online,' delivered an increase in revenues. 'DOTA2,' a world-class title which we have obtained exclusive rights to operate in mainland China, also bolstered our second quarter results with its growing contribution. Meanwhile, our mobile game business continued to build momentum as we launched more new titles. Towards the end of the second quarter, we launched our 3D mysterious fantasy MMORPG mobile game 'Forsaken World.' And recently, we launched our 2D turn-based cartoon-style RPG mobile game, 'CrossGate Mobile,' which has become another hit since its debut."

"As we remain dedicated to maintaining the health of our diversified portfolio by releasing a steady stream of expansion packs and content updates for our existing games, we are also excited about our pipeline that consists of a rich line-up of appealing games. 'Legend of the Condor Heroes,' a highly-anticipated 3D MMORPG based on one of Louis Cha's classic martial arts novels, is currently under development. 'Neverwinter' is an MMORPG developed by our Cryptic Studios. The PC version of this game has been well received by gamers following its launch in North America and Europe and is expected to be launched in China later this year. We are also working on taking our games beyond the PC market. As part of our efforts to build our console game pipeline, we have established a long-term partnership with Microsoft, through whose Xbox One platform we are looking forward to bringing several console games to players in China. Among these exciting titles, our 'Neverwinter' is one of the highly-anticipated titles to be launched along with the debut of Xbox One devices in mainland China. On the mobile side, we look forward to bringing a variety of high-quality games to players as well. Some of the upcoming titles in our diverse mobile game pipeline are 'Touch,' 'Forever Mars' and 'Swordsman Mobile.'"

"In addition to our differentiated portfolio and pipeline, our well-established global operational network is also one of our core competitive advantages. In addition to operating a variety of PC client-based games and mobile games in China, we have also established an overseas network through our subsidiaries and licensing activities with overseas partners, covering over one hundred countries and regions with around one-fourth of our total revenues generated from various overseas markets. With our rich global operational experience and strong global R&D capabilities, we successfully deliver a number of attractive games across a wide range of genres and offer premium services to players worldwide. Meanwhile, we continue to explore broad growth opportunities in the global market. As such, we've launched our PWIN program to actively seeking opportunities to invest in small to medium size game studios and R&D teams globally. Through this program, we recently entered into a definitive agreement to invest RMB50 million as a limited partner in a game industry investment fund ('the Fund'), which will primarily focus on investing in game development teams and early-stage companies in game-related businesses in China. The Fund will be managed by senior members from both a well-known private equity firm in China and Unity China, we believe whose valuable and abundant industry resources will provide us with great access to more investment opportunities in outstanding R&D teams and companies with high potential in the future. We look forward to leveraging the resources and talent brought by our PWIN program to not only further sharpen our competitive edge in China but also further strengthen our global presence."

"Looking forward, we are confident that we will continue to deliver world-class and engaging gaming experiences to our players as we look to achieve sustainable growth for our business over the long term."

Business Outlook

Based on the Company's current operations, total revenues for the third quarter of 2014 are expected to be between RMB956 million and RMB1,003 million, representing an increase of 3% to 8% on a sequential basis. This takes into consideration the continued strength of the Company's mobile games.

BEIJING, June 4, 2014 /PRNewswire/ -- Perfect World Co., Ltd. (Nasdaq: PWRD) on May 20 announced its unaudited financial results for the first quarter ended March 31, 2014. Its first-quarter revenues reached 891.1 million yuan (143.3 mln USD), marking a yearly rise of 44.2 percent. Overseas markets contributed to about one quarter of the company's total revenues.

CNG statistics show that Perfect World has been the largest Chinese game exporter for seven straight years, with its game exports accounting for 40 percent of China's total. The favorable first-quarter results have largely met previous expectations. According to Perfect World CEO Robert Xiao, "The overseas development continued with good momentum, which suggests an initial success of the PWIN project launched last July."

The global investment arm of Perfect World, PWIN mainly targets PC games and mobile games. To date, the company has launched several investment programs in the mobile Internet sector in markets like Europe, the United States, Japan and South Korea. It has invested in 21 game-developing companies and studios focused on foreign markets while operating 16 games via partnership.

The 21 companies have received Perfect World investment for their outstanding performances in sectors of mobile games, smart equipment, web games or console games. They boast cutting-edge technologies, talented teams or experience in developing hit games. Among them are Guangzhou-based Burstyx Studio, which owns an Open Source UI framework AsWing and an indigenously-developed Flash 3D engine, and Changsha-based Letong Digital Technology, whose very first little-advertised mobile game once rose to 22^nd place on the RPG chart of the iOS APP Store in the Chinese mainland, the 11th in South Korea and 13th in Taiwan.

PWIN operates in the forms of investment and partnership. Via PWIN, Perfect World has operated numerous Chinese and foreign games. There are also other games operated by Perfect World that will soon begin making a contribution.

Step by step, PWIN has functioned to enrich Perfect World's game portfolio. Xiao said the company would introduce global management experience and continue to enhance its capability of providing high-quality games and top-notch services to worldwide players.

First Quarter 2014 Financial Results

• Total revenues were RMB891.1 million (USD143.3 million), compared with RMB914.3 million in the previous quarter and RMB618.1 million in the same quarter last year.
• Non-GAAP basic and diluted earnings per ADS[2] were RMB4.45 (USD0.72) and RMB4.35 (USD0.70), respectively, compared with RMB3.33 and RMB3.26, respectively, in the previous quarter, and RMB3.05 and RMB3.03, respectively, in the same quarter last year.

Mr. Robert Xiao, CEO of Perfect World commented, "We are pleased to announce our first quarter results. Our total revenues came in line with the high end of our expectations, which was slightly softer than the strong fourth quarter of 2013. In the first quarter of 2014, we decelerated promotional activities for our client-based MMORPGs and remained focused on content development of our portfolio and pipeline. However, we are pleased with the continued growth and meaningful revenue contribution of our mobile games in the quarter. The performance of our eye-catching RPG mobile game, 'Return of the Condor Heroes,' remained strong and we continued to expand our portfolio of mobile games by launching our first 3D RPG mobile game 'Fantasy of the Immortals' earlier this year."

"We also have a variety of upcoming titles in our mobile game pipeline, including 'Forsaken World,' 'Touch,' 'CrossGate Mobile' and 'Swordsman Mobile.' The rich line-up of mobile and web games combined with our comprehensive and well-rounded pipeline of exciting client-based games are the major components of our key competitive advantages that we remain committed to sharpening. Among our upcoming client-based games across a wide range of genres, 'DOTA2' is currently at the early stage of commercialization and is gradually ramping up its contribution. We look forward to having a full-scale open beta testing for this game in China soon. Our highly-anticipated 'Legend of the Condor Heroes,' a 3D MMORPG based on one of Louis Cha's classic martial arts novels, is currently under development. 'Neverwinter,' an attractive title developed by our Cryptic Studios in the U.S., has garnered wide acclaim by gamers in North America and Europe and is expected to be launched in China later this year."

"In addition to our robust pipeline, our global strategy remains an important competitive advantage of our business and enables us to further strengthen our global presence. By launching more games through both our own overseas subsidiaries and our overseas partners, we continue to strengthen our extensive operating network beyond China. We will continue to buttress our leading position in the Chinese online game export market through our extensive overseas network, which covers more than one hundred countries and regions and contributes around one-fourth of our total revenues. We believe our profound global operating experience coupled with the strength of our specialized R&D studios in China and abroad will continue to enhance our capabilities to provide more high-quality games and premium services to players worldwide."

"Looking forward, we will remain committed to bolstering our competitive edge based on our diversified portfolio, extensive global operating network and solid global R&D capabilities as we look to sustain the long-term growth of our business."

Business Outlook

Based on the Company's current operations, total revenues for the second quarter of 2014 are expected to be between RMB891 million and RMB936 million, representing an increase of 0% to 5% on a sequential basis. This takes into consideration the expected growth from some of the client-based games the Company operates in China and the continued strength of the Company's mobile games.

BEIJING, April 29, 2014 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its recent business developments as of April 29, 2014.

EXPANSION PACKS

Recently, Perfect World released expansion packs for a couple of its games. On April 18, 2014, Perfect World released the expansion pack "Desert Maze" for its 3D martial arts MMORPG "Swordsman Online."  On April 25, 2014, Perfect World released the expansion pack "Covenant of the Wolf " for its 2D turn-based MMORPG "Fantasy Zhu Xian."

BEIJING, April 21, 2014 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that it has entered into a share purchase agreement to acquire a total of 30,326,005 class A ordinary shares of Shanda Games Limited (NASDAQ: GAME) ("Shanda Games"), a leading online game developer, operator, and publisher in China. Pursuant to the share purchase agreement, the Company will acquire these shares from a wholly-owned subsidiary of Shanda Interactive Entertainment Limited, the controlling shareholder of Shanda Games, for a total consideration of US$100 million in cash. The purchase is expected to be consummated in 30 days, subject to the satisfaction of customary closing conditions.

In addition, Perfect World has also entered into an adherence agreement to become a party to the consortium agreement dated as of January 27, 2014 between Shanda Interactive Entertainment Limited and Primavera Capital (Cayman) Fund I L.P., an affiliate of Primavera Capital Limited, and participate as a new member of the consortium (the "Consortium") in the proposed "going private" transaction with respect to Shanda Games. The Consortium has submitted a preliminary non-binding proposal letter dated January 27, 2014 (the "Proposal") to the board of directors of Shanda Games, whereby the Consortium proposed to acquire Shanda Games in a "going private" transaction for US$3.45 per class A or class B ordinary share of Shanda Games, or US$6.90 per ADS. The Proposal constitutes only a preliminary indication of the interest of the Consortium and is subject to negotiation and execution of definitive agreements relating to the proposed acquisition transaction.

Fourth Quarter 2013 Financial Results

• Total revenues were RMB914.3 million (USD151.0 million), compared with RMB820.2 million in the previous quarter and RMB679.9 million in the same quarter last year.
• Non-GAAP basic and diluted earnings per ADS² were RMB3.33 (USD0.55) and RMB3.26 (USD0.54), respectively, compared with RMB2.89 and RMB2.82 respectively, in the previous quarter, and RMB2.92 and RMB2.90, respectively, in the same quarter last year.

Mr. Robert Xiao, CEO of Perfect World commented, "We are pleased to announce our fourth quarter 2013 financial results. Our revenues rose by 11% sequentially, which came in above the high end of our expectations. During the quarter, a number of our games, such as our flagship client-based MMORPG 'Zhu Xian,' continued to perform well. In addition, 'Return of the Condor Heroes,' our first hardcore mobile game, contributed nicely to the quarter's growth."

"As part of our consistent practice to invigorate our existing games, we released a number of expansion packs and content updates during the quarter. We have also been working on a more comprehensive and well-rounded pipeline with a line-up of attractive client-based games across a wide range of genres, such as the highly-anticipated 'DOTA2' and our 3D MMORPG 'Legend of the Condor Heroes,' as well as a number of web and mobile games. 'DOTA2' is currently at the initial stage of commercialization and we expect to have a large-scale full launch in China soon. 'Neverwinter,' another world-class title that has already generated wide excitement among gamers in the U.S. and Europe, is gearing up for launch in China later this year. While we have been pleased with the current performance of our mobile game 'Return of the Condor Heroes,' we also launched another hardcore mobile game, 'Fantasy of the Immortals,' which is our first 3D RPG mobile game, very recently. We look forward to introducing more high-quality mobile games, such as 'Forsaken World,' to the market going forward."

"In addition to our robust pipeline, our global R&D capabilities and extensive overseas network are critical competitive advantages that we continue to sharpen. 'Neverwinter,' an MMORPG developed by our Cryptic Studios in the U.S., well demonstrates our strong global R&D capabilities given its success in a number of different markets. Maintaining our leading position among Chinese online gaming companies in overseas markets, we continue to strengthen our overseas network. While the number of games operated by our subsidiaries in overseas markets has been growing, we continued to extend our efforts on licensing and launching our games through overseas partners in various markets. We believe this vast overseas network in conjunction with our extensive operational experience in China will continue to give us an important edge as we move forward."

"Looking back at the full year, with revenue growth of 10.2% over 2012, we were pleased that we successfully took our business through a challenging market transition and obtained initial success of diversifying our business in new areas other than traditional PC MMORPG. During year 2013, we not only made progress on our core PC MMORPG business by introducing several new games, such as the popular MMORPGs 'Swordsman Online' and 'Saint Seiya Online,' but also made solid strides in the mobile area with the successful debut of our first 2D RPG mobile game, 'Return of the Condor Heroes.' "

"With 2013 behind us, we are looking to forge ahead and tap new areas for growth. In addition to looking for opportunities to invest in other gaming companies with great products and growth potential, we are actively seeking strategic partnerships with leading companies in various industries to extend our channel coverage and branding influence beyond the traditional online gaming industry. For example, we very recently signed a strategic partnership framework agreement with Huawei, a leading multinational telecommunications equipment supplier and terminal device manufacturer, and plan to pair our high-quality gaming products and services with their terminal devices to bring premium entertainment experiences to our users. To help lead us in these efforts, I'm pleased to announce that we have appointed Mr. Alex Xu, our senior vice president in charge of business development and investment, as our Chief Business Officer to help us better capture new growth opportunities in the global market in this fast-growing industry."

"Given the strength of our comprehensive and diverse portfolio, strong global R&D capabilities and well-established operating network, we have confidence in the long-term sustainable growth of our business. As we continue to generate healthy cash flow from our operations, the board of directors declared annual cash dividends on March 8, 2014, in the aggregate amount of approximately USD24 million to our shareholders of record as of the close of business on April 3, 2014 (Eastern Time), at USD0.096 per Class A or Class B ordinary share, or USD0.48 per ADS, each representing five Class B ordinary shares of the Company. The cash dividends are expected to be distributed in or around April 2014. We intend to distribute annual dividends in the future. However, the distribution of any future dividends will be at the full discretion of the Board and will be dependent on our financial position, results of operations, available cash, capital requirements and other factors. Bringing value to our shareholders has always been one of our most important commitments, and we will continue to remain focused on the long-term health of our business and the best interest of our shareholders."

Business Outlook

Based on the Company's current operations, total revenues for the first quarter of 2014 are expected to be between RMB841 million and RMB887 million, representing a slight decline from the strong fourth quarter of 2013 but still an increase of 36% to 43% on a year-over-year basis. Due to the long holiday of the Chinese New Year, the Company decided to slow down promotional activities for our client-based MMORPGs in the first quarter of 2014.

Third Quarter 2013 Financial Results

• Total revenues were RMB833.3 million (USD136.2 million), compared with RMB708.5 million in the previous quarter andRMB695.8 million in the same quarter last year.
• Non-GAAP basic and diluted earnings per ADS[2] were RMB2.89 (USD0.47) andRMB2.82 (USD0.46), respectively, compared with RMB2.01 and RMB2.00, respectively, in the previous quarter, andRMB2.16 and RMB2.14, respectively, in the same quarter last year.

"We are pleased to report an upbeat quarter as our top line increased by 18% from the previous quarter, exceeding the high end of our previous expectations, and our bottom line also achieved sequential growth of 50%," Mr. Robert Xiao, CEO of Perfect World commented. "The strong performance of the third quarter was primarily attributable to the solid revenue contribution from 'Swordsman Online' and 'Saint Seiya Online,' both of which were launched in China earlier this year."

"We remain committed to continuously developing and enhancing our competitive portfolio and pipeline. As part of our ongoing efforts to invigorate our existing portfolio, we released a number of expansion packs and content updates for our existing games. In addition, we launched 'Holy King,' a new 3D fantasy MMORPG adapted from the popular online novel of the same Chinese name, toward the end of the third quarter. Our web and mobile games are also developing well and some of them, such as our mobile game 'Return of the Condor Heroes' and web game 'Touch,' have received positive feedback from gamers. Moreover, our long-term prospects remain encouraging with a diverse lineup in our future pipeline. Our robust pipeline consists of a variety of attractive upcoming titles, such as the world-class title 'DOTA2,' our 3D MMORPG 'Legend of Condor Heroes,' and a number of web and mobile games. The highly-anticipated 'DOTA2' is currently under unlimited closed beta testing and is expected to be launched soon in China. We are also working on localizing 'Neverwinter,' a title that was developed by our U.S. subsidiary Cryptic Studios and successfully launched in North America and Europe, for its launch in China next year."

"The successful launch of 'Neverwinter' in North America and Europe exemplifies the competitive edge in our global R&D capabilities and the strength of our overseas subsidiaries, which are some of the key drivers for our business and important components of our globalization strategy. In addition, we keep strengthening our globalization strategy by launching and licensing our games in various markets through our overseas partners. With a geographic coverage of over 100 countries and regions worldwide and over a quarter of our total revenues generated overseas, our global network underpins our leading position among Chinese online gaming companies in overseas markets. This strength overseas, combined with our vast operational experience and solid R&D capabilities in China, make us well-positioned to cater to the varied preferences and tastes of game players around the world."

"As we look ahead, we are very excited by the outlook and growth opportunities in the gaming industry. As such, we recently announced agreements to invest in two leading gaming portals, namely TGBus.com and PTBus.com. By combining our expertise in game development with the deep understanding that these gaming portals have of the industry and of game players, we believe these strategic investments would create synergies and provide better support for our gaming business, and help us capture new growth opportunities in the broad spectrum of the future gaming industry."

Business Outlook

Based on the Company's current operations, total revenues for the fourth quarter of 2013 are expected to be between RMB850 million and RMB892 million, representing an increase of 2% to 7% on a sequential basis. This takes into consideration the continued strength of some of the Company's flagship titles and recently-launched new games.

BEIJING, Nov. 12, 2013 /PRNewswire/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that it has entered into definitive agreements to acquire 100% equity interest in Wuhu Huitian Shengshi Network Technology Co., Ltd. ("Wuhu Huitian") for approximately RMB255 million and a minority equity interest in Beijing Shouyou Daqu Technology Co., Ltd. ("Daqu") from Beijing Huitian Shengshi Technology Co., Ltd. ("Beijing Huitian") for approximately RMB40 million. Wuhu Huitian and Daqu run TGBus.com ("TGBus") and PTBus.com ("PTBus"), two leading Chinese gaming portals, respectively. Prior to Perfect World's investments, Wuhu Huitian and Beijing Huitian were ultimately controlled by an individual unrelated to Perfect World. The consummation of the transactions contemplated in these agreements is subject to the satisfaction of customary closing conditions.

"We are very pleased to enter into agreements for these investments," commented Mr. Robert Xiao, Chief Executive Officer of Perfect World. "As two of the most popular gaming portals among Chinese players, TGBus and PTBus have accumulated valuable knowledge about the industry and rich experiences with gamers. We believe these strategic investments would create synergies and provide better support for our gaming business, and help us capture new growth opportunities in the broad spectrum of the future gaming industry."

Second Quarter 2013 Financial Results

• Total revenues were RMB708.5 million (USD115.4 million), compared with RMB624.5 million in the previous quarter and RMB676.4 million in the same quarter last year.
• Gross profit was RMB535.0 million (USD87.2 million), compared with RMB477.9 million in the previous quarter and RMB549.8 million in the same quarter last year.
• Operating profit was RMB67.1 million (USD10.9 million), compared with RMB133.1 million in the previous quarter and RMB155.2 million in the same quarter last year. Non-GAAP operating profit[2] was RMB84.2 million (USD13.7 million), compared with RMB149.8 million in the previous quarter and RMB172.5 million in the same quarter last year.
• Net income attributable to the Company's shareholders was RMB80.7 million (USD13.2 million), compared with RMB131.0 million in the previous quarter and RMB158.2 million in the same quarter last year. Non-GAAP net income attributable to the Company's shareholders[2] was RMB97.8 million (USD15.9 million), compared with RMB147.6 million in the previous quarter and RMB175.5 million in the same quarter last year.
• Basic and diluted earnings per American Depositary Share ("ADS")[3] were RMB1.66 (USD0.27) andRMB1.65 (USD0.27), respectively, compared with RMB2.70 and RMB2.69, respectively, in the previous quarter, and RMB3.28 and RMB3.25, respectively, in the same quarter last year. Non-GAAP basic and diluted earnings per ADS[2] were RMB2.01 (USD0.33) and RMB2.00 (USD0.33), respectively, compared withRMB3.05 and RMB3.03, respectively, in the previous quarter, and RMB3.64 and RMB3.60, respectively, in the same quarter last yea

"As our results from this quarter show, our deep and diversified portfolio continues to be one of our main strengths and we have made steady progress on providing new content to players with multiple launches of new games and releases of expansion packs for existing games. In addition to the successful debut of 'Saint Seiya Online' and 'Neverwinter,' we also launched the highly-anticipated 3D MMORPG 'Swordsman Online,' which is adapted from one of Louis Cha's most famous martial arts novels, in China at the end of the second quarter. This game has generated positive feedback from gamers and we are optimistic about its prospects to turn into another strong growth driver for us. We are also excited about a variety of titles in our pipeline, including the highly-anticipated 'Dota 2,' our 3D MMORPGs 'Holy King' and 'Legend of the Condor Heroes,' as well as a number of web games and mobile games. Additionally, we are also working on localizing 'Neverwinter,' which has gained popularity among players in North America and Europe, for its launch in China soon."

"As a hit title developed by our U.S. subsidiary Cryptic Studios, 'Neverwinter' clearly demonstrates our strong overseas R&D capabilities, which, along with our experienced R&D teams in China, is an important aspect of our effective globalization strategy. Meanwhile, we also focus on continuously enhancing our extensive overseas operating network, which is the other important component of our strong globalization strategy. Contributing more than one-fourth of our total revenue, our well-established global operating network covers over 100 countries and regions worldwide and consists of both our own overseas subsidiaries and our overseas partners. This bolsters our position as a leading Chinese online gaming company in the overseas market. Lately, we continued to deepen our global presence by launching more games through our overseas subsidiaries in North America, Europe, Korea and Southeast Asia, and also by launching our games through overseas partners in various overseas markets. Our proven track record and our commitment to continuously enhance and develop our business in China and overseas have enabled us to provide high-quality gaming experiences and deliver world-class services to players around the world."

"While we experienced additional pressure on our margins in the short term from promoting several recently-launched major new games, we are confident in our long-term outlook given the strong performance of our new games as well as the varied line-up of titles in our pipeline. We have built a solid foundation with our diversified portfolio, strong global R&D capabilities and extensive operating network worldwide, and we will continue to leverage our core strengths and resources to further bolster our position in the global gaming market in an effort to maximize shareholder value over the long term."

Business Outlook

Based on the Company's current operations, total revenues for the third quarter of 2013 are expected to be between RMB779 million and RMB815 million, representing an increase of 10% to 15% on a sequential basis. This takes into consideration the anticipated additional revenue contribution from "Swordsman Online" and "Saint Seiya Online" recently launched in China

First Quarter 2013 Results

• Total revenues were RMB624.5 million (USD100.6 million), as compared to RMB679.9 million in 4Q12 and RMB718.5 million in 1Q12.
•  Non-GAAP basic and diluted earnings per ADS[2] were RMB3.05 (USD0.49) and RMB3.03 (USD0.49), respectively, as compared to RMB4.83 (USD0.76)

"We are looking forward to bringing many exciting titles from our pipeline to our players, including the highly-anticipated 'Swordsman Online' and 'Dota 2,' our recently-unveiled 3D MMORPG 'Holy King,' as well as a number of web games and mobile games. We are pleased with some of the progress our R&D team in China made lately. In mid-May, we launched open beta testing for 'Saint Seiya Online,' a 3D comic-based MMORPG adapted from the famous comic series 'Saint Seiya.' We also launched several web and mobile games recently. We are actively investing in this area, and we plan to bring more web and mobile games to players throughout the year. 'Swordsman Online,' a self-developed 3D MMORPG, is now in the final stages of development as we fine-tune details of the game. And 'Dota 2,' a world-famous title with a unique mix of action, RTS and RPG gameplay, is also in the varied line-up of titles that we are bringing to our players in China. In addition to these exciting titles in China, our overseas studios also made great progress in pipeline development. At the end of April, we launched open beta testing for the English, French and German versions of 'Neverwinter' in the U.S. and Europe. 'Neverwinter' is a widely-acclaimed MMORPG developed by Cryptic Studios, our subsidiary in the U.S. Our specialized R&D studios in China and abroad are not only essential to producing more high-quality entertainment for our gamers worldwide, but also critical to further strengthening our global strategy."

"Our global strategy continues to be one of the key competitive advantages of our business. We continued to strengthen our global presence by launching more games through both our own overseas subsidiaries and our overseas partners. Recently, we further expanded overseas operations through our subsidiaries in Korea and Southeast Asia. Moving forward, we will continue to buttress our leading position in the overseas markets through our extensive overseas network, which covers over a hundred countries and regions and generates over one-fourth of our total revenues. Through the continued development of our global operating network, we look forward to providing more high-quality games and services to players worldwide."

"We believe, our ongoing efforts to develop our diverse portfolio and pipeline, solid global R&D capabilities, and extensive global operating network will translate into more exciting and innovative entertainment for game players worldwide and new growth drivers for our business for the remainder of 2013 and beyond."

Business Outlook

Based on the Company's current operations, total revenues for the second quarter of 2013 are expected to be between RMB656 million and RMB687 million, representing an increase of 5% to 10% on a sequential basis. This takes into consideration the anticipated additional revenue contribution from the recent launches of "Saint Seiya Online" in China and "Neverwinter" in the U.S. and Europe.

BEIJING, April 26, 2013 /PRNewswire/ -- Perfect World Co., Ltd. (PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its recent business developments as of April 26, 2013.

WEB GAMES

Launch of "Touch"

On March 25, 2013, Perfect World launched its 3D dancing web game "Touch" in China.  In addition to the high quality graphics typical of games developed by Perfect World, "Touch" features refreshing gameplay with straightforward controls to avoid the need for a strong command over a large number of keystrokes as in traditional games.  Additionally, rich game content including diverse character appearances, costumes and interactive motions provides players with many options and a fun experience.

Launch of "Legend of Chu and Han"

On April 2, 2013, Perfect World launched "Legend of Chu and Han," a 3D strategy war epic web game in China and Southeast Asia.  "Legend of Chu and Han" is based on the well-known war between Chu and Han, the two prominent powers contending for supremacy over China in ancient Chinese history.  With mixed features of SLG and RPG gameplay, this game creates a vivid reproduction of majestic scenes from the Chu and Han contention, presenting a breathtaking game world to players.

EXPANSION PACKS

Recently, Perfect World released expansion packs for a couple of its existing games.  On March 25, 2013, Perfect World released the expansion pack "Return of the Crouching Dragon" for its war epic 3D MMORPG "Chi Bi."  On April 18, 2013, Perfect World released the expansion pack "Dissidia" for its 3D MMORPG "Forsaken World," which is set against the backdrop of a fantasy world.

OVERSEAS RELEASES

Release of Simplified Chinese, Traditional Chinese and Japanese Versions of "Torchlight 2"

In April 2013, Perfect World released the simplified Chinese, traditional Chinese and Japanese versions of "Torchlight 2," a pay-per-install action RPG, through its subsidiaries or partner in Asia.  This sequel to "Torchlight" is a popular title developed by Perfect World's majority-owned subsidiary, Runic Games, Inc., a top-tier game development studio based in the U.S.

In an email we sent to our premium members on April 11, 2013 when PWRD was trading around $10.20, we stated that 13D and 13D/A filings showed that Fosun International (HK: 00656) had increased its stake in PWRD from 8.3% since July 6, 2012 to 12.12% as of April 9, 2013. Since this time Fosun has continued to add shares as shown in an April 22, 2013 13D/A filing revealing that Fosun has further increased its stake to 13.17%. Since this email, PWRD shares are up roughly 14%.

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Tracking the investment activity of reputable players who take large positions in ChinaHybrid companies can give us clues as to which companies will be next to go private or offer investors a chance to realize superior returns. We are all aware of the challenges that investors face when trying to determine which ChinaHybrid names are investment grade.  However, this task is made a little easier when a major Chinese conglomerate is on your side.   That is why we are intrigued by Fosun international’s investment in Perfect World Co (NASDAQ:PWRD).

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A 13D/A filed on 4/11/2013 shows Fosun International (Hong Kong listed company) has increased its stake in PWRD to 12.12%.  Fosun has purchased 9 million shares in the last three months.  This is the third increase from the original 13D filed on July 6, 2012 where Fosun reported a 8.3% stake.  The other two 13D/A where filed on 2/7/2013 and 3/15/2013.

Second Quarter 2012 Highlights

• Total revenues were RMB676.4 million (USD106.5 million), as compared to RMB718.5 million in 1Q12 and RMB779.6 million in 2Q11.
• Gross profit was RMB549.8 million (USD86.5 million), as compared to RMB591.4 million in 1Q12 and RMB665.9 million in 2Q11.
• Operating profit was RMB155.2 million (USD24.4 million), as compared to RMB234.8 million in 1Q12 and RMB320.4 million in 2Q11. Non-GAAP operating profit[2] was RMB172.5 million (USD27.1 million), as compared to RMB256.6 million in 1Q12 and RMB348.0 million in 2Q11.
• Net income attributable to the Company's shareholders was RMB158.2 million (USD24.9 million), as compared to RMB209.8 million in 1Q12 and RMB316.6 million in 2Q11. Non-GAAP net income attributable to the Company's shareholders[2] was RMB175.5 million (USD27.6 million), as compared to RMB231.6 million in 1Q12 and RMB344.3 million 2Q11.
• Basic and diluted earnings per American Depositary Share ("ADS")[3] were RMB3.28 (USD0.52) and RMB3.25(USD0.51), respectively, as compared to RMB4.52 and RMB4.38, respectively, in 1Q12, and RMB6.30 and RMB5.98, respectively, in 2Q11. Non-GAAP basic and diluted earnings per ADS[2] were RMB3.64 (USD0.57)and RMB3.60 (USD0.57), respectively, as compared to RMB4.99 and RMB4.83, respectively, in 1Q12, and RMB6.86 and RMB6.50, respectively, in 2Q11.

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World, said, "Our second quarter results were in line with our previous expectations. During the quarter, as part of our consistent efforts to maintain healthy life cycles for our existing games, we continued to work on expansion packs and content enhancements. At the same time, we remained focused on further strengthening our deep and diversified pipeline."

Business Outlook

Based on the Company's current operations, total revenues for the third quarter of 2012 are expected to be between RMB643 million and RMB676 million, representing a flat to slight decline from the second quarter of 2012. The Company's upcoming new game "Return of the Condor Heroes" is scheduled for launch toward the end of the third quarter or in the fourth quarter. As such, the Company does not expect a significant revenue contribution from this game in the third quarter.

First Quarter 2012 Results

• Total revenues were RMB718.5 million (USD114.1 million), as compared to RMB776.4 million in 4Q11 and RMB718.5 million in 1Q11.
• Gross profit was RMB591.4 million (USD93.9 million), as compared to RMB639.3 million in 4Q11 and RMB610.6 million in 1Q11.
• Operating profit was RMB234.8 million (USD37.3 million), as compared to RMB220.2 million in 4Q11 and RMB288.9 million in 1Q11. Non-GAAP operating profit(2) was RMB256.6 million (USD40.7 million), as compared to RMB244.0 million in 4Q11 and RMB314.6 million in 1Q11.
• Net income attributable to the Company's shareholders was RMB209.8 million (USD33.3 million), as compared to RMB260.0 million in 4Q11 and RMB263.7 million in 1Q11. Non-GAAP net income attributable to the Company's shareholders(2) was RMB231.6 million (USD36.8 million), as compared to RMB283.9 million in 4Q11 and RMB289.5 million 1Q11.
• Basic and diluted earnings per American Depositary Share ("ADS")(3) were RMB4.52 (USD0.72) and RMB4.38 (USD0.69), respectively, as compared to RMB5.65 and RMB5.45, respectively, in 4Q11, and RMB5.25 and RMB4.99, respectively, in 1Q11. Non-GAAP basic and diluted earnings per ADS(2) were RMB4.99 (USD0.79) and RMB4.83 (USD0.77), respectively, as compared to RMB6.17 and RMB5.94, respectively, in 4Q11, and RMB5.76 and RMB5.48, respectively, in 1Q11.

"We are pleased to announce our first quarter results," said Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. "While we decelerated promotional activities in the first quarter of 2012, our financial results still came in line with our previous expectations. We continued to see solid performance from some of our existing games, including our popular titles 'Perfect World II' and 'Forsaken World.'"

"With our diversified portfolio and pipeline, strong and innovative R&D teams worldwide and extensive global operating network, we will continue to build our business to meet the increasingly high standards of today's online gamers and generate long-term value for our shareholders."

Mr. Kelvin Lau, Chief Financial Officer, added, "Our first quarter revenues fell within our previous guidance. As we redoubled our efforts on our upcoming new game launches and stayed more focused on content enhancements to benefit the healthy life cycles of our existing games, our first quarter top line temporarily softened from the previous quarter. Furthermore, as many players were away from their computers for the Chinese New Year and we did not have any major new launches during the quarter, we slowed down our promotional activities, which resulted in a reduction in sales and marketing expenses for the quarter."

"Despite the first quarter being a slower season for our in-game monetization activities in some overseas markets, we still excel in overseas markets among China's online gaming companies, driven by our successful globalization strategy. We generate over one fourth of our total revenues from overseas operations and licensing activities and maintain a coverage of over 100 countries and regions worldwide. During the quarter, our overseas subsidiaries continued to make progress. Recently, we published 'Blacklight Retribution,' a free-to-play first-person shooter game developed by the leading U.S.-based game developer Zombie Studios, Inc., in North America, and its French and German versions in Europe. We also launched French and German versions of 'Star Trek Online,' a high-quality sci-fi MMORPG developed by our renowned R&D team, Cryptic Studios, in Europe. We also progressed well in our overseas licensing activities through signing additional licensing agreement and launching several of our games through our overseas partners."

"Based on the confidence in our current business and outlook, and as an appreciation to our supporters, we distributed a cash dividend of approximately USD98 million to our shareholders in April 2012. We will continue to build our business with an unwavering commitment to creating value for our shareholders over time."

Business Outlook

Based on the Company's current operations, total revenues for the second quarter of 2012 are expected to be between RMB647 million and RMB683 million, representing a decline from the revenues in the first quarter of 2012. In the second quarter, as part of the normal product cycle, the Company plans to continue its focus on the preparation for the upcoming new game launches and further enhancing the content of its portfolio in order to lengthen the life cycle of existing games and maintain long-term sustainable growth.

BEIJING, May 12, 2012 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced the findings of the Audit Committee based on the results of an internal investigation. On January 10, 2012, Perfect World announced that its independent Audit Committee planned to thoroughly review the anonymous allegations posted on certain Chinese language websites on or around January 8, 2012 (the "Allegations") and would engage independent legal counsel to assist with the review.

The Audit Committee engaged the law firm of Greenberg Traurig, LLP ("Greenberg Traurig") to conduct an independent investigation into the Allegations. In turn, Greenberg Traurig consulted with independent forensic accountants. Greenberg Traurig had no prior relationship with the Company. Greenberg Traurig reported its findings directly to the Audit Committee.

Summary of Major Findings Click Here

Fourth Quarter 2011 Results

• Total revenues were RMB776.4 million (USD123.4 million), as compared to RMB708.9 million in 3Q11 and RMB587.2 million in 4Q10.
• Gross profit was RMB639.3 million (USD101.6 million), as compared to RMB587.7 million in 3Q11 and RMB484.9 million in 4Q10.
• Operating profit was RMB220.2 million (USD35.0 million), as compared to RMB193.9 million in 3Q11 and RMB139.2 million in 4Q10. Non-GAAP operating profit(2) was RMB244.0 million (USD38.8 million), as compared to RMB221.3 million in 3Q11 and RMB163.6 million in 4Q10.
• Net income attributable to the Company's shareholders was RMB260.0 million (USD41.3 million), as compared to RMB143.6 million in 3Q11 and RMB125.2 million in 4Q10. Non-GAAP net income attributable to the Company's shareholders(2) was RMB283.9 million (USD45.1 million), as compared to RMB171.1 million in 3Q11 and RMB149.7 million in 4Q10.
• Basic and diluted earnings per ADS(3) were RMB5.65 (USD0.90) and RMB5.45 (USD0.87), respectively, as compared to RMB2.96 and RMB2.83, respectively, in 3Q11, and RMB2.50 and RMB2.36, respectively, in 4Q10. Non-GAAP basic and diluted earnings per ADS(2) were RMB6.17 (USD0.98) and RMB5.94 (USD0.94), respectively, as compared to RMB3.53 and RMB3.37 respectively, in 3Q11, and RMB2.98 and RMB2.82, respectively, in 4Q10.

"Looking back at the full year of 2011, both our top line and bottom line grew steadily from 2010 despite some natural quarterly fluctuations. For the full year of 2011, our revenues grew by a solid 25.2%. This is a clear indication of the underlying health of our business in spite of an increasingly competitive environment. As we continuously generate strong free cash flow from our healthy operations, the Company would like to return value to our shareholders in appreciation of their long-standing trust and support. On March 14, 2012, the board of directors declared special cash dividends in the aggregate amount of approximately USD95 million to our shareholders of record as of the close of business on April 6, 2012 (Eastern Time), at USD0.40 per Class A or Class B ordinary share, or USD2.00 per ADS, each representing five Class B ordinary shares of the Company. The dividends are expected to be distributed in cash in or around April 2012. We intend to distribute dividends annually in the future. However, the distribution of any future dividends will be at the full discretion of the Board and will be dependent upon our financial position, results of operations, available cash, capital requirements and other factors. Bringing value to our shareholders is an important part of our commitment, and we will continue to do what is necessary for the long-term health of our business and the best interest of our shareholders."

Business Outlook

Based on the Company's current operations, total revenues for the first quarter of 2012 are expected to be between RMB714 million and RMB753 million, representing a mild decline on a sequential basis. Quarterly fluctuation is a natural part of the Company's normal product cycle. Some of the in-game promotional activities toward the end of the first quarter are expected to take shape some time after the end of quarter.

BEIJING, March 15, 2012 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its recent business developments as of March 15, 2012.

OVERSEAS LICENSING AGREEMENT

Licensing "Battle of the Immortals" to Brazil

In February 2012, Perfect World signed an agreement with Mentez LLC ("Mentez") to license "Battle of the Immortals" to Brazil. First launched in Mainland China in April 2009, "Battle of the Immortals" is Perfect World's mysterious adventure 2.5D MMORPG well received by gamers both in China and overseas.

OVERSEAS LAUNCH THROUGH LICENSEE

Launch of "Forsaken World" in Indonesia

In March 2012, Perfect World launched its 3D MMORPG "Forsaken World" in Indonesia through its partner PT. LYTO Datarindo Fortuna ("LYTO"). Set against the backdrop of a fantasy world, "Forsaken World" is a 3D MMORPG catering to the tastes of global game players. The game was first launched in Mainland China in October 2010 and has since been successfully licensed to dozens of countries and regions.

OVERSEAS OPERATION

Launch of "Blacklight Retribution" in North America

In February 2012, Perfect World launched "Blacklight Retribution" in North America through its wholly-owned U.S. subsidiary, Perfect World Entertainment Inc. "Blacklight Retribution" is a free-to-play first-person shooter (FPS) game developed by the leading U.S.-based game developer Zombie Studios, Inc. ("Zombie") and Perfect World possesses the global publishing rights. The exciting gameplay and state-of-the-art graphics of "Blacklight Retribution," powered by Unreal 3, provides shooter fans with a breath-taking gaming experience.

BEIJING, Jan. 10, 2012 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today provided response to recent anonymous allegations posted on certain Chinese language websites. The allegations followed several extortion activities attempting to extort money from the Company and Mr. Chi, and malicious and false allegations reported to certain local government authorities in China. The Company believes these allegations are inaccurate, defamatory and malicious, and have seriously affected the reputation and image of Perfect World, and is taking legal actions against those involved. The independent audit committee of the Company's Board of Directors has been working to thoroughly review these allegations and will engage an independent legal counsel to assist with its review.

Perfect World is making the following statements firmly and forcefully: Full Release

Third Quarer 2011 Results

BEIJING, Sept. 15, 2011 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that it has updated its revenue guidance for the third quarter of 2011.  

In order to further enhance the content of the Company's portfolio and lengthen the life cycle of its existing games, the Company decided to slow down in-game promotional activities for some of its existing games in the third quarter. The Company now adjusts its revenue guidance for the quarter to be between RMB702 million and RMB741 million, as compared to the previously announced revenue guidance of RMB756 million and RMB803 million.  This represents a moderate decline in revenue on a sequential basis, but still an increase of 21% to 28% on a year-over-year basis for the Company's core online game business.

The Company believes that such fluctuation is only temporary and is a part of the normal product cycle.  So far during the third quarter, the Company has released a series of expansion packs for its existing games and plans to roll out a few more, including a major expansion pack for its flagship game Zhu Xian by the end of the quarter.  With continued additions and enhancement to its portfolio, the Company expects its performance to accelerate again in the following quarters.  This repeated cycle of enhancing game content followed by in-game promotions helps lengthen the life cycle of the Company's games and proves to be beneficial to its growth in the long term.  The Company has great confidence in its future sustainable growth.

Second Quarter 2011 Results

• Total revenues were RMB779.6 million (USD120.6 million), as compared to RMB718.5 million in 1Q11 and RMB592.5 million in 2Q10.
• Non-GAAP basic and diluted earnings per ADS(2) were RMB6.86 (USD1.06) and RMB6.50 (USD1.01), respectively, as compared to RMB5.76 and RMB5.48, respectively, in 1Q11, and RMB4.43 and RMB4.19, respectively, in 2Q10.

First Quarter Results:

• Total revenues were RMB721.0 million (USD110.1 million), as compared to RMB593.0 million in 4Q10 and RMB625.0 million in 1Q10
• Gross profit was RMB612.9 million (USD93.6 million), as compared to RMB482.3 million in 4Q10 and RMB537.9 million in 1Q10
• Operating profit was RMB286.8 million (USD43.8 million), as compared to RMB122.8 million in 4Q10 and RMB323.2 million in 1Q10.  Non-GAAP operating profit(2) was RMB312.5 million (USD47.7 million), as compared to RMB147.3 million in 4Q10 and RMB344.9 million in 1Q10
• Net income attributable to the Company's shareholders was RMB263.7 million (USD40.3 million), as compared to RMB125.2 million in 4Q10 and RMB305.2 million in 1Q10.  Non-GAAP net income attributable to the Company's shareholders(2) was RMB289.5 million (USD44.2 million), as compared to RMB149.7 million in 4Q10 and RMB327.0 million 1Q10
• Basic and diluted earnings per ADS(3) were RMB5.25 (USD0.80) and RMB4.99 (USD0.76), respectively, as compared to RMB2.50 and RMB2.36, respectively, in 4Q10, and RMB6.12 and RMB5.75, respectively, in 1Q10.  Non-GAAP basic and diluted earnings per ADS(2) were RMB5.76 (USD0.88) and RMB5.48 (USD0.84), respectively, as compared to RMB2.98 and RMB2.82, respectively, in 4Q10, and RMB6.56 and RMB6.16, respectively, in 1Q10

"We are quite pleased with this quarter's results.  The sequential revenue growth surpassed the high-end of our expectations considerably and drove our margin up meaningfully," commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. "Last year was the most difficult period as we underwent a strategic transition that centered on lengthening the development cycle of our games and focusing on larger and longer-term projects.  As a result, we saw some short-term pressure on our performance, but we believed we were setting ourselves up for a turnaround starting this year.  As our performance in the first quarter shows, we believe we are clearly on the right track.  We recorded strong performance within our core portfolio of games, including flagship titles Zhu Xian and Perfect World II, and our more recent releases, Forsaken World and Empire of the Immortals, also started to contribute meaningfully to our results.  At the same time, we also experienced lower sales and marketing expenses as we did not have as many new launches as we did in the previous quarter.  All of these factors contributed to our strong bottom-line growth in the first quarter."

As part of the normal product cycle, during the second quarter there is no grand promotional holiday similar to the Chinese New Year.  As such, based on the Company's current operations, total revenues for the second quarter of 2011 are expected to be between RMB685 million and RMB721 million, representing a flat to mild decline on a sequential basis, but still an increase of 15% to 21% on a year-over-year basis.  

Fourth Quarter 2010 Highlights(1) 

• Total revenues were RMB593.0 million (USD89.8 million), as compared to RMB658.2 million in 3Q10 and RMB607.9 million in 4Q09
• Gross profit was RMB482.3 million (USD73.1 million), as compared to RMB508.9 million in 3Q10 and RMB526.4 million in 4Q09
• Operating profit was RMB122.8 million (USD18.6 million), as compared to RMB211.9 million in 3Q10 and RMB276.5 million in 4Q09. Non-GAAP operating profit(2) was RMB147.3 million (USD22.3 million), as compared to RMB237.4 million in 3Q10 and RMB298.5 million in 4Q09
• Net income attributable to the Company's shareholders was RMB125.2 million (USD19.0 million), as compared to RMB213.7 million in 3Q10 and RMB270.8 million in 4Q09. Non-GAAP net income attributable to the Company's shareholders(2) was RMB149.7 million (USD22.7 million), as compared to RMB239.2 million in 3Q10 and RMB292.8 million in 4Q09
• Basic and diluted earnings per ADS(3) were RMB2.50 (USD0.38) and RMB2.36 (USD0.36), respectively, as compared to RMB4.27 and RMB4.05, respectively, in 3Q10, and RMB5.44 and RMB5.09, respectively, in 4Q09.
• Non-GAAP basic and diluted earnings per ADS(2) were RMB2.98 (USD0.45) and RMB2.82 (USD0.43), respectively, as compared to RMB4.77 and RMB4.53 respectively, in 3Q10, and RMB5.88 and RMB5.50 ($0.82), respectively, in 4Q09

Fiscal Year 2010 Financial Highlights

• Total revenues were RMB2,470.4 million (USD374.3 million), as compared to RMB2,144.4 million in fiscal year 2009
• Gross profit was RMB2,025.7 million (USD306.9 million), as compared to RMB1,844.6 million in fiscal year 2009
• Operating profit was RMB879.3 million (USD133.2 million), as compared to RMB1,084.2 million in fiscal year 2009. Non-GAAP operating profit was RMB976.1 million (USD147.9 million), as compared to RMB1,162.1 million in fiscal year 2009
• Net income attributable to the Company's shareholders was RMB840.7 million (USD127.4 million), as compared to RMB1,037.2 million in fiscal year 2009. Non-GAAP net income attributable to the Company's shareholders was RMB937.5 million (USD142.0 million), as compared to RMB1,115.1 million in fiscal year 2009
• Basic and diluted earnings per ADS were RMB16.80 (USD2.55) and RMB15.87 (USD2.41), respectively, as compared to RMB20.57 and RMB19.28, respectively, in fiscal year 2009.
• Non-GAAP basic and diluted earnings per ADS were RMB18.73 (USD2.84) and RMB17.70 (USD2.68), respectively, as compared to RMB22.11 and RMB20.73 ($3.09), respectively, in fiscal year 2009

"While 2010 was clearly a challenging year, we believe our decisions were necessary for the healthy growth of our company in the long run.  And we are confident that we have now emerged as a much stronger business.  Having confidence in our outlook, the board has also authorized Perfect World to repurchase up to USD100 million of the Company's own American Depositary Shares ('ADSs') between March 2011 and March 2012."  

"Looking forward to 2011 and beyond, we are optimistic that we will deliver solid growth at both the top and bottom line given our multiple growth drivers from a diversified pipeline, as well as support from our core existing games that continue to serve as steady sources of revenue. We also expect our margin to gradually improve throughout the year, starting from Q1.  Our strength in innovation, combined with enhanced R&D capabilities and strengthened operating platform from our continued investments, will position us well in the near term and ensure the long-term sustainable growth of our business

Business Outlook

Based on the Company's current operations, total revenues for the first quarter of 2011 are expected to be between RMB640 million and RMB664 million, representing an increase of 8% to 12% on a sequential basis. This reflects expected growth from the Company's existing games and the anticipated contribution from the recent launches of "Forsaken World," "Dragon Excalibur" and "Empire of the Immortals."