Perfect World Co Ltd

[Press Release] Perfect World Announces Agreement to Acquire C&C Media

26 Mar 2010 09:30:00 GMT

BEIJING, March 26 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq:PWRD - News) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that it has entered into agreements to acquire 100% equity interest in C&C Media Co., Ltd. ("C&C Media"), a Japanese online game operator from ATLUS Co., Ltd. ("ATLUS"), a Japanese computer and video game developer, publisher, and distributor and other shareholders of C&C Media. Under the acquisition agreements, Perfect World will pay an aggregate purchase price of approximately US$21.0 million. Upon consummation of the transactions contemplated in the acquisition agreements, C&C media will become a wholly owned subsidiary of Perfect World.

(Logo: http://www.newscom.com/c... )

"We are very pleased to sign these agreements to acquire C&C Media," commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. "This strategic acquisition will help us further penetrate into the Japanese online game market to capture the growth opportunities there and allow us to effectively expand our overseas operating capabilities. It is also a noteworthy achievement for our Company, as we once again successfully made progress on our goal of becoming one of the leading online game companies in the world."

About C&C Media Co., Ltd. (Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

[Press Release] Perfect World Announces Fourth Quarter And Fiscal Year 2009 Unaudited Financials

01 Mar 2010 07:41:00 GMT

BEIJING, Mar. 1 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq:PWRD - News) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2009.

    (Logo: http://www.newscom.com/cgi-bin/prnh/2009... )

    Fourth Quarter 2009 Highlights(1)

    -- Total revenues were RMB607.9 million (USD89.1 million), an increase of
       3.0% from 3Q09 and 45.5% from 4Q08
    -- Gross profit was RMB526.4 million (USD77.1 million), an increase of
       6.3% from 3Q09 and 42.9% from 4Q08
    -- Operating profit was RMB276.5 million (USD40.5 million), as compared to
       RMB297.7 million in 3Q09 and RMB149.5 million in 4Q08.  Non-GAAP
       operating profit(2) was RMB298.5 million (USD43.7 million), as compared
       to RMB317.9 million in 3Q09 and RMB244.7 million in 4Q08
    -- Net income attributable to the Company's shareholders was RMB270.8
       million (USD39.7 million), as compared to RMB288.3 million in 3Q09 and
       RMB124.8 million in 4Q08.  Non-GAAP net income attributable to the
       Company's shareholders(2) was RMB292.8 million (USD42.9 million), as
       compared to RMB308.5 million in 3Q09 and RMB220.0 million in 4Q08
    -- Basic and diluted earnings per ADS(3) were RMB5.44 (USD0.80) and
       RMB5.09 (USD0.75), respectively, as compared to RMB5.83 and RMB5.50,
       respectively, in 3Q09, and RMB2.22 and RMB2.12, respectively, in 4Q08.
       Non-GAAP basic and diluted earnings per ADS(2) were RMB5.88 (USD0.86)
       and RMB5.50 (USD0.81), respectively, as compared to RMB6.24 and
       RMB5.88, respectively, in 3Q09, and RMB3.91 and RMB3.74, respectively,
       in 4Q08
    -- Launched open beta testing for "Fantasy Zhu Xian" on October 22, 2009

    (1) The U.S. dollar (USD) amounts disclosed in this press release, except
        for those transaction amounts that were actually settled in U.S.
        dollars, are presented solely for the convenience of the reader.  The
        conversion of Renminbi (RMB) into USD in this release is based on the
        noon buying rate in The City of New York for cable transfers in RMB
        per USD as certified for customs purposes by the Federal Reserve Bank
        of New York as of December 31, 2009, which was RMB6.8259 to USD1.00.
        The percentages stated in this press release are calculated based on
        the RMB amounts.

    (2) As used in this press release, non-GAAP operating profit, non-GAAP net
        income attributable to the Company's shareholders and non-GAAP
        earnings per ADS are defined to exclude share-based compensation
        charge and an in-process research and development charge related to
        the InterServ acquisition in October 2008 (which was recorded only in
        4Q08) from operating profit, net income attributable to the Company's
        shareholders and earnings per ADS, respectively.  See "Non-GAAP
        Financial Measures" and "Reconciliation of GAAP and Non-GAAP
        Results" at the end of this press release.

    (3) Each ADS represents five ordinary shares.

    Fiscal Year 2009 Financial Highlights

    -- Total revenues were RMB2,144.4 million (USD314.2 million), an increase
       of 49.2% from fiscal year 2008
    -- Gross profit was RMB1,844.6 million (USD270.2 million), an increase of
       46.2% from fiscal year 2008
    -- Operating profit was RMB1,084.2 million (USD158.8 million), an increase
       of 60.1% from fiscal year 2008.  Non-GAAP operating profit was
       RMB1,162.1 million (USD170.3 million), an increase of 44.3% from fiscal
       year 2008
    -- Net income attributable to the Company's shareholders was RMB1,037.2
       million (USD152.0 million), an increase of 60.4% from fiscal year 2008.
       Non-GAAP net income attributable to the Company's shareholders was
       RMB1,115.1 million (USD163.4 million), an increase of 43.9% from fiscal
       year 2008
    -- Basic and diluted earnings per ADS were RMB20.57 (USD3.01) and RMB19.28
       (USD2.82), respectively, as compared to RMB11.50 and RMB10.91,
       respectively, in fiscal year 2008.  Non-GAAP basic and diluted earnings
       per ADS were RMB22.11 (USD3.24) and RMB20.73 (USD3.04), respectively,
       as compared to RMB13.79 and RMB13.08, respectively, in fiscal year 2008

"We are pleased to announce our fourth quarter and full year 2009 results," commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. "We had a great year as we successfully expanded our portfolio by launching our first 2.5D MMORPG 'Battle of the Immortals' and our first 2D turn-based MMORPG 'Fantasy Zhu Xian,' both of which quickly emerged as popular games in the market. Our existing games also contributed to our encouraging results as we continued to enhance game content by releasing a steady stream of new expansion packs. 'Zhu Xian' and 'Perfect World II,' for example, are two games where new expansion packs have led to meaningful growth."

"Our diversified pipeline of six truly differentiated games that span the 3D, 2.5D and 2D market segments highlights our competitive position in the online game industry. We continue to take advantage of our specialized game engines and production studios to build franchises that include flagship titles in each of these market segments."

"During the past year, we saw a considerable amount of growth in our overseas business and are pleased with our progress. We continued to strengthen our overseas network as we licensed more of our games to additional countries and regions. Our North American operation has seen significant expansion as we also introduced new games to the market through our wholly-owned U.S. subsidiary. We are the leader in the Chinese online game export market in terms of revenues and geographic coverage."

"Given what we have accomplished in North America so far, we are pleased to announce that we recently established a wholly-owned subsidiary in Europe. This strategic decision will not only allow us to capture growth opportunities in the European market by leveraging our experience in the North American markets, but will also expand our overseas operational capabilities."

"We believe that 2010 will be an exciting year for us as we have a number of new and diversified games and expansion packs that are scheduled to be launched. We will continue to dedicate more resources to longer-term projects as our modified strategy has demonstrated to be effective in lengthening the growth cycle of both our new and existing games. We aspire to sustain the steady growth of our Company, and will do so by utilizing our proven execution capabilities and strong R&D and operating platform to constantly strive to meet the varied interests and expectations of online game players around the world."

Fourth Quarter 2009 Financial Results

Total Revenues

Total revenues were RMB607.9 million (USD89.1 million) in 4Q09, an increase of 3.0%, or RMB17.9 million, from RMB590.0 million in 3Q09, and an increase of 45.5%, or RMB190.1 million, from RMB417.8 million in 4Q08.

Online game operation revenues were RMB541.8 million (USD79.4 million) in 4Q09, an increase of 11.5%, orRMB55.9 million, from RMB485.9 million in 3Q09, and an increase of 49.4%, or RMB179.2 million, fromRMB362.6 million in 4Q08. The sequential growth in online game operation revenues was primarily attributable to a number of achievements, including the launch of "Fantasy Zhu Xian," the release of expansion packs for some of the Company's existing games and a series of marketing activities.

The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 1,157,000 in 4Q09, as compared to 713,000 in 3Q09 and 690,000 in 4Q08. The active paying customers (APC) for games operated in mainland China under the item-based revenue model was approximately 2,188,000 in 4Q09, as compared to 1,643,000 in 3Q09 and 1,546,000 in 4Q08. The average revenue per active paying customer (ARPU) for games operated in mainland China under the item-based revenue model was RMB223 in 4Q09, as compared to RMB266 in 3Q09 and RMB225 in 4Q08. The increase in ACU and APC from 3Q09 was mainly due to the strong performance of the newly launched "Fantasy Zhu Xian" and the continued popularity of a number of the Company's existing games. The decrease in ARPU from 3Q09 was mainly due to the dilution effect arising from the launch of "Fantasy Zhu Xian" during 4Q09.

Overseas licensing revenues were RMB61.7 million (USD9.0 million) in 4Q09, as compared to RMB58.8 millionin 3Q09 and RMB55.2 million in 4Q08. The increase from 3Q09 was mainly due to an increase in usage-based royalty fees, and was partially offset by a decrease in initial license fees.

Film, television and other revenues were RMB4.5 million (USD0.7 million) in 4Q09, as compared to RMB45.3 million in 3Q09 and Nil in 4Q08. Most of the film, television and other revenues recognized in 4Q09 were related to licensing of the copyright for the movie "Sophie's Revenge," which was released in August 2009.

Cost of Revenues

The cost of revenues was RMB81.5 million (USD11.9 million) in 4Q09, as compared to RMB95.0 million in 3Q09 and RMB49.3 million in 4Q08.

The online game related cost was RMB79.8 million (USD11.7 million) in 4Q09, as compared to RMB68.0 million in 3Q09 and RMB49.3 million in 4Q08. The increase from 3Q09 was mainly due to increases in sales-related taxes and staff cost.

The film, television and other cost was RMB1.7 million (USD0.3 million) in 4Q09, as compared to RMB27.0 million in 3Q09 and Nil in 4Q08. Most of the film, television and other cost recognized in 4Q09 was related to the movie "Sophie's Revenge."

Gross Profit and Gross Margin

Gross profit was RMB526.4 million (USD77.1 million) in 4Q09, an increase of 6.3%, or RMB31.4 million, fromRMB495.0 million in 3Q09, and an increase of 42.9%, or RMB157.9 million, from RMB368.5 million in 4Q08. Gross margin was 86.6% in 4Q09, as compared to 83.9% in 3Q09 and 88.2% in 4Q08.

Operating Expenses

Operating expenses were RMB249.8 million (USD36.6 million) in 4Q09, an increase of 26.6%, or RMB52.5 million, from RMB197.3 million in 3Q09, and an increase of 14.1%, or RMB30.9 million, from RMB218.9 millionin 4Q08. The increase in operating expenses from 3Q09 was mainly attributed to higher sales and marketing expenses, R&D expenses and general and administrative expenses.

Sales and marketing expenses increased by 41.7%, or RMB36.7 million, from RMB88.0 million in 3Q09 toRMB124.7 million (USD18.3 million) in 4Q09. This was largely due to an increase in advertising and promotional expenses associated with both the launch of the new game "Fantasy Zhu Xian" and the launch of "Tale of the Mermaid," a large-scale expansion pack for "Perfect World II," during 4Q09. In addition, the Company also incurred a special charge of approximately RMB17.5 million (USD2.6 million) associated with a change in the estimated useful lives of certain intangible assets acquired from InterServ which are related to outsourcing services. The Company re-allocated and integrated most of the acquired outsourcing team into its game R&D business to further enhance the Company's R&D capabilities.

R&D expenses increased by 7.6%, or RMB5.4 million, from RMB71.5 million in 3Q09 to RMB76.9 million(USD11.3 million) in 4Q09. The increase from 3Q09 was primarily due to an increase in staff cost.

General and administrative expenses increased by 27.7%, or RMB10.5 million, from RMB37.8 million in 3Q09 to RMB48.3 million (USD7.1 million) in 4Q09. The increase from 3Q09 was mainly due to an increase in staff cost, including a special year-end bonus.

Operating Profit

Operating profit was RMB276.5 million (USD40.5 million) in 4Q09, as compared to RMB297.7 million in 3Q09 and RMB149.5 million in 4Q08. Non-GAAP operating profit was RMB298.5 million (USD43.7 million) in 4Q09, as compared to RMB317.9 million in 3Q09 and RMB244.7 million in 4Q08. The decrease from 3Q09 was mainly due to the special charge of approximately RMB17.5 million (USD2.6 million) associated with a change in the estimated useful lives of certain intangible assets acquired from InterServ which are related to the outsourcing services. In addition, the launch of new game "Fantasy Zhu Xian" and "Tale of the Mermaid," a large-scale expansion pack for "Perfect World II," both during 4Q09, also caused an increase of advertising and promotional expenses.

Total Other Income

Total other income was RMB11.8 million (USD1.7 million) in 4Q09, as compared to RMB2.4 million in 3Q09 and RMB8.9 million in 4Q08. The increase from 3Q09 was mainly due to recognition of certain government financial incentives in 4Q09.

Income Tax Expense

Income tax expense was RMB17.5 million (USD2.6 million) in 4Q09, as compared to RMB11.1 million in 3Q09 and RMB33.6 million in 4Q08. The increase from 3Q09 was mainly due to an increase in withholding tax on overseas licensing revenues and an increase in income tax associated with domestic online game operations.

Net Income Attributable to the Company's Shareholders

Net income attributable to the Company's shareholders was RMB270.8 million (USD39.7 million) in 4Q09, as compared to RMB288.3 million in 3Q09 and RMB124.8 million in 4Q08. Non-GAAP net income attributable to the Company's shareholders was RMB292.8 million (USD42.9 million) in 4Q09, as compared to RMB308.5 million in 3Q09 and RMB220.0 million in 4Q08.

Basic and diluted earnings per ADS were RMB5.44 (USD0.80) and RMB5.09 (USD0.75), respectively, in 4Q09, as compared to RMB5.83 and RMB5.50, respectively, in 3Q09, and RMB2.22 and RMB2.12, respectively, in 4Q08. Non-GAAP basic and diluted earnings per ADS were RMB5.88 (USD0.86) and RMB5.50 (USD0.81), respectively, in 4Q09, as compared to RMB6.24 and RMB5.88, respectively, in 3Q09, and RMB3.91 andRMB3.74, respectively, in 4Q08.

Cash and Cash Equivalents

As of December 31, 2009, the Company had RMB1,567.2 million (USD229.6 million) of cash and cash equivalents, as compared to RMB1,194.0 million as of September 30, 2009. The increase was mainly due to net cash inflow generated from the Company's online game operations.

Fiscal Year 2009 Financial Results

Total Revenues

Total revenues were RMB2,144.4 million (USD314.2 million) in fiscal year 2009, an increase of 49.2%, orRMB707.2 million, from RMB1,437.2 million in fiscal year 2008. The year-over-year increase was primarily due to the successful launch of a number of new games and expansion packs in mainland China and, to a lesser extent, a significant expansion in the Company's North American operation. Online game operation revenues were RMB1,879.9 million (USD275.4 million) in fiscal year 2009, an increase of 50.3%, or RMB629.0 million, from RMB1,251.0 million in fiscal year 2008. Overseas licensing revenues were RMB214.6 million (USD31.4 million) in fiscal year 2009, an increase of 15.3%, or RMB28.4 million, from RMB186.2 million in fiscal year 2008. Film, television and other revenues were RMB49.8 million (USD7.3 million) in fiscal year 2009, as compared to Nil in fiscal year 2008. Most of the film, television and other revenues recognized in fiscal year 2009 were related to the movie "Sophie's Revenge," which was released in August 2009.

Cost of Revenues

Cost of revenues were RMB299.8 million (USD43.9 million) in fiscal year 2009, an increase of 71.0%, orRMB124.5 million, from RMB175.3 million in fiscal year 2008. The year-over-year increase was primarily due to increases in sales-related taxes and staff cost associated with the expansion of the Company's game portfolio, and a film cost related to "Sophie's Revenge."

Gross Profit and Gross Margin

Gross profit was RMB1,844.6 million (USD270.2 million) in fiscal year 2009, an increase of 46.2%, orRMB582.7 million, from RMB1,261.9 million in fiscal year 2008. Gross margin was 86.0% in fiscal year 2009, as compared to 87.8% in fiscal year 2008.

Operating Expenses

Operating expenses were RMB760.4 million (USD111.4 million) in fiscal year 2009, an increase of 30.0%, orRMB175.5 million, from RMB584.8 million in fiscal year 2008. The year-over-year increase in operating expenses was mainly due to the expansion of the Company's overall business operations in 2009.

Operating Profit

Operating profit was RMB1,084.2 million (USD158.8 million) in fiscal year 2009, an increase of 60.1%, orRMB407.1 million, from RMB677.1 million in fiscal year 2008. Non-GAAP operating profit was RMB1,162.1 million (USD170.3 million) in fiscal year 2009, an increase of 44.3%, or RMB356.7 million, from RMB805.4 million in fiscal year 2008.

Net Income Attributable to the Company's Shareholders

Net income attributable to the Company's shareholders was RMB1,037.2 million (USD152.0 million) in fiscal year 2009, an increase of 60.4%, or RMB390.7 million, from RMB646.5 million in fiscal year 2008. Non-GAAP net income attributable to the Company's shareholders was RMB1,115.1 million (USD163.4 million) in fiscal year 2009, an increase of 43.9%, or RMB340.3 million, from RMB774.8 million in fiscal year 2008.

Basic and diluted earnings per ADS were RMB20.57 (USD3.01) and RMB19.28 (USD2.82), respectively, in fiscal year 2009, as compared to RMB11.50 and RMB10.91, respectively, in fiscal year 2008. Non-GAAP basic and diluted earnings per ADS were RMB22.11 (USD3.24) and RMB20.73 (USD3.04), respectively, in fiscal year 2009, as compared to RMB13.79 and RMB13.08, respectively, in fiscal year 2008.

Recent Development

Established Subsidiary in Europe

In January 2010, the Company established a wholly-owned subsidiary in Europe to expand its overseas operating capabilities.

Business Outlook

Based on the Company's current operations, total revenues for the first quarter of 2010 are expected to be between RMB620 million and RMB644 million, representing an increase of 2% to 6% on a sequential basis and an increase of 46% to 51% on a year-over-year basis. This reflects expected growth from the Company's existing games.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principals inthe United States, or GAAP, this press release presents non-GAAP operating profit, non-GAAP net income attributable to the Company's shareholders and non-GAAP earnings per ADS by excluding share-based compensation charge and an in-process research and development charge related to the InterServ acquisition in October 2008 (which was recorded only in 4Q08) from operating profit, net income attributable to the Company's shareholders and earnings per ADS, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results, as they exclude certain expenses that are (i) not expected to result in cash payments or (ii) non-recurring in nature. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation charge has been and will continue to be incurred and is not reflected in the presentation of the non-GAAP financial measures. It should be considered in the overall evaluation of our results. None of the non-GAAP measures is a measure of net income attributable to the Company's shareholders, operating profit, operating performance or liquidity presented in accordance with GAAP. We compensate for these limitations by providing the relevant disclosure of our share-based compensation charge and an in-process research and development charge related to the InterServ acquisition in October 2008 in our reconciliations to the GAAP financial measures, which should be considered when evaluating our performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure are set forth at the end of this release.

Conference Call

Perfect World will host a conference call and live webcast at 7:00 am Eastern Standard Time (8:00 pm, Beijingtime) on Monday, March 1, 2010.


    The dial-in details for the live conference call are as follows:
    - U.S. Toll Free Number:            1-866-519-4004
    - International Dial-in Number:     +65-6735-7955
    - Mainland China Toll Free Number:  10-800-819-0121
    - Hong Kong Toll Free Number:       80-093-0346
    - U.K. Toll Free Number:            080-8234-6646
      Conference ID: PWRD

A live and archived webcast of the conference call will be available on the Investor Relations section of Perfect World's website at http://www.pwrd.com .

A telephone replay of the call will be available after the conclusion of the conference call through 10:00 am Eastern Standard Time, March 8, 2010.


    The dial-in details for the replay are as follows:
    - U.S. Toll Free Number:            1-866-214-5335
    - International Dial-in Number:     +61-2-8235-5000
      Conference ID: 7973 (PWRD)

    About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ:PWRD - News) is a leading online game developer and operator based inChina. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently introduce popular games that are designed to cater to changing customer preferences and market trends promptly. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," "Battle of the Immortals" and "Fantasy Zhu Xian;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the management's quotations and "Business Outlook" contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to develop and operate new games that are commercially successful, the growth of the online game market and the continuing market acceptance of our games and in- game items in China and elsewhere, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, our ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Further information regarding these and other risks is included in Perfect World's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. All information provided in this press release and in the attachments is as of March 1, 2010, and Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.




                            Perfect World Co., Ltd.
                          Consolidated Balance Sheets

                                       Audited      Unaudited     Unaudited
                                    December 31,   December 31,  December 31,
                                        2008           2009          2009
                                         RMB            RMB           USD
    Assets
     Current assets
      Cash and cash equivalents     1,333,075,731  1,567,165,156  229,590,993
      Restricted cash                 150,361,200      5,033,996      737,485
      Short-term investments           50,000,000     30,000,000    4,395,025
      Accounts receivable, net         38,822,355     90,435,732   13,248,910
      Due from related parties                 --        159,100       23,308
      Prepayment and other assets      36,269,524     54,262,066    7,949,438
      Deferred tax assets               1,734,207      3,048,654      446,630
     Total current assets           1,610,263,017  1,750,104,704  256,391,789
     Non current assets
      Equity investments               22,559,975     30,471,237    4,464,061
      Film and television cost                 --     14,508,195    2,125,463
      Property, equipment, and
       software, net                  169,399,817    244,069,532   35,756,388
      Construction in progress        714,083,386    771,265,335  112,991,010
      Intangible assets, net           26,188,873     36,930,233    5,410,310
      Goodwill                                 --    116,256,000   17,031,600
      Prepayments and other assets     18,702,700     42,516,514    6,228,704
      Deferred tax assets               1,090,526      2,895,739      424,228
    Total assets                    2,562,288,294  3,009,017,489  440,823,553

    Liabilities and Shareholders'
     Equity
     Current liabilities
      Accounts payable                 13,629,262     92,131,878   13,497,395
      Advances from customers          78,388,312     88,944,437   13,030,434
      Salary and welfare payable       61,907,164     99,629,630   14,595,823
      Taxes payable                    20,771,786     35,503,484    5,201,290
      Accrued expenses and other
       liabilities                     24,813,169     40,055,495    5,868,163
      Share repurchase liability      386,648,554             --           --
      Due to related party                     --      5,650,616      827,820
      Deferred revenues               223,352,994    280,584,152   41,105,811
      Deferred tax liabilities         26,000,000     22,488,342    3,294,561
      Deferred government grants          620,000             --           --
     Total current liabilities        836,131,241    664,988,034   97,421,297
     Deferred revenues                 32,554,670     28,479,618    4,172,288
     Other long-term payable           28,000,000             --           --
    Total liabilities                 896,685,911    693,467,652  101,593,585

    Shareholders' Equity
     Ordinary shares (US$0.0001 par
      value, 10,000,000,000 shares
      authorized, 72,385,480 Class A
      ordinary shares issued and
      outstanding, 210,350,565 Class
      B ordinary shares issued and
      210,147,840 Class B ordinary
      shares outstanding as of
      December 31, 2008;
      10,000,000,000 shares
      authorized, 49,171,190 Class A
      ordinary shares issued and
      outstanding, 199,957,195 Class
      B ordinary shares issued and
      outstanding as of  December
      31, 2009)                           223,481       198,506        29,081

     Additional paid-in capital     1,177,967,483    381,099,428   55,831,382
     Treasury stock                  (391,224,203)            --           --
     Statutory reserves                94,945,533    181,563,507   26,599,204
     Accumulated other comprehensive
      loss                            (65,577,655)   (65,453,442)  (9,588,983)
     Retained earnings                849,267,744  1,799,851,169  263,679,686
    Total Perfect World
     Shareholders' Equity           1,665,602,383  2,297,259,168  336,550,370
    Non-controlling interests                  --     18,290,669    2,679,598
    Total Shareholders' Equity      1,665,602,383  2,315,549,837  339,229,968
    Total Liabilities and
     Shareholders' Equity           2,562,288,294  3,009,017,489  440,823,553



                            Perfect World Co., Ltd.
                      Consolidated Statements of Operations

                                       Three months ended
                          December    September    December     December
                             31,          30,         31,          31,
                            2008         2009        2009         2009
                             RMB          RMB         RMB          USD
                         (Unaudited)  (Unaudited) (Unaudited) (Unaudited)
    Revenues
      Online game
       operation
       revenues         362,597,634  485,875,480  541,773,555   79,370,274
      Overseas
       licensing
       revenues          55,205,269   58,788,775   61,651,444    9,031,988
      Film,
       television and
       other revenues            --   45,329,984    4,474,322      655,492

    Total Revenues      417,802,903  589,994,239  607,899,321   89,057,754
    Cost of revenues
      Online game
       related cost     (49,344,155) (68,030,548) (79,781,617) (11,688,073)
      Film, television
       and other cost            --  (26,982,463)  (1,735,088)    (254,192)
    Total cost of
     revenues           (49,344,155) (95,013,011) (81,516,705) (11,942,265)

    Gross profit        368,458,748  494,981,228   526,382,616   77,115,489
    Operating
     expenses
      Research and
       development
       expenses        (125,870,657) (71,504,518) (76,912,046) (11,267,678)
      Sales and
       marketing
       expenses         (58,622,311) (87,999,196)(124,655,400) (18,262,119)
      General and
       administrative
       expenses         (34,416,638) (37,812,217) (48,280,933)  (7,073,197)
    Total operating
     expenses          (218,909,606)(197,315,931)(249,848,379) (36,602,994)
    Operating
     profit             149,549,142  297,665,297  276,534,237   40,512,495
    Other
     income/(expenses)
      Investment loss      (468,736)  (1,111,787)  (1,279,762)    (187,486)
      Interest income     7,915,676    3,338,023    5,169,231      757,297
      Others, net         1,430,694      174,544    7,874,430    1,153,611
    Total other
     income               8,877,634    2,400,780   11,763,899    1,723,422
    Profit before
     tax                158,426,776  300,066,077  288,298,136   42,235,917
      Income tax
       expense          (33,617,364) (11,052,958) (17,534,886)  (2,568,875)

    Net income          124,809,412  289,013,119  270,763,250   39,667,042
      Less: Net
       income /
       (loss)
       attributable
       to non-
       controlling
       interests                 --      692,008      (86,162)     (12,623)
    Net income
     attributable to
     the Company's
     shareholders       124,809,412  288,321,111  270,849,412   39,679,665
    Net earnings per
     share, basic              0.44         1.17         1.09         0.16
    Net earnings per
     share, diluted            0.42         1.10         1.02         0.15
    Net earnings per
     ADS, basic                2.22         5.83         5.44         0.80
    Net earnings per
     ADS, diluted              2.12         5.50         5.09         0.75

    Shares used in
     calculating
     basic net
     earnings per
     share              281,427,327  247,418,982  248,945,580  248,945,580
    Shares used in
     calculating
     diluted net
     earnings per
     share              293,724,147  262,334,324  265,982,221  265,982,221

    Total share-
     based
     compensation
     cost included
     in:
     Cost of
      revenues           (1,082,339)  (1,412,278)  (1,149,174)    (168,355)
     Research and
      development
      expenses           (8,472,731)  (8,841,744) (11,363,609)  (1,664,778)
     Sales and
      marketing
      expenses           (1,496,651)  (2,085,910)  (1,602,599)    (234,782)
     General and
      administrative
      expenses           (5,717,413)  (7,886,096)  (7,839,431)  (1,148,483)



                                               Year ended
                             December 31,      December 31,       December 31,
                                2008              2009               2009
                                 RMB               RMB                USD
                              (Audited)        (Unaudited)        (Unaudited)
    Revenues
      Online game
       operation
       revenues               1,250,959,689    1,879,932,736      275,411,702
      Overseas
       licensing
       revenues                 186,218,677      214,625,630       31,442,832
      Film, television and
       other revenues                    --       49,804,306        7,296,372
    Total Revenues            1,437,178,366    2,144,362,672      314,150,906
    Cost of revenues
      Online game
       related cost            (175,264,350)    (271,043,328)     (39,708,072)
      Film, television and
       other cost                        --      (28,717,551)      (4,207,145)
    Total cost of
     revenues                  (175,264,350)    (299,760,879)     (43,915,217)
    Gross profit              1,261,914,016    1,844,601,793      270,235,689
    Operating
     expenses
      Research and
       development
       expenses                (227,836,657)    (270,355,072)     (39,607,242)
      Sales and
       marketing
       expenses                (254,484,542)    (336,316,211)     (49,270,603)
      General and
       administrative
       expenses                (102,492,121)    (153,684,631)     (22,514,926)
    Total operating
     expenses                  (584,813,320)    (760,355,914)    (111,392,771)
    Operating profit            677,100,696    1,084,245,879      158,842,918
    Other income/(expenses)
      Investment loss            (1,175,025)      (4,088,738)        (599,004)
      Interest income            35,369,600       15,404,786        2,256,814
      Others, net               (11,535,587)      10,422,381        1,526,887
    Total other
     income                      22,658,988       21,738,429        3,184,697
    Profit before
     tax                        699,759,684    1,105,984,308      162,027,615
      Income tax expense        (53,303,570)     (68,283,268)     (10,003,555)
    Net income                  646,456,114    1,037,701,040      152,024,060
      Less: Net
       income /
       (loss)
       attributable
       to non-
       controlling
       interests                         --          499,641           73,198
    Net income
     attributable to
     the Company's
     shareholders               646,456,114    1,037,201,399      151,950,862
    Net earnings per
     share, basic                      2.30             4.11             0.60
    Net earnings per
     share, diluted                    2.18             3.86             0.56
    Net earnings per
     ADS, basic                       11.50            20.57             3.01
    Net earnings per
     ADS, diluted                     10.91            19.28             2.82

    Shares used in
     calculating
     basic net
     earnings per
     share                      280,987,729      252,138,828      252,138,828
    Shares used in
     calculating
     diluted net
     earnings per
     share                      296,238,151      269,004,366      269,004,366

    Total share-
     based
     compensation
     cost included
     in:
      Cost of
       revenues                  (3,000,334)      (4,983,795)        (730,130)
      Research and
       development
       expenses                 (22,365,703)     (36,730,329)      (5,381,024)
      Sales and
       marketing
       expenses                  (4,733,152)      (7,290,958)      (1,068,131)
      General and
       administrative
       expenses                 (19,800,642)     (28,883,711)      (4,231,488)



                             Perfect World Co., Ltd.
                       Consolidated Statements of Cash Flows

                                       Three months ended
                       December 31,  September 30,  December 31,  December 31,
                          2008           2009           2009         2009
                           RMB            RMB            RMB           USD
                       (Unaudited)    (Unaudited)    (Unaudited)   (Unaudited)
    Cash flows from
     operating
     activities:
    Net income         124,809,412    289,013,119    270,763,250   39,667,042
    Adjustments
     for:
      Share-based
       compensation
       cost             16,769,134     20,226,028     21,954,813    3,216,398
      Depreciation
       and
       amortization
       expense           6,670,886     12,165,961     32,447,920    4,753,647
      In-process
       research and
       development
       charge related
       to the InterServ
       acquisition      78,417,506             --             --           --
      Exchange (gain)
       /loss              (114,698)       253,453        113,749       16,664
      Investment loss      468,736      1,111,787      1,279,762      187,486
      Loss from
       disposal of
       property,
       equipment, and
       software            176,354        506,175        399,425       58,516
      Changes in
       assets and
       liabilities:
        Accounts
         receivable     (4,485,757)   (72,045,828)    48,265,298    7,070,906
        Current
         prepayments
         and other
         assets          2,129,563     (4,041,415)     9,939,338    1,456,121
        Deferred tax
         assets           (569,103)       188,516     (3,573,707)    (523,551)
        Film and
         television cost        --     18,334,598    (14,508,195)  (2,125,463)
        Due from/to
         related parties        --      2,129,054       (565,138)     (82,793)
        Non-current
         prepayments
         and other
         assets        (16,217,564)     4,514,147        747,629      109,528
        Accounts
         payable         5,912,994     11,435,763      1,582,299      231,808
        Advances from
         customers       2,280,085     38,118,600    (26,140,988)  (3,829,676)
        Salary and
         welfare
         payable        18,314,010     24,638,316     21,649,640    3,171,690
        Taxes payable      632,322     (7,071,562)     8,812,168    1,290,990
        Accrued expenses
         and other
         liabilities    (4,410,129)   (26,626,737)    (1,137,447)    (166,637)
        Deferred
         revenues       23,553,120     14,114,214      3,303,923      484,027
        Deferred tax
         liabilities    26,000,000        (11,869)     2,741,097      401,573
        Deferred
         government
         grants           (980,000)      (620,000)    (1,450,000)    (212,426)
    Net cash provided
     by operating
     activities        279,356,871    326,332,320    376,624,836   55,175,850
    Cash flows from
     investing
     activities:
     Purchase of
      property,
      equipment,
      and
      software         (18,767,278)   (59,754,724)   (48,302,540)  (7,076,362)
     Purchase of
      intangible
      assets            (1,351,351)            --     (1,313,235)    (192,390)
     (Increase) /
      decrease of
      restricted
      cash            (150,361,200)            --             --           --
     Cash paid for
      the assets
      acquisition     (102,852,002)            --             --           --
     Cash paid for
      equity
      investments               --             --             --           --
     Cash paid for
      business
      acquisitions,
      net of cash
      acquired                  --             --             --           --
     Purchase of
      short-term
      investments               --    (30,000,000)            --           --
     Maturities of
      short-term
      investments               --             --     40,000,000    5,860,033
     Increase in
      loan receivable           --             --             --           --
     Decrease in
      loan
      receivable                --      3,000,000      3,780,000      553,773
    Net cash used
     in investing
     activities       (273,331,831)   (86,754,724)    (5,835,775)    (854,946)
    Cash flows from
     financing
     activities:
      Exercise of
       share options     1,393,628      8,722,777      2,304,395      337,596
      Repurchase of
       Company shares   (4,575,649)            --             --           --
    Net cash (used
     in) / provided
     by financing
     activities         (3,182,021)     8,722,777      2,304,395      337,596

    Effect of
     exchange rate
     changes on cash
     and cash
     equivalents           424,155        (40,868)        87,971       12,888
    Net increase /
     (decrease) in
     cash                3,267,174    248,259,505    373,181,427   54,671,388

    Cash and cash
     equivalents,
     beginning of
     the period      1,329,808,557    945,724,224  1,193,983,729  174,919,605
    Cash and cash
     equivalents,
     end of the
     period          1,333,075,731  1,193,983,729  1,567,165,156  229,590,993
    Supplemental
     schedule of
     non-cash
     financing
     activities:
    Share
     repurchase
     from SAIF        (386,648,554)            --             --           --
    Supplemental
     disclosures of
     cash flow
     information:
    Cash paid
     during the
     period for
     income taxes       (7,814,467)    (3,984,669)   (16,849,182)  (2,468,419)



                                               Year ended
                              December 31,       December 31,     December 31,
                                 2008               2009             2009
                                  RMB                RMB              USD
                               (Audited)         (Unaudited)      (Unaudited)
    Cash flows from
     operating
     activities:
    Net income                646,456,114      1,037,701,040     152,024,060
    Adjustments for:
     Share-based
      compensation cost        49,899,831         77,888,793      11,410,773
     Depreciation and
      amortization
      expense                  22,130,217         65,059,775       9,531,311
     In-process
      research and
      development
      charge related to
      the InterServ
      acquisition              78,417,506                 --              --
     Exchange (gain) /
      loss                     12,187,231            758,889         111,178
     Investment loss            1,175,025          4,088,738         599,004
     Loss from
      disposal of
      property,
      equipment, and
      software                    176,354            956,566         140,138
     Changes in assets
      and liabilities:
       Accounts
        receivable            (22,103,425)       (52,172,840)     (7,643,362)
       Current
        prepayments and
        other assets          (11,922,267)       (15,648,807)     (2,292,563)
       Deferred tax
        assets                 (1,365,895)        (3,160,677)       (463,042)
       Film and
        television cost                --          1,081,731         158,474
       Due from/to
        related parties                --          1,563,916         229,115
       Non-current
        prepayments and
        other assets          (16,858,536)         3,629,432         531,715
       Accounts payable          (831,337)        40,616,081       5,950,289
       Advances from
        customers              28,715,928          8,599,884       1,259,890
       Salary and
        welfare payable        30,996,508         36,583,927       5,359,576
       Taxes payable            7,396,894         14,781,543       2,165,508
       Accrued expenses
        and other
        liabilities             8,517,394          7,586,190       1,111,383
       Deferred revenues      113,312,411         53,746,697       7,873,936
       Deferred tax
        liabilities            26,000,000         (3,511,658)       (514,461)
       Deferred
        government grants        (480,000)          (620,000)        (90,831)
    Net cash provided
     by operating
     activities               971,819,953      1,279,529,220     187,452,091
    Cash flows from
     investing
     activities:
     Purchase of
      property,
      equipment, and
      software               (759,612,288)      (164,031,139)    (24,030,698)
     Purchase of
      intangible assets        (1,351,351)        (4,829,155)       (707,475)
    (Increase) /
      decrease of
      restricted cash        (150,361,200)       145,351,724      21,294,148
     Cash paid for the
      assets
      acquisition            (102,852,002)                --              --
     Cash paid for
      equity
      investments             (23,735,000)       (10,000,000)     (1,465,008)
     Cash paid for
      business
      acquisitions, net
      of cash acquired                 --       (172,199,707)    (25,227,400)
     Purchase of
      short-term
      investments             (50,000,000)       (70,000,000)    (10,255,058)
     Maturities of
      short-term
      investments                      --         90,000,000      13,185,074
     Increase in loan
      receivable                       --         (3,000,000)       (439,502)
     Decrease in loan
      receivable                       --          9,980,000       1,462,078
    Net cash used in
     investing
     activities            (1,087,911,841)      (178,728,277)    (26,183,841)
    Cash flows from
     financing
     activities:
      Exercise of share
       options                  3,836,884         14,615,293       2,141,153
      Repurchase of
       Company shares          (4,575,649)      (881,456,089)   (129,134,047)
    Net cash (used
     in) / provided by
     financing
     activities                  (738,765)      (866,840,796)   (126,992,894)

    Effect of
     exchange rate
     changes on cash
     and cash
     equivalents              (46,126,609)           129,278          18,939
    Net increase /
     (decrease) in
     cash                    (162,957,262)       234,089,425      34,294,295

    Cash and cash
     equivalents,
     beginning of  the
     period                 1,496,032,993      1,333,075,731     195,296,698
    Cash and cash
     equivalents, end
     of the period          1,333,075,731      1,567,165,156     229,590,993
    Supplemental
     schedule of non-
     cash financing
     activities:
    Share repurchase
     from SAIF               (386,648,554)                --              --
    Supplemental
     disclosures of
     cash flow
     information:
    Cash paid during
     the period for
     income taxes             (23,288,291)       (54,963,960)     (8,052,266)



                             Perfect World Co., Ltd.
                   Reconciliation of GAAP and Non-GAAP Results

                                           Three months ended
                          December 31, September 30, December 31, December 31,
                               2008         2009         2009         2009
                                RMB          RMB          RMB          USD

    GAAP operating profit   149,549,142  297,665,297  276,534,237  40,512,495
    Share based
     compensation charge     16,769,134   20,226,028   21,954,813   3,216,398
    In-process research and
     development charge
     related to the
     InterServ acquisition
     in October 2008         78,417,506           --           --          --
    Non-GAAP operating
     profit                 244,735,782  317,891,325  298,489,050  43,728,893

    GAAP net income
     attributable to the
     Company's shareholders 124,809,412  288,321,111  270,849,412  39,679,665
    Share based
     compensation charge     16,769,134   20,226,028   21,954,813   3,216,398
    In-process research and
     development charge
     related to the
     InterServ acquisition
     in October 2008         78,417,506           --           --          --
    Non-GAAP net income
     attributable to the
     Company's shareholders 219,996,052  308,547,139  292,804,225  42,896,063


    GAAP net earnings per
     ADS
       - Basic                     2.22         5.83         5.44        0.80
       - Diluted                   2.12         5.50         5.09        0.75

    Non-GAAP net earnings
     per ADS
       - Basic                     3.91         6.24         5.88        0.86
       - Diluted                   3.74         5.88         5.50        0.81

    ADSs used in
     calculating net
     earnings per ADS
       - Basic               56,285,465   49,483,796   49,789,116  49,789,116
       - Diluted             58,744,829   52,466,865   53,196,444  53,196,444


                                                    Year ended
                                     December 31,    December 31, December 31,
                                         2008          2009          2009
                                          RMB           RMB           USD

    GAAP operating profit             677,100,696  1,084,245,879  158,842,918
    Share based compensation charge    49,899,831     77,888,793   11,410,773
    In-process research and
     development charge related to
     the InterServ acquisition in
     October 2008                      78,417,506             --           --
    Non-GAAP operating profit         805,418,033  1,162,134,672  170,253,691

    GAAP net income attributable to
     the Company's shareholders       646,456,114  1,037,201,399  151,950,862
    Share based compensation charge    49,899,831     77,888,793   11,410,773
    In-process research and
     development charge related to
     the InterServ acquisition in
     October 2008                      78,417,506             --           --
    Non-GAAP net income attributable
     to the Company's shareholders    774,773,451  1,115,090,192  163,361,635


    GAAP net earnings per ADS
       - Basic                              11.50          20.57         3.01
       - Diluted                            10.91          19.28         2.82

    Non-GAAP net earnings per ADS
       - Basic                              13.79          22.11         3.24
       - Diluted                            13.08          20.73         3.04

    ADSs used in calculating net
     earnings per ADS
       - Basic                         56,197,546     50,427,766   50,427,766
       - Diluted                       59,247,630     53,800,873   53,800,873



    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces Recent Business Developments

25 Jan 2010 11:00:00 GMT

BEIJING, Jan. 25 /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 January 25, 2010.

(Logo: http://www.newscom.com/c... )

Press Release Issued During the Period:

December 17, 2009 - Perfect World Announces the Introduction of New 3D Fantasy MMORPG "Forsaken World"

    EXPANSION PACKS

    "Fantasy Zhu Xian" Expansion Pack - "The Joyous Bunch"

On January 6, 2010, Perfect Word launched the expansion pack "The Joyous Bunch" for its first turn-based 2D MMORPG "Fantasy Zhu Xian." In "The Joyous Bunch," the Company combines its 2D MMORPG online game and interactive entertainment community with a built-in "SNS 2.0 System." Compared to traditional social network service (SNS) communities, this new system features enhanced artificial intelligence and an operating system that has been further customized for smooth user interaction. Thus "Fantasy Zhu Xian" players can join the interactive entertainment community "The Joyous Bunch" to experience the fun of buying land, building houses, experiencing life, and participating in activities in a dynamic virtual community.

    OVERSEAS LICENSING AGREEMENTS

    Licensing "Battle of the Immortals" to Korea

In January 2010, Perfect World signed an agreement with the renowned Korean game company NDOORS Corporation to license the Company">

    OVERSEAS LAUNCHES

    Launch of "Chi Bi" in Korea

In December 2009, Perfect World launched its 3D MMORPG "Chi Bi" in Korea through KTHitel Co., Ltd. ("KTHitel"). "Chi Bi" is adapted from the Chinese history of the Three Kingdoms Period and features cutting edge graphic design, elements of Chinese culture, the "18 Legendary Weapons System," and the "Battle of the Three Kingdoms System."

    AWARDS

    Won Eight Awards at the 2009 China Game Industry Annual Conference

The 2009 China Game Industry Annual Conference was held in January 2010 in Dalian, China. Perfect World's outstanding performance in 2009 earned it the following eight Golden Phoenix Awards:

2009 Top 10 Chinese Game Developers

2009 Top 10 Chinese Game Operators

2009 Overseas Development Awards for Domestic Game Developers

2009 Most Influential Individuals in the Chinese Game Industry - Perfect World Chairman and CEO Mr. Michael Chi

    2009 Top 10 Most Popular Online Games - "Zhu Xian"
    2009 Top 10 Most Popular Domestically-Developed Online Games - "Zhu Xian"
    2009 Top 10 Most Popular Domestically-Developed Online Games - "Chi Bi"
    2009 Top 10 Most Anticipated Online Games - "Dragon Excalibur"

About NDOORS Corporation (http://www.ndoors.com )

NDOORS Corporation was established in 1999 and has been dedicated to the internet and gaming business since. The company is also creating a virtual world where internet users can have fun. With extensive marketing experience and technological expertise, NDOORS Corporation is evolving into an international game company. It has successfully entered into the North American and Japanese markets and has developed a number of online games including "Atlantica." NDOORS Corporation aims to introduce variety and new concepts into cultural content and games.

About KTHitel Co., Ltd. (http://www.kthcorp.com )

KTHitel Co., Ltd (KOSDAQ: 036030) operates the Korean-based internet portal "paran.com" and the online game portal Allstar (www.allstar.co.kr). The Company also creates and services digital content. The internet portal service provides a powerful search engine, entertainment content such as movies and music, local information, community clubs, user created contents, email, blog, and instant messenger access, and supports mobile platform and internet protocol television (IPTV). KTH provides digital content including games, film, music and e-learning to the KT Group and other companies. The online game portal Allstar (http://www.allstar.co.kr ) provides online gamers access to such hits as "KAROS ONLINE," "ANOTHER DAY," "LOCO," "WIND UP," "TWELVE SKY2" and lots of web board games, mobile games and more.

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently introduce popular games that are designed to cater to changing customer preferences and market trends promptly. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," "Battle of the Immortals" and "Fantasy Zhu Xian;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact

     Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

     Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel: +852-2117-0861
     Fax: +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces the Introduction of New 3D Fantasy MMORPG Forsaken World

17 Dec 2009 11:10:00 GMT

BEIJING, Dec. 17 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announces the introduction of a new 3D fantasy MMORPG, "Forsaken World," which was developed under "Project EM" ("PEM").

(Logo: http://www.newscom.com/c... )

Developed by Perfect World, "Forsaken World" breaks new ground in terms of overall planning, programming and graphical designs. The game has blended the best of the western and eastern cultures with an aim to bring an entirely new interactive entertainment experience to players. Since April 2009, the Company">

In "Forsaken World," a fantasy world called "Grand Mundo" is created. The game features exciting elements such as "Rule of Time," "Rule of Space," "Magic" and "Divinity." The players can try to alter the fate of "Grand Mundo" with their respective actions in the game. "Forsaken World" adopts a system of annalistic history, and allows players to change core contents such as the Epoch, the orbiting of constellations and the birth of deities. The game is expected to be launched in 2010.

Mr. Michael Chi, Chairman and CEO of Perfect World, commented, "'Forsaken World' will be one of the major titles by Perfect World for 2010. It contains many new designs, and uniquely blends the cultures of different regions in the game. We integrate many western features in the game play in order to make it more appealing to international players. We believe 'Forsaken World' will bring a new and exciting gaming experience to players around the world."

About Perfect World Co., Ltd. (http://www.pwrd.com )

Safe Harbor Statements

    For further information, please contact:

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces Recent Business Developments

16 Dec 2009 11:00:00 GMT

BEIJING, Dec. 16 /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 December 16, 2009.

(Logo: http://www.newscom.com/c... )

Press Release Issued During the Period:

November 14, 2009 - Perfect World Announces Shareholder Resolutions Adopted at 2009 Annual General Meeting

November 16, 2009 -Perfect World Announces Third Quarter 2009 Unaudited Financial Results

EXPANSION PACKS

"Chi Bi" Expansion Pack - "Warrior Spirit"

On November 23, 2009, the Company launched the expansion pack "Warrior Spirit" for "Chi Bi," an epic 3D MMORPG adapted from the history of Three Kingdoms Period. "Chi Bi" has been a popular game with players since its launch in 2008. The new expansion pack includes enhanced content such as the "Warrior Spirit System" that expands players">

"Perfect World II" Expansion Pack - "Tale of the Mermaid"

On December 2, 2009, the Company launched the expansion pack "Tale of the Mermaid" for its fantasy 3D MMORPG, "Perfect World II." A new race, "Tideborn," and two new occupations, "assassin" and "wizard" were added to the expansion pack. Thus the players' adventures in "Perfect World II" have been enriched with a setting where they can choose among four races and eight occupations for a role. Other new content included marine battle mode and new instances.

"Battle of the Immortals" Expansion Pack - "Holy War in the Netherworld"

On December 8, 2009, the Company launched the expansion pack "Holy War in the Netherworld" for its mysterious adventure 2.5D MMORPG "Battle of the Immortals." This is the third expansion pack released for "Battle of the Immortals," following "The Encounter with the Hidden Dragon" and "The Path to Divinity." In the expansion pack, players will go on a brand new adventure from the human realm to the Netherworld. New content such as an instance "Judgment in the Abyss," as well as the "Oracle Armor System" and the "Deification System" was also added.

OVERSEAS LAUNCHES

Launch of "Chi Bi" in Vietnam

In December 2009, Perfect World launched "Chi Bi" in Vietnam through Cubinet Interactive Int'l Co., Ltd. ("Cubinet Interactive"). "Chi Bi" is a 3D MMORPG adapted from the Chinese history of the Three Kingdoms Period. Cubinet Interactive has been Perfect World's long-time partner and has helped promote Perfect World's games in Southeast Asia.

AWARDS

Won Five Grand Awards at the 2009 Annual Conference of the Chinese e-Game Industry

In December 2009, the Seventh Annual Conference of the Chinese e-Game Industry was held in the Great Hall of the People in Beijing, China. At the conference, Perfect World was awarded "2009 Excellent Enterprise of the Chinese e-Game Industry" and "2009 Leading R&D Technology Company of the Chinese e-Game Industry." Michael Chi, Chairman and CEO of Perfect World, won "2009 Outstanding Entrepreneur of the Chinese e-Game Industry." Perfect World's game "Fantasy Zhu Xian" won "2009 Best Light-hearted Online Game - Golden Finger Award," and "Dragon Excalibur," an upcoming release won "Most Anticipated Online Games - Golden Finger Award."

Won Two Grand Awards at the China International Digital Content Expo 2009

In December 2009, the Seventh Annual China International Digital Content Expo was held in Beijing, China. Perfect World won "Online Game Culture Export Award" and "Online Gaming Enterprise Achievement Award" for its outstanding performance and achievement in online game R&D, operation and export.

About Cubinet Interactive Int'l Co., Ltd. (http://www.cubinet.com )

Cubinet Interactive Int'l Co., Ltd. ("Cubinet Interactive") is engaged in developing high-quality game products in the Southeast Asia market. Composed of a large number of senior experts in all aspects, Cubinet Interactive also has strong network support and a strong user's community. In addition to the publication and operation of games in Malaysia and Singapore, Cubinet Interactive also develops business throughout the Southeast Asia region. Through cooperation with Perfect World, the company successfully launched "Perfect World II" in Malaysia and Singapore. "Perfect World II" was one of the best performing online games in Southeast Asia in 2007. In addition, the company also introduced Perfect World's other games such as "Legend of Martial Arts," "Chi Bi," "Zhu Xian" and "Hot Dance Party" to the region where they also became popular.

About Perfect World Co., Ltd. (http://www.pwrd.com )

Safe Harbor Statements

    For further information, please contact:

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces Third Quarter 2009 Unaudited Financial Results

16 Nov 2009 05:01:00 GMT

BEIJING, Nov. 16 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its unaudited financial results for the third quarter ended September 30, 2009.

  Third Quarter 2009 Highlights(1)
    -- Total revenues were RMB590.0 million (USD86.4 million), an increase of
       13.2% from 2Q09 and 54.5% from 3Q08
    -- Gross profit was RMB495.0 million (USD72.5 million), an increase of
       8.9% from 2Q09 and 48.0% from 3Q08
    -- Operating profit was RMB297.7 million (USD43.6 million), an increase of
       6.4% from 2Q09 and 48.8% from 3Q08.  Non-GAAP operating profit(2) was
       RMB317.9 million (USD46.6 million), an increase of 6.0% from 2Q09 and
       49.0% from 3Q08
    -- Net income attributable to the Company's shareholders was RMB288.3
       million (USD42.2 million), an increase of 9.8% from 2Q09 and 45.0% from
       3Q08.  Non-GAAP net income attributable to the Company's shareholders(2)
       was RMB308.5 million (USD45.2 million), an increase of 9.1% from 2Q09
       and 45.4% from 3Q08
    -- Basic and diluted earnings per ADS(3) were RMB5.83 (USD0.85) and
       RMB5.50 (USD0.81), respectively, as compared to RMB5.21 and RMB4.94,
       respectively, in 2Q09, and RMB3.53 and RMB3.34, respectively, in 3Q08.
       Non-GAAP basic and diluted earnings per ADS(2) were RMB6.24 (USD0.91)
       and RMB5.88 (USD0.86), respectively, as compared to RMB5.61 and RMB5.32,
       respectively, in 2Q09, and RMB3.77 and RMB3.56, respectively, in 3Q08
    -- Launched closed beta testing for "Fantasy Zhu Xian" on September 10,
       2009
    -- Released the Company's first movie "Sophie's Revenge" in August 2009

       (1) The U.S. dollar (USD) amounts disclosed in this press release,
           except for those transaction amounts that are actually settled in
           U.S. dollars, are presented solely for the convenience of the
           reader.  The conversion of Renminbi (RMB) into USD in this release
           is based on the Federal Reserve Board certified exchange rate on
           September 30, 2009, which was RMB6.8262 to USD1.00.  The
           percentages stated are calculated based on RMB.
       (2) As used in this press release, non-GAAP operating profit, non-GAAP
           net income attributable to the Company's shareholders and non-GAAP
           earnings per ADS are defined to exclude share-based compensation
           charge from operating profit, net income attributable to the
           Company's shareholders and earnings per ADS, respectively.  See
           "Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-
           GAAP Results" at the end of this press release.
       (3) Each ADS represents five ordinary shares.

"We are pleased to announce our third quarter results which exceeded our expectations," commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. "During the quarter, we launched a number of expansion packs for our existing games. 'Zhu Xian 2.0 Special Edition' is an example of a successful expansion pack that we launched, and we're optimistic about its contribution to the business moving forward. We will continue to lengthen the life cycle of our games by dedicating more resources to creating larger, more innovative expansion packs."

"Shortly following the quarter end, we successfully launched our first 2D turn-based MMORPG, 'Fantasy Zhu Xian.' 'Fantasy Zhu Xian' has drawn a lot of interest since its launch and is a testament to our ability to leverage our strong 3D development capabilities and operating platform to effectively penetrate the 2D market. We believe its innovative features and the strong branding of our 'Zhu Xian' franchise will help us successfully push this game into lower tier cities."

"We keep strengthening our competitive advantages in our industry by strategically crafting a highly diversified portfolio of truly differentiated games. We have a rich pipeline of six games that span the 3D, 2.5D and 2D market segments. By utilizing our specialized game engines and production studios, we are building a variety of franchises that include flagship titles in each of these individual market segments."

"We continue to make progress overseas and remain a leader in the Chinese online game export market in terms of revenues and geographic coverage. During the quarter, we successfully launched our first 2.5D mysterious adventure MMORPG 'Battle of the Immortals' in Taiwan, Hong Kong and Macau, through our overseas partner. We also launched some of our other games to various international markets through several operators and signed new licensing agreements with our overseas partners. We have been quite happy with our progress in this area so far and we plan to continue to expand our global network."

"This quarter, we also released the first movie that was produced by our subsidiary, Beijing Perfect World Cultural Communication Co., Ltd. ('PW Cultural'). The release was a success, and more importantly, it allowed us to distinctively promote our corporate brand and co-promote our games. This was a good start and we expect PW Cultural to capture the growth of the broader entertainment industry, while generating valuable synergies with our core business through content generation and co-promotion in the future."

"We are fully committed to producing differentiated games in the 3D, 2.5D and 2D game markets. And we are confident in our ability to raise and maintain our game players' interest in both new and existing games, thanks to our proprietary technology, the creativity of our R&D team and our strong operating platform. With our proven execution capabilities, we aim to sustain the stable growth of our Company and maximize shareholder value."

Third Quarter 2009 Financial Results

Total Revenues

Total revenues were RMB590.0 million (USD86.4 million) in 3Q09, an increase of 13.2%, or RMB68.7 million, from RMB521.3 million in 2Q09 and an increase of 54.5%, or RMB208.2 million, from RMB381.8 million in 3Q08.

Online game operation revenues were RMB485.9 million (USD71.2 million) in 3Q09, as compared to RMB475.1 million in 2Q09 and RMB324.5 million in 3Q08. The sequential growth in online game operation revenues was primarily attributable to the successful release of expansion packs for some of the Company's existing games and a series of successful marketing activities.

The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 713,000 in 3Q09, as compared to 761,000 in 2Q09 and 717,000 in 3Q08. The active paying customers (APC) for games operated in mainland China under the item-based revenue model was approximately 1,643,000 in 3Q09, as compared to 1,877,000 in 2Q09 and 1,610,000 in 3Q08. The average revenue per active paying customer (ARPU) for games operated in mainland China under the item-based revenue model was RMB266 in 3Q09, as compared to RMB237 in 2Q09 and RMB196 in 3Q08. While ACU and APC decreased by 6.3% and 12.5% from 2Q09, which was mainly due to adverse seasonality factors affecting certain games, the Company still managed to increase ARPU by 12.2% from 2Q09 through a series of successful promotions and the launch of new expansion packs.

Overseas licensing revenues were RMB58.8 million (USD8.6 million) in 3Q09, as compared to RMB46.2 million in 2Q09 and RMB57.3 million in 3Q08. The increase from 2Q09 was mainly due to the successful launch of "Battle of the Immortals" and "Pocketpet Journey West" in Taiwan, Hong Kong and Macau through local operators.

Film and television revenues were RMB45.3 million (USD6.6 million) in 3Q09, as compared to Nil in 2Q09 and Nil in 3Q08. All the film and television revenues recognized in 3Q09 were related to the movie "Sophie's Revenge" that was released in August 2009.

Cost of Revenues

The cost of revenues was RMB95.0 million (USD13.9 million) in 3Q09, as compared to RMB66.8 million in 2Q09 and RMB47.3 million in 3Q08.

The online game related cost was RMB68.0 million (USD10.0 million) in 3Q09, as compared to RMB66.8 million in 2Q09 and RMB47.3 million in 3Q08. Starting from August 2009, Beijing Perfect World Network Technology Co., Ltd. ("PW Network"), the Company's controlled entity, is subject to a 5.5% business tax and related tax in lieu of VAT. Previously, PW Network was subject to 17% VAT for the revenues from online game business in the PRC and 10% surcharge of payable VAT, and was entitled to a 14% VAT refund which expires at the end of 2010.

The film and television cost was RMB27.0 million (USD4.0 million) in 3Q09, as compared to Nil in 2Q09 and Nil in 3Q08. All the film and television cost recognized in 3Q09 was related to the movie "Sophie's Revenge."

Gross Profit and Gross Margin

Gross profit was RMB495.0 million (USD72.5 million) in 3Q09, an increase of 8.9%, or RMB40.4 million, from RMB454.5 million in 2Q09, and an increase of 48.0%, or RMB160.4 million, from RMB334.5 million in 3Q08. Gross margin was 83.9% in 3Q09, as compared to 87.2% in 2Q09 and 87.6% in 3Q08.

Operating Expenses

Operating expenses were RMB197.3 million (USD28.9 million) in 3Q09, an increase of 12.8%, or RMB22.4 million, from RMB174.9 million in 2Q09, and an increase of 46.7%, or RMB62.8 million, from RMB134.5 million in 3Q08. The increase in operating expenses from 2Q09 was mainly attributed to higher sales and marketing expenses and R&D expenses.

Sales and marketing expenses increased by 21.0%, or RMB15.3 million, from RMB72.7 million in 2Q09 to RMB88.0 million (USD12.9 million) in 3Q09. This was largely due to an increase in advertising and promotional expenses associated with the launch of "Zhu Xian 2.0 Special Edition" expansion pack, expenses related to attending a nationwide industrial exhibition in 3Q09, and the promotional expenses associated with the release of the movie "Sophie's Revenge."

R&D expenses increased by 10.0%, or RMB6.5 million, from RMB65.0 million in 2Q09 to RMB71.5 million (USD10.5 million) in 3Q09. The increase from 2Q09 was primarily due to an increase in staff costs.

General and administrative expenses increased by 1.8%, or RMB0.7 million, from RMB37.2 million in 2Q09 to RMB37.8 million (USD5.5 million) in 3Q09.

Operating Profit

Operating profit was RMB297.7 million (USD43.6 million) in 3Q09, an increase of 6.4%, or RMB18.0 million, from RMB279.7 million in 2Q09, and an increase of 48.8%, or RMB97.7 million, from RMB200.0 million in 3Q08. Non-GAAP operating profit was RMB317.9 million (USD46.6 million) in 3Q09, an increase of 6.0%, or RMB17.9 million, from RMB300.0 million in 2Q09, and an increase of 49.0%, or RMB104.5 million, from RMB213.4 million in 3Q08.

Income Tax Expense

Income tax expense was RMB11.1 million (USD1.6 million) in 3Q09, as compared to RMB19.8 million in 2Q09 and RMB8.8 million in 3Q08. Upon the expiration of the Company's authorized ADS repurchase program in October 2009, the Board decided that the undistributed dividends of Beijing Perfect World Software Co., Ltd. ("PW Software"), the Company's wholly-owned subsidiary, will be re-invested and that PW Software will not declare or pay any dividends in the foreseeable future. As such, the Company ceased the accrual of withholding tax on earnings of PW Software. This caused a decrease of income tax expense compared with 2Q09.

Net Income attributable to the Company's shareholders

Net income attributable to the Company's shareholders was RMB288.3 million (USD42.2 million) in 3Q09, an increase of 9.8%, or RMB25.7 million, from RMB262.6 million in 2Q09, and an increase of 45.0%, or RMB89.5 million, from RMB198.8 million in 3Q08. Non-GAAP net income attributable to the Company's shareholders was RMB308.5 million (USD45.2 million) in 3Q09, an increase of 9.1%, or RMB25.7 million, from RMB282.9 million in 2Q09, and an increase of 45.4%, or RMB96.4 million, from RMB212.2 million in 3Q08.

Basic and diluted earnings per ADS were RMB5.83 (USD0.85) and RMB5.50 (USD0.81), respectively, in 3Q09, as compared to RMB5.21 and RMB4.94, respectively, in 2Q09, and RMB3.53 and RMB3.34, respectively, in 3Q08. Non-GAAP basic and diluted earnings per ADS were RMB6.24 (USD0.91) and RMB5.88 (USD0.86), respectively, in 3Q09, as compared to RMB5.61 and RMB5.32, respectively, in 2Q09, and RMB3.77 and RMB3.56, respectively, in 3Q08.

Cash and Cash Equivalents

As of September 30, 2009, the Company had RMB1,194.0 million (USD174.9 million) of cash and cash equivalents, as compared to RMB945.7 million as of June 30, 2009. The increase was mainly due to net cash inflow generated from the Company's online game operations.

Recent Development

Open Beta Testing for "Fantasy Zhu Xian"

The Company launched open beta testing for "Fantasy Zhu Xian," the Company's first 2D turn-based MMORPG on October 22, 2009.

Business Outlook

Based on the Company's current operations, total revenues for the fourth quarter of 2009 are expected to be between RMB578 million and RMB602 million, representing a decline of 2% to an increase of 2% on a sequential basis and an increase of 38% to 44% on a year-over-year basis. This reflects the expected growth from the Company's existing games and the anticipated contribution from the newly launched "Fantasy Zhu Xian." It also takes into consideration that the Company does not expect to release any movie in 4Q09.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release presents non-GAAP operating profit, non-GAAP net income attributable to the Company's shareholders and non-GAAP earnings per ADS by excluding share-based compensation charge from operating profit, net income attributable to the Company's shareholders and earnings per ADS, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and access the Company's core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation charge has been and will be incurred and is not reflected in the presentation of the non-GAAP financial measures. It should be considered in the overall evaluation of our results. None of the non-GAAP measures is a measure of net income attributable to the Company's shareholders, operating profit, operating performance or liquidity presented in accordance with GAAP. We compensate for these limitations by providing the relevant disclosure of our share-based compensation charge in our reconciliations to the GAAP financial measures, which should be considered when evaluating our performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure are set forth at the end of this release.

Conference Call

Perfect World will host a conference call and live webcast at 7:00 am Eastern Standard Time (8:00 pm, Beijing time) on Monday, November 16, 2009.

The dial-in details for the live conference call are as follows: -- U.S. Toll Free Number: 1-866-519-4004 -- International Dial-in Number: +65-6735-7955 -- Mainland China Toll Free Number: 10-800-819-0121 -- Hong Kong Toll Free Number: 80-093-0346 -- U.K. Toll Free Number: 080-8234-6646 Conference ID: PWRD

A live and archived webcast of the conference call will be available on the Investor Relations section of Perfect World's website at http://www.pwrd.com .

A telephone replay of the call will be available after the conclusion of the conference call through 10:00 am Eastern Standard Time, November 23, 2009.

The dial-in details for the replay are as follows: -- U.S. Toll Free Number: 1-866-214-5335 -- International Dial-in Number: +61-2-8235-5000 Conference ID: 7973 (PWRD)

About Perfect World Co., Ltd. ( http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD - News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently introduce popular games that are designed to cater to changing customer preferences and market trends promptly. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," "Battle of the Immortals" and "Fantasy Zhu Xian;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the management's quotations and "Business Outlook" contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to develop and operate new games that are commercially successful, the growth of the online game market and the continuing market acceptance of our games and in-game items in China and elsewhere, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, our ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Further information regarding these and other risks is included in Perfect World's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. All information provided in this press release and in the attachments is as of November 16, 2009, and Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For further information, please contact: Perfect World Co., Ltd. Vivien Wang Investor Relations Officer Tel: +86-10-5885-1813 Fax: +86-10-5885-6899 Email: ir@pwrd.com http://www.pwrd.com Christensen Investor Relations Kathy Li Tel: +1-480-614-3036 Fax: +1-480-614-3033 Email: kli@christensenir.com Roger Hu Tel: +852-2117-0861 Fax: +852-2117-0869 Email: rhu@christensenir.com Perfect World Co., Ltd. Consolidated Balance Sheets Audited Unaudited Unaudited December 31, September 30, September 30, 2008 2009 2009 RMB RMB USD Assets Current assets Cash and cash equivalents 1,333,075,731 1,193,983,729 174,911,917 Restricted cash 150,361,200 5,020,173 735,427 Short-term investments 50,000,000 70,000,000 10,254,607 Accounts receivable, net 38,822,355 138,772,648 20,329,414 Due from related parties -- 3,780,000 553,749 Prepayment and other assets 36,269,524 64,153,940 9,398,192 Deferred tax assets 1,734,207 1,598,053 234,106 Total current assets 1,610,263,017 1,477,308,543 216,417,412 Non current assets Equity investments 22,559,975 31,750,999 4,651,345 Property, equipment, and software, net 169,399,817 220,681,257 32,328,566 Construction in progress 714,083,386 756,833,799 110,871,905 Intangible assets, net 26,188,873 57,166,771 8,374,611 Goodwill -- 116,256,000 17,030,852 Prepayments and other assets 18,702,700 37,106,247 5,435,857 Deferred tax assets 1,090,526 774,134 113,406 Total assets 2,562,288,294 2,697,877,750 395,223,954 Liabilities and Shareholders' Equity Current liabilities Accounts payable 13,629,262 83,550,432 12,239,670 Advances from customers 78,388,312 115,086,018 16,859,456 Salary and welfare payable 61,907,164 77,983,829 11,424,193 Taxes payable 20,771,786 26,695,601 3,910,756 Accrued expenses and other liabilities 24,813,169 41,198,349 6,035,327 Share repurchase liability 386,648,554 -- -- Due to related party -- 6,056,654 887,266 Deferred revenues 223,352,994 279,611,618 40,961,533 Deferred tax liabilities 26,000,000 19,747,245 2,892,861 Deferred government grants 620,000 1,450,000 212,417 Total current liabilities 836,131,241 651,379,746 95,423,479 Deferred revenues 32,554,670 26,199,864 3,838,133 Other long-term payable 28,000,000 -- -- Total liabilities 896,685,911 677,579,610 99,261,612 Shareholders' Equity Ordinary shares (US$0.0001 par value, 10,000,000,000 shares authorized, 72,385,480 Class A ordinary shares issued and outstanding, 210,350,565 Class B ordinary shares issued and 210,147,840 Class B ordinary shares outstanding as of December 31, 2008; 10,000,000,000 shares authorized, 49,171,190 Class A ordinary shares issued and outstanding, 199,615,320 Class B ordinary shares issued and outstanding as of September 30, 2009) 223,481 198,273 29,046 Additional paid-in capital 1,177,967,483 360,088,043 52,750,878 Treasury stock (391,224,203) -- -- Statutory reserves 94,945,533 94,945,533 13,908,988 Accumulated other comprehensive loss (65,577,655) (65,604,264) (9,610,657) Retained earnings 849,267,744 1,615,619,731 236,679,226 Total Perfect World Shareholders' Equity 1,665,602,383 2,005,247,316 293,757,481 Non-controlling interests -- 15,050,824 2,204,861 Total Shareholders' Equity 1,665,602,383 2,020,298,140 295,962,342 Total Liabilities and Shareholders' Equity 2,562,288,294 2,697,877,750 395,223,954 Perfect World Co., Ltd. Unaudited Consolidated Statements of Operations Three months ended September 30, June 30, September 30, September 30, 2008 2009 2009 2009 RMB RMB RMB USD Revenues Online game operation revenues 324,484,312 475,110,023 485,875,480 71,178,032 Overseas licensing revenues 57,317,936 46,216,819 58,788,775 8,612,226 Film and television revenues -- -- 45,329,984 6,640,588 Total revenues 381,802,248 521,326,842 589,994,239 86,430,846 Cost of revenues Online game related cost (47,256,941) (66,788,320) (68,030,548) (9,966,094) Film and television cost -- -- (26,982,463) (3,952,779) Total cost of revenues (47,256,941) (66,788,320) (95,013,011) (13,918,873) Gross profit 334,545,307 454,538,522 494,981,228 72,511,973 Operating expenses Research and development expenses (47,033,562) (64,980,240) (71,504,518) (10,475,011) Sales and marketing expenses (61,371,931) (72,737,032) (87,999,196) (12,891,388) General and administrative expenses (26,135,551) (37,153,341) (37,812,217) (5,539,278) Total operating expenses (134,541,044) (174,870,613)(197,315,931) (28,905,677) Operating profit 200,004,263 279,667,909 297,665,297 43,606,296 Other income / (expenses) Investment loss (414,026) (1,072,144) (1,111,787) (162,871) Interest income 7,724,046 3,622,913 3,338,023 489,002 Others, net 259,476 13,436 174,544 25,570 Total other income, net 7,569,496 2,564,205 2,400,780 351,701 Profit before tax 207,573,759 282,232,114 300,066,077 43,957,997 Income tax expense (8,770,012) (19,752,495) (11,052,958) (1,619,196) Net income 198,803,747 262,479,619 289,013,119 42,338,801 Less: Net (loss)/ income attributable to non-controlling interests -- (106,205) 692,008 101,375 Net income attributable to the Company's shareholders 198,803,747 262,585,824 288,321,111 42,237,426 Net earnings per share, basic 0.71 1.04 1.17 0.17 Net earnings per share, diluted 0.67 0.99 1.10 0.16 Net earnings per ADS, basic 3.53 5.21 5.83 0.85 Net earnings per ADS, diluted 3.34 4.94 5.50 0.81 Shares used in calculating basic net earnings per share 281,733,114 251,956,208 247,418,982 247,418,982 Shares used in calculating diluted net earnings per share 297,574,386 265,820,234 262,334,324 262,334,324 Total share-based compensation cost included in: Cost of revenues (854,899) (1,342,444) (1,412,278) (206,891) Research and development expenses (5,885,419) (9,548,455) (8,841,744) (1,295,266) Sales and marketing expenses (1,315,404) (2,007,253) (2,085,910) (305,574) General and administrative expenses (5,304,841) (7,391,936) (7,886,096) (1,155,269) Perfect World Co., Ltd. Unaudited Consolidated Statements of Cash Flows Three months ended September 30, June 30, September 30, September 30, 2008 2009 2009 2009 RMB RMB RMB USD Cash flows from operating activities: Net income 198,803,747 262,479,619 289,013,119 42,338,801 Adjustments for: Share-based Compensation cost 13,360,563 20,290,088 20,226,028 2,963,000 Depreciation and amortization expense 5,989,719 11,075,334 12,165,961 1,782,245 Exchange loss 212,346 341,895 253,453 37,129 Investment loss 414,026 1,072,144 1,111,787 162,871 Loss / (gain) from disposal of property, equipment, and software -- (16,603) 506,175 74,152 Changes in assets and liabilities: Accounts receivable (15,080,639) (9,353,651) (72,045,828)(10,554,309) Current Prepayments and other assets 2,560,308 (14,924,272) (4,041,415) (592,045) Deferred tax assets (107,018) 299,833 188,516 27,617 Film and television cost -- (2,744,672) 18,334,598 2,685,916 Due from/to related parties -- -- 2,129,054 311,894 Non-current prepayments and other assets 481,283 (2,682,710) 4,514,147 661,297 Accounts payable (9,795,333) 15,946,954 11,435,763 1,675,275 Advances from customers 19,223,380 (687,123) 38,118,600 5,584,161 Salary and welfare payable 18,471,056 15,996,722 24,638,316 3,609,375 Taxes payable 1,172,897 (22,815,018) (7,071,562) (1,035,944) Accrued expenses and other liabilities 3,573,703 29,482,061 (26,626,737) (3,900,668) Deferred revenues 26,051,626 9,544,028 14,114,214 2,067,653 Deferred tax liabilities -- 11,898,206 (11,869) (1,739) Deferred government grants 150,000 1,450,000 (620,000) (90,827) Net cash provided by operating activities 265,481,664 326,652,835 326,332,320 47,805,854 Cash flows from investing activities: Purchase of property, equipment, and software (62,749,284) (41,752,492) (59,754,724) (8,753,732) Purchase of intangible assets -- (3,515,920) -- -- Decrease of restricted cash -- 9,990,524 -- -- Purchase of short-term investments -- -- (30,000,000) (4,394,832) Cash paid for equity investments (3,000,000) (10,000,000) -- -- Cash paid for business acquisitions, net of cash acquired -- (17,645,707) -- -- (Increase) / decrease in loan receivable -- (3,000,000) 3,000,000 439,483 Proceeds from short-term investments -- 50,000,000 -- -- Cash received from related party loan -- 3,200,000 -- -- Net cash used in investing activities (65,749,284) (12,723,595) (86,754,724)(12,709,081) Cash flows from financing activities: Proceeds from exercises of share options 264,090 3,253,688 8,722,777 1,277,838 Repurchase of Company shares -- (357,872,874) -- -- Net cash provided by / (used in) financing activities 264,090 (354,619,186) 8,722,777 1,277,838 Effect of exchange rate changes on cash and cash equivalents (1,588,665) (28,237) (40,868) (5,987) Net increase / (decrease) in cash 198,407,805 (40,718,183) 248,259,505 36,368,624 Cash and cash equivalents, beginning of the period 1,131,400,752 986,442,407 945,724,224 138,543,293 Cash and cash equivalents, end of the period 1,329,808,557 945,724,224 1,193,983,729 174,911,917 Supplemental disclosures of cash flow information: Cash paid during the period for income taxes (4,365,085) (31,554,325) (3,984,669) (583,732) Perfect World Co., Ltd. Reconciliation of unaudited GAAP and Non-GAAP Results Three months ended September 30, June 30, September 30, September 30, 2008 2009 2009 2009 RMB RMB RMB USD GAAP operating profit 200,004,263 279,667,909 297,665,297 43,606,296 Share based compensation charge 13,360,563 20,290,088 20,226,028 2,963,000 Non-GAAP operating profit 213,364,826 299,957,997 317,891,325 46,569,296 GAAP net income attributable to the Company's shareholders 198,803,747 262,585,824 288,321,111 42,237,426 Share based compensation charge 13,360,563 20,290,088 20,226,028 2,963,000 Non-GAAP net income attributable to the Company's shareholders 212,164,310 282,875,912 308,547,139 45,200,426 GAAP net earnings per ADS - Basic 3.53 5.21 5.83 0.85 - Diluted 3.34 4.94 5.50 0.81 Non-GAAP net earnings per ADS - Basic 3.77 5.61 6.24 0.91 - Diluted 3.56 5.32 5.88 0.86 ADSs used in calculating net earnings per ADS - Basic 56,346,623 50,391,242 49,483,796 49,483,796 - Diluted 59,514,877 53,164,047 52,466,865 52,466,865

[Press Release] Perfect World Announces Shareholder Resolutions Adopted at 2009 AGM

14 Nov 2009 08:36:00 GMT

BEIJING, Nov. 14 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, announced shareholder resolutions adopted at its annual general meeting of shareholders held in Hong Kong today.

1. Amendment of Section 3.1 (a) of the amended and restated Share
       Incentive Plan of the Company by replacing it with the following
       paragraph: "Subject to the provisions of Article 8 and Section 3.l (b),
       the maximum aggregate number of Shares(1) which may be issued pursuant
       to all Awards (including Incentive Share Options) is 44,645,000, or a
       lesser number of Shares determined by the Committee."(2)


       (1) Each ADS represents five ordinary shares.
       (2) This amendment to the amended and restated Share Incentive Plan, or
           the Plan, effectively increases the number of Class B ordinary
           shares of the Company authorized for issuance under the Plan by
           2,500,000.

    2. Amendment of Section 5.2 (a) (ii) and (iii) of the amended and restated
       Share Incentive Plan of the Company by replacing it with the following
       paragraph: "(ii) Three months after the Participant's termination of
       employment as an Employee other than for Disability or death; and (iii)
       One year after the date of the Participant's termination of employment
       or service on account of Disability or death. Upon the Participant's
       Disability or death, any Incentive Share Option exercisable at the
       Participant's Disability or death may be exercised by the Participant's
       legal representative or representatives, by the person or persons
       entitled to do so pursuant to the Participant's last will and testament,
       or, if the Participant fails to make testamentary disposition of such
       Incentive Share Option or dies intestate, by the person or persons
       entitled to receive the Incentive Share Option pursuant to the
       applicable laws of descent and distribution."

    3. Ratification of the appointment of Mr. Han Zhang as an independent
       director of the Company;

    4. Ratification of the appointment of Mr. Daniel Dong Yang as an
       independent director of the Company;

    5. Ratification of the appointment of the Independent Auditor
       PricewaterhouseCoopers for the fiscal year 2008;

    6. Appointment of the Independent Auditor PricewaterhouseCoopers for the
       fiscal year 2009;

    7. Amendment of Article 1 of the amended and restated Memorandum and
       Articles of Association of the Company by adding the following
       definition: "Designated Stock Exchange" means The Nasdaq Stock Market.

    8. Amendment of Article 111 of the amended and restated Memorandum and
       Articles of Association of the Company by replacing it with the
       following new article: "111. Subject to applicable law and rules of the
       Designated Stock Exchange: (1) The Board shall appoint an Auditor to
       audit the accounts of the Company and such Auditor shall hold office
       until the Board appoints another Auditor. Such Auditor may be a Member
       but no Director or officer or employee of the Company shall, during his
       continuance in office, be eligible to act as an Auditor of the Company.
       (2) A person, other than a retiring Auditor, shall not be capable of
       being appointed Auditor at a Board meeting unless notice in writing of
       an intention to nominate that person to the office of Auditor has been
       given not less than fourteen (14) days before the Board meeting and
       furthermore, the Company shall send a copy of any such notice to the
       retiring Auditor. (3) The Board may, at any Board meeting convened and
       held in accordance with these Articles, remove the Auditor at any time
       before the expiration of his term of office and shall at that meeting
       appoint another Auditor in his stead for the remainder of his term."

    9. Inclusion of financial statements of fiscal year 2008 in the Company's
       2008 annual report; and

    10.To authorize each of the directors to take any and every action that
       might be necessary to effect the foregoing resolutions 1 to 9 as such
       director, in his absolute discretion, thinks

About Perfect World Co., Ltd. ( http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD - News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently introduce popular games that are designed to cater to changing customer preferences and market trends promptly. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," "Battle of the Immortals" and "Fantasy Zhu Xian;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

For further information, please contact Perfect World Co., Ltd. Vivien Wang Investor Relations Officer Tel: +86-10-5885-1813 Fax: +86-10-5885-6899 Email: ir@pwrd.com http://www.pwrd.com Christensen Investor Relations Kathy Li Tel: +1-480-614-3036 Fax: +1-480-614-3033 Email: kli@christensenir.com Roger Hu Tel: +852-2117-0861 Fax: +852-2117-0869 Email: rhu@christensenir.com

[Press Release] Perfect World to Announce Third Quarter 2009 Financial Results on November 16

03 Nov 2009 07:42:00 GMT

BEIJING, Nov. 3 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, today announces that it will release unaudited financial results for the third quarter ended September 30, 2009, before the market opens on Monday, November 16, 2009.

The Company will host a corresponding conference call and live webcast at 7:00 am Eastern Standard Time (8:00 pm, Beijing time) on Monday, November 16, 2009.

    The dial-in details for the live conference call are as follows:
    - U.S. Toll Free Number:           1-866-519-4004
    - International Dial-in Number:    +65-6735-7955
    - Mainland China Toll Free Number: 10-800-819-0121
    - Hong Kong Toll Free Number:      80-093-0346
    - U.K. Toll Free Number:           080-8234-6646
      Conference ID: PWRD

A live and archived webcast of the conference call will be available on the Investor Relations section of Perfect World's website at http://www.pwrd.com .

A telephone replay of the call will be available after the conclusion of the conference call through 10:00 am Eastern Standard Time, November 23, 2009.

    The dial-in details for the replay are as follows:
    - U.S. Toll Free Number:           1-866-214-5335
    - International Dial-in Number:    +61-2-8235-5000
      Conference ID: 7973 (PWRD)

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (Nasdaq: PWRD - News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently introduce popular games that are designed to cater to changing customer preferences and market trends promptly. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," "Battle of the Immortals" and "Fantasy Zhu Xian;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

    For further information, please contact:

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-212-618-1978
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces Appointment to the Board of Directors

02 Nov 2009 07:48:00 GMT

BEIJING, Oct. 31 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator in China, today announced the appointment of Mr. Daniel Dong Yang as an independent director to the Company's Board of Directors.

Mr. Daniel Dong Yong has been a partner of SAIF Partners, an Asian private equity firm, since 2004 and served as a director from 2001 to 2004. He currently serves as a director of several companies, such as MainOne Information Technology Co., Ltd. and Mobi Antenna Technologies (Shenzhen) Co., Ltd. From 2000 to 2001, he served as an investment officer and director of Softbank China Venture Capital, a venture capital firm in China. Mr. Yang received his bachelor's degree in computer science from Tsinghua University in 1995, and his master degree in accounting from University of Southern California in 1997. Mr. Yang is a Chartered Financial Analyst.

"I would like to welcome Mr. Yang to the Board as an independent director. His extensive experience will bring significant value to Perfect World," commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World.

Perfect World would also like to announce that Mr. Louis T. Hsieh recently stepped down from his position as a member of the Board of Directors of Perfect World. He plans to focus on other professional commitments.

"I would like to thank Mr. Louis T. Hsieh for his contribution to Perfect World," commented Mr. Michael Chi. "I and the rest of the Board would like to take this opportunity to express our sincere gratitude to Mr. Louis T. Hsieh and wish him the best in his pursuit of his other professional commitments."

After the above changes of the board of directors, Perfect World has met the requirement of the Nasdaq Stock Market, Marketplace Rules that a majority of the directors shall be independent directors. Perfect World's current board members are Mr. Michael Chi, founder, chairman and Chief Executive Office of Perfect World, Mr. Ge Song, director, Mr. Daniel Dong Yong, independent director, Dr. Bing Xiang, independent director, and Mr. Han Zhang, independent director. The three independent directors are also members of the Company's audit committee.

About Perfect World Co., Ltd. (http://www.pwrd.com)

Perfect World Co., Ltd. (Nasdaq: PWRD - News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," "Battle of the Immortals" and "Fantasy Zhu Xian;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact

    Perfect World Co., Ltd.
    Vivien Wang
    Investor Relations Officer
    Tel: +86-10-5885-1813
    Fax: +86-10-5885-6899
    Email: ir@pwrd.com
    http://www.pwrd.com

    Christensen Investor Relations
    Kathy Li
    Tel: +1-480-614-3036
    Fax: +1-480-614-3033
    Email: kli@christensenir.com

    Roger Hu
    Tel: +852-2117-0861
    Fax: +852-2117-0869
    Email: rhu@christensenir.com

[Press Release] Perfect World Builds Base As Market Drops

29 Oct 2009 22:41:00 GMT

When the market is in a correction, as it is now, chart readers crank up their scanning efforts.

Sure, this is no time to buy. It is, however, a good time to start collecting potential buy candidates.

Many charts that look promising right now will fall apart in the weeks to come. Corrections do that.

A few stocks will hold up, positioning themselves for breakouts when the general market switches back to a confirmed uptrend.

Perfect World (NasdaqGS:PWRD - News), a leader in China's online video-game industry, began rising in March and never touched its 50-day moving average until two weeks ago.

After peaking Sept. 23, the online gaming firm's stock began falling.

It slid as much as 23% before rising to form what could be the right side of a cuplike base.

The daily chart shows the base is only five weeks old. It would need to base for at least seven weeks to meet the requirements of a cup-with-handle base, or six weeks for a cup-without-handle base.

On the weekly chart, Perfect World's base shows only two weeks of above-average volume. One week was clear distribution -- a decline in fast trade with a close on the low end of the week's range. The other week showed accumulation, a decline that finished high in the week's range.

[Press Release] "Torchlight" Preorders Now Available from Perfect World Entertainment

20 Oct 2009 18:00:00 GMT

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Perfect World Entertainment, Inc, a wholly owned US subsidiary of Perfect World Co., Ltd. (NASDAQ:PWRD), today announced that it will be distributing Runic Games’ upcoming single-player version of its action-RPG, Torchlight for PC. Preorders will be available on the Perfect World Entertainment portal at http://torchlight.perfec....

Along with being one of the first to download the game for US$19.99 on October 27, preorders will be entered to win limited edition Torchlight posters signed by Runic Games’ CEO, Max Schaefer and co-founder, Erich Schaefer. The Schaefer brothers are best known for co-founding Blizzard North and for their work on bringing Diablo and Diablo II to life.

“Runic Games has always been about delivering quality action-RPG entertainment to gamers and by offering Torchlight preorders, gamers can look forward to being one of the first to enjoy the game,” said Max Schaefer, CEO of Runic Games. “For less than a pair of movie tickets, Torchlight offers nearly limitless replayability, as well as our full development tool suite.”

“Torchlight is a phenomenal game coming from the industry’s top talent and we are very pleased to be able to offer preorders to players on our portal,” said Dr. Alan Chen, CEO of Perfect World Entertainment. “For us, Torchlight bridges the gap between Eastern and Western players and we look forward to working closely with Runic Games on the upcoming, free-to-play MMO version of Torchlight.”

About Runic Games, Inc.

Runic Games is a developer of PC-based entertainment software, designing games that focus on quality, approachability, and fun. Runic Games is staffed by a team with experienced members, including leads on "Diablo," "Diablo II," "Diablo II: Lord of Destruction," "Fate," "Hellgate: London" and "Mythos." Runic Games is located in Seattle, Washington, United States.

About Perfect World Entertainment

Perfect World Entertainment, a subsidiary of Perfect World Co., Ltd. (NASDAQ:PWRD - News), publishes free-to-play, online games and provides online services in North America. The Company primarily publishes three-dimensional, or 3D, online games based on the Perfect World proprietary Angelica 3D game engine and game development platform. Perfect World Entertainment’s goal is to provide North American users with perfectly polished gameplay, exceptional localization, the highest quality customer service, and an unparalleled online community experience.

For more information on Perfect World Entertainment visit

Contact:

PR contact for Perfect World Entertainment
Jason Varden, 650-590-7700 ext. 7728
jason.varden@perfectworld.com
or
PR contact for Runic Games
Wonder Russell, 206-623-0576
wonder@runicgames.com

[Press Release] Perfect World to Launch Open Beta Testing for 'Fantasy Zhu Xian' on October 22

28 Sep 2009 11:00:00 GMT

BEIJING, Sept. 28 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, today announces that it will launch the open beta testing for its first 2D turn-based MMORPG "Fantasy Zhu Xian" on October 22, 2009.

(Logo: http://www.newscom.com/c... )

"Fantasy Zhu Xian" is based on a popular internet fantasy novel "Zhu Xian," and runs on the Company">

In this open beta testing version, "Fantasy Zhu Xian" contains many innovative features and lots of new content, including an innovative flying system that introduces the concept of altitude into a 2D game, a built-in PP-Chat friend making system, player vs. player turn-based battlefields and such systems as light effect of weaponry, super pets, advanced equipment and production and the NPC voice system. All these features cater to players' preferences.

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World, commented, "'Fantasy Zhu Xian' is our first attempt at entering the 2D turn-based game market. It is also one of our major titles this year. The game has drawn a lot of interest since its closed beta testing in the domestic market. Our R&D team has done thorough preparatory work for the open beta testing based on the feedback from the closed beta testing. With the market's positive response at the preliminary stage, we are confident about the open beta launch of 'Fantasy Zhu Xian' on October 22."

About Perfect World Co., Ltd. ( http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD - News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently introduce popular games that are designed to cater to changing customer preferences and market trends promptly. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West" and "Battle of the Immortals;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact:

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World to Launch Closed Beta Testing for 'Fantasy Zhu Xian' on September

31 Aug 2009 09:00:00 GMT

BEIJING, Aug. 31 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, today announces that it will launch the closed beta testing for its first 2D turn-based MMORPG "Fantasy Zhu Xian" on September 10, 2009.

(Logo: http://www.newscom.com/c... )

"Fantasy Zhu Xian" is Perfect World">

Safe Harbor Statements

    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces Second Quarter 2009 Unaudited Financial Results

10 Aug 2009 07:35:00 GMT

BEIJING, Aug. 10 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its unaudited financial results for the second quarter ended June 30, 2009.

    (Logo: 
    -- Gross profit was RMB454.5 million (USD66.5 million), an increase of
       23.3% from 1Q09 and 55.0% from 2Q08
    -- Operating profit was RMB279.7 million (USD40.9 million), an increase of
       21.4% from 1Q09 and 68.5% from 2Q08.  Non-GAAP operating profit(2) was
       RMB300.0 million (USD43.9 million), an increase of 22.0% from 1Q09 and
       68.7% from 2Q08
    -- Net income attributable to the Company's shareholders was RMB262.6
       million (USD38.4 million), an increase of 21.9% from 1Q09 and 59.6%
       from 2Q08.  Non-GAAP net income attributable to the Company's
       shareholders(2) was RMB282.9 million (USD41.4 million), an increase of
       22.5% from 1Q09 and 60.4% from 2Q08
    -- Basic and diluted earnings per ADS(3) were RMB5.21 (USD0.76) and
       RMB4.94 (USD0.72), respectively, as compared to RMB4.14 and RMB3.96,
       respectively, in 1Q09, and RMB2.93 and RMB2.76, respectively, in 2Q08.
       Non-GAAP basic and diluted earnings per ADS(2) were RMB5.61 (USD0.82)
       and RMB5.32 (USD0.78), respectively, as compared to RMB4.43 and
       RMB4.25, respectively, in 1Q09, and RMB3.14 and RMB2.96, respectively,
       in 2Q08
    -- Launched open beta testing for "Battle of the Immortals" on April 2,
       2009
       (1) The U.S. dollar (USD) amounts disclosed in this press release,
           except for those transaction amounts that are actually settled in
           U.S. dollars, are presented solely for the convenience of the
           reader.  The conversion of Renminbi (RMB) into USD in this release
           is based on the Federal Reserve Board certified exchange rate on
           June 30, 2009, which was RMB6.8302 to USD1.00.  The percentages
           stated are calculated based on RMB.
       (2) As used in this press release, non-GAAP operating profit, non-GAAP
           net income attributable to the Company's shareholders and non-GAAP
           earnings per ADS are defined to exclude share-based compensation
           charge from operating profit, net income attributable to the
           Company's shareholders and earnings per ADS, respectively.  See
           "Non-GAAP Financial Measures" and "Reconciliation of GAAP and
           Non-GAAP Results" at the end of this press release.
       (3) Each ADS represents five ordinary shares.

"We are pleased to announce our second quarter results which came in ahead of our previously raised guidance," commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. "Our strong results were primarily driven by better than anticipated performance of our newly launched 2.5D mysterious adventure MMORPG 'Battle of the Immortals' and increasingly optimistic results from a number of our existing games. We believe our fine- tuned strategy of allocating more resources to longer-term projects and larger expansion packs has really begun to show positive results."

"The successful launch of 'Battle of the Immortals' is a great example. The positive acceptance and strong results following its debut were mainly due to our effective implementation of this strategy. It is also a promising illustration of our ability to leverage our strong R&D capabilities and operating platform as well as leading technologies in the 3D game market to develop and operate hit games in the 2.5D and 2D markets. By spending more time and resources on developing games and larger expansion packs prior to launch, we believe we will effectively lengthen the growth cycle of our games."

"We continue to focus on building a well-rounded, diversified portfolio of games. Our portfolio includes highly differentiated games which provide us with a number of distinctive growth drivers. We currently have a deep pipeline of seven diverse games spanning the 3D, 2.5D and 2D segments. Moving forward, we will build a variety of franchises, including unique flagship titles in each of the 3D, 2.5D and 2D market segments, by utilizing our specialized game engines and production studios that are tailored to each of these areas."

"We are also pleased to announce that we plan to launch our first 2D turn- based cartoon MMORPG, 'Fantasy Zhu Xian,' in the fourth quarter of this year. This new game has many distinctive characteristics and targets a different segment than our 3D real-time game 'Zhu Xian.' We expect to leverage the strong branding of 'Zhu Xian' to effectively penetrate into lower tier cities with this new game and further grow our 'Zhu Xian' franchise."

"Our overseas development efforts are also progressing positively. We continue to hold a leading position in the Chinese online game export market in terms of revenues and geographic coverage. Not only do we license a number of our games in various regions around the world, we are also making progress in operating our own games in North America. During the quarter, we successfully launched 'Zhu Xian' in North America under the name 'Jade Dynasty' through our wholly owned U.S. subsidiary, Perfect World Entertainment Inc."

"We are confident that our strong execution capabilities will help raise and maintain the interest of game players for both our newly launched and existing games. We remain fully committed to producing influential, differentiated games in the 3D, 2.5D and 2D game markets, and by doing so we aim to sustain a stable growth rate for our Company over the long term."

Second Quarter 2009 Financial Results

Total Revenues

Total revenues were RMB521.3 million (USD76.3 million) in 2Q09, an increase of 22.6%, or RMB96.2 million, from RMB425.1 million in 1Q09 and an increase of 55.9%, or RMB186.9 million, from RMB334.4 million in 2Q08.

Online game operation revenues were RMB475.1 million (USD69.6 million) in 2Q09, an increase of 26.0%, or RMB97.9 million, from RMB377.2 million in 1Q09 and an increase of 58.7%, or RMB175.7 million, from RMB299.4 million in 2Q08. The strong sequential growth in online game operation revenues was primarily attributable to the successful launch of open beta testing for "Battle of the Immortals," the successful release of expansion packs for a number of the Company's existing games, and a series of successful marketing activities.

The aggregate average concurrent users (ACU) for games under operation in mainland China was approximately 761,000 in 2Q09, as compared to 615,000 in 1Q09 and 619,000 in 2Q08. The active paying customers (APC) for games operated in mainland China under the item-based revenue model was approximately 1,877,000 in 2Q09, as compared to 1,464,000 in 1Q09 and 1,530,000 in 2Q08. The average revenue per active paying customer (ARPU) for games operated in mainland China under the item-based revenue model was RMB237 in 2Q09, as compared to RMB244 in 1Q09 and RMB188 in 2Q08. The increase in ACU and APC from 1Q09 was mainly due to the strong performance of the newly launched "Battle of the Immortals" and the continued popularity of a number of the Company's existing games. The slight decrease in ARPU from 1Q09 was mainly due to the dilution effect arising from the new game launch.

Overseas licensing revenues were RMB46.2 million (USD6.8 million) in 2Q09, as compared to RMB48.0 million in 1Q09 and RMB35.0 million in 2Q08.

Cost of Revenues

The cost of revenues was RMB66.8 million (USD9.8 million) in 2Q09, an increase of 18.3%, or RMB10.3 million, from RMB56.4 million in 1Q09 and an increase of 62.4%, or RMB25.7 million, from RMB41.1 million in 2Q08. The increase from 1Q09 was mainly due to an increase in sales-related taxes.

Gross Profit and Gross Margin

Gross profit was RMB454.5 million (USD66.5 million) in 2Q09, an increase of 23.3%, or RMB85.8 million, from RMB368.7 million in 1Q09, and an increase of 55.0%, or RMB161.2 million, from RMB293.3 million in 2Q08. Gross margin was 87.2% in 2Q09, as compared to 86.7% in 1Q09 and 87.7% in 2Q08.

Operating Expenses

Operating expenses were RMB174.9 million (USD25.6 million) in 2Q09, an increase of 26.4%, or RMB36.5 million, from RMB138.3 million in 1Q09, and an increase of 37.3%, or RMB47.5 million, from RMB127.3 million in 2Q08. The increase in operating expenses from 1Q09 was mainly attributed to higher sales and marketing expenses, R&D expenses and general and administrative expenses.

Sales and marketing expenses increased by 42.8%, or RMB21.8 million, from RMB50.9 million in 1Q09 to RMB72.7 million (USD10.6 million) in 2Q09. This was largely due to an increase in advertising and promotional expenses associated with the launch of "Battle of the Immortals."

R&D expenses increased by 14.1%, or RMB8.0 million, from RMB57.0 million in 1Q09 to RMB65.0 million (USD9.5 million) in 2Q09. The increase from 1Q09 was primarily due to an increase in staff costs.

General and administrative expenses increased by 22.1%, or RMB6.7 million, from RMB30.4 million in 1Q09 to RMB37.2 million (USD5.4 million) in 2Q09. This was primarily attributable to an increase in staff costs and professional fees.

Operating Profit

Operating profit was RMB279.7 million (USD40.9 million) in 2Q09, an increase of 21.4%, or RMB49.3 million, from RMB230.4 million in 1Q09, and an increase of 68.5%, or RMB113.7 million, from RMB166.0 million in 2Q08. Non- GAAP operating profit was RMB300.0 million (USD43.9 million) in 2Q09, an increase of 22.0%, or RMB54.2 million, from RMB245.8 million in 1Q09, and an increase of 68.7%, or RMB122.1 million, from RMB177.8 million in 2Q08.

Income Tax Expense

Income tax expense was RMB19.8 million (USD2.9 million) in 2Q09, as compared to RMB19.9 million in 1Q09 and RMB5.3 million in 2Q08.

Net Income attributable to the Company's shareholders

Net income attributable to the Company's shareholders was RMB262.6 million (USD38.4 million) in 2Q09, an increase of 21.9%, or RMB47.1 million, from RMB215.4 million in 1Q09, and an increase of 59.6%, or RMB98.1 million, from RMB164.5 million in 2Q08. Non-GAAP net income attributable to the Company's shareholders was RMB282.9 million (USD41.4 million) in 2Q09, an increase of 22.5%, or RMB52.0 million, from RMB230.9 million in 1Q09, and an increase of 60.4%, or RMB106.5 million, from RMB176.3 million in 2Q08.

Basic and diluted earnings per ADS were RMB5.21 (USD0.76) and RMB4.94 (USD0.72), respectively, in 2Q09, as compared to RMB4.14 and RMB3.96, respectively, in 1Q09, and RMB2.93 and RMB2.76, respectively, in 2Q08. Non- GAAP basic and diluted earnings per ADS were RMB5.61 (USD0.82) and RMB5.32 (USD0.78), respectively, in 2Q09, as compared to RMB4.43 and RMB4.25, respectively, in 1Q09, and RMB3.14 and RMB2.96, respectively, in 2Q08.

Cash and Cash Equivalents

As of June 30, 2009, the Company had RMB945.7 million (USD138.5 million) of cash and cash equivalents, as compared to RMB986.4 million as of March 31, 2009. The decrease was mainly due to a payment of approximately USD52.4 million to SB Asia Investment Fund II, L.P. ("SAIF") in June 2009 for the repurchase of the Company's Class A and Class B ordinary shares, and was partially offset by the net cash inflow generated from the Company's online game operations.

Capital Increase and Share Transfer Transaction with Beijing Perfect World Cultural Communication Co., Ltd.

During the second quarter of 2009, Beijing Perfect World Network Technology Co., Ltd. ("PW Network"), the Company's controlled entity, completed the transaction with Beijing Perfect World Cultural Communication Co., Ltd. ("PW Cultural"), a media and entertainment company, to acquire additional equity in and increase the registered capital of PW Cultural. Following the completion of the transaction, PW Network holds 89% equity in PW Cultural. As such, PW Cultural has been consolidated into the Company's financial statements since the second quarter of 2009.

ADS and Share Repurchases

In October 2008, the Company's Board authorized an ADS repurchase program to repurchase up to USD100 million of the Company's ADSs from October 2008 to October 2009. As of August 9, 2009, the Company had repurchased an aggregate of 1,683,192 ADSs on the open market.

In addition to and separate from the above ADS repurchase program, the Company completed a repurchase of 18,750,000 shares of its Class A ordinary shares for approximately USD56.6 million from SAIF and an affiliate of SAIF in January 2009, and a repurchase of a total of 1,203,812 shares of its Class A ordinary shares and 11,296,188 shares of its Class B ordinary shares for approximately USD52.4 million from SAIF in June 2009.

All the repurchased shares have been cancelled pursuant to Cayman Islands' law.

Business Outlook

Based on the Company's current operations, total revenues for the third quarter of 2009 are expected to be between RMB547 million and RMB563 million, representing an increase of 5% to 8% on a sequential basis and 43% to 47% on a year-over-year basis. This reflects expected growth of the newly launched "Battle of the Immortals" and other existing games. With the Company's strong executional capabilities, the Company aims to sustain a stable growth rate over the long term.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principals in the United States, or GAAP, this press release presents non-GAAP operating profit, non-GAAP net income attributable to the Company's shareholders and non-GAAP earnings per ADS by excluding share-based compensation charge from operating profit, net income attributable to the Company's shareholders and earnings per ADS, respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and access the Company's core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation charge has been and will be incurred and is not reflected in the presentation of the non-GAAP financial measures. It should be considered in the overall evaluation of our results. None of the non-GAAP measures is a measure of net income attributable to the Company's shareholders, operating profit, operating performance or liquidity presented in accordance with GAAP. We compensate for these limitations by providing the relevant disclosure of our share-based compensation charge in our reconciliations to the GAAP financial measures, which should be considered when evaluating our performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure are set forth at the end of this release.

Conference Call

Perfect World will host a conference call and live webcast at 8:00 a.m. Eastern Daylight Time (8:00 p.m., Beijing time) on Monday, August 10, 2009.

    The dial-in details for the live conference call are as follows:

    -- U.S. Toll Free Number:           1-866-519-4004
    -- International Dial-in Number:    +65-6735-7955
    -- Mainland China Toll Free Number: 10-800-819-0121
    -- Hong Kong Toll Free Number:      80-093-3053
    -- U.K. Toll Free Number:           080-8234-6646
       Conference ID: PWRD

A live and archived webcast of the conference call will be available on the Investor Relations section of Perfect World's website at http://www.pwrd.com .

A telephone replay of the call will be available after the conclusion of the conference call through 10:00 a.m. Eastern Daylight Time, August 17, 2009.

    The dial-in details for the replay are as follows:

    -- U.S. Toll Free Number:           1-866-214-5335
    -- International Dial-in Number:    +61-2-8235-5000
       Conference ID: 7973 (PWRD)

About Perfect World Co., Ltd. ( http://www.pwrd.com )

Perfect World Co., Ltd. (Nasdaq: PWRD - News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West" and "Battle of the Immortals;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the management's quotations and "Business Outlook" contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to develop and operate new games that are commercially successful, the growth of the online game market and the continuing market acceptance of our games and in- game items in China and elsewhere, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, our ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Further information regarding these and other risks is included in Perfect World's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. All information provided in this press release and in the attachments is as of August 10, 2009, and Perfect World does not undertake any obligation to update any forward- looking statement as a result of new information, future events or otherwise, except as required under applicable law.


                           Perfect World Co., Ltd.
                         Consolidated Balance Sheets

                                          Audited      Unaudited    Unaudited
                                      December 31,       June 30,     June 30,
                                             2008           2009         2009
                                              RMB            RMB          USD
    Assets
      Current assets
          Cash and cash equivalents 1,333,075,731    945,724,224  138,462,157
          Restricted cash             150,361,200      5,009,476      733,430
          Short-term investments       50,000,000     40,000,000    5,856,344
          Accounts receivable, net     38,822,355     66,810,739    9,781,667
          Due from related parties             --      4,852,400      710,433
          Prepayment and other
           assets                      36,269,524     64,606,499    9,458,947
          Film and television cost             --     18,334,598    2,684,343
          Deferred tax assets           1,734,207      1,673,500      245,015
      Total current assets          1,610,263,017  1,147,011,436  167,932,336
      Non current assets
          Equity investments           22,559,975     32,862,786    4,811,394
          Property, equipment, and
           software, net              169,399,817    202,606,977   29,663,403
          Construction in progress    714,083,386    727,280,768  106,480,157
          Intangible assets, net       26,188,873     60,681,917    8,884,354
          Goodwill                             --    116,256,000   17,020,878
          Prepayments and other
           assets                      18,702,700     41,445,094    6,067,918
          Deferred tax assets           1,090,526        889,370      130,211
    Total assets                    2,562,288,294  2,329,034,348  340,990,651

    Liabilities and Shareholders'
     Equity
      Current liabilities
          Accounts payable             13,629,262     74,890,638   10,964,633
          Advances from customers      78,388,312     76,967,418   11,268,692
          Salary and welfare
           payable                     61,907,164     53,348,058    7,810,614
          Taxes payable                20,771,786     33,767,163    4,943,803
          Accrued expenses and
           other liabilities           24,813,169     67,835,885    9,931,757
          Share repurchase
           liability                  386,648,554             --           --
          Due to related party                 --      5,000,000      732,043
          Deferred revenues           223,352,994    258,570,405   37,856,930
          Deferred tax liabilities     26,000,000     19,759,114    2,892,904
          Deferred government
           grants                         620,000      2,070,000      303,066
      Total current  liabilities      836,131,241    592,208,681   86,704,442
      Deferred revenues                32,554,670     33,171,118    4,856,537
      Other long-term payable          28,000,000             --           --
    Total liabilities                 896,685,911    625,379,799   91,560,979

    Shareholders' Equity
      Ordinary shares (US$0.0001
       par value, 10,000,000,000
       shares authorized,
       72,385,480 Class A ordinary
       shares issued and
       outstanding, 210,350,565
       Class B ordinary shares
       issued and 210,147,840 Class
       B ordinary shares
       outstanding as of December
       31, 2008; 10,000,000,000
       shares authorized,
       50,295,070 Class A ordinary
       shares issued and
       outstanding, 195,613,660
       Class B ordinary shares
       issued and outstanding as of
       June 30, 2009)                     223,481        196,307       28,741
      Additional paid-in capital    1,177,967,483    332,618,406   48,698,194
      Treasury stock                 (391,224,203)            --           --
      Statutory reserves               94,945,533     94,945,533   13,900,842
      Accumulated other
       comprehensive loss             (65,577,655)   (65,763,133)  (9,628,288)
      Retained earnings               849,267,744  1,327,298,620  194,327,929
    Total Perfect World
     Shareholders' Equity           1,665,602,383  1,689,295,733  247,327,418
    Non-controlling interests                  --     14,358,816    2,102,254
    Total Shareholders' Equity      1,665,602,383  1,703,654,549  249,429,672
    Total Liabilities and
     Shareholders' Equity           2,562,288,294  2,329,034,348  340,990,651



                           Perfect World Co., Ltd.
               Unaudited Consolidated Statements of Operations

                                         Three months ended
                             June 30,     March 31,      June 30,     June 30,
                                2008          2009          2009         2009
                                 RMB           RMB           RMB          USD
    Revenues
       Online game
        operation
        revenues         299,397,364   377,173,678   475,110,023   69,560,192
       Overseas
        licensing
        revenues          35,015,395    47,968,592    46,216,819    6,766,540
    Total revenues       334,412,759   425,142,270   521,326,842   76,326,732
    Cost of revenues     (41,121,388)  (56,442,843)  (66,788,320)  (9,778,384)
    Gross profit         293,291,371   368,699,427   454,538,522   66,548,348
    Operating expenses
       Research and
        development
        expenses         (31,513,638)  (56,958,268)  (64,980,240)  (9,513,666)
       Sales and
        marketing
        expenses         (73,823,711)  (50,924,583)  (72,737,032) (10,649,327)
       General and
        administrative
        expenses         (21,996,244)  (30,438,140)  (37,153,341)  (5,439,569)
    Total operating
     expenses           (127,333,593) (138,320,991) (174,870,613) (25,602,562)
    Operating  profit    165,957,778   230,378,436   279,667,909   40,945,786
    Other income /
     (expenses)
       Investment loss      (292,263)     (625,045)   (1,072,144)    (156,971)
       Interest income     8,082,012     3,274,619     3,622,913      530,426
       Others, net        (3,988,788)    2,359,971        13,436        1,967
    Total other income,
     net                   3,800,961     5,009,545     2,564,205      375,422
    Profit before tax    169,758,739   235,387,981   282,232,114   41,321,208
       Income tax
        expense           (5,269,372)  (19,942,929)  (19,752,495)  (2,891,935)
    Net income           164,489,367   215,445,052   262,479,619   38,429,273
       Add: Net loss
        attributable to
        non-controlling
        interests                 --            --       106,205       15,549
    Net income
     attributable to
     the Company's
     shareholders        164,489,367   215,445,052   262,585,824   38,444,822
    Net earnings per
     share, basic               0.59          0.83          1.04         0.15
    Net earnings per
     share, diluted             0.55          0.79          0.99         0.14
    Net earnings per
     ADS, basic                 2.93          4.14          5.21         0.76
    Net earnings per
     ADS, diluted               2.76          3.96          4.94         0.72

    Shares used in
     calculating basic
     net earnings per
     share               281,166,704   260,412,419   251,956,208  251,956,208
    Shares used in
     calculating
     diluted net
     earnings per share  297,747,140   271,768,450   265,820,234  265,820,234

    Total share-based
     compensation cost
     included in:
       Cost of revenues     (674,389)   (1,079,899)   (1,342,444)    (196,545)
       Research and
        development
        expenses          (5,167,248)   (6,976,521)   (9,548,455)  (1,397,976)
       Sales and
        marketing
        expenses          (1,191,446)   (1,595,196)   (2,007,253)    (293,879)
       General and
        administrative
        expenses          (4,822,002)   (5,766,248)   (7,391,936)  (1,082,243)



                           Perfect World Co., Ltd.
               Unaudited Consolidated Statements of Cash Flows

                                          Three months ended
                            June 30,      March 31,      June 30,     June 30,
                               2008           2009          2009         2009
                                RMB            RMB           RMB          USD

    Cash flows from
     operating
     activities:
    Net income          164,489,367    215,445,052   262,479,619   38,429,273
    Adjustments for:
      Share-based
       compensation
       cost              11,855,085     15,417,864    20,290,088    2,970,643
      Depreciation
       and
       amortization
       expense            5,165,497      9,370,560    11,075,334    1,621,524
      Exchange loss       1,743,894         49,792       341,895       50,056
      Investment loss       292,263        625,045     1,072,144      156,971
      Loss / (gain)
       from disposal
       of property,
       equipment, and
       software                  --         67,569       (16,603)      (2,431)
      Changes in
       assets and
       liabilities:
         Accounts
          receivable     (1,268,471)   (19,038,659)   (9,353,651)  (1,369,454)
         Current
          prepayments
          and other
          assets        (14,541,991)    (6,622,458)  (14,924,272)  (2,185,042)
         Deferred tax
          assets           (662,787)       (75,319)      299,833       43,898
         Film and
          television
          cost                   --             --    (2,744,672)    (401,844)
         Non-current
          prepayments
          and other
          assets            467,091      1,050,366    (2,682,710)    (392,772)
         Accounts
          payable       (10,230,826)    11,651,065    15,946,954    2,334,771
         Advances
          from
          customers     (59,015,448)    (2,690,605)     (687,123)    (100,601)
         Salary and
          welfare
          payable         8,203,906    (25,700,751)   15,996,722    2,342,058
         Taxes
          payable         2,858,186     35,855,955   (22,815,018)  (3,340,315)
         Accrued
          expenses
          and other
          liabilities     2,943,696      5,868,313    29,482,061    4,316,427
         Deferred
          revenues       18,569,486     26,784,532     9,544,028    1,397,328
         Deferred tax
          liabilities            --    (18,139,092)   11,898,206    1,742,000
         Deferred
          government
          grants            350,000             --     1,450,000      212,292
    Net cash provided
     by operating
     activities         131,218,948    249,919,229   326,652,835   47,824,782

    Cash flows from
     investing
     activities:
      Purchase of
       property,
       equipment, and
       software        (511,927,172)   (14,221,383)  (41,752,492)  (6,112,924)
      Purchase of
       intangible
       assets                    --             --    (3,515,920)    (514,761)
      Decrease of
       restricted
       cash                      --    135,361,200     9,990,524    1,462,699
      Purchase of
       short-term
       investments      (50,000,000)   (40,000,000)           --           --
      Cash paid for
       equity
       investments      (20,735,000)            --   (10,000,000)  (1,464,086)
      Cash paid for
       business
       acquisitions,
       net of cash
       acquired                  --   (154,554,000)  (17,645,707)  (2,583,483)
      Increase in
       loan
       receivable                --             --    (3,000,000)    (439,226)
      Proceeds from
       short-term
       investments               --             --    50,000,000    7,320,430
      Cash received
       from related
       party loan                --             --     3,200,000      468,508
    Net cash used in
     investing
     activities        (582,662,172)   (73,414,183)  (12,723,595)  (1,862,843)

    Cash flows from
     financing
     activities:
         Proceeds
          from
          exercises
          of share
          options         1,388,550        334,433     3,253,688      476,368
         Repurchase
          of Company
          shares                 --   (523,583,215) (357,872,874) (52,395,665)
    Net cash provided
     by / (used in)
     financing
     activities           1,388,550   (523,248,782) (354,619,186) (51,919,297)

    Effect of
     exchange rate
     changes on cash
     and cash
     equivalents         (6,600,075)       110,412       (28,237)      (4,134)
    Net decrease in
     cash              (456,654,749)  (346,633,324)  (40,718,183)  (5,961,492)

    Cash and cash
     equivalents,
     beginning of
     the period       1,588,055,501  1,333,075,731   986,442,407  144,423,649
    Cash and cash
     equivalents, end
     of the period    1,131,400,752    986,442,407   945,724,224  138,462,157

    Supplemental
     disclosures of
     cash flow
     information:
    Cash paid during
     the period for
     income taxes        (5,600,017)    (2,575,784)  (31,554,325)  (4,619,824)



                           Perfect World Co., Ltd.
            Reconciliation of unaudited GAAP and Non-GAAP Results

                                           Three months ended
                                June 30,    March 31,     June 30,    June 30,
                                   2008         2009         2009        2009
                                    RMB          RMB          RMB         USD

    GAAP operating profit   165,957,778  230,378,436  279,667,909  40,945,786
    Share based
     compensation charge     11,855,085   15,417,864   20,290,088   2,970,643
    Non-GAAP operating
     profit                 177,812,863  245,796,300  299,957,997  43,916,429

    GAAP net income
     attributable to the
     Company's shareholders 164,489,367  215,445,052  262,585,824  38,444,822
    Share based
     compensation charge     11,855,085   15,417,864   20,290,088   2,970,643
    Non-GAAP net income
     attributable to the
     Company's shareholders 176,344,452  230,862,916  282,875,912  41,415,465

    GAAP net earnings per
     ADS
       - Basic                     2.93         4.14         5.21        0.76
       - Diluted                   2.76         3.96         4.94        0.72

    Non-GAAP net earnings
     per ADS
       - Basic                     3.14         4.43         5.61        0.82
       - Diluted                   2.96         4.25         5.32        0.78

    ADSs used in
     calculating net
     earnings per ADS
       - Basic               56,233,341   52,082,484   50,391,242  50,391,242
       - Diluted             59,549,428   54,353,690   53,164,047  53,164,047



    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces Recent Business Developments

07 Aug 2009 11:00:00 GMT

BEIJING, Aug. 7 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its recent business developments as of August 7, 2009.

(Logo: http://www.newscom.com/c... )

Press Releases Issued During the Period:

June 19, 2009 - Perfect World Raises Guidance for the Second Quarter of 2009

    August 6, 2009 - Perfect World Announces New 2D MMORPG "Dragon Excalibur"

    EXPANSION PACKS

"Legend of Martial Arts" Expansion pack - "The Island of Ice and Fire"

On July 30, 2009, Perfect World launched "The Island of Ice and Fire" expansion pack for "Legend of Martial Arts." In this expansion pack, the map of "The Island of Ice and Fire" is opened to players, and the "Storyline Based Leveling System" and "Trophy Collection System" are also introduced. In addition, the quest system has been greatly expanded and the equipment system has been upgraded. The content of the game is thus enhanced.

OVERSEAS LICENSING AGREEMENTS

Licensing "Pocketpet Journey West" to Taiwan, Hong Kong and Macau

On June 22, 2009, Perfect World entered into two new separate licensing agreements with Taiwan Index Corporation Ltd. ("TIC") and Gamania Digital Entertainment (Hong Kong) Co., Ltd. ("Gamania Hong Kong"), both of which are subsidiaries of Gamania Digital Entertainment Co., Ltd. (OTC: 6180 - News; "Gamania"), a major online game developer, publisher and operator in Taiwan. Under the terms of the agreements, TIC will operate "Pocketpet Journey West" in Taiwan, and Gamania Hong Kong will operate "Pocketpet Journey West" in Hong Kong and Macau. Launched in 2008 in mainland China, "Pocketpet Journey West" is Perfect World">

Licensing "Hot Dance Party" to Taiwan, Hong Kong and Macau

Following the agreements with Gamania to license "Pocketpet Journey West" in Taiwan and in Hong Kong and Macau, Perfect World signed agreements again with Gamania on July 24, 2009, to license "Hot Dance Party" to TIC in Taiwan and to Gamania Hong Kong in Hong Kong and Macau. Launched in 2008 in mainland China, "Hot Dance Party" is Perfect World's first 3D online casual game.

OVERSEAS LAUNCHES

Launch of "Chi Bi" in Japan

In June 2009, Perfect World launched its 3D MMORPG "Chi Bi" in Japan through its Japanese partner C&C Media Co., Ltd. Based on the Chinese history of the Three Kingdoms, "Chi Bi" features characteristics of traditional Chinese culture and aesthetic graphic designs. The game also contains unique features, such as "18 Legendary Weapon System" and "Battle of the Three Kingdoms System." The game has been popular since its launch in 2008 in mainland China.

Launch of "Hot Dance Party" in Thailand

In July 2009, Perfect World launched its 3D online casual game "Hot Dance Party" in Thailand through its partner Cubinet Interactive(s) Pte. Ltd. ("Cubinet"). As Perfect World's long-term partner in Southeast Asia, Cubinet has previously introduced several of Perfect World's online games in the region and the games were well received in the markets there.

AWARDS

Perfect World Won Three Grand Awards in "Chinese Online Gaming Industry Survey for the Past Decade"

"Chinese Online Gaming Industry Survey for the Past Decade," which was hosted by the ChinaJoy organization committee and other authoritative institutions came to a close in Shanghai in July 2009. The selection is a review of the achievements of China's game industry in the past decade, which celebrates and recognizes companies and individuals that have made outstanding contributions in China's online game industry in the past ten years. Perfect World won three grand awards in the selection: "Top 10 Most Valuable Chinese Online Gaming Companies for the Past Decade," "Top 10 Most Popular Self-Developed Online Games for the Past Decade of Chinese Online Gaming Industry" for its 3D MMORPG "Perfect World," and "Top 10 Most Influential Individuals in Chinese Online Gaming Industry for the Past Decade" for Perfect World's Chairman and Chief Executive Officer Michael Chi.

About Gamania Digital Entertainment Co., Ltd. (http://www.gamania.com )

Gamania Digital Entertainment Co., Ltd. (OTC: 6180 - News; "Gamania") is the pan-Asia leading online game developer, publisher and operator, providing high quality online game service to customers. Established in 1995, Gamania, with its headquarter in Taipei, has been working toward expanding the Asian markets and today has operations in Taiwan, Hong Kong, Korea, Japan, and mainland China. In addition to its famous licensed online games, Lineage I and Maple Story, Gamania recently has been striving to develop its in-house titles and other diversified business such as animation. The optimal goal of Gamania is to build a world-class digital entertainment platform.

About C&C Media Co., Ltd. (http://www.cc-media.co.j... )

C&C Media Co., Ltd. ("C&C Media") was founded in June 2001. Because of its operation philosophies and strength in today's increasingly competitive Japanese internet business, C&C Media has successfully created a unique market position. In addition, C&C Media has built a website, "MK-STYLE," featuring online games and game services for individual users. Supported by its strong operations team, the breadth of C&C Media's operations will continue to grow. Along with the popularization of bandwidth in Japan, the business of C&C Media will extend to digital entertainment areas besides online games.

About Cubinet Interactive(s) Pte. Ltd. (http://www.cubinet.com )

Cubinet Interactive(s) Pte. Ltd. ("Cubinet") is engaged in developing high-quality game products in the Southeast Asia market. Composed of a large number of senior experts in all aspects, Cubinet also has strong network support and a strong user's community. In addition to the publication and operation of games in Malaysia and Singapore, Cubinet also develops business throughout the Southeast Asia region. Through cooperation with Perfect World, the company successfully launched "Perfect World II" in Malaysia and Singapore. "Perfect World II" was one of the best performing online games in Southeast Asia in 2007. In addition, the company also introduced Perfect World's other games such as "Legend of Martial Arts," "Chi Bi" and "Zhu Xian" to the region where they also became popular.

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD - News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West" and "Battle of the Immortals;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operations in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces New 2D MMORPG 'Dragon Excalibur'

06 Aug 2009 11:02:00 GMT

BEIJING, Aug. 6 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, today announces the introduction of its first 2D real-time fantasy MMORPG, "Dragon Excalibur."

(Logo: http://www.newscom.com/c... )

Developed by Perfect World">

Safe Harbor Statements

    For further information, please contact:

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Files 2008 Annual Report on Form 20-F

19 Jun 2009 14:26:00 GMT

BEIJING, June 19 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced that it filed its annual report on Form 20-F for the year ended December 31, 2008 with the Securities and Exchange Commission on June 19, 2009. The annual report can be accessed on the Company's website at http://www.pwrd.com under the investor relations section. Perfect World will provide a hard copy of its annual report on Form 20-F containing complete audited financial statements for the year ended December 31, 2008, free of charge, to its shareholders and ADS holders upon request. Requests should be directed to Perfect World Co., Ltd., 8th floor, Huakong Building, No. 1 Shangdi East Road, Haidian District, Beijing 100085, People's Republic of China.

(Logo: http://www.newscom.com/c... )

About Perfect World Co., Ltd. (

    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Raises Guidance for the Second Quarter of 2009

19 Jun 2009 05:15:00 GMT

BEIJING, June 19 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "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 second quarter of 2009.

Due to stronger than expected ramp-up and traction of the newly launched "Battle of the Immortals," especially in the past month, and better than anticipated results from recently launched expansion packs on some of the existing games during the second half of the quarter, the Company now raises its revenue guidance to be between RMB489 million and RMB510 million, which represents a sequential increase of 15% to 20%. This compares to the previously announced sequential guidance of a 2% decline to a 2% increase in revenue.

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World, commented, "The visibility on our second quarter performance is increasing and we believe our results will come in ahead of our previous expectations. We are now beginning to benefit from our fine-tuned strategy of devoting more resources to longer-term projects. A good example is 'Battle of the Immortals,' our newly launched 2.5D mysterious adventure MMORPG, which has been very well-received as we devoted more resources to further developing the game prior to its debut. This successful launch also allows us to demonstrate our ability to leverage our leading technology and rich R&D and operating experience in the 3D market in penetrating into 2.5D and 2D markets more competitively."

"We are also seeing an encouraging outcome from our diversification strategy as we expand our game portfolio to benefit from multiple growth drivers. We are constantly enhancing our leading technology, which enables us to be more flexible in terms of game development and rolling out the newest expansion packs, so as to conform to customers' changing preferences more efficiently. Going forward, we will continue to allocate more resources to longer-term projects and larger expansion packs to lengthen the growth cycle of our games. In addition, we will further deepen and diversify our pipeline targeting different market segments, and build up a variety of franchises with multiple flagship titles. We remain committed to executing these strategies to drive the strong growth and sustainability of our Company."

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD - News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West" and "Battle of the Immortals;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces Recent Business Developments

18 Jun 2009 04:00:00 GMT

BEIJING, June 18 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced its recent business developments as of June 18, 2009.

Press Releases Issued During the Period:

June 1, 2009 - Perfect World Announces Share Repurchase from A Major Shareholder

EXPANSION PACKS

"Zhu Xian" Expansion Pack - "The Return of the Conqueror"

On May 26, 2009, the Company launched "The Return of the Conqueror" expansion pack for "Zhu Xian," to mark the second anniversary of the game. The expansion pack contains richer content. For instance, it features the battlefield of "The Souls of Chu Han Soldiers," which enables larger scale and more exciting squadron wars. It also contains the "The Rite of Elite Soldiers System" in which the players can develop their tools and equipment in a DIY mode.

"Battle of the Immortals" Expansion Pack - "The Encounter with the Hidden Dragon"

On June 4, 2009, the Company launched the first expansion pack for "Battle of the Immortals," "The Encounter with the Hidden Dragon." The expansion pack opens a fantasy world of adventures to players enabling them to take on the dragons in a new scene "The Timeless Dragon Den." Other new features include the newly developed "Civilization Exploration System," the upgraded "Association System," and a lot of new tools and equipment.

"Chi Bi" Expansion Pack - "The Rage of Battalions"

On June 18, 2009, the Company launched "The Rage of Battalions" expansion pack for "Chi Bi." The expansion pack features the "Fortress Intrusion System" and two new weapons: "Hook" and "Shield." Other new features include a number of strategic fortresses and battlefields of the Three Kingdoms Period such as "Longzhong Saga" and "Fengyi Pavilion."

OVERSEAS LICENSING AGREEMENTS

Licensing "Battle of the Immortals" to Taiwan

In June 2009, Perfect World signed an agreement to license its newly launched 2.5D mysterious adventure MMORPG "Battle of the Immortals" to Game Flier International Corporation, a subsidiary of the Taiwan-based game company Soft-World International Corp (TSEC: 5478) ("Soft-World"). Game Flier International Corporation was thus authorized to operate the game in Taiwan, Hong Kong and Macau. This was the first overseas licensing agreement for "Battle of the Immortals," and was the fourth cooperation between Perfect World and Soft-World.

OVERSEAS LAUNCHES

Launch of "Legend of Martial Arts" in Korea

In June 2009, Perfect World launched its 3D MMORPG "Legend of Martial Arts" in Korea through EYA Interactive Co., Ltd. "Legend of Martial Arts" was Perfect World's first comic online game. The game has been popular with the domestic online game players since its launch in 2006. Presently, the game has already been licensed to a number of countries and regions.

Launch of "Zhu Xian" in North America

In June 2009, Perfect World launched open beta testing for 3D MMORPG "Zhu Xian" in North America under the name "Jade Dynasty" through its wholly owned U.S. subsidiary, Perfect World Entertainment Inc. "Zhu Xian" is based on a popular internet fantasy novel of the same name, and has been well received by online game players in both China and overseas because of its creative designs and high quality imagery. The game has been localized to cater to North American game players.

About Game Flier International Corporation (http://www.gameflier.com )

Game Flier International Corporation ("Game Flier") is a subsidiary of Soft-World International Corp. (TSEC: 5478). Game Flier is engaged in distributing and operating online games. Game Flier is distributing and operating more than 20 online games, including "Ragnarok Online," "Sango Online," "Sky Dragon Online," "Zhu Xian Online," "Chinese Paladin Online" and "Sankokushi Online." Since 2007, Game Flier has been diversifying into the operation of online community and the development of web games. The web games it has launched include "Glog," "Web Three Kingdoms" and "Web Baseball." These games and associated blogs have been popular among gamers.

About EYA Interactive Co., Ltd. (http://www.eyainteractiv... )

Established in October 2004, EYA Interactive Co., Ltd. ("EYA Interactive") is a multimedia entertainment service provider that develops and operates online games and provides related selling and services in Korea. EYA Interactive is dedicated to developing high quality online games while building a sustainable corporate culture, maximizing customer satisfaction, and nurturing employee creativity. EYA Interactive's product portfolio currently includes a modern martial arts 3D MMORPG, "Dark Story Online," and a highly interactive 3D MMORPG, "Luna Online." Its products have been licensed to many countries and regions, including China, Japan, the United States, Hong Kong, Taiwan, Thailand, Malaysia, Singapore and the Philippines. EYA Interactive plans to launch several new games including "Iris Online," "EO Online" and "Legend of Edda" in 2009, which is expected to bring its development to the next stage. EYA Interactive will continue to focus on developing high quality online games in an effort to become a world class game company.

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD - News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West" and "Battle of the Immortals;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces Share Repurchase From A Major Shareholder

01 Jun 2009 05:07:00 GMT

BEIJING, June 1 /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 entered into an agreement to repurchase a total of 1,203,812 shares of its Class A ordinary shares and 11,296,188 shares of its Class B ordinary shares for approximately $52.4 million from SB Asia Investment Fund II, L.P. ("SAIF"). Prior to Perfect World's IPO in July 2007, SAIF had invested in the Company's Series A Convertible Preferred Shares which automatically converted into the Company's Class A ordinary shares, with a portion thereof further converted into Class B ordinary shares, upon the IPO. Currently, the Company has two classes of ordinary shares, consisting of Class A ordinary shares and Class B ordinary shares. All ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to 10 votes while each Class B ordinary share is entitled to one vote on all matters submitted to shareholder approval. Each of the Company's ADSs trading on the Nasdaq Global Select Market represents five Class B ordinary shares of the Company.

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World commented, "We believe that this presents a good opportunity to repurchase our Class A and Class B ordinary shares. On the strength of our cash position, we continue to be fully confident in our ability to successfully execute our business strategies and deliver long-term shareholder value."

About Perfect World Co., Ltd. ( http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West" and "Battle of the Immortals;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World to Launch Closed Beta Testing for 'Zhu Xian' in North America

07 May 2009 05:00:00 GMT

BEIJING, May 7 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator in China, today announced that it will launch closed beta testing for "Zhu Xian" in North America on May 26, 2009. The game will be released as "Jade Dynasty" through its wholly owned U.S. subsidiary, Perfect World Entertainment Inc.

(Logo: http://www.newscom.com/c... )

Based on a popular internet fantasy novel "Zhu Xian," "Jade Dynasty" is a 3D MMORPG localized to cater to the North American market. The game has a multitude of special features and systems. A player will obtain different skills and tools to develop a story that is unique to him or her. Gamers">

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World commented, "I am pleased with the progress of our development in the North American market. The introduction of 'Jade Dynasty' there will help further strengthen our international reputation as a comprehensive online game developer and operator."

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD - News) is a leading online game developer and operator in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West" and "Battle of the Immortals;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World to Announce First Quarter 2009 Financial Results on May 18, 2009

05 May 2009 04:30:00 GMT

BEIJING, May 5 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator in China, today announces that it will release unaudited financial results for the first quarter ended March 31, 2009, before the market opens on Monday, May 18, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/... )

The Company will host a corresponding conference call and live webcast at 8:00 am Eastern Daylight Time (EDT) the same day at 8:00 pm Beijing time.

    The dial-in details for the live conference call are as follows:

    - U.S. Toll Free Number:             1-866-519-4004
    - International Dial-in Number:      +65-6735-7955
    - Mainland China Toll Free Number:   10-800-819-0121
    - Hong Kong Toll Free Number:        80-093-3053
    - U.K. Toll Free Number:             080-8234-6646
      Conference ID: PWRD

A live and archived webcast of the conference call will be available on the Investor Relations section of Perfect World's website at http://www.pwrd.com .

A telephone replay of the call will be available after the conclusion of the conference call through 10:00 am Eastern Daylight Time, May 25, 2009.

    The dial-in details for the replay are as follows:
    - U.S. Toll Free Number              1-866-214-5335
    - International Dial-in Number       +61-2-8235-5000
      Conference ID: 7973 (PWRD)

About Perfect World Co., Ltd. (http://www.pwrd.com)

    For further information, please contact

     Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

     Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Announces Brand New 2D MMORPG 'Fantasy Zhu Xian'

05 May 2009 04:00:00 GMT

BEIJING, May 5 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator in China, today announces that it plans to release a brand new 2D turn-based cartoon MMORPG "Fantasy Zhu Xian" in 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/... )

"Fantasy Zhu Xian" is Perfect World's first 2D turn-based cartoon MMORPG, which is run on the Company's proprietary EPARCH engine. The game is based on a popular internet fantasy novel "Zhu Xian." Players will be ushered into the unknown world of "Zhu Xian" to unravel a series of mysteries. "Fantasy Zhu Xian" will also feature a number of new characters which will interact with the original characters of "Zhu Xian" to generate new stories.

"Fantasy Zhu Xian" will also be the first online game to adopt Perfect World's proprietary engine EPARCH, which targets the market for 2D online games. This engine will allow the Company to introduce innovative features such as reflections and flying in a 2D game.

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World, commented, "'Fantasy Zhu Xian' is an important product developed by Perfect World to target 2D turn-based online game market. It is also an integral part of our product portfolio for 2009. I believe that, as our first 2D turn-based MMORPG, 'Fantasy Zhu Xian' will further diversify our product portfolio and allow players to enjoy a new online gaming experience."

About Perfect World Co., Ltd. (http://www.pwrd.com)

Safe Harbor Statements

    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Enters into Publishing Agreement with Runic Games

22 Apr 2009 05:00:00 GMT

BEIJING, April 22 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator in China, today announced that it has entered into a publishing agreement with Runic Games, Inc. ("Runic Games"), a specialized developer of PC-based entertainment software in the United States, for the exclusive rights and license to publish "Torchlight," an action-packed massively multiplayer online role-playing game ("Action-MMORPG") that's being developed, throughout the world.

Being developed by Runic Games' experienced team of industry veterans, "Torchlight" is an adventure-themed Action-MMORPG. Adventurers set out from the town of Torchlight into the nearby mountains in search of the magic ore that imbues their equipment with power, yet imperils their very existence. "Torchlight" emphasizes a simple and intuitive interface, fast and furious action, and a colorful and compelling game world.

Mr. Max Schaefer, Chief Executive Officer of Runic Games, said, "Runic Games is very pleased to partner with Perfect World. Perfect World's strength and expertise in creating and running MMORPGs and track record of high quality of service to the playing community give us great confidence and hopes for a long and prosperous partnership. With 'Torchlight,' we strive to bring the best of Western and Eastern gaming together, creating a truly global title."

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World commented, "We are very pleased to cooperate with Runic Games, whose members have a first-rate track record. Leveraging Perfect World's marketing capabilities and deep understanding of Asian culture and player preferences, 'Torchlight' is expected to be a 'global title,' catering to the tastes of both Western and Eastern players. In addition to our involvement in game development leveraging our extensive experience with MMORPG, we will also strive to demonstrate our excellent game operating ability and to offer players unique and exciting online game experience. We treasure this opportunity to work with the professional team of Runic Games, and look forward to the success of 'Torchlight,' as a cornerstone for the long-term strategic relationship between Runic Games and Perfect World."

About Runic Games, Inc.

Runic Games is a developer of PC-based entertainment software, designing games that focus on quality, approachability, and fun. Runic Games is staffed by team with experienced members, including leads on "Diablo," "Diablo II," "Diablo II: Lord of Destruction," "Fate," "Hellgate: London" and "Mythos." Runic Games is located in Seattle, Washington, United States.

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (Nasdaq: PWRD - News) is a leading online game developer and operator in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West" and "Battle of the Immortals;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86...
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel:   +1-480-614-3036
     Fax:   +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com

[Press Release] Perfect World Launches 'Hot Dance Party 3.0 - Baby Plan' Expansion Pack

07 Apr 2009 05:49:00 GMT

BEIJING, April 7 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (Nasdaq: PWRD - News; "Perfect World" or the "Company"), a leading online game developer and operator in China, announced it launched "Hot Dance Party 3.0 - Baby Plan" expansion pack today.

"Hot Dance Party" was Perfect World's first 3D online casual game. The game has been well-received by online game players since its launch because of its excellent graphic design, innovative game systems and continued introduction of new features.

In "Hot Dance Party 3.0 - Baby Plan," a "Baby Rearing System" is added to the existing classic play mode, enhancing the fun of players' game life. Players who have paired up through the game's "Partnership System" can be bestowed a baby by an angel and enjoy the fun of raising the baby in game together.

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World, commented, "'Hot Dance Party,' as Perfect World's first online casual game, has been popular with players. I believe 'Hot Dance Party 3.0 - Baby Plan' will bring a new experience and more fun to them. The game's real-life simulation enables players to enjoy themselves in the colorful world of music and dance, and to live a varied life online. We will continue to provide quality games and services to bring more fun to players."

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD - News) is a leading online game developer and operator in China. Perfect World primarily develops three-dimensional ("3D") online games based on the proprietary Angelica 3D game engine and game development platform. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games that are designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," and "Battle of the Immortals;" and an online casual game: "Hot Dance Party." While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

    For further information, please contact:

    Perfect World Co., Ltd.
     Vivien Wang
     Investor Relations Officer
     Tel:   +86-10-5885-1813
     Fax:   +86-10-5885-6899
     Email: ir@pwrd.com
     Web:   http://www.pwrd.com

    Christensen Investor Relations
     Kathy Li
     Tel: +1-480-614-3036
     Fax: +1-480-614-3033
     Email: kli@christensenir.com

     Roger Hu
     Tel:   +852-2117-0861
     Fax:   +852-2117-0869
     Email: rhu@christensenir.com