Perfect World 2025 Anti-Corruption Campaign: Resolute Reform Through Painful Remedies

On July 2, Perfect World (Stock Code: 002624) released its *2025 Anti-Corruption Special Governance Report*, disclosing the company’s most extensive and stringent internal anti-corruption operation in recent years. The campaign uncovered over a dozen violations across multiple business units, with several mid-to-senior executives handed over to judicial authorities and certain partners blacklisted. Perfect World emphasized in the announcement: “This anti-corruption effort is a critical step in our ‘cutting out the poisoned flesh to save the body’ reform. We must eradicate corruption at its roots and rebuild a healthy ecosystem.”

Zero-Tolerance Crackdown: Senior Executives Implicated

According to the report, internal audits and investigations from 2024 to 2025 revealed serious misconduct, including “cost misreporting, kickbacks, and commercial bribery” within certain project teams. Individuals abused their positions for personal gain in supplier partnerships, marketing, and IP procurement, causing significant financial losses. Those involved have been terminated and face legal consequences.

The campaign spanned core businesses such as gaming, film, and esports. A “Compliance and Ethics Committee”, directly supervised by the board, was established, with third-party auditors brought in to strengthen oversight. The CEO stated in an internal letter: “Corruption is a malignant tumor that hinders growth—we will show zero tolerance. This incident must serve as a lesson to establish a more transparent management system.”

System Overhaul: Building a ‘No Corruption’ Framework

Perfect World introduced multiple new anti-corruption measures, including:

• “Sunshine Procurement” System: All partner selection and bidding processes digitized to eliminate human interference.
• Executive Rotation & Audits: Mandatory job rotations for key roles, with audits upon departure.
• Whistleblower Rewards: Incentives for internal reporting, with rewards up to 20% of recovered losses.
• Partner Blacklist: Permanent bans for firms engaging in bribery or bid-rigging.

Additionally, July will be designated “Integrity Awareness Month”, with all employees signing an Ethics Pledge. An independent whistleblowing channel has also been set up for public oversight.

Industry Impact: A Bold Move Drawing Attention

The gaming and internet sectors have seen a wave of anti-corruption drives, with Tencent and NetEase taking similar actions. Perfect World’s “painful remedies” approach is viewed as a landmark shift toward modern corporate governance in traditional gaming firms.

Analysts note that as industry growth slows, robust compliance becomes a competitive edge: “This campaign isn’t just about recovering losses—it signals to investors Perfect World’s commitment to governance, which could bolster long-term confidence.”

Looking Ahead: Compliance-Driven Growth

Perfect World assured that operations remain unaffected, with key 2025 projects like Jade Dynasty World and Tower of Fantasy 2 on schedule. The company will integrate compliance into executive KPIs, ensuring “wherever business expands, integrity follows.”

About Perfect World
A leading digital entertainment group in China, Perfect World develops games, films, and esports content, with globally recognized IPs such as Jade Dynasty, Perfect World, and Tower of Fantasy.