China Literature Limited (772) announced an expected IFRS loss attributable to equity holders ranging from RMB750 million to RMB850 million for the year ended December 31, 2025, compared with an IFRS loss of RMB209 million in 2024. According to the announcement, the main factor contributing to the increased loss is an estimated RMB1,800 million goodwill impairment related to its 2018 acquisition of New Classics Media Holdings Limited.

The goodwill impairment is described as non-cash and thus does not affect the Group’s cash flow. The announcement indicates that it is excluded from the Group’s measurement of non-IFRS financials. China Literature Limited also expects its non-IFRS profit attributable to equity holders to range between RMB800 million and RMB900 million for 2025, down from RMB1,142 million in the previous year.

The announcement highlights changes in audience viewing behavior, with short-form content exerting competitive pressure on longer-form productions. In response, New Classics Media has maintained a top-tier content strategy but adjusted production timelines to emphasize quality and refinement. The statement notes that the goodwill impairment fully writes off the goodwill from New Classics Media. The Group’s final annual results for 2025 are scheduled for release on March 17, 2026.