China Literature Ltd (00772) has released its interim results for the six months ended June 30, 2026. The group reported revenue of RMB 3.531 billion, representing a 10.68% increase year-over-year. Gross profit reached RMB 1.792 billion, up 11.15% from the same period last year. Profit attributable to equity holders of the company stood at RMB 135 million, with earnings per share of RMB 0.13.

During the first half of 2026, the online reading sector faced intensifying competition from the increasingly diversified and rapidly expanding IP visualization market. Despite this, China Literature Ltd premium online reading business maintained a healthy and vibrant ecosystem, fueling the creation of high-quality works. The platform saw a steady influx of young authors, while established top-tier writers continuously released new high-quality titles, further solidifying the foundation for IP incubation.

Meanwhile, the IP operations segment demonstrated strong performance, with revenue surging 41.9% year-over-year. Notably, the short drama and AI-based comic adaptation sectors experienced explosive growth following proactive deployment and deep application of AI technology. Revenue from these segments exceeded RMB 430 million in the first half, a 240% increase compared to the same period last year. Specifically, the hit rate of short dramas reached four times the market average, while 46 AI comic adaptations surpassed 100 million views, with a million-view rate five times the industry average. The group's IP merchandise business also maintained robust growth, recording a gross merchandise volume (GMV) of RMB 780 million in the first half, up over 60% year-over-year.

The group's online reading ecosystem serves as a "super reservoir" for premium content. In the first half of 2026, the platform attracted approximately 240,000 new authors, generating over 460,000 online literary works and adding more than 30 billion words, ensuring a plentiful supply of original content. The rise of the new generation of authors accelerated, with authors under 30 years old accounting for 57% of new signees earning over RMB 1 million, a 49% increase year-over-year. Promising works continued to emerge, with the number of works collected by users on the Qidian platform rising 37% year-over-year, and the number of works receiving monthly votes increasing by 26%. With the high-frequency return of top-tier platinum and great authors, two works attracted over 200,000 readers on their launch day, setting new records for the platform.