China Literature (00772) rose more than 8% in early trading. As of press time, the stock was up 7.87%, trading at HK$23.04, with a turnover of HK$80.51261 million.

According to CCTV Finance, AI technology has accelerated the development of the anime drama industry since the beginning of this year. Recently, domestically produced anime dramas have gained favor in overseas markets, becoming a new growth pole for the industry. Currently, approximately 10 Chinese companies have established overseas short drama platforms, and more than a dozen overseas short drama apps have launched dedicated AI anime drama channels. The total number of active users of AI anime dramas in overseas markets has exceeded 150 million. Among the top ten paid overseas short drama applications, Chinese companies occupy nine spots.

AI is becoming a new growth driver for China Literature's overseas expansion. In the first half of the year, AI translation drove a 160% year-on-year increase in revenue from WebNovel's minority-language web novels. The overseas platform ToonScroll already has 50 anime dramas with over 10 million views each. Recently, the company also disclosed at Tencent's Global Digital Ecosystem Summit International Expansion Forum that its anime drama creation tool DramaBuddy has officially integrated with Tencent WorkBuddy.

China Securities Co., Ltd. pointed out that the company has continued to improve its complete closed loop of "web novel IP - AI adaptation - distribution and monetization" since the beginning of this year, and is bullish on the company benefiting from AI development to improve IP monetization.