HONG KONG, Aug. 12, 2025 /PRNewswire/ -- China Literature Limited ("China Literature" or "the Company", stock code: 0772), a leading online literature and intellectual property ("IP") incubation platform in China, today announced the unaudited consolidated results for the six months ended June 30, 2025.

Results Highlights (1)

   -- Total revenues were RMB3,190.6 million (USD445.7 million), compared with 
      RMB4,190.9 million in the first half of 2024.- Revenues from online 
      business increased by 2.3% year-over-year to RMB1,985.4 million (USD277.3 
      million), mainly due to the revenue growth of self-owned platform 
      products.- Revenues from intellectual property operations and others 
      decreased by 46.4% year-over-year to RMB1,205.2 million (USD168.4 
      million), mainly attributable to the absence of new TV series or film 
      releases from New Classics Media ("NCM") in the first half of the year, 
      reflecting the inherent development cycles and scheduling of TV series 
      and film projects. 
 
   -- On an IFRS basis:- Profit attributable to equity holders of the Company 
      increased by 68.5% year-over-year to RMB849.8 million (USD118.7 
      million).- Basic earnings per share were RMB0.84. Diluted earnings per 
      share were RMB0.83. 
 
   -- On a non-IFRS (2) basis, which is intended to reflect core earnings by 
      excluding certain one-time and/or non-cash items:- Profit attributable to 
      equity holders of the Company was RMB507.8 million (USD70.9 million), 
      compared with RMB702.1 million in the first half of 2024, influenced by 
      the uneven release schedules for TV series and films of NCM within this 
      year. Excluding this impact, non-IFRS profit attributable to equity 
      holders of the Company increased by 35.7% year-over-year to RMB545.3 
      million (USD76.2 million).- Basic earnings per share were RMB0.50. 
      Diluted earnings per share were RMB0.50. 
 
(1)  Figures stated in USD are based on USD1 to RMB7.1586. (2)  Non-IFRS 
adjustments exclude share-based compensation, M&A related impact such as net 
gains or losses from investee companies, amortization of intangible assets and 
impairment provisions, as well as related income tax effects. (3)  Certain 
figures included in this press release have been subject to rounding 
adjustments. Accordingly, figures shown as totals may not be an arithmetic 
aggregation of the figures shown in the breakdown items. 
 

Mr. Hou Xiaonan, Chief Executive Officer of China Literature, commented, "In the first half of 2025, our online reading content ecosystem continued to flourish, with revenues from online business increasing by 2.3% year-over-year to RMB1.99 billion. In terms of our IP operation business, China Literature's IPs have consistently excelled across premium TV series, animation, and comics. Additionally, we made breakthroughs in emerging segments such as short dramas and IP merchandising. The success rate of blockbuster short dramas saw significant improvement, and our IP merchandise business achieved a GMV of RMB480 million -- nearly matching last year's annual total, underscoring its strong momentum of development.

Overall, the year 2025 will be a pivotal period for fostering strong growth momentum. The rapid rise of short dramas, the breakout popularity of trendy toys, and the spreading influence of goods culture are driving new types of content and consumption patterns into the mainstream at an unprecedented pace. This evolution not only highlights the vibrancy of the cultural consumption market but also reaffirms the fundamental core principle: major breakthroughs in growth are driven by the creative transformation and contextual development of premium IP. With this historic opportunity in front of us, we will capitalize on our vast IP library, extensive experience, and established cross-industry synergies we have cultivated over multiple years to reshape the industry landscape and drive its development. Looking ahead, we remain committed to becoming the key driving force and lead architect of China's evolving IP ecosystem."

Financial Review (3)

Revenues were RMB3,190.6 million (USD445.7 million), compared with RMB4,190.9 million in the first half of 2024.

Revenues from online business increased by 2.3% year-over-year to RMB1,985.4 million (USD277.3 million).

i) Online business revenues from self-owned platform products increased by 3.1% year-over-year to RMB1,746.0 million (USD243.9 million), due to the Company's focus on improving core product operations and continuous production of high-quality content;

ii) Online business revenues from channels on Tencent products decreased by 25.6% year-over-year to RMB97.1 million (USD13.6 million), primarily due to a decline in advertising revenues associated with the continuous refinement of content distribution practices on Tencent channels and prioritization of distribution through core pay-to-read products; and

iii) Online business revenues from third-party platforms increased by 23.1% year-over-year to RMB142.2 million (USD19.9 million), reflecting the increasing value of the Company's high-quality content to partners.

Revenues from IP operations and others decreased by 46.4% year-over-year to RMB1,205.2 million (USD168.4 million).

i) Revenues from IP operations decreased by 48.4% year-over-year to RMB1,137.5 million (USD158.9 million), mainly attributable to the absence of new TV series or film releases in the first half of the year, reflecting the inherent development cycles and scheduling of TV series and film projects. Meanwhile, several new businesses have been developing rapidly, particularly the IP merchandise business, which generated strong growth with GMV increasing to RMB480 million in the first half of the year, nearly reaching the full-year total of RMB500 million in 2024; and

ii) Revenues from the "others" category, mainly generated by sales of physical books, increased by 41.9% year-over-year to RMB67.7 million (USD9.5 million).

Cost of revenues decreased by 25.1% year-over-year to RMB1,578.2 million (USD220.5 million). The decrease was primarily due to the absence of new TV series or film releases in the first half of the year, which resulted in no corresponding production costs being recognized during the period.

Gross profit was RMB1,612.4 million (USD225.2 million), compared with RMB2,083.2 million in the first half of 2024. Gross margin was 50.5%, compared with 49.7% in the first half of 2024.

Interest income was RMB81.9 million (USD11.4 million), compared with RMB90.6 million in the first half of 2024.

Net other gains were RMB582.5 million (USD81.4 million), compared with net other losses of RMB3.7 million in the first half of 2024. Net other gains of this period were primarily related to investment activities.

Selling and marketing expenses decreased by 20.4% year-over-year to RMB922.4 million (USD128.9 million), mainly due to a decrease in marketing and promotional expenses associated with TV series and films.

General and administrative expenses decreased by 11.0% year-over-year to RMB484.7 million (USD67.7 million), primarily due to lower employee-related expenses.

Net reversal of impairment losses on financial assets was RMB6.2 million (USD0.9 million), mainly due to the recovery of previously impaired receivables related to IP operations.

Operating profit increased by 92.7% year-over-year to RMB875.8 million (USD122.3 million). On a non-IFRS basis, operating profit was RMB448.7 million (USD62.7 million), compared with RMB624.2 million in the first half of 2024.

Income tax expense was RMB149.5 million (USD20.9 million), compared with RMB99.1 million in the first half of 2024, primarily due to the increase in taxable income.

Profit attributable to equity holders of the Company increased by 68.5% year-over-year to RMB849.8 million (USD118.7 million). On a non-IFRS basis, profit attributable to equity holders of the Company was RMB507.8 million (USD70.9 million), down from RMB702.1 million in the first half of 2024, influenced by the uneven release schedules for TV series and films of NCM within this year. Excluding this impact, non-IFRS profit attributable to equity holders of the Company increased by 35.7% year-over-year from RMB401.7 million in the first half of 2024 to RMB545.3 million (USD76.2 million).

Key Operating Information

- Average MAUs on self-owned platform products and self-operated channels on Tencent products were 141.3 million in the first half of 2025, compared with 176.0 million in the first half of 2024.

i) MAUs on self-owned platform products declined by 2.5% year-over-year from 105.3 million to 102.7 million but remained largely stable compared with 102.3 million on a six-month basis; and

ii) MAUs on self-operated channels on Tencent products were 38.5 million, compared with 70.7 million in the first half of 2024, primarily due to ongoing optimization of operational efficiency by concentrating more content distribution through core pay-to-read products which resulted in a decline in active users on free-to-read channels.

- Average MPUs on self-owned platform products and self-operated channels on Tencent products increased by 4.5% year-over-year to 9.2 million in the first half of 2025, driven primarily by the launch of additional membership content since the second half of 2024.

- Monthly ARPU for pay-to-read business decreased by 1.3% year-over-year to RMB31.3, mainly due to a mix effect from lower ARPU contributions from newly acquired membership users.

Other Key Information

- EBITDA was RMB318.2 million (USD44.5 million), compared with RMB501.5 million in the first half of 2024. Adjusted EBITDA was RMB386.9 million (USD54.0 million), compared with RMB587.6 million in the first half of 2024.

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August 12, 2025 04:40 ET (08:40 GMT)