As the content industry grapples with concerns over whether AI will replace creators, Yuewen Group has presented a new approach. The company's full-year 2025 financial report, released on March 17, indicates that this dominant IP player is navigating an industry-wide adjustment by deeply integrating AI technology across its entire industrial chain, aiming to transform from a "literary platform" into a "global IP factory."
According to the data, Yuewen reported annual revenue of 7.37 billion yuan for 2025, a decrease of 9.3% year-on-year. Although revenue was impacted by the downturn in the film and television sector, a "second growth curve" revealed in the detailed financial data showed remarkable momentum: AI-generated comic series revenue surpassed 100 million yuan, and the gross merchandise value (GMV) of IP-derived products doubled.
Against the backdrop of fluctuating revenue, Yuewen's profitability was also affected by non-recurring factors. The company recorded a net loss of 776 million yuan in 2025, primarily due to a goodwill impairment loss of 1.8 billion yuan related to Xinli Media. Excluding such impacts, Yuewen's Non-IFRS net profit attributable to shareholders was 860 million yuan.
In terms of revenue composition, the online business contributed 4.05 billion yuan last year, remaining largely stable compared to 2024. While copyright operation income decreased to 3.19 billion yuan due to project delays, its internal structure is undergoing a qualitative shift—the proportion of new formats such as short dramas, AI comic series, and derivative products is increasing.
This reflects an industry consensus: in an era of competition for existing users, simple traffic monetization has reached its limit. The real challenge for major players in long-form video and digital publishing is how to deeply mine the marginal value of individual IPs.
Guided by its "IP + AI" strategy, Yuewen's AI comic series business achieved a breakthrough start last year. Since its launch in the second half of 2025, Yuewen has released nearly a thousand AI-generated comic series works. Twelve of these, including titles like "The Great Ming Son-in-Law" and "Mysterious Fate Lines," have each garnered over 100 million views, driving the business's revenue to quickly exceed the 100 million yuan mark.
Simultaneously, Yuewen's IP merchandise business continued its rapid growth, with annual GMV successfully surpassing 1.1 billion yuan—more than double the figure from 2024 and a new historical high. Driven by four key engines—product development, sales channels, operational strategies, and ecosystem building—the IP merchandise business experienced systematic expansion in 2025. Major IPs such as "The King's Avatar" and "Lord of the Mysteries" are effectively converting their substantial fan bases into tangible revenue.
Furthermore, the deep application of AI technology has served as a "super accelerator" for Yuewen's overseas expansion. By the end of 2025, the company's WebNovel platform had accumulated over 17,000 AI-translated works, which contributed to more than one-third of the platform's total revenue.
Regarding future development, Yuewen Group's CEO and President, Hou Xiaonan, outlined three core strategies for 2026 in a recent internal communication: "Evergreen Content, IP + AI, and Globalization." He emphasized that the faster AI develops, the more valuable original content becomes, and the greater the significance of a good story. Yuewen's goal is not only to produce hit IPs but also to extend their lifecycle through sequels, derivative merchandise, and other means, aiming to create "evergreen IPs."
On the path to maximizing IP value, Yuewen still faces challenges related to industry cycles. Critical questions remain for management: how to maintain a commitment to quality in the fast-growing short drama sector, and how to balance the efficiency gains from AI with the preservation of literary and artistic originality amidst the ongoing AI wave.