CHINA LIT (00772) surged over 16% again, and as of press time, it was up 15.02% to HK$43.04, with a trading volume of HK$666 million. On the news front, the animation and live-action TV series adaptations of the Qidian intellectual property "Tales of Demons and Gods" became popular during the summer season. CHINA LIT announced a "National Creative Content Strategic Partnership" with Honor of Kings, Tencent's flagship game. Both parties will explore collaboration possibilities in the national creative content field, with exclusive merchandise products produced by the group's subsidiary Yuewen Haowu now available for pre-order on the official flagship store and Honor of Kings' official mall.

Additionally, CHINA LIT's first-half revenue reached 3.191 billion yuan, down 23.9% year-over-year, while net profit attributable to shareholders was 850 million yuan, up 68.50% year-over-year. Citibank released a research report stating that CHINA LIT's first-half performance slightly outperformed expectations, primarily benefiting from growth in licensing business, steady performance of short dramas, and progress in intellectual property merchandising, leading to stronger-than-expected profit growth in non-New Classics Media businesses.

Looking ahead to the second half of the year, Citibank expects CHINA LIT's intellectual property merchandising to continue making progress. The momentum in short drama growth is expected to persist, benefiting from unique intellectual properties and author collaborations. If NCM releases content as planned, the NCM business is expected to contribute 243 million yuan in profits this year.