China Literature Announces 2025 Interim Financial Results
China Literature Limited, also known as "China Literature" (stock code: 0772), a prominent online literature and intellectual property (IP) incubation platform, has provided its unaudited consolidated financial results for the first half of 2025, showcasing significant developments and growth trends.
Highlights of Financial Results
In the first half of 2025, the total revenues reported were RMB3,190.6 million (approximately USD445.7 million), indicating a decline from RMB4,190.9 million during the same period last year. Notably, revenues from online business increased by 2.3% year-over-year, reaching RMB1,985.4 million (or USD277.3 million), primarily driven by growth in self-owned platform products.
Conversely, revenues generated from intellectual property operations witnessed a substantial decline of 46.4%, dropping to RMB1,205.2 million (USD168.4 million). This drop was mainly attributed to the absence of new releases from New Classics Media, reflecting the typical development cycles of television series and films.
Profitability Insights
On an IFRS basis, profit attributable to the equity holders of the company experienced a remarkable jump of 68.5%, amounting to RMB849.8 million (USD118.7 million). The basic and diluted earnings per share were reported at RMB0.84 and RMB0.83, respectively.
When evaluated on a non-IFRS basis—designed to provide insights into core earnings by excluding one-time and non-cash items—profits attributable to equity holders decreased to RMB507.8 million (USD70.9 million) compared to RMB702.1 million during the same period in 2024. Excluding impact from uneven release schedules, non-IFRS profits rose by 35.7% year-over-year, reaching RMB545.3 million (USD76.2 million).
Growth Drivers in the Business
CEO Hou Xiaonan remarked on the company's robust online content ecosystem, which expanded with revenues from online business increasing to RMB1.99 billion in 2025. The company is actively focusing on premium television series, animation, and comics derived from its extensive IP library.
The first half of 2025 saw China Literature achieving significant advancements in emerging segments such as short dramas and IP merchandising. With a GMV of RMB480 million, the IP merchandise business demonstrated remarkable momentum, nearly matching last year's full-year results.
The rise of short dramas has transformed consumption patterns while driving enhanced monetization opportunities for long-tail IPs. This dynamic shift is indicative of the company’s responsiveness to market trends and underlines its potential for sustained growth.
Operational Metrics Overview
In terms of operational performance, the average monthly active users (MAUs) on self-owned platforms and Tencent-operated channels stood at 141.3 million. Despite a 2.5% decline in MAUs on self-owned platforms, the engagement metrics reflect a solid user base with increasing content consumption.
Moreover, average monthly paid users (MPUs) increased by 4.5% to 9.2 million, mainly due to enhanced membership offerings.
Looking Ahead: Future Developments and Strategies
The second half of 2025 is poised to be pivotal for China Literature as it leverages its extensive IP library and strategic partnerships to capitalize on industry trends, enhance its content ecosystem, and drive innovative entertainment offerings. The increasing interest in IP commercialization, particularly in physical goods linked to popular characters and series, presents vast new revenue avenues.
China Literature is relentless in its pursuit to grow as a foremost player in the evolving IP ecosystem, blending creativity with market insights to create compelling narratives and experiences for its audience.
Frequently Asked Questions
What are the key financial highlights from China Literature's report?
China Literature reported total revenues of RMB3,190.6 million with a 68.5% increase in profit attributable to equity holders, reaching RMB849.8 million.
What challenges did the company face in its IP operations?
The absence of new TV series or film releases was attributed to significant revenue declines in IP operations, showcasing the impact of release cycles.
How did online business perform in the first half of 2025?
Online business revenues increased by 2.3% year-over-year to reach RMB1,985.4 million, primarily due to growth in self-owned platforms.
What strategies are outlined for future growth?
China Literature plans to expand its IP library and innovate in content formats while capitalizing on emerging segments to drive revenue growth.
What role does user engagement play in their business model?
User engagement remains a crucial driver of performance, evidenced by an increase in MPUs and community interaction in online reading services.
