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China Literature (772) investor relations material
China Literature H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue declined 23.9% year-over-year to RMB3,190.6 million, mainly due to fewer and uneven TV/film release schedules, but operating profit surged 92.7% to RMB875.8 million and net profit attributable to shareholders rose 68.5% to RMB849.8 million, driven by lower costs and significant other gains.
Online business revenue grew 2.3% year-over-year to RMB1,985.4 million, with monthly paying users up 4.5% to 9.2 million, while IP operations revenue fell 46.4%–48.4% due to lack of new TV/film releases.
IP merchandise GMV reached RMB480 million, nearly matching last year's full-year total, and the short drama segment saw robust growth with record-breaking titles.
AI initiatives drove a 38% year-over-year increase in international platform revenue from AI-translated titles, now over 35% of total novel revenue.
The company leveraged its strong IP library and innovation to lead in content creation, adaptation, and commercialization.
Financial highlights
Gross profit decreased 22.6% year-over-year to RMB1,612.4 million, with gross margin improving to 50.5% from 49.7% last year.
Non-IFRS profit attributable to equity holders was RMB507.8 million, down 27.7% year-over-year; excluding New Classics Media, non-IFRS profit rose 35.7%.
EBITDA was RMB318.2 million, and adjusted EBITDA RMB386.9 million (12.1% margin), both down year-over-year.
Net other gains of RMB582.5 million, primarily from gains on deemed disposal of an associate.
Basic EPS increased to RMB0.84 from RMB0.50 year-over-year.
Outlook and guidance
Several premium drama projects and new animation series are planned for release in H2 2025, with a focus on leveraging the IP library, expanding short drama and merchandise segments, and deepening AI integration.
The company expects continued growth in online business, IP licensing, and merchandise, with the market size projected to expand at a double-digit rate.
Management highlighted risks and uncertainties in forward-looking statements, emphasizing that forecasts are subject to change.
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