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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 uneven TV/film release schedules, but operating profit surged 92.7% to RMB875.8 million and profit attributable to equity holders rose 68.5% to RMB849.8 million.
Online business revenue grew 2.3% year-over-year to RMB1,985.4 million, with MPU up 4.5% to 9.2 million, while IP operations revenue fell 46.4% due to fewer TV/film releases.
IP merchandise GMV reached RMB480 million, nearly matching last year's full-year total, and the short drama segment achieved robust growth with two of the top 10 short dramas by viewership in June 2025.
AI initiatives drove a 38% year-over-year increase in international platform revenue from AI-translated titles, now over 35% of total novel revenue, and enhanced content creation and user engagement.
The company leveraged its extensive IP library, innovation, and cross-industry synergies to capitalize on market trends in online reading, TV, animation, comics, and merchandise.
Financial highlights
Gross profit decreased 22.6% year-over-year to RMB1,612.4 million; gross margin improved 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), down from RMB587.6 million (14.0%) year-over-year.
Net other gains were RMB582.5 million, mainly from gains on deemed disposal of an associate.
Net cash position was RMB9,573.0 million as of June 30, 2025, with no borrowings or gearing.
Outlook and guidance
Management expects 2025 to be pivotal, with short dramas, trendy toys, and cultural goods driving new content and consumption patterns.
The company plans to release several premium drama projects and one movie in the second half of 2025.
Merchandise business aims to deepen market presence, expand product categories, and leverage new investments for growth.
Continued focus on AI, VR, and AR to empower IPs and extend their lifecycle.
Anticipates favorable impact from new industry policies supporting content creation and distribution.
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