China Literature (772) H1 2024 earnings summary

Executive summary

• Achieved strong growth in H1 2024, driven by blockbuster IP releases such as Joy of Life 2 and YOLO, and robust performance in live action TV, film, and animation segments.

• Expanded international reach, distributing content in over 180 countries and growing AI-translated works.

• Strengthened content ecosystem with 170,000 new writers and 320,000 works, and a surge in young talent and high-performing new titles.

• Completed acquisition of Tencent Animation and Comics, adding top Chinese comic IPs to the portfolio.

• Integrated AI technology for translation, content creation, and visual production, significantly improving efficiency and expanding overseas reach.

Financial highlights

• Total revenues rose 27.7% year-over-year to RMB4,190.9 million in H1 2024.

• Gross profit increased 29.8% year-over-year to RMB2,083.2 million; gross margin improved to 49.7%.

• Operating profit rose 46.1% year-over-year to RMB454.4 million; profit attributable to shareholders up 33.9% to RMB504.3 million.

• Non-IFRS profit attributable to shareholders increased 16.4% year-over-year to RMB702.1 million.

• EBITDA reached RMB501.5 million; adjusted EBITDA was RMB587.6 million.

Outlook and guidance

• Strong pipeline for H2 2024 and beyond, with multiple drama series, film projects, and over 100 short-form dramas in development.

• Continued focus on premium IP incubation, adaptation, commercialization, and international expansion, leveraging new technologies.