As contemporary adults’ “digital snacks” evolve from short videos to serialized “short drama snacks,” the short drama market is experiencing its “golden year” in 2025. According to the latest research from Hongguo Short Drama, China’s short drama market is expected to approach 100 billion yuan in 2025, doubling the 50 billion yuan scale of 2024. Behind this boom lies the rise of “hit-making machines” that precisely capture audience preferences.
On December 11, CHINA LIT (00772) released its 2025 short drama report card. The company produced over 120 short dramas during the year, showcasing significant capacity growth. Multiple works secured “hit drama” recognition on leading platforms, spanning genres such as modern romance, historical, period dramas, and male-oriented content. For instance, the female-oriented drama *Sweet Wife with a Baby* became a phenomenon at the start of the year, ranking second on Yunhe’s annual viewership chart with over 3 billion total plays and 80 million yuan in revenue, topping the paid monthly chart. Meanwhile, the male-oriented drama *This Bodyguard Is Too OP* claimed the No. 1 spot on paid platforms for five consecutive days, achieving 76.86 million in popularity on free platforms and securing top rankings across multiple charts.
These impressive figures underscore CHINA LIT’s dual improvement in both output and quality, solidifying its dominance in the short drama space. As the micro-drama wave sweeps global entertainment with unprecedented momentum, CHINA LIT—backed by its scalable IP ecosystem—stands poised for a value reassessment.
**Core Value Drivers: Premium IP + Top Creators** CHINA LIT entered the short drama market in 2023, leveraging its content expertise during the industry’s shift from unregulated growth to standardization. Its hits include *Dragon Emperor of Ten Thousand Paths* (2024), which grossed over 10 million yuan in 72 hours, and *Ding! My Billionaire Husband Is Online*, which surpassed 12 million yuan in 48 hours. By 2025, the company expanded its portfolio with diverse hits like *Sweet Wife with a Baby*, *Wild at Heart*, and *Rebirth After Leaving Home*.
Two key advantages fuel CHINA LIT’s success: 1. **Vast IP Reservoir**: In March 2025, CHINA LIT announced plans to adapt 2,000+ web novels into short dramas, offering a scalable, low-risk pipeline of proven stories. Each IP comes with pre-built worlds, compelling conflicts, and audience-tested appeal. 2. **Creator Ecosystem**: Its network of top web novelists ensures adaptations retain original narrative hooks. For example, *Sweet Wife with a Baby* (co-developed with author Gongzi Yan) became a global hit by masterfully pacing its “family reunion” plot, while *Wild at Heart* (adapted by author Bai Xiangmi) drew 60 million platform views through emotional depth.
With a 60% hit rate in H1 2025—far above industry averages—CHINA LIT’s vertically integrated model (spanning IP incubation, production, and distribution) and partnerships (e.g., WeChat, Tencent Video) form an unshakable moat.
**From Short Dramas to Webcomics: Strategic Expansion** The webcomic (“manju”) market, driven by AI and platform support, is another high-growth frontier. In H1 2025, 3,000 webcomics launched with an 83% CAGR, while revenue surged 12-fold, signaling a 20 billion yuan annual opportunity.
At its October 2025 Creators Conference, CHINA LIT CEO Hou Xiaonan unveiled a four-pillar webcomic strategy: - **IP**: Opening 100,000 premium IPs (e.g., *National Forensic Doctor*) - **Funding**: A 100 million yuan creator fund - **Tech**: AI tools like “Manju Assistant” to streamline adaptations - **Ecosystem**: Partnerships with studios (e.g., Jiangyou Animation) for end-to-end support
Webcomics complement short dramas by targeting Gen Z and anime fans, broadening IP reach. Their lower cost and faster turnaround also accelerate visual IP development—a critical edge as AI reshapes content creation.
**Conclusion** CHINA LIT’s short drama and webcomic ventures are not just revenue drivers but catalysts for its transformation from a “digital reader” to an “IP ecosystem player.” Despite softness in its core reading and licensing segments, bullish sentiment persists: CLSA and UBS set a HK$40 target, while CMB International and Shenwan Hongyuan maintain “Buy” ratings, betting on its IP monetization potential.
As AI matures and visual IP demand grows, CHINA LIT’s dual-engine strategy could unlock the next growth chapter—and a higher market multiple.
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