HONG KONG, March 17, 2026 /PRNewswire/ -- China Literature Limited ("China Literature" or "the Company", stock code: 0772), a leading online literature and intellectual property ("IP") incubation platform in China, today announced the audited consolidated results for the year ended December 31, 2025.
Results Highlights (1)
-- Total revenues were RMB7,366.2 million (USD1,048.0 million), compared
with RMB8,121.1 million of 2024.- Revenues from online business were
RMB4,047.0 million (USD575.8 million), compared with RMB4,030.6 million
in 2024.- Revenues from intellectual property operations and others were
RMB3,319.1 million (USD472.2 million), compared with RMB4,090.5 million
in 2024, mainly attributable to scheduling delays that led to fewer
releases of drama series and film projects in 2025.
-- On an IFRS basis:- Operating loss was RMB804.5 million (USD114.5 million),
compared with RMB336.1 million in 2024.- Loss attributable to equity
holders of the Company was RMB776.1 million (USD110.4 million), compared
with a loss of RMB209.2 million in 2024, primarily due to a RMB1.8
billion impairment loss of goodwill attributable to New Classics Media. -
Basic loss per share was RMB0.76. Diluted loss per share was RMB0.76.
-- On a non-IFRS (2) basis, which is intended to reflect core earnings by
excluding certain one-time and/or non-cash items: - Operating profit was
RMB735.2 million (USD104.6 million), compared with RMB985.4 million in
2024.- Profit attributable to equity holders of the Company was RMB858.5
million (USD122.1 million), compared with RMB1,141.7 million in 2024.-
Basic earnings per share was RMB0.84. Diluted earnings per share was
RMB0.84.
(1) Figures stated in USD are based on USD1 to RMB7.0288.
(2) Non-IFRS adjustments exclude share-based compensation, M&A related impact
such as impairment provisions, net losses/(gains) from investee companies and
amortization of intangible assets, as well as related income tax effects.
(3) Certain figures included in this press release have been subject to
rounding adjustments. Accordingly, figures shown as totals may not be an
arithmetic aggregation of the figures shown in the breakdown items.
Mr. Hou Xiaonan, Chief Executive Officer of China Literature, commented, "In 2025, our premium content ecosystem delivered solid growth. For the first time, two blockbuster titles surpassed 300,000 average subscriptions per chapter, validating the massive, sustained demand for our premium content. We upgraded our IP operations by embracing new production models and technologies across our extensive library. This strategy drove robust results in traditional formats such as drama and animation, while sparking major breakthroughs in the fast-growing short drama and AI-animated drama formats. Our premium short drama strategy delivered frequent breakout hits, while the AI-animated drama business had a strong debut. Since the second half of 2025, we have released nearly 1,000 AI-animated dramas, with over 100 surpassing 10 million views and 12 exceeding 100 million views. Revenue from AI-animated drama in the second half of 2025 exceeded RMB100 million. Meanwhile, our IP merchandise business sustained rapid growth, with full-year GMV exceeding RMB1.1 billion, more than double the 2024 figure and a new record.
Looking ahead, we stand at the dawn of a new wave of transformation in the content industry. New business models are emerging, and AI is accelerating production workflows. Our leading ecosystems in literature, comics, and animation continue to thrive, and we are cultivating new content ecosystems in formats such as short drama and AI-animated drama. As we embrace AI, we are intensifying efforts to empower creators for the AI era. That said, regardless of how formats evolve, one timeless truth remains: high-quality content is and will always be at the core. This is the foundation of China Literature. We possess the industry's deepest IP library and the most robust creator ecosystem, now with AI as a powerful accelerator. Together, these strengths are unlocking new value-creation opportunities for premium IPs. We will continue to deepen AI integration across creative assistance, premium production, IP development, and global expansion to drive China Literature's sustainable, long-term, and high-quality growth."
Financial Review (3)
Revenues were RMB7,366.2 million (USD1,048.0 million), compared with RMB8,121.1 million of 2024.
Revenues from online business were RMB4,047.0 million (USD575.8 million), compared with RMB4,030.6 million in 2024. A breakdown of this category is below:
i) Online business revenues from our self-owned platform products increased by 0.9% year-over-year to RMB3,562.3 million (USD506.8 million). This was mainly driven by the Company's focus on improving core product operations and continuous production of high-quality content.
ii) Online business revenues from our channels on Tencent products decreased by 22.3% year-over-year to RMB190.6 million (USD27.1 million). This was mainly driven by a decrease in advertising revenues associated with the continuous refinement of content distribution practices of Tencent channels and prioritization of distribution through the Company's core pay-to-read products.
iii) Online business revenues from third-party platforms increased by 15.7% year-over-year to RMB294.2 million (USD41.9 million), primarily due to expanded collaboration with third-party distribution partners.
Revenues from IP operations and others were RMB3,319.1 million (USD472.2 million), compared with RMB4,090.5 million in 2024.
i) Revenues from IP operations decreased by 20.0% year-over-year to RMB3,191.6 million (USD454.1 million). The decrease was primarily due to scheduling delays that led to fewer releases of drama series and film projects in 2025. Meanwhile, new businesses such as IP merchandise products, short dramas, and AI-animated dramas have been developing rapidly. In particular, the IP merchandise products business generated over RMB1.1 billion in GMV in 2025, over twice the RMB500 million in 2024; and our AI-animated dramas business generated over RMB100 million revenue in the second half of 2025.
ii) Revenues from the "others" category, mainly generated by sales of physical books, increased by 28.4% year-over-year to RMB127.5 million (USD18.1 million).
Cost of revenues decreased by 5.5% year-over-year to RMB3,969.4 million (USD564.7 million), primarily due to lower production costs of drama series and films, in line with the decrease in revenues from fewer releases during the year.
Gross profit was RMB3,396.8 million (USD483.3 million), compared with RMB3,921.9 million in 2024. Gross margin was 46.1%, compared with 48.3% in 2024.
Selling and marketing expenses decreased by 11.1% year-over-year to RMB2,011.0 million (USD286.1 million), as a result of a decrease in marketing and promotional expenses associated with the lighter release schedule of drama series and film projects. As a percentage of revenues, selling and marketing expenses were 27.3% in 2025, compared with 27.8% in 2024.
General and administrative expenses decreased by 11.9% year-over-year to RMB1,007.3 million (USD143.3 million), primarily due to lower employee-related expenses. As a percentage of revenues, general and administrative expenses decreased to 13.7% in 2025, compared with 14.1% in 2024.
Net other losses were RMB1,245.8 million (USD177.2 million) in 2025, compared with net other losses of RMB973.9 million in 2024. The net other losses in 2025 were primarily due to a RMB1.8 billion impairment loss of goodwill attributable to New Classics Media, and was partially offset by gains from certain investee companies.
Interest income decreased by 6.4% year-over-year to RMB167.0 million (USD23.8 million).
Net provision for impairment losses on financial assets was RMB104.1 million (USD14.8 million) in 2025, primarily reflecting the provision for doubtful receivables associated with IP operation businesses.
Operating loss was RMB804.5 million (USD114.5 million) in 2025, compared with RMB336.1 million operating loss in 2024. On a non-IFRS basis, operating profit was RMB735.2 million (USD104.6 million), compared with RMB985.4 million in 2024.
Income tax expense increased by 44.7% year-over-year to RMB160.1 million (USD22.8 million), primarily due to an increase in taxable income.
Loss attributable to equity holders of the Company was RMB776.1 million (USD110.4 million) in 2025, compared with a loss of RMB209.2 million in 2024. On a non-IFRS basis, profit attributable to equity holders of the Company was RMB858.5 million (USD122.1 million), compared with a profit of RMB1,141.7 million in 2024.
Key Operating Information
- Average MAUs on the Company's self-owned platform products and self-operated channels were 137.8 million in 2025, compared with 166.6 million in 2024. A further breakdown of MAUs is below:
i) MAUs on our self-owned platform products remained stable on a year-over-year basis at 104.1 million, compared with 103.8 million in 2024; and
ii) MAUs on our self-operated channels on Tencent products were 33.7 million, compared with 62.8 million in 2024, primarily due to our ongoing optimization of operational efficiency by concentrating more content distribution through our core pay-to-read products which resulted in a decline in user acquisition through free-to-read channels.
- Average MPUs on our self-owned platform products and self-operated channels were 9.0 million in 2025, compared with 9.1 million in 2024. This was mainly due to an increase in promotional activities during the year, which led to some low-spending users being classified as free users over the period.
- Monthly ARPU for our pay-to-read business was RMB32.9, increased by 2.8% year-over-year from RMB32.0 in 2024, mainly due to a decline in the proportion of low-spending users.
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