#China #Hong Kong #China Literature #IP Development #Online Literature

China Literature's 2024 Annual Results

On March 18, 2025, China Literature Limited, a prominent player in the online literature and intellectual property (IP) sector, announced its consolidated results for the year ending December 31, 2024. Despite facing challenges, the company demonstrated impressive performance, with total revenues reaching RMB 8,121.1 million (approximately USD 1,129.7 million), marking a 15.8% year-over-year increase. This growth was largely fueled by solid advancements in core product operations and the expansion of high-quality content across various media.

Revenue Breakdown

China Literature's revenue streams can be categorized primarily into online business and IP operations. Revenues from online operations rose by 2.1% to RMB 4,030.6 million (USD 560.7 million) as a result of improvements in product quality and increased user engagement. Meanwhile, revenues from intellectual property operations soared by an astounding 33.5% to RMB 4,090.5 million (USD 569.0 million), driven by the success of various IP ventures, including blockbuster films and series.

Key Financial Highlights

• - Operating Profit: On a non-IFRS basis, operating profit reached RMB 985.4 million (USD 137.1 million), showcasing a resilient performance against 2023’s RMB 1,049.8 million.
• - Profit for Shareholders: The profit attributable to equity holders was RMB 1,141.7 million (USD 158.8 million), slightly up from RMB 1,130.4 million in the previous year.
• - Earnings per Share: Basic earnings per share stood at RMB 1.13, while diluted earnings per share were reported at RMB 1.12.

Conversely, on an IFRS basis, the company recorded an operating loss of RMB 336.1 million (USD 46.8 million) due to impairments related to its subsidiary, New Classics Media. The loss attributable to equity holders amounted to RMB 209.2 million (USD 29.1 million), a stark contrast to the profit achieved in 2023.

Strategic Initiatives and Content Highlights

CEO Hou Xiaonan commented on the firm’s strategy focusing on high-quality content and sustainable IP creation. In 2024, China Literature made a significant mark in the industry with a slew of popular titles, including the film 'YOLO' and various drama series, while also enhancing its animation content with sequels and new releases that drove viewer engagement.

The company also bolstered its merchandising efforts, surpassing GMV of RMB 500 million in sales generated through IP commercialization. Collaborations with over 150 partners helped diversify its merchandise offerings, creating a robust omni-channel sales network through both online platforms like Taobao and physical stores in major cities.

Moreover, the integration of advanced technology in their processes, particularly through the AI-enabled 'Writer Assistant', reflects their commitment to enhancing content creation efficiency. The tool's features have led to increased writer engagement by more than 30%, showcasing the potential of AI in transforming literary creation.

Future Outlook

Looking ahead, China Literature remains confident in its growth strategy, envisioning the profound impact of combining IP with artificial intelligence. The next frontier lies in leveraging technology to foster both local and global consumption of digital content, positioning the company at the forefront of the evolving entertainment landscape.

In conclusion, China Literature's dynamic approach during 2024 has reaffirmed its leadership in online literature and IP, effectively setting the stage for future innovations and sustained market growth.