China Literature Announces 2025 Annual Results
Results Highlights (1)
- Total revenues were
RMB7,366.2 million (USD1,048.0 million ), compared withRMB8,121.1 million of 2024.
- Revenues from online business wereRMB4,047.0 million (USD575.8 million ), compared withRMB4,030.6 million in 2024.
- Revenues from intellectual property operations and others wereRMB3,319.1 million (USD472.2 million ), compared withRMB4,090.5 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 wasRMB804.5 million (USD114.5 million ), compared withRMB336.1 million in 2024.
- Loss attributable to equity holders of the Company wasRMB776.1 million (USD110.4 million ), compared with a loss ofRMB209.2 million in 2024, primarily due to aRMB1.8 billion impairment loss of goodwill attributable to New Classics Media.
- Basic loss per share wasRMB0.76 . Diluted loss per share wasRMB0.76 . -
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 wasRMB735.2 million (USD104.6 million ), compared withRMB985.4 million in 2024.
- Profit attributable to equity holders of the Company wasRMB858.5 million (USD122.1 million ), compared withRMB1,141.7 million in 2024.
- Basic earnings per share wasRMB0.84 . Diluted earnings per share wasRMB0.84 .
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(1) Figures stated in USD are based on |
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(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. |
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(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
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
Financial Review (3)
Revenues
were
Revenues from online business were
i) Online business revenues from our self-owned platform products increased by 0.9% year-over-year to
ii) Online business revenues from our channels on Tencent products decreased by 22.3% year-over-year to
iii) Online business revenues from third-party platforms increased by 15.7% year-over-year to
Revenues from IP operations and others were
i) Revenues from IP operations decreased by 20.0% year-over-year to
ii) Revenues from the "others" category, mainly generated by sales of physical books, increased by 28.4% year-over-year to
Cost of revenues
decreased by 5.5% year-over-year to
Gross profit
was
Selling and marketing expenses
decreased by 11.1% year-over-year to
General and administrative expenses
decreased by 11.9% year-over-year to
Net other losses
were
Interest income
decreased by 6.4% year-over-year to
Net provision for impairment losses on financial assets
was
Operating loss
was
Income tax expense
increased by 44.7% year-over-year to
Loss attributable to equity holders of the Company
was
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
Other Key Information
- EBITDA was
- As of
Business Review
IP Creation
Our premium online reading content ecosystem continued to generate strong momentum. In 2025, our platform attracted 400,000 new writers, generated over 800,000 new novels, and added more than 42 billion characters, providing a steady pipeline of high-quality content. On our flagship
IP Visualization
In 2025, we delivered positive results across our traditional areas of strength, such as film, drama series, and animation, with
In the premium drama series and film segment, several top-tier series adapted from our IPs premiered in 2025, such as "A Record of a Mortal's Journey to Immortality (凡人修仙传)", "Flourished Peony (国色芳华)", and "I am Nobody (异人之下之决战！碧游村)", all of which ranked No.1 on platform popularity charts during their respective broadcast periods. According to Enlightent, five out of the top 10 long-form dramas by cumulative views across all platforms of 2025 were adapted from our IPs. Meanwhile, our self-produced premium series "The Narcotic Operation (扫毒风暴)" debuted on
In the animation segment, sequel series such as "Battle Through the Heavens (斗破苍穹)", "Stellar Transformations (星辰变)", and "Candle in the Tomb (鬼吹灯)" consistently ranked among the top titles on platform popularity charts. According to Enlightent, nine out of the top 10 animation series by cumulative views across all platforms of 2025 were adapted from our IPs, reinforcing our clear leadership in animation.
Our IPs have also demonstrated their appeal through award-winning adaptations. At
In the short drama segment, we launched more than 120 short dramas in 2025, delivering strong results from our premium-content strategy with frequent breakout hits. One representative title set a record with gross revenue exceeding
In the AI-animated drama segment, we launched four major initiatives to build a dedicated ecosystem.
- IP resources: We opened our IP library, including annual top-ten hits and diverse genre content, for creators and production teams.
-
Creative support: We established a
RMB100 million creation fund to support writers' cross‑media experimentation and facilitate the growth of high‑quality teams.
- Technology support: We launched AIGC tools such as the "AI‑Animated Drama Assistant (漫剧助手)", providing end-to-end support from content analysis to asset production and significantly accelerating adaptation workflows.
- Industry collaboration: We implemented full‑stack support across production, distribution, and IP partnerships to build an open, efficient, and mutually beneficial AI animated drama ecosystem.
These initiatives fueled rapid growth of our AI-animated drama business. Since its official launch in the second half of 2025, revenue from AI-animated drama series has surpassed
IP Commercialization and Monetization
We achieved historic breakthroughs and accelerated our systematic build-out in 2025. GMV of the IP merchandise products business exceeded
- Product: Our design capabilities and supply chain efficiency improved further, achieving industry-leading speed and quality. We expanded into new categories such as precious metals, vinyl plush toys, bags and accessories, and introduced new sales mechanics such as Ichiban Kuji draws.
- Channel: We refined our self-operated e-commerce matrix comprising "self-operated live streaming rooms + flagship online stores + mini-programs", and continued to expand offline self-operated stores across 10 core cities nationwide. We also teamed with over 10,000 channel partners to reach users across everyday consumption scenarios.
- Operation: We ran a series of online and offline campaigns around multiple top IPs to strengthen IP influence and fan engagement.
- Ecosystem: We advanced our "IP + Consumer" strategy by entering into licensing partnerships with over 200 leading consumer brands, embedding our IP across diverse everyday scenarios.
In the game segment, we continued to license high-quality IPs to partners. Our flagship title "Douluo Continent:
New Technology Explorations and Practices
In 2025, we embedded AI across our entire content-production chain and built a suite of AI solutions spanning the full IP lifecycle.
- Online literature: Our "Writer Assistant (作家助手)" creation platform received a major upgrade with the integration of the "Smart Pen Tongjian (妙笔通鉴)" AI engine, which can perform real-time, in-depth analysis of tens of millions of words to support writers. The tool is now officially available industry-wide.
-
IP adaptation: We launched the "Copyright Assistant (版权助手)", which deep mines
China Literature's library of millions of works and accurately matches titles to meet downstream adaptation needs, significantly accelerating the sourcing, screening, and development of high-quality IP assets.
- AI-animated drama: Our "AI-animated Drama Assistant (漫剧助手)" integrates with multiple leading multimodal large models, supporting a full production workflow from text to visuals, significantly improving adaptation efficiency and greatly lowering the barrier to animated drama production.
- Global expansion: AI translation has substantially expanded the international reach of Chinese-language works. As at the end of 2025, more than 17,000 AI-translated works were available on WebNovel, with revenue increasing by 39% year-over-year and contributing more than one-third of the platform's total revenues, making AI translation a key driver of overseas growth.
We believe the synergy between IP and AI will continue to power the industry forward. IP is the soul, AI is the engine. The role of technology is to maximize the impact of exceptional stories. From leading deployment in new formats such as AI-animated drama to systematic improvements in IP development efficiency and value creation, our "IP + AI" ecosystem will serve as a scalable engine that amplifies content value and drives
About
Non-IFRS Financial Measures
To supplement the consolidated financial statements of the Company prepared in accordance with IFRS, certain non-IFRS financial measures, namely non-IFRS operating profit, non-IFRS operating margin, non-IFRS profit for the year, non-IFRS net margin, non-IFRS profit attributable to equity holders of the Company, non-IFRS basic EPS and non-IFRS diluted EPS as additional financial measures, have been presented in this press release for the convenience of readers. These unaudited non-IFRS financial measures should be considered in addition to, and not as a substitute for, measures of the Company's financial performance prepared in accordance with IFRS. These unaudited non-IFRS measures may be defined differently from similar terms used by other companies. In addition, non-IFRS adjustments include relevant non-IFRS adjustments for the Company's material associates based on available published financials of the relevant material associates, or estimates made by the Company's management based on available information, certain expectations, assumptions and premises.
Our management believes that the presentation of these non-IFRS financial measures, when shown in conjunction with the corresponding IFRS measures, provides useful information to investors and management regarding the financial and business trends relating to the Company's financial condition and results of operations. Our management also believes that the non-IFRS financial measures are useful in evaluating the Company's operating performances. From time to time, there may be other items that the Company may include or exclude in reviewing its financial results.
Forward-Looking Statements
This press release contains forward-looking statements relating to the industry and business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in our other public disclosure documents on our corporate website.
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CONSOLIDATED STATEMENT OF LOSS |
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Year ended |
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2025 |
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2024 |
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(RMB in million, unless specified) |
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Revenues |
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|
Online business(1) |
4,047.0 |
|
4,030.6 |
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Intellectual property operations and others(2) |
3,319.1 |
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4,090.5 |
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7,366.2 |
|
8,121.1 |
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Cost of revenues |
(3,969.4) |
|
(4,199.1) |
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Gross profit |
3,396.8 |
|
3,921.9 |
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Gross margin |
46.1 % |
|
48.3 % |
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Selling and marketing expenses |
(2,011.0) |
|
(2,261.0) |
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General and administrative expenses |
(1,007.3) |
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(1,143.5) |
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Other losses, net |
(1,245.8) |
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(973.9) |
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Interest income |
167.0 |
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178.3 |
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Net provision for impairment losses on financial assets |
(104.1) |
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(58.0) |
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Operating loss |
(804.5) |
|
(336.1) |
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Operating margin |
(10.9 %) |
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(4.1 %) |
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Finance costs, net |
(12.7) |
|
(1.8) |
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Share of net profit of associates and joint ventures |
200.8 |
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239.0 |
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Loss before income tax |
(616.3) |
|
(98.9) |
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Income tax expense |
(160.1) |
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(110.7) |
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Loss for the year |
(776.4) |
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(209.6) |
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Net margin |
(10.5 %) |
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(2.6 %) |
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Loss attributable to: |
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Equity holders of the Company |
(776.1) |
|
(209.2) |
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Non-controlling interests |
(0.3) |
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(0.4) |
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|
(776.4) |
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(209.6) |
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Loss per share |
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(in RMB per share) |
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- Basic loss per share |
(0.76) |
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(0.21) |
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- Diluted loss per share |
(0.76) |
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(0.21) |
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Notes: |
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(1) Revenues from online business primarily reflect revenues from online paid reading, online advertising and distribution of third-party online games on our platform. |
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(2) Revenues from intellectual property operations and others primarily reflect revenues from production and distribution of TV, web, and animated series; films; short |
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CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS |
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Year ended |
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2025 |
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2024 |
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(RMB in million) |
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Loss for the year |
(776.4) |
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(209.6) |
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Other comprehensive income, net of tax: |
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Items that may not be reclassified to profit or loss |
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Net (loss)/gain from change in fair value of financial |
(8.5) |
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2.0 |
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Currency translation differences |
(64.3) |
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79.4 |
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Items that may be subsequently reclassified to profit or loss |
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Transfer of share of other comprehensive income |
(1.3) |
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- |
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Share of other comprehensive income/(loss) of |
0.2 |
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(0.4) |
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Currency translation differences |
21.1 |
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(18.9) |
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(52.8) |
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62.1 |
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Total comprehensive loss for the year |
(829.1) |
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(147.5) |
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Total comprehensive loss attributable to: |
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Equity holders of the Company |
(828.8) |
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(147.1) |
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Non-controlling interests |
(0.3) |
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(0.4) |
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(829.1) |
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(147.5) |
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SEGMENT INFORMATION |
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Year ended |
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2025 |
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2024 |
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(RMB in million, except percentages) |
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Revenues |
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|
Online business |
4,047.0 |
|
4,030.6 |
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Intellectual property operations and others |
3,319.1 |
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4,090.5 |
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Total revenues |
7,366.2 |
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8,121.1 |
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Cost of revenues |
|
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Online business |
(1,971.6) |
|
(1,975.0) |
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Intellectual property operations and others |
(1,997.8) |
|
(2,224.1) |
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Total cost of revenues |
(3,969.4) |
|
(4,199.1) |
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Gross profit |
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Online business |
2,075.4 |
|
2,055.6 |
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Intellectual property operations and others |
1,321.4 |
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1,866.4 |
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Total gross profit |
3,396.8 |
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3,921.9 |
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Gross margin |
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Online business |
51.3 % |
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51.0 % |
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Intellectual property operations and others |
39.8 % |
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45.6 % |
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Total gross margin |
46.1 % |
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48.3 % |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
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As of |
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(RMB in million) |
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ASSETS |
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Non-current assets |
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Property, plant and equipment |
67.9 |
|
97.8 |
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Right-of-use assets |
173.5 |
|
149.8 |
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Intangible assets |
4,295.7 |
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6,158.8 |
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Investments in associates and joint ventures |
577.4 |
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928.2 |
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Financial assets at fair value through profit or loss |
1,324.1 |
|
1,039.6 |
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Financial assets at fair value through other comprehensive income |
648.1 |
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6.3 |
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Deferred income tax assets |
458.1 |
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497.2 |
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Prepayments, deposits and other assets |
188.4 |
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298.2 |
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Term deposits |
1,709.0 |
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2,308.0 |
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|
9,442.0 |
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11,484.0 |
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Current assets |
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Inventories |
576.6 |
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693.0 |
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Television series and film rights |
649.4 |
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529.8 |
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Financial assets at fair value through profit or loss |
2,735.3 |
|
3,252.9 |
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Trade and notes receivables |
1,905.0 |
|
1,703.4 |
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Prepayments, deposits and other assets |
1,283.0 |
|
907.4 |
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Restricted bank deposits |
4.5 |
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4.5 |
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Term deposits |
3,303.5 |
|
1,106.2 |
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Cash and cash equivalents |
1,683.7 |
|
3,264.2 |
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|
12,141.1 |
|
11,461.4 |
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Total assets |
21,583.1 |
|
22,945.4 |
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EQUITY |
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Capital and reserves attributable to the equity holders of the Company |
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Share capital |
0.6 |
|
0.6 |
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Shares held for RSU scheme |
(14.6) |
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(14.6) |
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Share premium |
15,969.2 |
|
16,117.9 |
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Other reserves |
2,117.7 |
|
1,975.8 |
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(Accumulated losses)/Retained earnings |
(547.0) |
|
294.7 |
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|
17,526.0 |
|
18,374.4 |
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Non-controlling interests |
1.4 |
|
1.7 |
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Total equity |
17,527.4 |
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18,376.2 |
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As of |
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(RMB in million) |
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LIABILITIES |
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Non-current liabilities |
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Lease liabilities |
116.8 |
|
85.0 |
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Long-term payables |
16.3 |
|
10.8 |
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Deferred income tax liabilities |
124.7 |
|
129.4 |
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Deferred revenue |
19.6 |
|
21.9 |
|
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|
277.4 |
|
247.2 |
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Current liabilities |
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Lease liabilities |
64.5 |
|
81.2 |
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Trade payables |
1,210.4 |
|
1,044.6 |
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Other payables and accruals |
1,102.0 |
|
1,662.0 |
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Deferred revenue |
989.7 |
|
1,148.9 |
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Current income tax liabilities |
232.6 |
|
217.7 |
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Financial liabilities at fair value through profit or loss |
179.0 |
|
167.6 |
|
|
|
3,778.3 |
|
4,322.0 |
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Total liabilities |
4,055.7 |
|
4,569.3 |
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Total equity and liabilities |
21,583.1 |
|
22,945.4 |
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RECONCILIATION OF OPERATING LOSS TO EBITDA AND ADJUSTED EBITDA |
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Year ended |
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2025 |
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2024 |
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(RMB in million) |
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Reconciliation of operating loss to EBITDA and adjusted EBITDA: |
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Operating loss |
(804.5) |
|
(336.1) |
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Adjustments: |
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|
|
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Interest income |
(167.0) |
|
(178.3) |
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Other losses, net |
1,245.8 |
|
973.9 |
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Depreciation of property, plant and equipment |
38.1 |
|
40.3 |
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Depreciation of right-of-use assets |
63.6 |
|
72.0 |
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Amortization of intangible assets |
101.2 |
|
157.5 |
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EBITDA |
477.4 |
|
729.3 |
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Adjustments: |
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Share-based compensation |
131.2 |
|
126.4 |
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Expenditures related to acquisition |
5.4 |
|
67.5 |
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Adjusted EBITDA |
614.0 |
|
923.1 |
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RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS |
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Year ended |
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Adjustments |
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As |
Share- |
Net losses |
Amortization |
Tax effect |
Non-IFRS |
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(RMB in million, unless specified) |
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Operating (loss)/profit |
(804.5) |
131.2 |
1,389.4 |
19.0 |
- |
735.2 |
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(Loss)/profit for the year |
(776.4) |
131.2 |
1,389.4 |
19.0 |
94.9 |
858.2 |
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(Loss)/profit attributable to equity holders of the Company |
(776.1) |
131.2 |
1,389.4 |
19.0 |
94.9 |
858.5 |
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(Loss)/earnings per share (RMB per share) |
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- basic |
(0.76) |
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0.84 |
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- diluted |
(0.76) |
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0.84 |
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Operating margin |
(10.9 %) |
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10.0 % |
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Net margin |
(10.5 %) |
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11.7 % |
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Year ended |
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Adjustments |
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As |
Share- |
Net losses |
Amortization |
Tax effect |
Non-IFRS |
|
|
|
(RMB in million, unless specified) |
|
|||||
|
Operating (loss)/profit |
(336.1) |
126.4 |
1,174.8 |
20.3 |
- |
985.4 |
|
|
(Loss)/profit for the year |
(209.6) |
126.4 |
1,174.8 |
20.3 |
29.4 |
1,141.3 |
|
|
(Loss)/profit attributable to equity holders of the Company |
(209.2) |
126.4 |
1,174.8 |
20.3 |
29.4 |
1,141.7 |
|
|
(Loss)/earnings per share (RMB per share) |
|
|
|
|
|
|
|
|
- basic |
(0.21) |
|
|
|
|
1.13 |
|
|
- diluted |
(0.21) |
|
|
|
|
1.12 |
|
|
Operating margin |
(4.1 %) |
|
|
|
|
12.1 % |
|
|
Net margin |
(2.6 %) |
|
|
|
|
14.1 % |
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) Mainly includes goodwill impairment; the impairment provision, gains on disposal and deemed disposal, |
|||||||
|
(2) Represents amortization of intangible assets and TV series and film rights resulting from acquisitions. |
|||||||
View original content:https://www.prnewswire.com/news-releases/china-literature-announces-2025-annual-results-302715772.html
SOURCE
