HONG KONG, Aug. 11, 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 its unaudited consolidated financial results for the six months ended June 30, 2026.
Results Highlights (1)(3)
-- Total revenues increased by 10.7% year-over-year to RMB3,531.4 million
(USD518.5 million) in the first half of 2026.
-- Revenues from online business decreased by 7.3% year-over-year to
RMB1,840.0 million (USD270.2 million).
-- Revenues from intellectual property operations and others
increased by 40.3% year-over-year to RMB1,691.4 million (USD248.3
million).
-- On an IFRS basis:
-- Profit attributable to equity holders of the Company was RMB135.4
million (USD19.9 million), compared with RMB849.8 million in the
first half of 2025, primarily the result of RMB300 million
(USD44.0 million) in tax-related payments incurred by a subsidiary
of the Company and the high base effect set by a RMB512 million
after-tax gain on the deemed disposal of an investee during the
prior year period.
-- Basic earnings per share were RMB0.13. Diluted earnings per share
were RMB0.13.
-- On a non-IFRS (2) basis, which is intended to reflect core earnings by
excluding certain one-time and/or non-cash items:
-- Profit attributable to equity holders of the Company was RMB258.8
million (USD38.0 million), compared with RMB507.8 million in the
first half of 2025, primarily due to the RMB300 million (USD44.0
million) tax-related impact noted above.
-- Basic earnings per share were RMB0.26. Diluted earnings per share
were RMB0.25.
Mr. Hou Xiaonan, Chief Executive Officer of China Literature, commented, "Today, two structural shifts are reshaping the entertainment industry: the continued rise of fragmented content consumption, and AI's disruptive impact on the broader content ecosystem. In response, we have continued to build on our core strengths while expanding our strategic presence in emerging sectors such as short dramas, AI-animated dramas, and IP merchandise. These efforts made solid progress and drove 41.9% year-over-year revenue growth in our IP operations business during the first half of the year.
In the first half of 2026, revenue from our short dramas and AI--animated dramas exceeded RMB430 million, representing a 2.3--fold year--over--year increase. This business now represents 27% of our IP operations revenue and has become a new growth engine. Notably, the proportion of our blockbuster short dramas was four times the market average; 46 AI--animated drama titles surpassed 100 million views each, and the proportion of titles with over one million views was five times the industry average. We also launched Qidian Theater ( ) in China and ToonScroll overseas to cultivate premium platforms for AI--animated content. Meanwhile, our IP merchandise business maintained strong momentum, with GMV reaching RMB780 million, up more than 60% year-over-year. On the online content front, our premium reading ecosystem continued to flourish, attracting emerging writers and seeing established top--tier writers release new, high--quality works. We also introduced the Buddy series of vertical AI agents for creative industries, embedding AI across the entire content creation lifecycle. Looking ahead, powered by our 'IP + AI' engine, we are accelerating the high--quality transformation of stories from texts into visual content, leveraging the synergy between technology and creativity to unlock the next decade of IP value creation."
Notes: (1) Figures stated in USD are based on USD1 to RMB6.8109. (2) Non-IFRS adjustments exclude share-based compensation, M&A related impact such as net gains or losses from investee companies, amortization of intangible assets and impairment provisions, 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.
Financial Review
Revenues increased by 10.7% year-over-year to RMB3,531.4 million (USD518.5 million).
Revenues from online business were RMB1,840.0 million (USD270.2 million), compared with RMB1,985.4 million in the first half of 2025.
1. Online business revenues from self-owned platform products were
RMB1,623.4 million (USD238.4 million), compared with RMB1,746.0 million
in the first half of 2025, mainly due to competitive pressure which led
to increased proportion of lower-monetizing free-to-read content and a
shift in content distribution from online reading to short dramas and
AI-animated dramas on our self-operated products within the Weixin
ecosystem.
2. Online business revenues from channels on Tencent products were RMB84.9
million (USD12.5 million), compared with RMB97.1 million in the first
half of 2025, primarily due to a decline in advertising revenues from
free-to-read content on Tencent's channels.
3. Online business revenues from third-party platforms were RMB131.7 million
(USD19.3 million), compared with RMB142.2 million in the first half of
2025, mainly driven by lower revenues received from third-party
distribution partners.
Revenues from IP operations and others increased by 40.3% year-over-year to RMB1,691.4 million (USD 248.3 million).
1. Revenues from IP operations increased by 41.9% year-over-year to
RMB1,613.9 million (USD237.0 million), primarily driven by rapid growth
across multiple business lines, including short dramas, AI-animated
dramas, TV series, and IP merchandise products. In particular,
-- Revenues from short dramas and AI-animated dramas exceeded RMB430
million (USD63.1 million), representing a year-over-year increase
of 2.3 times, accounting for approximately 27% of IP operations
revenues.
-- GMV of IP merchandise products increased by over 60%
year-over-year to RMB780 million (USD114.5 million).
2. Revenues from the "others" category, mainly generated by sales of
physical books, increased by 14.4% year-over-year to RMB77.4 million
(USD11.4 million).
Cost of revenues increased by 10.2% year-over-year to RMB1,739.3 million (USD255.4 million). The increase was primarily driven by higher production costs for short dramas, AI-animated dramas, and TV and web series which were in line with revenue growth during a period of higher content releases.
Gross profit increased by 11.1% year-over-year to RMB1,792.1 million (USD263.1 million). Gross margin increased from 50.5% to 50.7% year-over-year.
Selling and marketing expenses increased by 9.6% year-over-year to RMB1,011.4 million (USD148.5 million), mainly driven by higher marketing and promotional spending to support the expansion of our IP businesses. As a percentage of revenues, selling and marketing expenses were 28.6% in the first half of 2026, compared with 28.9% in the prior year period.
General and administrative expenses increased by 15.5% year-over-year to RMB560.0 million (USD82.2 million), primarily due to higher personnel and administrative expenses related to scaling our IP businesses. As a percentage of revenues, general and administrative expenses were 15.9% in the first half of 2026, compared with 15.2% in the prior year period.
Net other losses were RMB25.0 million (USD3.7 million), compared with net other gains of RMB582.5 million in the first half of 2025. The change was mainly due to RMB134 million (USD19.6 million) of late-payment tax surcharges incurred by a subsidiary of the Company in the first half of 2026 (see income tax section for the full impact of this matter), compared with RMB597.6 million of net gains before tax recognized on the deemed disposal of an investee in the first half of 2025.
Interest income was RMB81.3 million (USD11.9 million), compared with RMB81.9 million in the first half of 2025.
Net provision for impairment losses on financial assets was RMB6.2 million (USD0.9 million) on a net basis, mainly related to IP businesses.
Operating profit was RMB270.8 million (USD39.8 million), compared with RMB875.8 million in the first half of 2025. On a non-IFRS basis, operating profit was RMB367.2 million (USD53.9 million), compared with RMB448.7 million in the first half of 2025.
Income tax expense increased from RMB149.5 million in the first half of 2025 to RMB224.9 million (USD33.0 million) in the first half of 2026, primarily due to RMB166 million (USD24.4 million) in supplementary income tax payments by a subsidiary of the Company. Together with the related late-payment tax surcharges of RMB134 million (USD19.6 million, recorded in other losses), these items reduced profit attributable to equity holders of the Company by RMB300 million (USD44.0 million).
Profit attributable to equity holders of the Company was RMB135.4 million (USD19.9 million), compared with RMB849.8 million in the first half of 2025. On a non-IFRS basis, profit attributable to equity holders of the Company was RMB258.8 million (USD38.0 million), compared with RMB507.8 million in the first half of 2025, largely due to the RMB300 million (USD44.0 million) tax-related impact noted above.
Key Operating Information
-- Average MAUs on self-owned platform products and self-operated channels
on Tencent products were 134.1 million, compared with 141.3 million in
the first half of 2025.
1. MAUs on self-owned platform products increased by 0.8%
year-over-year from 102.7 million to 103.5 million, remaining
broadly stable.
2. MAUs on self-operated channels on Tencent products decreased by
20.5% year-over-year from 38.5 million to 30.6 million, primarily
due to our continued shift of core content distribution to our own
platform products, leading to lower activity on Tencent's
channels.
-- Average MPUs on self-owned platform products and self-operated channels
on Tencent products were 8.2 million, compared with 9.2 million in the
first half of 2025, primarily due to an increased proportion of
free-to-read content on our self-owned platform products, resulting in a
change in user mix and a corresponding decline in the number of paying
users.
-- Monthly ARPU increased by 4.5% year-over-year to RMB32.7, mainly due to a
mix effect resulting from lower-ARPU users shifting to free-to-read
content.
Other Key Information
-- EBITDA was RMB302.6 million (USD44.4 million), compared with RMB318.2
million in the first half of 2025. Adjusted EBITDA was RMB384.2 million
(USD56.4 million), compared with RMB386.9 million in the first half of
2025.
-- As of June 30, 2026, the Company's net cash position was RMB986.14
million (USD1,447.9 million), compared with RMB943.60 million as of
December 31, 2025.
Business Highlights
IP Creation
Our online reading ecosystem continues to serve as a "super reservoir" of premium content.
In the first half of 2026, our platform attracted approximately 240,000 new writers, generated over 460,000 online literature works, and added more than 30 billion characters, securing a strong source of content supply. Emerging-generation writers are gaining momentum: among newly signed writers who generated more than RMB1 million in revenue during the first half of the year, those under 30 accounted for 57%, representing a 49% increase year-over-year. Promising works continued to emerge. On Qidian, the number of titles receiving user collections increased by 37% year-over-year, while the number of titles receiving monthly tickets grew 26% year-over-year. With the return of a series of top-tier Platinum and Phenomenal writers, two new titles attracted more than 200,000 readers each on their first day of launch, setting new records for debut performance on the platform.
IP Visualization
We accelerated the transformation from text to visual content. In the first half of 2026, while solidifying our traditional strengths in film, drama series, and animation, we also stepped up our efforts in emerging segments such as short dramas and AI-animated dramas, resulting in exceptional growth. Revenue from short dramas and AI-animated dramas exceeded RMB430 million, representing a 2.3-fold year-over-year increase.
In the premium drama series and film segment, several drama series adapted from China Literature's IPs premiered this year, including top-tier titles such as "Blossoms of Power ( )," "The Heir ( )," and "Ashes to Crown ( )." All of these titles ranked among the top titles on platform popularity charts during their respective broadcasting periods. Meanwhile, we also released our self-produced drama series "No Pain No Gain ( )," "The Devil Between Us ( )," and "Lady Liberty ( )." These titles broke new ground across genres such as urban drama and crime drama, winning both critical acclaim and strong audience traction.
In the animation segment, we released sequels of classic animated titles, including "Battle Through the Heavens ( )," "The Outcast ( )," "Almighty Mage ( )," and "Stellar Transformations ( )." All of these titles ranked among the top titles on platform popularity charts during their respective broadcasting periods. Among them, "The Outcast ( )" achieved a popularity index of over 21,800 on Tencent Video, making it the most popular 2D animated series on the platform in the past three years. According to Enlightent, since the beginning of 2026, eight of the top 10 animation series by cumulative views across all platforms were adapted from China Literature's IPs, further demonstrating our market influence in animation content.
In the short drama and AI-animated drama segment, we achieved major breakthroughs. In the first half of 2026, we launched over 90 short dramas, including many breakout hits. In male-oriented genres, "The Invisible Bodyguard ( )" was a blockbuster, with a popularity index exceeding 100 million and total views across all platforms surpassing 5 billion. In female-oriented genres, sequels of our original "Sweet Wife ( )" IP performed strongly, setting a benchmark for commercialization. In the AI-animated drama segment, our top-tier title "Three Thousand Shelters ( )" surpassed 3 billion views across all platforms, driving the original novel into the top 10 of the bestseller ranking on Qidian. We also explored opportunities to develop premium AI-animated drama platforms, launching "Qidian Theater ( )" and "ToonScroll" in China and overseas, respectively. All these achievements were driven by China Literature's extensive IP library, strong creator ecosystem, and robust capabilities in IP development across the industry chain.
IP Commercialization and Monetization
In the first half of 2026, our IP merchandise business continued to maintain rapid growth, with GMV reaching RMB780 million, representing a year-over-year increase of more than 60%. This growth was driven by our continued enhancement across four core areas: product, channel, operation, and ecosystem.
-- Product: We strengthened our presence in the light-and-soft merchandise
category, which is characterized by high-frequency purchases and strong
repeat purchase rates, while expanding into new categories such as plush
toys, lifestyle products, and precious metals. Our design excellence and
supply chain efficiency enabled us to deliver a steady stream of
high-quality products, positioning "Yuewen Goods" as one of the leading
brands in China's anime merchandise market.
-- Channel: We strengthened our self-operated online sales network,
including mini-programs, live-streaming rooms, and flagship e-commerce
stores. We also optimized our offline store network and deepened
collaboration with our channel partners. These efforts led to
improvements in both channel profitability and brand control. We also
continued to enhance our sales velocity and supply chain management,
improving inventory turnover efficiency and translating sales growth into
solid profit contribution.
-- Operation: We launched campaigns around iconic IP characters, driving
deeper fan engagement and stronger consumer conversion. During the first
half of the year, we organized the "Glory Pilgrimage ( )" pop-up event in
four cities to celebrate the birthday of Ye Xiu, the leading character of
"The King's Avatar ( )." We also launched "The Outcast Boy Group ( ),"
bringing "The Outcast ( )" IP to a broader audience through idol-style
marketing and deepening the emotional connection between the IP and
users.
-- Ecosystem: We accelerated the expansion of our overseas channels.
Together with our partners, we opened our first global collectible toy
concept store in Singapore, while selected products on the overseas
online store for "Lord of the Mysteries ( )" sold out shortly after
launch. The popularity of our hit merchandise further amplified the
appeal of our IPs, driving users back to our content ecosystem spanning
online reading, animation, and drama series.
In the game segment, we launched multiple IP crossover collaborations in the first half of the year, all of which were well received. Partnerships including "The King's Avatar ( )" × "Peacekeeper Elite ( )" and "Soul Land ( )" × "Peacekeeper Elite ( )" generated strong market buzz and engagement. Looking ahead, game adaptations of major IPs such as "Lord of the Mysteries ( )" and "My Heroic Husband ( )" are expected to be launched soon.
Widespread Application of AI Technology
At China Literature, AI is not confined to a single application. We have deeply integrated it into every stage of the content creation journey, from creative ideation to global user reach.
We launched the Buddy series of AI agents, purpose-built for the creative content industry, and upgraded three core products: NovelBuddy ( ), DramaBuddy ( ), and IPBuddy ( ), to provide content creators and operators with a comprehensive suite of AI-powered tools.
-- NovelBuddy: Designed for online literature creators, NovelBuddy provides
AI-assisted writing support, as well as copyright protection and
anti-plagiarism services, helping safeguard creators' rights.
-- DramaBuddy: Focusing on AI-animated drama production, DramaBuddy covers
the entire process, including creative ideation, content production, and
project management, enabling the scalable production of premium
AI-animated dramas.
-- IPBuddy: Serving as the "all-seeing eye" of our in-house copyright team,
IPBuddy enables the value assessment of a title within minutes and
greatly improves the efficiency of selecting IP for adaptation and
commercialization.
Meanwhile, AI has accelerated our global expansion. As of June 30, 2026, more than 30,000 AI-translated works were available on our WebNovel platform, contributing 40% of the platform's novel revenue during the first half of the year. AI also facilitated a 160% year--over--year increase in revenues for WebNovel's works in less--commonly spoken languages, enabling Chinese stories to reach global multilingual audiences more efficiently.
Outlook
Over the past two decades, the internet has lowered the barriers to literary creation and underpinned China Literature's growth into the company it is today. We believe that over the next two decades, AI will become a crucial tool for extending creators' capabilities and unlocking a step change in value across the content ecosystem. Deeply integrating AI into the creation process and driving growth through technology form our core strategy for the future, as well as a vital path to amplifying IP value. Through AI, we aim to help great stories realize their full potential. At the same time, we recognize that, as AI becomes more capable, original human creativity will become even scarcer and more valuable. That is why China Literature will continue to strengthen its support for original creators, ensuring that technology empowers creativity and that great stories can flourish for generations to come.
About China Literature Limited
China Literature is dedicated to building a deep and immersive intellectual property ("IP") universe for the Mandarin-speaking world. It incubates original IPs from its online literature platform, which are subsequently adapted to a range of digital entertainment mediums, including comics, animation, film, TV series, web series, games, short dramas and AI-animated dramas. The virtual world created by these digital offerings becomes an inseparable part of a user's daily life. China Literature creates and promotes IPs mainly through Qidian Reading and QQ Reading, its leading online literature platforms, as well as New Classics Media, a renowned film and TV drama series production house in China. China Literature collaborates with Tencent, its shareholder and strategic partner, as well as other third-party partners to distribute and develop IP content and to enhance the value of its IP. Many of the Company's online literature works have been successfully adapted into animation, TV series, web series, films, games, short dramas and AI-animated dramas, including Joy of Life, Candle in the Tomb, Soul Land, The King's Avatar and My Heroic Husband. China Literature's rich and extensive content library as well as its unparalleled capability and resources to adapt IP into various entertainment formats is a significant competitive advantage that lies at the core of its business model. For more information, please visit http://ir.yuewen.com/.
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 period, non-IFRS net margin, non-IFRS profit attributable to equity holders of the Company, non-IFRS basic EPS, and non-IFRS diluted EPS, have been presented as additional financial measures 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 non-IFRS measures may be defined differently from similar terms used by other companies. In addition, non-IFRS adjustments include relevant adjustments for the Company's material associates based on available published financials of those associates, or estimates made by the Company's management based on available information, 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.
CHINA LITERATURE
CONSOLIDATED INCOME STATEMENT
Six months ended June 30,
------------------------------------
2026 2025
----------------- -----------------
(RMB in million, unless specified)
Revenues
Online business(1) 1,840.0 1,985.4
Intellectual property operations
and others(2) 1,691.4 1,205.2
----------------- -----------------
3,531.4 3,190.6
Cost of revenues (1,739.3) (1,578.2)
----------------- -----------------
Gross profit 1,792.1 1,612.4
Gross margin 50.7 % 50.5 %
Interest income 81.3 81.9
Other (losses)/gains, net (25.0) 582.5
Selling and marketing expenses (1,011.4) (922.4)
General and administrative expenses (560.0) (484.7)
Net (provision for)/ reversal of
impairment losses on financial
assets (6.2) 6.2
----------------- -----------------
Operating profit 270.8 875.8
Operating margin 7.7 % 27.4 %
Finance income/(costs), net 0.5 (4.0)
Share of net profit of associates
and joint ventures 88.8 127.3
----------------- -----------------
Profit before income tax 360.1 999.0
Income tax expense (224.9) (149.5)
----------------- -----------------
Profit for the period 135.2 849.6
================= =================
Net margin 3.8 % 26.6 %
Profit attributable to:
Equity holders of the Company 135.4 849.8
Non-controlling interests (0.2) (0.2)
----------------- -----------------
135.2 849.6
================= =================
Earnings per share
(in RMB per share)
- Basic earnings per share 0.13 0.84
================= =================
- Diluted earnings per share 0.13 0.83
================= =================
Notes: (1) Revenues from online business primarily reflect revenues from
online paid reading, online advertising and distribution of third-party
online games on our platform. (2) Revenues from intellectual property
operations and others primarily reflect revenues from production and
distribution of TV, web and animated series, films, short dramas,
AI-animated drams, licensing of copyrights, operation of self-operated
online games, sales of IP merchandise products and sales of physical
books.
CHINA LITERATURE
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended June 30,
---------------------------
2026 2025
-------------- -----------
(RMB in million)
Profit for the period 135.2 849.6
-------------- -----------
Other comprehensive income, net of tax:
Item that may be subsequently reclassified to
profit or loss
Share of other comprehensive income of an
associate -- 0.2
Transfer of share of other comprehensive
income to profit or loss upon deemed
disposal of an associate -- (1.3)
Currency translation differences 29.2 49.9
Item that will not be reclassified to profit
or loss
Net (losses)/gains from changes in fair
value of financial assets at fair value
through other comprehensive income (40.9) 24.4
Currency translation differences (99.1) (55.1)
-------------- -----------
(110.8) 18.1
-------------- -----------
Total comprehensive income for the period 24.4 867.7
============== ===========
Total comprehensive income attributable to:
Equity holders of the Company 24.6 867.9
Non-controlling interests (0.2) (0.2)
-------------- -----------
24.4 867.7
============== ===========
CHINA LITERATURE
SEGMENT INFORMATION
Six months ended June 30,
--------------------------------------
2026 2025
------------------ ------------------
(RMB in million, except percentages)
Revenues
Online business 1,840.0 1,985.4
Intellectual property operations
and others 1,691.4 1,205.2
------------------ ------------------
Total revenues 3,531.4 3,190.6
Cost of revenues
Online business (874.9) (995.9)
Intellectual property operations
and others (864.4) (582.3)
------------------ ------------------
Total cost of revenues (1,739.3) (1,578.2)
Gross profit
Online business 965.1 989.5
Intellectual property operations
and others 827.0 622.9
------------------ ------------------
Total gross profit 1,792.1 1,612.4
Gross margin
Online business 52.5 % 49.8 %
Intellectual property operations
and others 48.9 % 51.7 %
------------------ ------------------
Total gross margin 50.7 % 50.5 %
CHINA LITERATURE
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of
--------------------------------
June 30, 2026 December 31, 2025
------------- -----------------
(RMB in million)
ASSETS
Non-current assets
Property, plant and equipment 65.9 67.9
Right-of-use assets 160.6 173.5
Intangible assets 4,256.9 4,295.7
Investments in associates and joint
ventures 442.2 577.4
Financial assets at fair value through
profit or loss 936.7 1,324.1
Financial assets at fair value through
other comprehensive income 669.6 648.1
Deferred income tax assets 481.6 458.1
Prepayments, deposits and other assets 186.6 188.4
Term deposits 2,212.2 1,709.0
------------- -----------------
9,412.3 9,442.0
------------- -----------------
Current assets
Inventories 615.2 576.6
Television series and film rights 520.6 649.4
Financial assets at fair value through
profit or loss 2,028.9 2,735.3
Trade and notes receivables 1,550.0 1,905.0
Prepayments, deposits and other assets 1,561.9 1,283.0
Restricted bank deposits -- 4.5
Term deposits 3,002.8 3,303.5
Cash and cash equivalents 2,617.4 1,683.7
------------- -----------------
11,896.9 12,141.1
------------- -----------------
Total assets 21,309.2 21,583.1
============= =================
EQUITY
Capital and reserves attributable to
equity holders of the Company
Share capital 0.6 0.6
Treasury shares (151.9) --
Shares held for RSU scheme (14.6) (14.6)
Share premium 15,963.1 15,969.2
Other reserves 2,085.2 2,117.7
Accumulated losses (411.6) (547.0)
------------- -----------------
17,470.8 17,526.0
Non-controlling interests 3.2 1.4
------------- -----------------
Total equity 17,474.0 17,527.4
============= =================
As of
--------------------------------
June 30, 2026 December 31, 2025
------------- -----------------
(RMB in million)
LIABILITIES
Non-current liabilities
Lease liabilities 98.8 116.8
Long-term payables 19.0 16.3
Deferred income tax liabilities 123.3 124.7
Deferred revenue 18.5 19.6
259.5 277.4
------------- -----------------
Current liabilities
Lease liabilities 57.7 64.5
Trade payables 1,241.1 1,210.4
Other payables and accruals 982.5 1,102.0
Deferred revenue 973.7 989.7
Current income tax liabilities 166.1 232.6
Financial liabilities at fair value
through profit or loss 154.5 179.0
3,575.6 3,778.3
------------- -----------------
Total liabilities 3,835.1 4,055.7
============= =================
Total equity and liabilities 21,309.2 21,583.1
============= =================
CHINA LITERATURE
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED EBITDA
Six months ended June 30,
---------------------------
2026 2025
------------ -------------
(RMB in million)
Reconciliation of operating profit to EBITDA
and adjusted EBITDA:
Operating profit 270.8 875.8
------------ -------------
Adjustments:
Interest income (81.3) (81.9)
Other losses/(gains), net 25.0 (582.5)
Depreciation of property, plant and equipment 18.4 18.8
Depreciation of right-of-use assets 29.3 34.2
Amortization of intangible assets 40.3 53.8
EBITDA 302.6 318.2
------------ -------------
Adjustments:
Share-based compensation 78.9 65.9
Expenditures related to acquisitions 2.7 2.7
Adjusted EBITDA 384.2 386.9
============ =============
CHINA LITERATURE
RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS
Six months ended June 30, 2026
Adjustments
Amortization
Net losses from of
As Share- based investments and intangible Tax
reported compensation acquisitions(1) assets(2) effect Non-IFRS
(RMB in million, unless specified)
Operating
profit 270.8 78.9 7.2 10.2 - 367.2
Profit for
the period 135.2 78.9 7.2 10.2 27.1 258.6
Profit
attributable
to equity
holders of
the Company 135.4 78.9 7.2 10.2 27.1 258.8
Earnings per
share (RMB
per share)
- basic 0.13 0.26
- diluted 0.13 0.25
Operating
margin 7.7 % 10.4 %
Net margin 3.8 % 7.3 %
Six months ended June 30, 2025
Adjustments
Net (gains) Amortization
from of
As Share- based investments and intangible Tax
reported compensation acquisitions(1) assets(2) effect Non-IFRS
(RMB in million, unless specified)
Operating
profit 875.8 65.9 (502.5) 9.5 - 448.7
Profit for
the period 849.6 65.9 (502.5) 9.5 85.2 507.6
Profit
attributable
to equity
holders of
the Company 849.8 65.9 (502.5) 9.5 85.2 507.8
Earnings per
share (RMB
per share)
- basic 0.84 0.50
- diluted 0.83 0.50
Operating
margin 27.4 % 14.1 %
Net margin 26.6 % 15.9 %
Notes: (1) This item mainly includes gains on disposal and deemed disposal, impairment provisions and
fair value changes arising from our investee companies, fair value changes of consideration liabilities
related to the acquisition of NCM, and compensation costs for certain employees and former owners related
to acquisitions. (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-2026-interim-results-302848210.html
SOURCE China Literature