Core Viewpoint - The company reported a decline in total revenue for the first half of 2025, primarily due to uneven scheduling of film projects, while achieving significant growth in net profit and improvements in certain business segments [1][2]. Revenue Summary - Total revenue for the first half of 2025 was 3.19 billion yuan, a decrease of 23.9% year-on-year, attributed to the scheduling issues of new film projects [1]. - Gross profit reached 1.61 billion yuan, down 22.6% year-on-year, but the gross margin improved by 0.8 percentage points to 50.5% [1]. - Net profit attributable to shareholders was 850 million yuan, an increase of 68.5% year-on-year, while Non-IFRS net profit was 508 million yuan, a decrease of 27.7% [1]. Segment Performance - **Copyright Operations and Other Businesses**: Revenue was 1.205 billion yuan, down 46.4% year-on-year, with copyright revenue decreasing by 48.4% to 1.138 billion yuan due to no new film releases from New Li Media [1]. - **Online Business**: Total revenue was 1.985 billion yuan, an increase of 2.3% year-on-year. Revenue from proprietary platform products was 1.746 billion yuan, up 3.1%, while revenue from Tencent product channels fell by 25.6% to 97 million yuan due to content distribution optimization [1]. IP Ecosystem Growth - The company added approximately 200,000 writers and 410,000 novels in the first half of 2025, with a total of 20 billion new words created [2]. - The number of new signed works generating over 1 million yuan in revenue increased by 63% year-on-year, and the number of new signed writers achieving over 10,000 yuan in subscription revenue grew by 45% [2]. - Community engagement improved, with the number of works receiving over 10,000 monthly votes increasing by 20% and those with over 1 million votes rising by 200% [2]. IP Visualization and Monetization - Successful releases in the film and animation sectors included popular titles such as "National Color and Fragrance" and "The Battle of the Underworld" [2]. - The company's IP derivative business generated a GMV of 480 million yuan, nearing the total of 500 million yuan for the previous year [3]. - The introduction of the AI writing assistant "Miaobi Tongjian" significantly enhanced creative efficiency, with a 40% increase in author interactions with AI [3].

Disclaimer 2025 Interim Results China Literature August 12, 2025 This presentation 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 presentation. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond ou ...

Core Insights - The article highlights the growing influence of Chinese online literature on global culture, with increasing participation from overseas authors inspired by Chinese works [1][2][3] - WebNovel, a platform under the Chinese company Yuewen Group, has become a leading channel for the international dissemination of Chinese literature, with significant growth in both translated and original works [2][6] Group 1: Growth of Online Literature - As of the end of 2024, WebNovel is expected to have nearly 300 million overseas users and 700,000 original works, with 460,000 overseas authors [1][2] - The platform has launched 6,800 translated Chinese online literature works and 700,000 original works, covering over 200 countries and regions [2] Group 2: Cultural Exchange and Influence - The rise of overseas authors creating works influenced by Chinese culture signifies a new wave of globalization in online literature [3] - Readers are increasingly exposed to Chinese traditional culture through online literature, with over 150,000 mentions of "China" in reader comments in 2022 [4] Group 3: IP Development and Commercialization - The article emphasizes the commercial potential of IP development, with nearly 70% of past WSA award-winning works undergoing IP development across various media [7] - The success of adaptations like "Celebrating the Years 2" on platforms like Disney+ indicates the growing global appeal of Chinese IP [6] Group 4: Technological Advancements - The integration of AI technology in translation has significantly enhanced the efficiency and quality of translating Chinese online literature, with AI-translated works accounting for 47% of total Chinese translations in 2024 [9][11] - The use of AI has reduced translation costs by 90% and increased the acceptance of translated works among overseas readers [11] Group 5: Strategic Collaborations - Yuewen Group has formed strategic partnerships, such as with Japan's CCC Group, to enhance IP co-creation and innovation, aiming to introduce Chinese IP to the Japanese market [8]

Core Viewpoint - The company reported a revenue of 8.12 billion RMB in 2024, representing a year-on-year growth of 15.8%, while the gross profit reached 3.92 billion RMB, up 16.3% year-on-year, with a gross margin of 48.3%, an increase of 0.2 percentage points. However, the company faced a net loss attributable to shareholders of 210 million RMB, compared to a profit of 800 million RMB in 2023, primarily due to a net loss of 970 million RMB related to goodwill impairment from Xinli Media [2][3]. Group 1: Online Business Performance - Online business revenue was 4.03 billion RMB, a year-on-year increase of 2.1%. Revenue from proprietary platform products rose by 3.4% to 3.53 billion RMB, while revenue from Tencent product channels decreased by 28.2% to 250 million RMB due to a focus on core paid reading products, leading to reduced advertising revenue. Third-party platform online business revenue increased by 32.0% to 250 million RMB due to expanded cooperation with certain third-party distribution partners [3]. - The average monthly active users (MAU) for the company's proprietary platform and Tencent product self-operated channels was 16.66 million, a year-on-year decline of 19%. The MAU for the proprietary platform was 10.38 million, remaining relatively stable, while the MAU for Tencent's self-operated channel dropped by 37.7% to 6.28 million. The average monthly number of paying users increased by 4.6% year-on-year to 9.1 million, attributed to the launch of more membership content, although the average revenue per paying user decreased by 1.5% to 32 RMB [3]. Group 2: IP Derivatives and Xinli Media Performance - Revenue from copyright operations and other income grew by 33.5% to 4.09 billion RMB. Xinli Media generated 1.64 billion RMB in revenue with a profit of 340 million RMB in 2024. The company launched several TV dramas in the first half of 2024, but some series were delayed, impacting profits. The project pipeline for the next two years is robust, with several anticipated releases [4]. - In the short drama segment, the company released over 100 short dramas in 2024, with the highest single work revenue nearing 40 million RMB. New releases at the beginning of 2025 achieved over 50 million RMB in revenue within seven days [4]. - The company's derivative products achieved a gross merchandise volume (GMV) exceeding 500 million RMB in 2024, with card products contributing over 200 million RMB. The company established partnerships with over 150 licensing partners and developed a comprehensive sales channel, including online and offline stores [4].