HK Stock Market Move | CHINA LIT (00772) rises by more than 4% again; company increases investment in comic drama creation. Institutions point to bright commercial prospects for the comic drama industry chain.

China Literature (00772) rose by more than 4%, rising by 4.34% to 42.34 Hong Kong dollars as of the time of publication, with a turnover of 192 million Hong Kong dollars. On the news front, on October 16, CHINA LIT CEO and President Hou Xiaonan announced an upgrade of the "Creation Partner Program" at the 2025 Reading and Creation Conference, entering a new track in comic drama beyond focusing on short drama. China Lit has launched four major initiatives to layout the comic drama ecosystem, including opening 100,000 high-quality IP, setting up a billion yuan creation fund, launching the AIGC tool "Comic Assistant" to improve adaptation efficiency, and building a full industry support system. As of October 2025, China Lit has had 30 comic drama works with a playback volume exceeding 10 million, and works like "Great Ming Virtuous Son-in-law" and "Unbeatable Simulation System" have a playback volume exceeding one billion. In addition, Soy Sauce Animation has become the first team in the comic drama field to receive investment and support from China Lit, and in the future, both parties will continue to increase cooperation in the comic drama field, with no less than 400 comic dramas going online each year within the next three years, with at least 200 works adapted from China Lit IP. Zhongtai believes that the comic drama industry chain has formed a complete chain of "IP reserve - adaptation production - commercial operation". The comic drama industry chain continues to improve, with a clear commercialization model, and comics, online literature, and short dramas are suitable for adaptation into comic dramas. Its profit model is similar to short dramas, with the core being that the profit from investment and flow surpasses the content cost, and currently, the overall operating flow ROI can reach 1.8 times, with a promising commercial prospects. EB SECURITIES stated that China Lit is a rare top company in the IP full industry chain, with stable online reading business and continuous incubation of new IP; benefiting from impressive performance in new businesses such as short dramas and IP derivatives, as well as future additional AI comic drama business, China Lit's own side profits are expected to continue to improve.