CHINA LIT (00772) released its interim results, with revenue of 3.531 billion yuan, an increase of 10.68% year-on-year. The revenue from IP operation business saw a year-on-year growth of 41.9%.

CHINA LIT (00772) announced its interim results for the six months ending June 30, 2026, with the group achieving revenue of RMB 3.531 billion, a year-on-year increase of 10.68%; gross profit of RMB 1.792 billion, a year-on-year increase of 11.15%; and profit attributable to equity holders of the company of RMB 135 million, with earnings per share of RMB 0.13. The announcement stated that in the first half of 2026, online reading faced increasing competition from a rapidly expanding and diversified IP visualization market. Against this backdrop, Yuewen's high-quality online reading business maintained a healthy and vibrant ecosystem, driving the creation of high-quality works. Young authors are emerging continuously, and leading writers are consistently producing high-quality new works, further solidifying the foundation for IP incubation. Meanwhile, the IP operation business performed strongly, with a year-on-year revenue increase of 41.9%. Particularly, the new segments of short dramas and AI comic dramas experienced explosive growth after proactive investments in and deep applications of AI technology, with relevant revenue in the first half of the year exceeding RMB 430 million, a year-on-year increase of 230%. Among these, the hit rate for short dramas reached four times the market average; 46 AI comic dramas have surpassed 100 million views, with the million-view rate hitting five times the industry average. The group's IP derivatives business also maintained robust growth, with GMV reaching RMB 780 million in the first half of the year, an increase of over 60% year-on-year. The group's online reading ecosystem serves as a "super reservoir" for quality content. In the first half of 2026, the platform attracted approximately 240,000 new authors, resulting in over 460,000 online literary works being produced, with a total of over 30 billion new words, indicating ample supply at the source. The new generation of writers is rising rapidly; among the newly signed authors with earnings exceeding RMB 1 million in the first half of the year, those under 30 accounted for 57%, a year-on-year increase of 49%. Promising works continue to emerge, with the number of works collected by users on the Qidian platform increasing by 37% year-on-year, and the number of works receiving monthly votes growing by 26% year-on-year. With ultra-top platinum authors returning frequently, two works have attracted over 200,000 users on the first day of release, breaking the platform's debut record.