China Literature Announces 2024 Interim Results
China Literature reported strong financial results for H1 2024:
- Total revenues increased 27.7% YoY to RMB4,190.9 million
- Revenues from IP operations surged 75.7% YoY to RMB2,202.8 million
- Operating profit rose 46.1% YoY to RMB454.4 million
- Non-IFRS profit attributable to equity holders grew 16.4% YoY to RMB702.1 million
Key highlights:
- Success of IP sequels like Joy of Life 2
- Expansion into merchandise and collectibles
- Growth in overseas markets
- Continued investment in high-quality content and writers
- Integration of AI technologies across businesses
The company aims to further leverage its IP portfolio and content ecosystem to drive growth.
China Literature ha riportato risultati finanziari solidi per il primo semestre del 2024:
- I ricavi totali sono aumentati del 27,7% su base annua, raggiungendo 4.190,9 milioni di RMB
- I ricavi dalle operazioni IP sono aumentati del 75,7% su base annua, arrivando a 2.202,8 milioni di RMB
- Il profitto operativo è cresciuto del 46,1% su base annua, toccando 454,4 milioni di RMB
- Il profitto non-IFRS attribuibile agli azionisti è aumentato del 16,4% su base annua, raggiungendo 702,1 milioni di RMB
Punti salienti:
- Successo di sequel IP come Joy of Life 2
- Espansione in prodotti e collezionabili
- Crescita nei mercati esteri
- Continua investimento in contenuti e scrittori di alta qualità
- Integrazione di tecnologie AI in tutte le attività
L'azienda punta a sfruttare ulteriormente il suo portafoglio IP e l'ecosistema dei contenuti per stimolare la crescita.
China Literature reportó resultados financieros sólidos para el primer semestre de 2024:
- Los ingresos totales aumentaron un 27.7% interanual, alcanzando 4,190.9 millones de RMB
- Los ingresos de las operaciones de IP se dispararon un 75.7% interanual a 2,202.8 millones de RMB
- El beneficio operativo creció un 46.1% interanual, alcanzando 454.4 millones de RMB
- El beneficio no-IFRS atribuible a los accionistas creció un 16.4% interanual, alcanzando 702.1 millones de RMB
Puntos destacados:
- Éxito de secuelas de IP como Joy of Life 2
- Expansión en mercancías y coleccionables
- Crecimiento en mercados extranjeros
- Inversión continua en contenido de alta calidad y escritores
- Integración de tecnologías AI en todos los negocios
La empresa tiene como objetivo aprovechar aún más su portafolio de IP y ecosistema de contenido para impulsar el crecimiento.
중국 문학은 2024년 상반기 강력한 재무 결과를 보고했습니다:
- 총 수익이 전년 대비 27.7% 증가하여 4190.9 백만 RMB에 도달했습니다
- IP 운영에서의 수익이 전년 대비 75.7% 급증하여 2202.8 백만 RMB에 달했습니다
- 영업 이익은 전년 대비 46.1% 증가하여 454.4 백만 RMB에 이렀습니다
- 자본 보유자에게 귀속되는 비 IFRS 이익이 전년 대비 16.4% 성장하여 702.1 백만 RMB에 도달했습니다
주요 하이라이트:
- Joy of Life 2와 같은 IP 후속작의 성공
- 상품과 수집품으로의 확장
- 해외 시장에서의 성장
- 고품질 콘텐츠와 작가에 대한 지속적인 투자
- 비즈니스 전반에 걸친 AI 기술 통합
회사는 IP 포트폴리오와 콘텐츠 생태계를 더욱 활용하여 성장을 촉진할 계획입니다.
China Literature a rapporté des résultats financiers solides pour le premier semestre 2024 :
- Les revenus totaux ont augmenté de 27,7 % par rapport à l'année précédente, atteignant 4 190,9 millions de RMB
- Les revenus des opérations IP ont grimpé de 75,7 % par rapport à l'année précédente pour atteindre 2 202,8 millions de RMB
- Le bénéfice d'exploitation a augmenté de 46,1 % par rapport à l'année précédente, atteignant 454,4 millions de RMB
- Le bénéfice non-IFRS attribuable aux actionnaires a crû de 16,4 % par rapport à l'année précédente, atteignant 702,1 millions de RMB
Points forts :
- Succès des suites IP comme Joy of Life 2
- Expansion vers les produits dérivés et les objets de collection
- Croissance sur les marchés étrangers
- Investissement continu dans des contenus de haute qualité et des auteurs
- Intégration des technologies AI dans tous les secteurs d'activité
La société vise à exploiter davantage son portefeuille IP et son écosystème de contenu pour stimuler la croissance.
China Literature hat für das erste Halbjahr 2024 starke Finanzzahlen gemeldet:
- Die Gesamterlöse stiegen im Jahresvergleich um 27,7% auf 4.190,9 Millionen RMB
- Die Erlöse aus IP-Operationen stiegen im Jahresvergleich um 75,7% auf 2.202,8 Millionen RMB
- Der Betriebsgewinn erhöhte sich im Jahresvergleich um 46,1% auf 454,4 Millionen RMB
- Der auf die Eigenkapitalinhaber entfallende Non-IFRS-Gewinn wuchs im Jahresvergleich um 16,4% auf 702,1 Millionen RMB
Wesentliche Highlights:
- Erfolg von IP-Fortsetzungen wie Joy of Life 2
- Expansion in Merchandising und Sammlerstücke
- Wachstum auf internationalen Märkten
- Fortlaufende Investitionen in hochwertige Inhalte und Autoren
- Integration von KI-Technologien in alle Geschäftsbereiche
Das Unternehmen plant, sein IP-Portfolio und sein Inhaltsökosystem weiter zu nutzen, um das Wachstum voranzutreiben.
- Total revenues increased 27.7% year-over-year to RMB4,190.9 million
- Revenues from IP operations increased 75.7% year-over-year to RMB2,202.8 million
- Operating profit increased 46.1% year-over-year to RMB454.4 million
- Non-IFRS profit attributable to equity holders increased 16.4% year-over-year to RMB702.1 million
- Gross margin increased to 49.7% from 48.9% in the first half of 2023
- Monthly paying users grew steadily to 8.8 million during the first half of the year
- Success of IP sequels like Joy of Life 2, which became the most watched mainland Chinese TV series on Disney+
- Expansion into merchandise and collectibles business, with Joy of Life-themed products generating significant sales
- Growth in overseas markets, with WebNovel offering approximately 5,000 translated works and 650,000 original works
- Online business revenues decreased slightly from RMB1,984.4 million to RMB1,940.4 million
- Average MAUs on self-owned platform products and self-operated channels decreased 16.9% year-over-year to 176.0 million
- Monthly ARPU for pay-to-read business decreased 1.9% year-over-year from RMB32.3 to RMB31.7
- Selling and marketing expenses increased 41.0% year-over-year to RMB1,158.9 million
Results Highlights(1)
- Total revenues increased
27.7% year-over-year toRMB4,190.9 million (USD588.1 million ).
- Revenues from online business wereRMB1,940.4 million (USD272.3 million ), compared withRMB1,984.4 million in the first half of 2023, primarily attributed to our continuous optimization of return on investment ("ROI") on our distribution channels and focus on driving growth in our core products.
- Revenues from IP operations and others increased73.3% year-over-year toRMB2,250.6 million (USD315.8 million ) due to solid growth from our IP operations businesses across the board, driven primarily by an increase in the release of blockbuster drama series, film, and animated series, the expanded licensing of our IP for adaptation to business partners, as well as the significant growth of new initiatives. - 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 increased14.3% year-over-year toRMB624.2 million (USD87.6 million ). Operating margin was14.9% , compared with16.6% in the first half of 2023.
- Profit attributable to equity holders of the Company increased16.4% year-over-year toRMB702.1 million (USD98.5 million ), and its margin was16.8% , compared to18.4% in the first half of 2023.
- Basic earnings per share wereRMB0.69 . Diluted earnings per share wereRMB0.69 . - On an IFRS basis:
- Operating profit increased46.1% year-over-year toRMB454.4 million (USD63.8 million ). Operating margin increased from9.5% to10.8% .
- Profit attributable to equity holders of the Company increased33.9% year-over-year toRMB504.3 million (USD70.8 million ) and its margin increased from11.5% to12.0% .
- Basic earnings per share wereRMB0.50 . Diluted earnings per share wereRMB0.49 .
(1) Figures stated in USD are based on |
Mr. Hou Xiaonan, Chief Executive Officer of China Literature, commented, "During the first half of 2024, we continued to execute our high-quality content strategy and made significant progress in maximizing the potential of our premium IPs across the industry value chain. We delivered an exceptional performance, especially in our live action TV and film business. Our film YOLO (热辣滚烫) continues to lead nationwide box office sales in 2024 so far, while the drama series The Legend of Shen Li (与凤行), Joy of Life 2 (庆余年第二季) and The Tale of Rose (玫瑰的故事) were all released to critical acclaim. These success stories set a strong foundation for what we anticipate will be a 'blockbuster year' for China Literature's content business. In the first half of 2024, our total revenues increased
Throughout the period, we continued to strengthen our IP incubation and foster the flourishing of our content ecosystem by nurturing high-quality writers and literary works, and further optimizing and upgrading community operations. With this enhanced content and operational framework, monthly paying users grew steadily on a sequential basis to 8.8 million during the first half of the year. We have made solid progress in IP visualization with the launch of several premium titles. Notably, Joy of Life 2 (庆余年第二季), adapted from our renowned IP, achieved phenomenal success both domestically and internationally, and became the most watched mainland Chinese TV series on Disney+, setting a new benchmark for the global reach and appeal of Chinese film and television content. We have also taken an important step in the commercialization of our IP. Merchandise based on Joy of Life (庆余年) and our other popular comics, animation and drama related IPs have gained widespread popularity, expanding the reach and value of our IP portfolio.
We have long maintained the conviction that innovation is the key to driving growth and making breakthroughs. Therefore, we are accelerating the deployment and integration of AI technologies across our diverse businesses. We continue to refine our 'Smart Pen' Large Language Model (LLM), empowering writers to boost their productivity, and leverage AI translation technology to drive rapid growth in the number of translated works on our overseas platform. At the same time, we are actively exploring the integration of AI with various IP content formats including audiobooks, animation, videos, and merchandise. Looking forward, we will continue to embrace the new opportunities that technological advancements bring to revitalize the industry, uphold our foundational values of 'content, platform, and IP', and keep committed to creating good stories that will live forever."
Financial Review(3)
Revenues increased
Revenues from online business were
- Online business revenues from our self-owned platform products decreased slightly from
RMB1,709.7 million in the first half of 2023 toRMB1,694.2 million (USD237.7 million ), as the Company continued to optimize ROI on our distribution channels and focus on driving growth in our core products; - Online business revenues from our channels on Tencent products were
RMB130 .7 million (USD18 .3 million), compared with RMB177.0 million in the prior corresponding period, mainly due to a continuous decrease in advertising revenues from free-to-read channels as the Company focuses on developing a high-quality pay-to-read business model with more content distributed through pay-to-read channels with higher ROI; and - Online business revenues from third-party platforms increased
18.2% year-over-year toRMB115.5 million (USD16.2 million ), primarily due to increased collaboration with our third-party distribution partners.
Revenues from IP operations and others increased
- Revenues from IP operations increased
75.7% year-over-year toRMB2,202.8 million (USD309.1 million ), due to solid growth from our IP operations businesses across the board, driven primarily by an increase in the release of blockbuster drama series, film, and animated series, as well as expanded licensing of our IP for adaptation to business partners. In addition, new initiatives such as short dramas, merchandise and collectible card business grew significantly during the period; and - Revenues from the "others" category, consisting mainly of sales of physical books, increased
6.9% year-over-year toRMB47.7 million (USD6.7 million ).
Cost of revenues increased
Gross profit increased
Interest income increased
Net other losses were
Selling and marketing expenses increased
General and administrative expenses increased by
Net provision for impairment losses on financial assets reflected the provision for doubtful receivables. In the first half of 2024, the provision for doubtful receivables was
Operating profit increased
Income tax expense was
Profit attributable to equity holders of the Company increased
Key Operating Information
- Average MAUs on our self-owned platform products and self-operated channels were 176.0 million, a decrease of
16.9% year-over-year from 211.7 million. A further breakdown of MAUs is as follows:
- MAUs on our self-owned platform products remained stable on a year-over-year basis at 105.3 million, compared with 105.4 million in the first half of 2023; and
- MAUs on our self-operated channels on Tencent products decreased33.5% year-over-year from 106.3 million to 70.7 million, primarily as a result of the optimization of our operational efficiency with more content distributed through our core pay-to-read products, leading to a decline in users acquired through free-to-read channels. - Average MPUs on our self-owned platform products and self-operated channels increased
0.4% slightly year-over-year to 8.8 million in the first half of 2024. - Monthly ARPU for our pay-to-read business decreased
1.9% year-over-year fromRMB32.3 toRMB31.7 in the first half of 2024, mainly due to changes in revenue mix from different product offerings.
Other Key Information
- EBITDA increased
34.7% year-over-year toRMB501.5 million (USD70.4 million ). Adjusted EBITDA increased24.7% year-over-year toRMB587.6 million (USD82.5 million ). - As of June 30, 2024, the Company's net cash position was
RMB9,208.1 million (USD1,292.0 million ). - Free cash flow* was
RMB1,531.8 million (USD214.9 million ), compared toRMB475.7 million in the first half of 2023. - New Classics Media, on a standalone basis, recorded
RMB1,050.3 million (USD147.4 million ) in revenues andRMB300.3 million (USD42.1 million ) in profit attributable to equity holders of the company in the first half of 2024.
* Free cash flow: operating cash flow deducts payments for lease liabilities and payments for capital expenditures.
Business Review and Outlook
Success of Top IP Sequels and Establishment of an Integrated Content Operation Mechanism
On May 16, 2024, Joy of Life 2 (庆余年第二季), the eagerly anticipated second season of the drama series adapted from our renowned IP, made its highly successful debut. The drama series quickly became a national sensation – shattering domestic records with a meteoric rise in viewership and popularity during its 18-day prime-time run. On
Joy of Life 2 not only achieved phenomenal success domestically, it also captivated international audiences with its simultaneous release on Disney+ where it quickly became the platform's highest-viewed mainland Chinese TV series. It is currently being translated into 14 languages for release into other markets around the world.
Joy of Life 2's success extended far beyond that of a standalone project. It exemplifies our strategy to leverage resources across various departments and effectively collaborate with both upstream and downstream partners. We assembled our largest-ever dedicated team during the project's early development stages to drive this. Simultaneously, we rolled out Joy of Life-themed products across various media formats, including online literature, drama series, online games, merchandise and collectible cards. This approach aims at maximizing the IP's impact on audiences and fully unleashing its monetization potential. For example:
- We launched a virtual fan zone on Qidian Reading APP alongside the release of Joy of Life 2, which gave readers free access to the author's trilogy for a limited time as well as offered a series of engaging activities. These initiatives resulted in a 38-fold increase in reading volume sequentially, generated over 100 million visits to the virtual fan zone, and set a new annual record for daily active users of Qidian Reading APP.
- We also released 11 categories of Joy of Life-themed merchandise including blind boxes, accessories and a premium collectible card series featuring 308 card designs. Sales of the blind boxes exceeded 200,000 units, while the collectible cards generated over
RMB20 million in GMV before the drama's release, making them the all-time best-selling collectible cards in the drama-themed category. - We launched a series of offline events that attracted a large number of fans. These events engaged participants to share their experiences online, sparking a viral wave of social media activity and user-generated content.
This fully-integrated approach sets a new standard for managing our flagship IP holistically and will be applied to other premium IPs in our portfolio.
The remarkable success of the Joy of Life franchise validates two crucial aspects of our strategy. First, it demonstrates our consistent ability to create and replicate blockbuster IP. Second, it showcases the power of our business model, which collaborates with partners across the entire IP value chain to maximize the potential of our premium IP. We have long been committed to fostering a robust ecosystem for IP development. Our success in operating our flagship IP through effective mobilization and coordination of resources across multiple stakeholders within our ecosystem marks a significant milestone.
IP Creation
We continued to strengthen the content ecosystem of our online reading business. In the first half of this year, our online reading platform added approximately 170,000 writers and 320,000 literary works, collectively contributing over 21 billion Chinese characters. A steady stream of high-quality new works continued to be released, with the number of newly signed literary works with over 50,000 average subscribers per chapter increasing
While nurturing high-quality writers and promoting outstanding literary works remains a core focus, we remain committed to building a robust user community, strengthening operations for flagship IP, and amplifying fan engagement. With our enhanced content and operational framework, monthly paying users grew steadily on a sequential basis to over 8.8 million during the first half of the year.
We continued to expand into overseas markets. As of June 30, 2024, WebNovel, our foreign language online reading platform, offered approximately 5,000 works translated from Chinese and approximately 650,000 original works created locally.
IP Visualization
We launched several top-tier titles during the first half of 2024, garnering enthusiastic audience reception and widespread acclaim.
In the live action TV and film segment, we had one box office champion film and three blockbuster drama series, including:
- YOLO (热辣滚烫): this film led nationwide box office receipts in 2024 so far, with sales of
RMB3.5 billion . - The Legend of Shen Li (与凤行): this drama series achieved a popularity index of over 31,000 on
Tencent Video during its broadcasting run, held the top position on Mango TV Drama Popularity List for 22 days, and ranked first in viewership ratings among provincial satellite TV networks during the same time slot according to China Audio Video Big Data. - Joy of Life 2 (庆余年第二季): as mentioned earlier, the highly-anticipated second season of the drama series achieved extraordinary results, laying a solid foundation for the long-term development of the Joy of Life IP.
- The Tale of Rose (玫瑰的故事): this drama series achieved a popularity index of over 31,000 on
Tencent Video during its broadcasting run, setting a record high for the urban drama genre onTencent Video. It also ranked first in national prime-time drama series ratings, according to China Audio Video Big Data.
These productions have not only captivated domestic audiences but have also made significant inroads in overseas markets. In addition to the abovementioned Joy of Life 2, The Legend of Shen Li was aired in over 180 countries and regions globally in 16 languages. YOLO was distributed by Sony Pictures globally and is currently the highest-grossing Chinese-language film overseas this year.
In the animation segment, we launched a number of new series including The Richest Man in Game (亏成首富从游戏开始) and The Charm of Soul Pets (幻宠师), as well as sequels to classic titles such as The King's Avatar (全职高手) and Start with a Mountain (开局一座山). We released new episodes for our long-running annual animated series Battle Through the Heavens (斗破苍穹), helping it to maintain its top ranking on
In the first half of the year, we completed the acquisition of the assets of
IP Commercialization and Monetization
In the merchandise segment, we unveiled a diverse array of trendy collectibles and merchandise based on popular IPs such as Joy of Life (庆余年), The King's Avatar (全职高手), Lord of the Mysteries (诡秘之主) and Battle Through the Heavens (斗破苍穹). These offerings, including blind boxes, toy collectibles and accessories, were launched alongside the releases of the online content. In addition, we continued to expand the scope and scale of our IP licensing for merchandise.
We made significant progress in our collectible cards business in the first half of 2024. Our goal is to build China Literature's own IP universe of collectible cards, meeting Chinese collectors' growing demand for high-quality, IP-based products while further expanding IP monetization. Our collectible cards series based on the drama series The Legend of Shen Li (与凤行) and Joy of Life (庆余年) have delivered strong results. We plan to launch more series, such as collectible cards based on the drama series Guardians of the Dafeng (大奉打更人). Additionally, we have a rich portfolio of comic and animation IPs that can be adapted into collectible cards for global distribution. In the second half of 2024, we will launch comic/animation-themed cards both domestically and globally, including The King's Avatar (全职高手), Battle Through the Heavens (斗破苍穹), Lord of the Mysteries (诡秘之主), The Outcast (一人之下) and The Fox Spirit Matchmaker (狐妖小红娘). In the first half of this year, total GMV for our IP-based collectible cards reached approximately
In the games segment, two titles based on our IPs, Soul Land (斗罗大陆) and Battle Through the Heavens (斗破苍穹), were launched in the first half of this year, generating solid sales. We have a rich portfolio of IP-based games set to be released in the near future, including Lord of the Mysteries (诡秘之主).
Exploration into New Technologies and Emerging Business Opportunities
We are strategically deploying AI capabilities across our diverse businesses to enhance our ecosystem. We continue to refine our "Smart Pen" Large Language Model (LLM), empowering writers to boost their productivity. Our AI translation technology is driving rapid growth in the number of translated works on our overseas platform. In the first half of 2024, WebNovel, our overseas reading platform, added over 1,200 AI-translated works in multiple languages including English, Spanish, Portuguese, German, French, and Indonesian. Notably, approximately
Responding to the rapidly growing short-form drama market, we leveraged our content strengths and extensive creator network to produce high-quality short-form drama adaptations of our IP. We've achieved several successes, with the best performing title generating
Outlook
We delivered an exceptional performance in the first half of 2024. We released four blockbuster titles, firmly underscoring our commitment to our premium IP strategy. The launch of Joy of Life 2 (庆余年第二季) exemplified successful collaboration with our ecosystem partners, achieving success that benefits everyone in the value chain. We also achieved notable progress in the international markets, IP commercialization, and new business initiatives. Looking forward, we will continue to strengthen our IP incubation, enhance IP visualization and commercialization, optimize our operational framework for flagship IP, and explore new technologies and emerging business opportunities. We believe these endeavors will deliver long-term and sustainable returns for the shareholders who have consistently believed in and supported us on this journey.
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 on a range of digital entertainment mediums, including comics, animation, film, TV series, web series and games. The virtual world created by these digital offerings become 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
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 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 non-IFRS financial 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.
CHINA LITERATURE | ||||
CONSOLIDATED INCOME STATEMENT | ||||
Six months ended June 30, | ||||
2024 | 2023 | |||
(RMB in million, unless specified) | ||||
Revenues | ||||
Online business(1) | 1,940.4 | 1,984.4 | ||
Intellectual property operations and others(2) | 2,250.6 | 1,298.6 | ||
4,190.9 | 3,283.0 | |||
Cost of revenues | (2,107.7) | (1,678.3) | ||
Gross profit | 2,083.2 | 1,604.8 | ||
Gross margin | 49.7 % | 48.9 % | ||
Interest income | 90.6 | 80.1 | ||
Other (losses)/gains, net | (3.7) | 5.8 | ||
Selling and marketing expenses | (1,158.9) | (822.1) | ||
General and administrative expenses | (544.8) | (534.5) | ||
Net provision for impairment losses on financial assets | (12.0) | (23.1) | ||
Operating profit | 454.4 | 310.9 | ||
Operating margin | 10.8 % | 9.5 % | ||
Finance costs, net | (2.1) | (2.8) | ||
Share of net profit of associates and joint ventures | 150.6 | 117.5 | ||
Profit before income tax | 603.0 | 425.6 | ||
Income tax expense | (99.1) | (49.6) | ||
Profit for the period | 503.9 | 376.0 | ||
Net margin | 12.0 % | 11.5 % | ||
Profit attributable to: | ||||
Equity holders of the Company | 504.3 | 376.7 | ||
Non-controlling interests | (0.4) | (0.7) | ||
503.9 | 376.0 | |||
Earnings per share | ||||
(in RMB per share) | ||||
- Basic earnings per share | 0.50 | 0.37 | ||
- Diluted earnings per share | 0.49 | 0.37 | ||
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, licensing |
CHINA LITERATURE | ||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
Six months ended June 30, | ||||
2024 | 2023 | |||
(RMB in million) | ||||
Profit for the period | 503.9 | 376.0 | ||
Other comprehensive income, net of tax: | ||||
Item that may be subsequently reclassified to profit or loss | ||||
Share of other comprehensive loss of associates | (0.2) | (4.9) | ||
Currency translation differences | (19.0) | (48.5) | ||
Item that will not be reclassified to profit or loss | ||||
Net gain/(loss) from change in fair value of financial | 1.4 | (4.1) | ||
Share of other comprehensive income of an associate | - | 3.1 | ||
Currency translation differences | 47.9 | 125.6 | ||
30.2 | 71.3 | |||
Total comprehensive income for the period | 534.1 | 447.2 | ||
Total comprehensive income attributable to: | ||||
Equity holders of the Company | 534.5 | 447.9 | ||
Non-controlling interests | (0.4) | (0.7) | ||
534.1 | 447.2 |
CHINA LITERATURE | ||||
SEGMENT INFORMATION | ||||
Six months ended June 30, | ||||
2024 | 2023 | |||
(RMB in million, except percentages) | ||||
Revenues | ||||
Online business | 1,940.4 | 1,984.4 | ||
Intellectual property operations and others | 2,250.6 | 1,298.6 | ||
Total revenues | 4,190.9 | 3,283.0 | ||
Cost of revenues | ||||
Online business | (966.0) | (997.8) | ||
Intellectual property operations and others | (1,141.8) | (680.5) | ||
Total cost of revenues | (2,107.7) | (1,678.3) | ||
Gross profit | ||||
Online business | 974.4 | 986.6 | ||
Intellectual property operations and others | 1,108.8 | 618.1 | ||
Total gross profit | 2,083.2 | 1,604.8 | ||
Gross margin | ||||
Online business | 50.2 % | 49.7 % | ||
Intellectual property operations and others | 49.3 % | 47.6 % | ||
Total gross margin | 49.7 % | 48.9 % |
CHINA LITERATURE | ||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||
As of | ||||
June 30, 2024 | December 31, 2023 | |||
(RMB in million) | ||||
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 115.3 | 128.3 | ||
Right-of-use assets | 177.4 | 207.7 | ||
Intangible assets | 7,327.4 | 7,330.1 | ||
Investments in associates and joint ventures | 1,064.2 | 924.7 | ||
Financial assets at fair value through profit or loss | 853.2 | 856.0 | ||
Financial asset at fair value through other | 5.6 | 4.1 | ||
Deferred income tax assets | 488.8 | 394.1 | ||
Prepayments, deposits and other assets | 292.5 | 291.6 | ||
Term deposits | 2,199.0 | 1,829.0 | ||
12,523.4 | 11,965.7 | |||
Current assets | ||||
Inventories | 716.6 | 743.7 | ||
Television series and film rights | 857.7 | 995.1 | ||
Financial assets at fair value through profit or loss | 2,817.6 | 2,442.7 | ||
Trade and notes receivables | 2,127.9 | 1,988.2 | ||
Prepayments, deposits and other assets | 1,186.5 | 1,212.6 | ||
Term deposits | 1,303.2 | 1,038.7 | ||
Cash and cash equivalents | 2,898.3 | 2,801.8 | ||
11,907.8 | 11,222.8 | |||
Total assets | 24,431.3 | 23,188.5 | ||
EQUITY | ||||
Capital and reserves attributable to the equity holders | ||||
Share capital | 0.7 | 0.7 | ||
Treasury shares | (16.5) | - | ||
Shares held for RSU schemes | (16.6) | (16.6) | ||
Share premium | 16,374.7 | 16,312.6 | ||
Other reserves | 1,831.2 | 2,173.3 | ||
Retained earnings | 1,059.3 | 555.0 | ||
19,232.7 | 19,024.9 | |||
Non-controlling interests | (0.9) | (0.5) | ||
Total equity | 19,231.7 | 19,024.4 |
As of | ||||
June 30, 2024 | December 31, 2023 | |||
(RMB in million) | ||||
LIABILITIES | ||||
Non-current liabilities | ||||
Lease liabilities | 119.9 | 153.2 | ||
Long-term payables | 8.1 | 1.2 | ||
Deferred income tax liabilities | 132.1 | 134.5 | ||
Deferred revenue | 23.1 | 24.2 | ||
Financial liabilities at fair value through profit or loss | - | 247.8 | ||
283.2 | 560.9 | |||
Current liabilities | ||||
Borrowings | 10.0 | 10.0 | ||
Lease liabilities | 81.7 | 74.9 | ||
Trade payables | 1,222.1 | 1,119.7 | ||
Other payables and accruals | 1,935.3 | 997.7 | ||
Deferred revenue | 1,144.5 | 879.3 | ||
Current income tax liabilities | 237.4 | 266.4 | ||
Financial liabilities at fair value through profit or loss | 285.2 | 255.1 | ||
4,916.3 | 3,603.1 | |||
Total liabilities | 5,199.5 | 4,164.0 | ||
Total equity and liabilities | 24,431.3 | 23,188.5 |
CHINA LITERATURE | |||
RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED EBITDA | |||
Six months ended June 30, | |||
2024 | 2023 | ||
(RMB in million) | |||
Reconciliation of operating profit to EBITDA and | |||
Operating profit | 454.4 | 310.9 | |
Adjustments: | |||
Interest income | (90.6) | (80.1) | |
Other losses/(gains), net | 3.7 | (5.8) | |
Depreciation of property, plant and equipment | 17.8 | 17.0 | |
Depreciation of right-of-use assets | 36.2 | 38.4 | |
Amortization of intangible assets | 79.9 | 91.8 | |
EBITDA | 501.5 | 372.2 | |
Adjustments: | |||
Share-based compensation | 55.4 | 70.9 | |
Expenditure related to acquisition | 30.7 | 28.2 | |
Adjusted EBITDA | 587.6 | 471.4 |
CHINA LITERATURE | |||||||
RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS | |||||||
Six months ended June 30, 2024 | |||||||
Adjustments | |||||||
As | Share-based | Net losses from investments | Amortization of | Tax effects | Non-IFRS | ||
(RMB in million, unless specified) | |||||||
Operating profit | 454.4 | 55.4 | 104.7 | 9.5 | - | 624.2 | |
Profit for the period | 503.9 | 55.4 | 104.7 | 9.5 | 28.0 | 701.7 | |
Profit attributable to equity | 504.3 | 55.4 | 104.7 | 9.5 | 28.0 | 702.1 | |
EPS (RMB per share) | |||||||
- basic | 0.50 | 0.69 | |||||
- diluted | 0.49 | 0.69 | |||||
Operating margin | 10.8 % | 14.9 % | |||||
Net margin | 12.0 % | 16.7 % | |||||
Six months ended June 30, 2023 | |||||||
Adjustments | |||||||
As reported | Share-based | Net losses from investments | Amortization of | Tax effects | Non-IFRS | ||
(RMB in million, unless specified) | |||||||
Operating profit | 310.9 | 70.9 | 153.9 | 10.1 | - | 545.8 | |
Profit for the period | 376.0 | 70.9 | 147.2 | 10.1 | (1.8) | 602.4 | |
Profit attributable to equity | 376.7 | 70.9 | 147.2 | 10.1 | (1.8) | 603.1 | |
EPS (RMB per share) | |||||||
- basic | 0.37 | 0.60 | |||||
- diluted | 0.37 | 0.59 | |||||
Operating margin | 9.5 % | 16.6 % | |||||
Net margin | 11.5 % | 18.3 % | |||||
Notes: | |||||||
(1) This item mainly includes the disposal gain, impairment provision and fair value changes arising from our investee companies, the fair value changes of consideration | |||||||
(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-2024-interim-results-302219758.html
SOURCE China Literature
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