HK Movers | China Literature Jumps 20% Again to One-Year High After Strong First-Half Earnings Beat

On August 18 (Monday), China Literature surged over 20% again, hitting a one-year high in Hong Kong. As of press time, it had risen by 20.20%, trading at HKD 43.980 with a turnover of HKD 941 million.

In terms of news, the animation and live-action TV series adaptation of the IP "A Record of a Mortal's Journey to Immortality" became a hit during the summer. China Literature announced a "National Original Content Strategic Cooperation Plan" with Tencent's flagship game Honor of Kings. The two parties will explore cooperation possibilities in the field of national original content. Products from China Literature's subsidiary Yuewen Good Goods, in collaboration with the exclusive peripheral products, are now available for pre-sale in official flagship stores and the Honor of Kings official mall.

Additionally, China Literature's revenue for the first half of the year was RMB 3.191 billion, down 23.9% year-on-year; net profit attributable to the parent company was RMB 850 million, up 68.50% year-on-year. Citi published a research report stating that China Literature's performance in the first half slightly exceeded expectations, mainly benefiting from the growth of its licensing business, stable performance of short dramas, and progress in IP commercialization. This resulted in stronger-than-expected profit growth in non-Xinli Media businesses. Looking ahead to the second half of the year, Citi expects continuous progress in China Literature's IP commercialization. It anticipates the growth momentum of short dramas will continue due to unique IP and author collaboration. If NCM's content releases as planned, the expected profit contribution from the NCM business this year will be RMB 243 million.