China Literature reported H1 2026 revenue of RMB 3.53 billion, a 10.7% year-over-year increase. IP operations and other businesses surged 40.3% during the period. This growth offset a 7.3% decline in the company's traditional online reading segment.
Net profit attributable to shareholders fell 84.1% to RMB 135.4 million. A RMB 300 million tax-related charge primarily caused the steep decline. A high base effect from a previous one-time gain also impacted the year-over-year comparison.
Monthly active and paying users for the core reading business decreased. The company is shifting its strategy toward monetizing IP through short dramas and AI-animated content.