Overview
China Lit(772.HK) is a comprehensive cultural industry group based on Chinese
online literature and centered on IP cultivation and development as its core. Its
subsidiaries include well-known brands in the industry such as QQ Reading, Qidian
and New Classics Media(NCM). It has a lineup of writers and a rich reserve of
literatures, covering more than 200 content categories, reaching hundreds of
millions of users, and adapting a large number of web text IPs, such as Joy of Life,
The King’s Avatar and Soul Land, into animation, film and television and games
and other products.
A review of Q3 2022 Results
China Lit (772.HK) has announced the annual report ended December 31, 2022.
The company’s revenue amounted to RMB 7.6 billion, decreasing 12.0% YoY. Cost
of revenue amounted to RMB 3.6 billion, decreasing 11.6% YoY. Gross profit
amounted to RMB 4.0 billion, decreasing 12.4% YoY. Gross profit margin was 52.8%,
slightly decreasing 0.3 percentage point YoY. Operating profit was RMB 0.6 billion,
decreasing 71.1% YoY. Profit attributable to non-IFRS shareholders amounted to
RMB 1.4 billion, increasing 9.6% YoY.