China Literature released its interim results for the first half of 2026 on August 11, showing revenue of 3.53 billion yuan, representing a year-on-year increase of 10.7%, while profit attributable to equity holders was approximately 135 million yuan. Guided by the "IP + AI" strategy, the company used AI technology to adapt over a thousand web novels into AI-powered comics during the first half of 2026. Among these, 46 series surpassed 100 million views, and 367 series exceeded 10 million views.
According to the financial report, revenue from short dramas and AI comics surpassed 430 million yuan in the first half of 2026, more than triple the amount from the same period last year. Meanwhile, the IP merchandise business demonstrated stable and sustainable growth, with gross merchandise value reaching 780 million yuan, a year-on-year increase of over 60%. The diversified breakthroughs in new IP formats drove IP licensing revenue up 41.9% year-on-year to 1.61 billion yuan.
In the online business segment, China Literature attracted 240,000 new writers in the first half of 2026, producing over 460,000 novels with more than 30 billion additional words, ensuring a robust supply of IP sources. The rise of a new generation of writers accelerated, with promising works continuously emerging. Two titles, "Jian Zhu Da Huang" and "Lin Sheng," each attracted over 200,000 readers on their launch day, setting new records for platform premieres. Recently, China Literature also launched the Buddy series, a vertical AI agent for creative industries, deeply integrating AI into the entire content creation chain.
China Literature CEO and President Hou Xiaonan stated that the rising consumption of fragmented content by users and the disruptive impact of AI technology on the entire industry ecosystem have become two major structural changes in the entertainment sector that cannot be ignored. In response to these trends, while consolidating existing business advantages, we have made strategic investments in new formats such as short dramas, AI comics, and IP merchandise, achieving positive progress. Looking ahead, driven by the "IP + AI" engine, we are promoting the high-quality transformation of content from text to visuals, ushering in the next golden decade of IP value creation.