Driven by IP operation business, CHINA LIT's revenue in 2024 reaches a three-year high of 8.12 billion | Financial Report Insights

In 2024, CHINA LIT achieved a revenue of 8.12 billion yuan, reaching a three-year high, with a net profit attributable to the parent company of 1.14 billion yuan, mainly benefiting from the growth in revenue from IP operations and other business areas.

On March 18, CHINA LIT released its annual performance report for 2024:

• In 2024, CHINA LIT achieved a revenue of 8.12 billion yuan, a year-on-year increase of 15.8%, reaching the highest level in three years.
• According to non-International Financial Reporting Standards, the company's operating profit was 985.4 million yuan, and the profit attributable to equity holders was 1.1417 billion yuan.
• During the reporting period, gross profit increased by 16.3% year-on-year, reaching 3.9219 billion yuan, with a gross profit margin of 48.3%.
• Free cash flow was 2.3332 billion yuan, significantly increasing from 872.8 million yuan in 2023.

CHINA LIT CEO and President Hou Xiaonan stated:

“Under the strategic guidance of ‘focusing on high-quality content and creating evergreen IP,’ we successfully launched a series of blockbuster content such as ‘Hot and Spicy,’ ‘With the Phoenix,’ ‘Celebrating the Remaining Years 2,’ ‘The Story of Roses,’ ‘The Great Feng Patrolman,’ and ‘Battle Through the Heavens Year 3,’ further consolidating our industry-leading position; at the same time, leveraging the influence of blockbuster content, we accelerated the process of IP commercialization, with derivative business achieving rapid growth in 2024, and the annual GMV exceeding 500 million yuan.

In the future, we will continue to adhere to the high-quality content strategy, create IP with lasting vitality, and continuously explore the growth space of ‘IP + AI’ with the help of advanced technology.”

In 2024, the company's online business revenue grew by 2.1%, while IP operations and other revenues grew by 33.5%. The effectiveness of the company's high-quality strategy is significant, as a series of blockbuster content not only gained popularity but also opened up a huge space for IP commercialization, with IP copyright revenue increasing by 34.2% year-on-year, and the capabilities of the entire industry chain reaching a new level.

In 2024, CHINA LIT added 330,000 new authors and 650,000 novels, with outstanding performance in IP adaptations for film, animation, and comics, and derivative GMV exceeding 500 million yuan. At the same time, it actively explored AI technology to empower content creation, such as the "Writer Assistant" integrating the DeepSeek-R1 large model, promoting the globalization of IP and upgrading the industry chain.

In terms of film and television, CHINA LIT successively launched five blockbuster works: ‘Hot and Spicy,’ ‘With the Phoenix,’ ‘Celebrating the Remaining Years 2,’ ‘The Story of Roses,’ and ‘The Great Feng Patrolman,’ especially ‘Celebrating the Remaining Years 2,’ which became the only series in 2024 to exceed 100 million views per episode across the entire network.

In terms of animation, in 2024, CHINA LIT completed the asset acquisition of Tencent Animation, with both parties continuing to deeply integrate their advantages in content, production capacity, and the full industry chain development of IP. During the period, ‘Under One Person’ and ‘Fox Spirit Matchmaker’ continued to perform strongly on the Tencent Animation platform, with ‘Under One Person’ ranking first in revenue among domestic comics, while ‘Fox Spirit Matchmaker’ achieved the highest annual revenue growth In addition, China Literature's evergreen IP animation "Dou Po Cang Qiong" annual series topped Tencent Video's annual bestseller list and won the "2024 Tencent Video Annual Member's Favorite Animation." New series such as "Global High Martial Arts" and "Starting from Game to Become a Billionaire," as well as sequels like "Fox Spirit Matchmaker," have been dominating the screen one after another.