China Literature Group issued a profit warning, expecting an annual net loss of approximately 150 million to 250 million yuan, turning from profit to loss year-on-year, marking a rare annual net loss for China Literature Group. This loss is mainly due to the non-cash goodwill impairment arising from the acquisition of New Classics Media. According to the previous financial report interpretation tracked by Dolphin Research (https://longportapp.cn/zh-CN/topics/23109728?invite-code=791377&app_id=longbridge), China Literature actually performed well in the first half of last year, mainly due to a large number of hits from New Classics, and copyright operation income outside of film and television also increased by 78% year-on-year. However, the valuation at the time of acquiring New Classics was not low, and after the impairment is completed, more attention can be paid to the performance of the online literature fundamentals.