China Literature issued a profit warning, expecting an annual net loss of approximately 150 million to 250 million yuan, shifting from profit to loss year-on-year, which is a rare annual net loss for the company. This loss is mainly attributed to non-cash goodwill impairment arising from the acquisition of New Classics Media. According to the financial report analysis previously 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, primarily due to the success of several hit dramas produced by New Classics, as well as a 78% year-on-year increase in copyright operation revenue outside of film and TV income. However, the valuation of New Classics at the time of acquisition by China Literature was already high. After the impairment, more attention can be paid to the performance of the company's core online literature business.