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Revenue was 4.191 billion yuan, a year-on-year increase of 27.7%; net profit under non-IFRS was 702 million yuan, a year-on-year increase of 16.4%. The financial report for the first half of 2024 released by Yuewen on August 12 ended the decline in revenue that began in the first half of 2022. In the past six months, popular content such as "The Story of Rose" and "Joy of Life Season 2" have driven copyright operations and other businesses. This sector has surpassed online business to become the pillar of Yuewen's revenue, accounting for more than half of Yuewen's revenue, and its revenue has increased by more than 70% year-on-year. On the other hand, the revenue of online businesses such as paid reading has declined year-on-year. From the end of June 2022 to the end of June 2024, Yuewen's average monthly active users decreased by 88.7 million, and the average monthly revenue per paying user dropped from 38.8 yuan to 31.7 yuan.

On August 12, China Literature released its 2024 first-half financial report, showing revenue of 4.191 billion yuan, a year-on-year increase of 27.7%. In terms of half year, this revenue exceeded the 4.087 billion yuan in the first half of 2022 and 3.283 billion yuan in 2023.

China Literature Group was established in March 2015. It is a cultural industry group based on digital reading and centered on IP cultivation and development. Its subsidiaries include QQ Reading, Qidian Reading, New Classics Media, Tencent Animation, etc. These products are classified into two sectors, online business and copyright operation and others, which become two sources of revenue for China Literature Group. The online business revenue mainly includes online paid reading, online advertising and the revenue from the distribution of third-party online games on the China Literature platform.

In the first half of 2024, the revenue of China Literature's online business was 1.94 billion yuan, a year-on-year decrease of 2.2%. The revenue share dropped from 60.4% in the first half of 2023 to 46.3%.

Specifically speaking of user data, the average monthly active users of Yuewen's own platform products and Tencent's self-operated channels in the first half of 2024 were 176 million, 35.7 million less than the 211.7 million in the first half of 2023. If we count from the first half of 2022 when revenue began to decline, Yuewen's monthly active users have been declining all the way, that is, 264.7 million at the end of June 2022, 243.9 million at the end of 2022, 211.7 million at the end of June 2023, and 205.6 million at the end of 2023, a total of 88.7 million less in two years.

The average revenue per paying user also shows the same trend, falling from 38.8 yuan at the end of June 2022 to 31.7 yuan at the end of June 2024, a decrease of 18.3% in two years. However, the average monthly paying users increased from 8.1 million at the end of June 2022 to 8.8 million at the end of June 2024.

Copyright operation and other revenue mainly comes from the production and distribution of TV series, online dramas, animations, movies, copyright licensing, operating self-operated online games and selling paper books. This part of the business achieved revenue of 2.251 billion yuan in the first half of 2024, a year-on-year increase of 73.3%; among which copyright operation revenue increased by 75.7% year-on-year, with revenue of 2.203 billion yuan.

"This is mainly due to the increase in the number of hit dramas, movies and animations launched online, as well as the expansion of the business scale of licensing IP to partners for adaptation. New businesses such as short dramas, derivatives and collectible cards have also grown significantly." Yuewen explained the reasons for the growth in copyright operations and other revenue, and mentioned four film and television works: "Hot Shot", "The Phoenix", "Joy of Life Season 2" and "The Story of Rose".

In terms of short dramas, the revenue of Ding! My Richest Husband is Online, adapted from its online literature IP, is about 30 million yuan. It is expected that Yuewen will launch more than 100 short dramas in 2024. In the card business, products such as Joy of Life, Journey with Phoenix, and The King's Avatar have pushed the overall GMV (total transaction volume) of cards to about 100 million yuan. In the future, Yuewen plans to launch film and television such as Dafeng Night Watchman and animation card products such as The King's Avatar and Fox Spirit Matchmaker.

Li Jinqing, an analyst at BiDa, told the Beijing Business Daily that he is more concerned about the changes in Yuewen's user data. "Yuewen's IP full industry chain capabilities are based on its online business and paid reading business. The average monthly paying users have increased, which can be understood as Yuewen gradually finding a precise user base on the road to developing the IP full industry chain. However, the decline in the average active users of the user base is worth noting."

Beijing Business Daily reporter Wei Wei