<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/52a7075b-bb8d-4f1e-b216-723fea8c168f.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/52a7075b-bb8d-4f1e-b216-723fea8c168f.png"/> Author | Huang Yu
As the content industry is anxious about &#34;Will AI replace creators,&#34; CHINA LIT has provided a new solution.
On March 17, CHINA LIT ( 00772.HK ) released its full-year financial report for 2025, showing that over the past year, this &#34;IP king&#34; is attempting to transform from a &#34;literary platform&#34; to a &#34;global IP factory&#34; through deep integration of AI technology and the entire industry chain amid significant industry adjustments.
Data shows that in 2025, CHINA LIT achieved operating revenue of 7.37 billion yuan, a year-on-year decrease of 9.3%. Although revenue fluctuations were affected by the winter of the film and television industry, the &#34;second growth curve&#34; hidden in the detailed financial report data exhibited astonishing explosive power: AI comic drama revenue exceeded 100 million yuan, and GMV of IP derivatives doubled.
Against the backdrop of revenue fluctuations, CHINA LIT's profitability was also impacted by non-recurring factors.
In 2025, CHINA LIT recorded a loss of 776 million yuan. However, this was mainly due to an impairment loss of goodwill related to New Classics Media amounting to 1.8 billion yuan. Excluding such impacts, CHINA LIT's Non-IFRS net profit attributable to shareholders was 860 million yuan.
In terms of revenue composition, online business contributed 4.05 billion yuan to CHINA LIT last year, remaining basically flat compared to 2024. Although copyright operation revenue decreased to 3.19 billion yuan due to project delays, its internal structure is undergoing a qualitative change—the proportion of new formats such as short dramas, comic dramas, and derivatives is increasing.
This reflects an industry consensus: in the era of stock competition, simple traffic monetization has reached its ceiling; how to deeply explore the marginal value of a single IP is the real &#34;life and death line&#34; for long video and digital publishing giants.
Under the guidance of the &#34;IP + AI&#34; strategy, CHINA LIT's AI comic drama business achieved a breakthrough start last year. Since its launch in the second half of 2025, CHINA LIT has released nearly a thousand AI comic drama works, among which 12 works, including &#34;The Son-in-law of the Ming Dynasty&#34; and &#34;Weird Fate Pattern,&#34; have exceeded 100 million views, driving the revenue of this business to quickly surpass the 100 million yuan mark.
At the same time, CHINA LIT's IP derivative business continues to grow rapidly, with annual GMV successfully exceeding 1.1 billion yuan, more than double that of 2024, setting a new historical high.
To accelerate IP monetization, CHINA LIT's IP derivative business experienced systematic explosive growth in 2025.
Driven by four major engines: products, channels, operations, and ecology, the GMV of IP derivatives exceeded 1.1 billion yuan last year, more than double that of 2024, setting a new historical high. The traffic brought by key IPs &#34;Full-Time Expert&#34; and &#34;Lord of the Mysterious&#34; is continuously being converted into real revenue.
According to the financial report, the deep application of AI technology has also become a &#34;super accelerator&#34; for CHINA LIT to expand into overseas markets. By the end of 2025, the number of AI-translated works under CHINA LIT's WebNovel exceeded 17,000, contributing to more than one-third of the platform's total revenue
Regarding future development, CHINA LIT CEO and President Hou Xiaonan recently clarified three core strategies for 2026 in an internal letter: &#34;Evergreen Content, IP + AI, Globalization.&#34;
He believes that as AI develops faster, original content becomes more precious, and the value of good stories will be amplified. CHINA LIT's goal is not only to create hits but also to extend the lifecycle of IP through film and television sequels, derivative trendy toys, and other means, creating &#34;Evergreen IP.&#34;
On the road to maximizing IP value, CHINA LIT still faces challenges from industry cycles. It is unavoidable to address how to maintain the &#34;quality&#34; baseline in the high-growth short drama track, as well as how to balance technological efficiency with the originality of literary art in the wave of AI, which are essential questions for management

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- On March 17, 2026, Yu Wen Group reported a revenue of 7.37 billion yuan for 2025, reflecting a 9.3% decline influenced by the industry downturn.  
- Despite challenges, the company demonstrated growth in AI-related sectors, with AI comic revenues surpassing 100 million yuan and IP derivative GMV doubling.  
- CEO Hou Xiaonan outlined three core strategies for 2026: evergreen content, IP+AI, and globalization, emphasizing the increasing value of original stories in a fast-evolving AI landscape.

CHINA LIT's new path for IP: Derivative products GMV doubled