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Profile & Fundamentals

China Literature Profile & Fundamentals

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Company and Market Context

Company Profile & Ownership

China Literature Limited, an investment holding company, operates an online literature platform in the People's Republic of China. The company operates through Online business, and Intellectual Property Operations and Others segments. It is involved in the business of online text, online advertising, and game publishing, as well as comics and audio books reading via self-owned platforms under the QQ Reading, Qidian, New Classics Media, and Tencent Animation & Comics brands. The company also produces, licenses, and distributes film, television, web, and animated series; copyrights licensing; sales of adaptation rights and scripts; distribution of short-form dramas and AI-animated dramas; sales of physical books and intellectual property merchandise products; in-house online games operations; and distributions of online audio books and online comic content provided via Tencent and third-party platforms. In addition, it provides reading, copyright commercialization, writer cultivation, and brokerage services; and operates text work reading and related open platform through technology methods and digital media, including personal computers, internet, and mobile network. Further, the company engages in sales of adaptation rights and scripts; and online reading business. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China. China Literature Limited operates as a subsidiary of Tencent Holdings Limited.

Company profile record

China Literature Ltd

Common Stock · Communication Services · Publishing

Official website

Company

Company / asset: China Literature Ltd
Security type: Common Stock
Sector: Communication Services
Industry: Publishing
HQ: 🇨🇳 China
Head office: N3 Lujiazui Binjiang Center, Shanghai, China, 200135

Leadership & scale

Chief executive: Mr. Xiaonan Hou
CEO year born: 1980
Full-time employees: 1.7K
Fiscal year end: December

Fundamentals snapshot

Updated 2026-09-12

Market Cap: HKD 19.7B
P/E: --
Revenue (Q2 26): CNY 3.5B
Profit (Q2 26): CNY 133.5M
Dividend Yield: --
Revenue (FY 25): CNY 7.4B
Shares in public float: 399.6M
Insider ownership: 60.39%

Reporting & identifiers

Symbol: 0772.HKEX
Listing: 🇭🇰 Hong Kong | Dividend Tax: 0%
Ticker Currency: HKD
Income Statement Currency: CNY
Balance Sheet Currency: CNY
Cash Flow Currency: CNY
EPS Currency: CNY
Contract Type: SPOT
ISIN: KYG2121R1039
Asset ID: equity_253c7cbe-670a-5ab1-91a2-536080a502bf

Ownership

Shares Outstanding

Shares outstanding

Annual reported shares outstanding. Values in shares.

Earnings, Profitability & Valuation

Earnings & Revenue

AI Review

The financial reports show a clear split between scary-looking paper losses and highly positive real cash flows. On paper, the company reported a massive net loss in 2025, which was caused entirely by a one-time, non-cash accounting write-down of its legacy movie studio business. However, the underlying business remains incredibly healthy, generating over three hundred million dollars in free cash flow, representing a massive double-digit cash yield. Most reports agree that this paper loss is a backward-looking cleanup that clears the decks for a strong future recovery. Opinions differ on how quickly revenues will bounce back; some expect near-term stagnation as the old reading model slows down, while others anticipate a rapid, AI-driven profit explosion as cheap translation and automated short dramas scale up globally. Overall, the consensus is that the company's cash-generating power is highly resilient and deeply undervalued.

Revenue, Net Income, and Free Cash Flow

Revenue
Free cash flow
Net income

Annual reported financial results, converted using the statement's recorded USD conversion. Missing values are omitted. Values in USD.

Valuation

Historical P/E Ratio

Published P/E

Published valuation snapshots. Trailing four-quarter earnings where available; annual earnings otherwise. Non-positive earnings are omitted. Values in times earnings.

Profitability & Margins

AI Review

While gross profit margins remain rock-solid and healthy at around forty-eight percent, operating margins took a temporary beating due to the one-time movie studio write-down. The reports agree that this margin drop is an accounting illusion rather than a permanent loss of profitability. Looking ahead, there is strong consensus that profit margins are primed for a major upward rebound. By using artificial intelligence to automate translation and video production, the company can drastically cut its largest operating costs. However, opinions clash on the threat of competition: some analysts worry that a flood of free, AI-generated stories from rivals could pressure pricing power, while others believe the company's premium, fan-backed franchises will easily maintain their high margins. The general consensus is that once the accounting noise clears, the company's structural profitability will expand significantly.

Profitability Margins

Gross margin
Operating margin
Net margin
Free cash flow margin

Annual gross, operating, net income and free cash flow divided by revenue for matching reporting dates. Values in percent.

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Reported Data Tables — chart preview

The following tables contain the same values as the financial charts above. Monetary values are USD; margins are percentages. Missing inputs are not estimated. Use is subject to the iPulse AI Terms of Service and applicable source rights.

Source: eodhd. Statement snapshots with chart transformations and ratios calculated by iPulse AI. Snapshot retrieved 2026-09-15.

Annual earnings and profitability
Period end	Revenue	Free cash flow	Net income	Gross margin	Operating margin	Net margin	Free cash flow margin
2016-12-31	367,894,388.49	7,582,014.39	5,278,129.5	41.26	1.3	1.43	2.06
2017-12-31	629,042,396.31	115,574,961.6	85,426,881.72	50.68	12.47	13.58	18.37
2018-12-31	732,303,779.07	106,766,715.12	132,359,883.72	50.77	22.13	18.07	14.58
2019-12-31	1,199,391,810.34	81,309,913.79	157,464,511.49	44.23	14.3	13.13	6.78
2020-12-31	1,305,620,367.53	125,872,588.06	-689,157,274.12	49.66	-52.48	-52.78	9.64
2021-12-31	1,362,931,446.54	138,261,949.69	290,347,327.04	53.06	25.06	21.3	10.14
2022-12-31	1,105,162,608.7	181,614,057.97	88,142,898.55	52.85	8.25	7.98	16.43
2023-12-31	987,575,352.11	134,384,084.51	113,363,239.44	48.08	10.12	11.48	13.61
2024-12-31	1,112,476,849.32	329,995,342.47	-28,659,726.03	48.29	-4.14	-2.58	29.66
2025-12-31	1,053,816,309.01	-52,240,772.53	-111,023,462.09	48.03	-10.92	-10.54	-4.96

Published valuation snapshots
Period end	P/E (times earnings)	Earnings basis
2024-12-31	39.09	Trailing four quarters
2022-12-31	45.11	Annual net income
2021-12-31	22.05	Annual net income

Shares outstanding — chart values
Reporting date	Shares outstanding
2017-01-01	813,388,800
2018-01-01	930,416,300
2019-01-01	1,005,817,000
2020-01-01	1,015,781,700
2021-01-01	1,018,957,000
2022-01-01	1,024,909,000
2023-01-01	1,021,325,000
2024-01-01	1,011,219,000
2025-01-01	1,028,399,000
2026-01-01	1,016,778,000

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