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China Literature 2026 Interim Results August 11 , 2026 阅 文 集团 CHINA LITERATURE 凡人 目
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2 Disclaimer This presentation contains forward-looking statements relating to the industry and business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this presentation. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in the Company’s other public disclosure documents on its corporate website. Furthermore, this presentation also contains statements based on the Company’s management accounts, which have not been audited by the Auditor. Shareholders and potential investors should therefore not place undue reliance on such statements.
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3 2026 Interim Results Summary Note: (1) Figures stated in USD are based on USD1 to RMB6.8109. • Non-IFRS net profit to shareholders was RMB258.8 mn (USD38.0 mn), compared with RMB507.8 mn in 1H25, primarily due to the RMB300 mn tax-related impact noted above • Revenues were RMB3.5 bn (USD518.5 mn1), up 10.7% YoY from RMB3.2 bn in 1H25 - Revenues from online business decreased by 7.3% YoY to RMB1,840.0 mn (USD270.2 mn) - Revenues from intellectual property operations and others increased by 40.3% YoY to RMB1,691.4 mn (USD248.3 mn) • Net profit to shareholders was RMB135.4 mn (USD19.9 mn), compared with RMB849.8 mn in 1H25, primarily due to RMB300 mn in tax-related payments incurred by a subsidiary of the Company (see P13 for details) and the high base effect set by a RMB512 mn after-tax gain on the deemed disposal of an investee during 1H25 IFRS Measures Non-IFRS Measures
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4 Online Business: A Healthy and Vibrant Ecosystem High-Quality Online Content Ecosystem Continuously Enhanced by New Works, Emerging Talent, and Top-tier Creators In 1H26, we added: ~240,000 writers ~460,000 literary works ~30 bn characters 100% renewal among Platinum & Phenomenal writers in the past year 200k+ day-one readers on 2 debut titles from returning Platinum writers — new platform record under-30s made up 57% of newly signed RMB1 mn+ writers, +49% YoY new writers’ debut works made up 54% of past-year titles with 10k+ paid subscriptions the number of titles receiving user collections increased 37% YoY the number of titles receiving monthly tickets grew 26% YoY Resilient Top-Writer Ecosystem Vibrant Community EngagementEmerging Young Writers Ongoing Overseas Expansion: WebNovel’s overseas library — by 1H26, 33,000+ translated Chinese titles and ~910,000 local original works, plus ~2,000 comics on the platform
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5 Traditional IP Businesses: A Powerful Engine for Blockbusters All these titles ranked among the top titles on platform popularity charts during their respective broadcasting periods Drama Series Animated Series The Heir (家业) Ashes to Crown (翘楚) Blossoms of Power (百花杀) No Pain No Gain (年少有为) The Devil Between Us (除恶) Our IPs Dominated Major Industry Rankings and Delivered Positive Results Across Our Traditional Areas of Strength Lady Liberty (爱情没有神话) These titles broke new ground across genres such as urban drama and crime drama, winning both critical acclaim and strong audience traction Self-produced Self-produced Self-produced The Outcast (一人之下) Battle Through the Heavens (斗破苍穹) Almighty Mage (全职法师) Stellar Transformation (星辰变) Rising Market Influence of Premium IPs 70 bn+ views on short-video channels #1 most popular 2D animated series on Tencent Video in the past three years #1 on Tencent Video’s Paid Bestseller Chart #1 on Tencent Video’s Trending Chart 50% of Tencent Video’s Top 20 Rewatch list were adapted from China Literature’s IPs 50% of iQiyi’s Hall of Fame Top 10 were adapted from China Literature’s IPs 80% of the top 10 animation series by cumulative views across all platforms were adapted from China Literature’s IPs 40% of the top 10 drama series by cumulative views across all platforms were adapted from China Literature’s IPs
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6 Short Drama Revenue of Short Dramas and AI-animated Dramas in 2026H1: RMB430 million+ Emerging IP Initiatives: Delivering Robust Performance 1H25 1H26 2.3x YoY Increase The Invisible Bodyguard (隐身侍卫) Setting a benchmark for commercialization 5 bn+ total views Female-oriented Benchmark Sequels of Sweet Wife (甜妻系列) 100 mn+ popularity index AI-animated Drama % of blockbuster was 4x the market average Three Thousand Shelters (三千庇护) Original novel back to Qidian Top 10 3 bn+ views across all platforms In China Overseas 46 titles surpassed 100 mn views each Million-view hit rate: 5x the industry average Male-oriented Blockbuster Top-tier Title Premium AI-animated Drama Platform
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7 Emerging IP Initiatives: Delivering Robust Performance Product • Category expansion with a light-and-soft core: built on high-frequency, strong repeat purchase categories and extended into plush toys, lifestyle, and precious- metal products • Brand momentum: design and supply-chain strength produced a steady flow of quality merchandise, making “Yuewen Goods” (阅文好物) a leading brand in China’s anime merchandise market Channel Operation Ecosystem • Omni-channel build-out: expanded self-operated online channels (mini-programs, livestreams, flagship stores) while optimizing offline stores and partner ties, improving profitability and brand control • Operations leverage: better sales velocity and supply- chain management, as well as improved inventory turnover, turning sales growth into profit contribution • Iconic-IP character campaigns: lifted fan engagement and conversion; the “Glory Pilgrimage” pop-up in 4 cities celebrated Ye Xiu's birthday • IP to mass audience: “The Outcast Boy Group” bringing “The Outcast” IP to a broader audience through idol-style marketing and deepening the emotional connection between the IP and users • Overseas expansion momentum: expanded the global footprint together with partners • “Lord of the Mysteries” overseas online store: selected products sold out shortly after launch • Merchandise fuels the content flywheel: hit products amplified IP appeal, pulling users back into our ecosystem of online reading, animation, and drama series, etc. IP Merchandise Business GMV in 1H26 reached RMB780 mn 60%+ YoY
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8 Exploration in New Technologies NovelBuddy (作家助手) Designed for online literature creators, NovelBuddy provides AI-assisted writing support, as well as copyright protection and anti-plagiarism services, helping safeguard creators’ rights. DramaBuddy (漫剧助手) Focusing on AI-animated drama production, DramaBuddy covers the entire process, including creative ideation, content production, and project management, enabling the scalable production of premium AI-animated dramas. IPBuddy (版权助手) Serving as the “all-seeing eye” of our in-house copyright team, IPBuddy enables the value assessment of a title within minutes and greatly improves the efficiency of selecting IP for adaptation and commercialization. AI translation — As of June 30, 2026, 30,000+ AI-translated works are on WebNovel, contributing 40% of 1H26 novel revenue
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9 Key Operating Metrics 38.5 30.6 102.7 103.5 1H25 1H26 (RMB)(mm) 1H25 1H26 MAUs (1) Monthly ARPU (3) 1H25 1H26 (mm) YoY: -5.1% MPUs for Paid Reading (2) YoY: -10.9% 8.2 9.2 YoY: +4.5% 32.731.3 141.3 (4) 134.1 Notes: (1) Average MAU is calculated as the average of MAUs for each calendar month during the respective year or period, on our platfor m and our self-operated channels on partner distribution platforms . (2) Average MPU is calculated as the average of MPUs for each calendar month during the respective year or period, on our pla tform and our self-operated channels on partner distribution platforms. (3) Average monthly ARPU is calculated as online reading revenue on our platform and self -operated channels divided by average MPUs during the period, then divided by the number of months during the period. (4) Certain figures have been subject to rounding adjustments. Accordingly, figures shown as totals may not be an arithmetic aggregation of the figures shown in the breakdown items.
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10 Financials: Income Statement RMB’000 1H25 1H26 YoY Revenues 3,190,584 3,531,388 10.7% Cost of revenues (1,578,200) (1,739,295) 10.2% Gross profit 1,612,384 1,792,093 11.1% Interest income 81,856 81,306 (0.7%) Other gains/(losses), net 582,499 (24,996) N/A Selling and marketing expenses (922,398) (1,011,398) 9.6% General and administrative expenses (484,739) (559,988) 15.5% Net reversal of/(provision for) impairment losses on financial assets 6,197 (6,220) N/A Operating profit 875,799 270,797 (69.1)% Finance (costs)/income, net (4,005) 529 N/A Share of net profit of associates and joint ventures 127,250 88,778 (30.2%) Income tax expense (149,479) (224,940) 50.5% Net profit to shareholders 849,755 135,376 (84.1%) Non-IFRS net profit to shareholders 507,807 258,838 (49.0%)
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11 1,138 1,614 68 77 1H25 1H26 Others Intellectual property operations 1,746 1,623 97 85 142 132 1H25 1H26 On third-party platforms On our channels on Tencent products On our self-owned platform products 1,205 1,691 Financials: Revenue Breakdown Note: (1) Certain figures have been subject to rounding adjustments. Accordingly, figures shown as totals may not be an arithmetic aggr egation of the figures shown in the breakdown items. Revenues by Segment (1) Online Business Revenues (1) Intellectual Property Operations & Others Revenues (1) 1,985 1,840 1,205 1,691 1H25 1H26 Online business Intellectual property operations & others 3,531 3,191 (RMB mm) (RMB mm) 1,840 1,985 (RMB mm) YoY: +10.7% YoY: -7.3% YoY: +40.3%
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12 28.9% 28.6% Financials: Operating Expenses Selling & Marketing Expenses as % of total revenue, RMB mn 922 1,011 1H25 1H26 General & Administrative Expenses as % of total revenue, RMB mn 485 560 1H25 1H26 15.2% 15.9% YoY: +9.6% YoY: +15.5%
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13 Financials: Net Other (Losses)/Gains & Income Tax Expenses Net Other (Losses)/ Gains (RMB mn) 1H25 1H26 583 -25 RMB598 million of net gains before tax recognized on the deemed disposal of an investee in 1H25 RMB134 million(1) of late-payment tax surcharges incurred by a subsidiary of the Company in 1H26 Income Tax Expenses (RMB mn) 1H25 1H26 150 225 Supplementary income tax payments of RMB166 million(2) by a subsidiary of the Company in 1H26 Together with (1), these items reduced Company’s profit by RMB300 million in 1H26
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14 (RMB mn) 15.9% 7.3% 14.1% 10.4% 50.5% 50.7% Financials: Key Profitability Metrics Gross Profit and Gross Margin (RMB mn) Non-IFRS Operating Profit and Operating Margin (1) Non-IFRS Net Profit to Shareholders and Net Profit to Shareholders Margin (1) (RMB mn) 1,612 1,792 1H25 1H26 508 259 1H25 1H26 449 367 1H25 1H26 YoY: +11.1% YoY: -18.2% YoY: -49.0% Note: (1) Figures under Non-IFRS measures.
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15 Financials: Non-IFRS Profitability Notes: (1) Adjusted EBITDA is calculated as EBITDA for the period plus share -based compensation expense and expenditures related to acquisitions. (2) Non-IFRS operating profit is defined as operating profit for the period adjusted by share -based compensation, net (gains)/lo sses from investments and acquisitions, and amortization of intangible assets resulting from acquisitions. (3) Non-IFRS net profit to shareholders is defined as net profit to shareholders adjusted by share -based compensation, net (gains)/losses from investments and acquisitions, amortization of intangible assets resulting from acquisitions, and related tax e ffect. (RMB’000) 1H25 1H26 YoY EBITDA 318,231 302,559 -4.9% Margin % 10.0% 8.6% Adjusted EBITDA (1) 386,856 384,214 -0.7% Margin % 12.1% 10.9% Operating profit 875,799 270,797 -69.1% Margin % 27.4% 7.7% Non-IFRS operating profit (2) 448,681 367,170 -18.2% Margin % 14.1% 10.4% Net profit to shareholders 849,755 135,376 -84.1% Margin % 26.6% 3.8% Non-IFRS net profit to shareholders (3) 507,807 258,838 -49.0% Margin % 15.9% 7.3%
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Thank You