China Literature Warns of Wider 2025 Loss on New Classics Media Goodwill Write-Off

China Literature ( (HK:0772) ) has provided an announcement.

China Literature has issued a profit warning, flagging an IFRS net loss of roughly RMB750 million to RMB850 million for 2025, sharply wider than the prior year’s RMB209 million loss, as it fully writes off about RMB1.8 billion of goodwill from its 2018 acquisition of TV and film producer New Classics Media. The non-cash impairment reflects weaker profit projections amid rapid growth in short-form dramas and a more cautious, slower production strategy for long-form content.

Despite the impairment, which does not affect cash flow or non-IFRS metrics, the group expects 2025 non-IFRS profit to fall to RMB800 million to RMB900 million from RMB1.142 billion, mainly due to lower earnings from New Classics Media. Management is reaffirming a strategic bet on premium long-form IP as a key differentiator in an era of fragmented viewing, arguing that high-quality dramas and films remain central to its IP ecosystem and long-term value creation for stakeholders.

The most recent analyst rating on (HK:0772) stock is a Hold with a HK$38.00 price target. To see the full list of analyst forecasts on China Literature stock, see the HK:0772 Stock Forecast page.

More about China Literature

China Literature Limited is a Hong Kong-listed online literature and intellectual property company that develops and operates a broad IP ecosystem spanning digital reading, adaptations and content production. Through subsidiaries such as New Classics Media, it focuses on premium long-form dramas and films that extend its literary IP into screen-based entertainment for Chinese audiences.

Average Trading Volume: 4,356,246

Technical Sentiment Signal: Buy

Current Market Cap: HK$35.16B

For detailed information about 0772 stock, go to TipRanks’ Stock Analysis page.