Company DescriptionChina Literature Limited, an investment holding company, operates an online literature platform in the People's Republic of China. The company promotes intellectual properties primarily through its online literature platforms, such as QQ Reading and Qidian; and New Classics Media, a film and TV drama series production house. It is also involved in the self-operated channels business on partner distribution platforms. In addition, the company licenses the content to third-party partners for distribution, as well as offers online paid reading and content adaptations into various entertainment formats. Further, it provides reading, copyright commercialization, and 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. Additionally, the company engages in the production and distribution of television series, web series, and films; licensing and distribution of film and television properties; licensing copyrights; sale of physical books; and operation of in-house online games, etc. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China. China Literature Limited is a subsidiary of Tencent Holdings Limited.

How the Company Makes Money

China Literature Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
7.92B	7.01B	7.63B	8.67B	8.53B	8.35B
	Gross Profit
3.85B	3.37B	4.03B	4.60B	4.23B	3.69B
	EBIT
852.81M	709.31M	1.42B	1.25B	966.43M	1.19B
	EBITDA
956.56M	1.22B	1.20B	1.75B	-2.62B	1.61B
	Net Income Common Stockholders
932.50M	804.88M	608.19M	1.85B	-4.50B	1.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
628.54M	6.28B	7.51B	7.21B	6.26B	6.35B
	Total Assets
6.38B	23.19B	22.73B	23.30B	21.32B	26.25B
	Total Debt
878.18M	238.10M	617.98M	1.45B	1.33B	1.39B
	Net Debt
547.09M	-2.56B	-4.93B	-3.08B	-1.52B	-4.54B
	Total Liabilities
1.92B	4.16B	4.78B	6.11B	6.22B	6.84B
	Stockholders Equity
4.38B	19.02B	17.96B	17.19B	15.09B	19.40B
Cash Flow		Free Cash Flow
2.10B	954.13M	1.25B	879.35M	821.95M	565.92M
	Operating Cash Flow
2.13B	1.13B	1.58B	1.12B	1.11B	782.50M
	Investing Cash Flow
-2.48B	-3.39B	528.10M	936.23M	-4.19B	-1.29B
	Financing Cash Flow
-107.68M	-510.82M	-1.15B	-349.99M	-92.34M	-1.93B

China Literature Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHLLF		$3.79B	27.70	-1.14%	―	―	―
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
MEIUF		$3.84B	33.87	17.66%	―	―	―
8AHA		€2.70B	12.46	6.58%	7.57%	―	―
9898	72 Outperform	HK$18.44B	7.16	10.79%	8.44%	0.43%	21.65%
1896	67 Neutral	HK$8.60B	43.43	2.01%	―	-15.71%	-80.38%
2390	54 Neutral	HK$2.76B	―	-0.40%	―	-19.99%	98.97%

* Communication Services Sector Average

Performance Comparison

CHLLF

China Literature

3.48

0.08

2.35%

MEIUF

Meitu

0.84

0.45

115.38%

DE:8AHA

Autohome Inc Class A

5.25

-0.62

-10.56%

HK:9898

Weibo Corp Class A

75.50

16.07

27.04%

HK:1896

Maoyan Entertainment

7.47

-1.04

-12.22%

HK:2390

Zhihu, Inc. Class A

10.42

1.70

19.50%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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