Half Year 2024 China Literature Ltd Earnings Call Transcript
Key Points
- China Literature Ltd (CHLLF) achieved a significant milestone with the successful debut of Joy of Life 2, which became a national sensation and set viewership records.
- The company saw a 27.7% year-over-year increase in total revenues, reaching RMB4.4 billion.
- Monthly paying users for the online reading business grew to over 8.8 million, indicating strong user engagement.
- The company made significant progress in the commercialization and monetization of its IP, with notable success in the collectible cards business.
- China Literature Ltd (CHLLF) is actively leveraging AI technology to enhance its content ecosystem, including AI translation and text generation, which has significantly improved efficiency and reduced costs.
- Revenues from the online business decreased slightly year-over-year to RMB1.94 billion, primarily due to optimization of ROI in distribution channels.
- Total MAUs for the online reading business decreased from RMB212 million to RMB176 million, reflecting a focus on quality over quantity.
- Selling and marketing expenses increased by 41% year-over-year to RMB1.2 billion, impacting overall profitability.
- Revenues from self-operated channels on Tencent products decreased significantly, from RMB177 million to RMB131 million.
- The cost of revenues increased by 25.6% year-over-year to RMB2.2 billion, driven by higher production costs and increased investment in high-quality content.
Good evening, ladies and gentlemen. Welcome to China Literature's 2024 interim results conference call. A copy of the interim results can be found and downloaded from our Investor Relations website http.//ir.yuewen.com. (Operator Instructions)
I would now like to hand the conference over to your host today, Ms. Maggie Zhou, Head of Capital Markets and Investor Relations at China Literature. Maggie, please go ahead.
Thank you, operator. Ladies and gentlemen, welcome to our 2024 interim results conference call. Mr. Xiaonan Hou, our CEO; and Mr. Jacky Xu, our General Manager of Finance. For today's call, Mr. Hou will discuss the company's strategies and business highlights, and Mr. Xu will go through the financials, we will then open the call for questions.
Before we begin, I would also like to remind you that management comments during this conference call will include forward-looking statements that are based on our current expectations. All statements other than statements
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