China Literature falls into the red by 3.3b yuan

Business | Kevin Xu and Reuters 12 Aug 2020

Tencent (0700)-backed online literature platform China Literature (0772) recorded a net loss of 3.3 billion yuan (HK$3.68 billion) in the first half, compared to a net profit of 392.72 million in the same period last year.

First-half revenue increased by 9.7 percent year-on-year to 3.26 billion yuan. Basic loss per share was 3.3 yuan. The company declared no interim dividend.

Revenues from online business increased by 50.1 percent to 2.49 billion yuan in the first half from a year before, but revenues from intellectual property operations and others decreased by 41.5 percent year-over-year to 764.8 million yuan.

Average monthly active users on self-owned platform products and self-operated channels increased by 7.5 percent year-on-year to 233.4 million in the first six months.

Meanwhile, Tencent Music Entertainment said that it was "premature" to speculate over a potential US delisting, in response to a question on whether it had a plan to react to a recommendation from the Trump administration over auditing US-listed Chinese firms.

Chief strategy officer Tony Yip made the comments during an analyst briefing after its quarterly results.

Yip added that delisting was not the only option for firms. For example, they could choose to be coaudited by American auditors, he said.

TME said on Monday its quarterly revenue rose 18 percent, beating Wall Street estimates.

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