Reading Group’s net profit increased by 32.3% in 2023, and the starting point of reading income increased by 40% year-on-year.

  china reading limited(0772.HK) On March 18th.sunThe annual performance report for 2023 was released. The performance shows that the company achieved revenue of 7.01 billion yuan, and the net profit attributable to shareholders of the company reached 800 million yuan, up 32.3% year-on-year. The net interest rate of returning to the mother reached 11.5%, up 3.5 percentage points year-on-year. The operating profit of reading articles was 710 million yuan, up by 12.8% year-on-year, and the operating efficiency and profit performance were both improved.

  Hou Xiaonan, CEO and President of Reading Group, said that the company continued to build an IP life cycle development system, using AI technology to empower creators, and the content ecology was continuously consolidated. In terms of online business, optimize product operation and channel structure to promote the ecological competitiveness of fine content. The growth of reading at the starting point reached a record high, and Tencent animation assets were acquired to enhance the advantages of IP incubation and reserve.

  The performance report shows that in 2023, the online reading business realized a revenue of 3.95 billion yuan, and the starting reading income increased by 40% year-on-year. The number of new writers on the platform reached 380,000, the number of new works exceeded 670,000, and the number of new words reached 39 billion. The number of newcomers and their achievements are outstanding. After 60% is 00, the number of newcomers whose total income exceeds 100,000 yuan has increased by 60% year-on-year.

  On the user side, reading articles strengthens the connection between readers and works through a series of operational activities. The total number of words in "This Chapter" of "The Ring of Destiny" from the beginning of reading in 2023 exceeded 70 million, and a single user dubbed the work for more than 2,800 times. The official theme station "Curly Baboon Research Association" of "Lord of Secrets" gathered over 600,000 fans in the first month, and the daily activities of users increased by over 200%.

  Thanks to the active creative ecology and effective copyright protection mechanism, the starting point reading income increased by 40% year-on-year. The subscription records of the platform have been continuously broken, and the number of new works with an average subscription of 100,000 has increased by 125% year-on-year. In 2023, the average MAU of reading platform reached 210 million, and the average number of monthly paying users reached 8.7 million, up 10.1% year-on-year.

  Hou Xiaonan said that in order to realize the social and commercial value of head IP in the whole life cycle, the construction of IP life cycle development system has always been the top priority. During the reporting period, reading articles continued to increase the explosion rate of different content forms. The data shows that in 2023, reading copyright operation and other income was 3.06 billion yuan, with a growth rate of 46.2% in the second half of the year.

  In terms of film and television, reading the text has launched some excellent hit works such as "Up with a flurry", "Ordinary Road", "The Sun is with me" and "The Sneaker". In the field of animation, the sequel and new fan of classic IP-adapted animation were introduced, such as "Breaking the Sky" topped the list of the most popular countries in Weibo for three consecutive months. In the field of comics, the popularity of 13 comics has exceeded 100 million. In the field of games, the works "The Legend of Immortal Cultivation" and "Swallowing the Starry Sky" authorized by reading the text were successfully launched, showing the competitiveness of IP in the game market.

  In the Spring Festival of 2024, YOLO, a film owned by Yuewen Group, won the box office championship, with a total box office of over 3.4 billion yuan. In the follow-up, reading will usher in the big product cycle of IP business. Except for YOLO, the films Under Aliens and Customs Front are progressing smoothly. In terms of drama series, Joy of Life’s works such as the second season rank in the forefront of Tencent’s most anticipated video list.

  Reading actively explores emerging content forms such as short plays, accelerates the comprehensive application of AI in IP ecology and the process of going to sea, and drives the long-term diversified growth of the company’s business. In terms of short plays, reading the article released the "Star River Incubation Plan for Short Plays", and launched three major initiatives: 100 IP cultivation plans, 100 million yuan creative fund support and exploring interactive short plays. In terms of AI technology empowerment, the first big model of the online text industry, "Reading the Wonderful Pen" and the wonderful pen version of the writer’s assistant, was released. The overseas business process has accelerated, and the overseas reading platform WebNovel provides about 3,800 Chinese translations and about 620,000 local original works.