On April 27th, China Literature issued an announcement announcing the adjustment of the management team. Some members of the senior management team, such as Mr. Wu Wenhui, the current co-CEO, Mr. Liang Xiaodong, Mr. Shang Xuesong, the president, and Mr. Lin Tingfeng, the senior vice president, resigned from their current management positions. Mr. Wu Wenhui will be transferred to non-executive director and Deputy Chairman of the Board, and Mr. Liang Xiaodong and other senior executives will act as group consultants. Help the smooth transition of the management team and continue to support China Literature's strategic development.

meanwhile,The board of directors appoints Mr. Cheng Wu, Vice President of Tencent Group and CEO of Tencent Pictures, as Chief Executive Officer and Executive Director of China Literature.Mr. Hou Xiaonan, vice president of Tencent platform and content business group, became president and executive director of China Literature, promoting China Literature to deeply connect Tencent and industry partners to a new stage of development.

According to China Literature's previous financial report, China Literature's revenue rose 66 per cent year-on-year to 8.35 billion yuan in 2019, while net profit under Non-GAAP rose 33 per cent to 1.11 billion yuan.

Financial results show that China Literature maintained revenue growth at the same time, profit growth slowed down slightly. In the second half of 2019, China Literature's gross profit margin was 38.5 per cent, below market expectations of 52.5 per cent. For the whole year, China Literature's gross profit margin in 2019 was 44.2%, down from 50.8% in 2018.

China Literature officially said:

After five years of development, China Literature has 8.1 million creators and a reserve of 12.2 million works, reaching hundreds of millions of users. As the founder and founder of the online literature industry, Wu Wenhui led the core management team, which not only created the business model, operation system and writer incubation system of online literature based on the Chinese website of the starting point, but also achieved important milestones such as the company's IPO, the acquisition of Xinli Media and the construction of literary IP copyright system, which laid a solid foundation for China Literature's development in the new era of cultural creation. Under the leadership of Chairman Cao Huayi, Xinli Media under China Literature has become a very excellent film and television content creation team in China, which plays a distinct role as a benchmark in the domestic film and television industry. With the in-depth development of the industry, the trend of the integration of network literature and film and television, animation, games and other digital content formats to develop high-quality IP and content ecology is becoming more and more significant, and network literature has entered a new upgrading stage. In promoting this process, some members of the senior management team, such as Wu Wenhui, decided to retire together after completing the mission of the stage of group development.

James Mitchell, Chairman of the Board of Directors of China Literature, said, "China Literature is an important source of original IP for New Cultural creation. We sincerely thank Mr. Wu Wenhui, Mr. Liang Xiaodong and other core management teams for their pioneering contributions to lead China Literature to develop into a leading online literature platform in China. We hope that the new management can stimulate the vitality of China Literature platform, promote China Literature to integrate more closely into Tencent's new literary creation ecology, and interact more deeply in film and television, animation, games and other content business. "

"this year is the fifth anniversary of China Literature's founding and the 18th anniversary of the starting point Chinese website. As a founder, it is like seeing that his' child 'has finally reached adulthood. At this moment, like many 'parents', we should not only accompany the 'child' to grow up together, but also take a step back in time, learn to let go and let the 'child' start a new course of life. Wu Wenhui said that in the future, China Literature urgently needs to build a more open ecology and new business rules more in line with future trends based on IP. This requires a more thorough management transformation to promote China Literature in business innovation, technological breakthroughs, IP construction, ecological construction and other aspects to a new level.

Cheng Wu, who took over as CEO of China Literature, said: "thanks to Mr. Wu Wenhui and the founding team for their trust in passing the baton to the new management team, and will continue to support China Literature's development. We are confident that we will continue to promote China Literature to upgrade from "the largest industry platform for genuine digital reading and literary IP" to "stronger literary content ecology". Cheng Wu said that the foreseeable upgrade includes three aspects: the first is the internal strong core, which can upgrade the ability to cultivate IP, consolidate its own foundation and accelerate cross-format development, and promote the faster growth of IP; the second is a robust platform to achieve the upgrade of connectivity, which helps creators and users establish stronger connections by integrating many of China Literature's product platforms with Tencent's rich product platforms and traffic advantages. Finally, there is the outreaching space, which opens more value space at the level of embracing new technologies and industrial Internet through the upgrading of the business model on the basis of maintaining and consolidating the existing paid reading model.

Cheng Wu joined Tencent in 2009 and is currently vice president of Tencent Group and CEO of Tencent Pictures, and is in charge of the Group's Marketing and Public Relations Department and Tencent Interactive Entertainment Group's Marketing Department. In 2011, Cheng Wu initiated the "pan-entertainment strategy" with IP as the core in the industry, and with the strong support of the company, promoted the launch of new businesses such as online animation, online literature, film and television, and e-sports. In 2013, he and Wu Wenhui jointly promoted the establishment of Tencent Literature, serving as Chairman of Tencent Literature and CEO of Tencent Literature, respectively. After China Literature was founded in March 2015, he served as a director, continued to support Wu Wenhui and his management team, and actively promoted the linkage of China Literature and its Xinli Media with Tencent Film, animation and game business. together to create "Qingyu years", "once upon a time there is a Lingjian Mountain" and other representative works of cross-disciplinary development. In April 2018, Cheng Wu further put forward the strategic idea of "new cultural creation" on the basis of "pan-entertainment" strategy. At present, based on Tencent's orientation of "science and technology + culture", "new literary creation" has become Tencent's core strategy in the cultural dimension.

Hou Xiaonan, who took over as president of China Literature, is currently vice president of Tencent platform and content Group, and serves as the management position of Tencent Open platform, Tencent YingYongBao, Tencent Zhongchuang Space, Qingteng University and Tencent content Open platform. Extensive and in-depth management experience in product planning and operation, business model innovation, resource integration and ecosystem cooperation.

At present, with the continuous improvement of Chinese people's living standards, netizens' spiritual and cultural needs such as digital content are also increasing. Network literature contains rich characters, storylines and world outlook, which is of great vitality. "We are standing at an important historical juncture in China Literature's development to foresee the future full of opportunities. And the realization of all this, the most important thing is people. It is our own continuous specialization, attention and value recognition to the creative community, and extensive links to partners that make us achieve each other and form a vibrant online culture ecology. In the future, we should still focus on the creator service, strengthen the partnership, build an open content cooperation platform, and always think about the evolution direction of the business around the reader experience and user value. I am looking forward to working with you, with the trust and hope of the founding team, with the love for literature, the expectation for new literary creation and the ambition for China's cultural industry, and take advantage of the new sail of literary creation and the wind of new technology to continue to move forward to a better future! Cheng Wu said.