This article analyzes the financial performance of China Literature Limited during the first half of 2023. The key findings reveal that the company's revenue declined by 19.7% year-on-year, marking the second consecutive year of decline, indicating financial strain; although net profit has stopped falling and started to recover, the sustainability of this growth is questionable. China Literature's online business revenue fell by 11.6%, with a continuous decline in the number of paying users and weak willingness to spend; revenue from copyright business dropped by 30%, and the number of film and TV IP adaptations by Xinli Media has decreased, making it difficult to support the performance. Despite China Literature having moved beyond the debate between paid and free content, its lack of growth momentum continues to pose challenges. Betting on AI-generated content to seek new growth points, whether successful or not, remains to be seen over time. The company's business transformation requires careful consideration, and the sustainability of its profitability is still in doubt.