China LiteratureCHLLF 71 Return-on-Tangible-Equity is -25.01% as of Dec. 2025. GuruFocus rates CHLLF with a GF Score™ of 71/100 and a GF Value™ of $4.28 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 491 Interactive Media companies, China Literature ranks worse than 68.02% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. China Literature's annualized net income for the quarter that ended in Dec. 2025 was $-462 Mil. China Literature's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $1,846 Mil. Therefore, China Literature's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -25.01%.
The historical rank and industry rank for China Literature's Return-on-Tangible-Equity or its related term are showing as below:
CHLLF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -63.14 Med: 9.77 Max: 975.68
Current: -6.21
During the past 12 years, China Literature's highest Return-on-Tangible-Equity was 975.68%. The lowest was -63.14%. And the median was 9.77%.
CHLLF's Return-on-Tangible-Equity is ranked worse than 68.02% of 491
companies
in the Interactive Media industry
Industry Median: 5.93
vs CHLLF: -6.21
China Literature (OTCPK:CHLLF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
China Literature Return-on-Tangible-Equity Related Terms
China Literature Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for China Literature's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CHLLF vs GOOGL, META, SPOT: Return-on-Tangible-Equity Comparison
For the Internet Content & Information subindustry, China Literature's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Literature Return-on-Tangible-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, China Literature's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China Literature's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -25.01% mean?
China Literature (CHLLF) has a Return-on-Tangible-Equity of -25.01% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on China Literature and its competitors. According to the industry distribution chart, China Literature ranks #334 out of 491 companies in the Interactive Media industry, placing it in the top 68%.
Is China Literature's Return-on-Tangible-Equity too high?
China Literature's current Return-on-Tangible-Equity is -25.01%. Based on the distribution chart, China Literature ranks #334 out of 491 companies in the Interactive Media industry, which is below the industry midpoint. Overall, China Literature has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Literature's Return-on-Tangible-Equity compare to GOOGL and META?
According to the Interactive Media industry distribution chart, China Literature ranks #334 out of 491 companies for Return-on-Tangible-Equity. This places China Literature in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.93. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.93, based on 491 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on China Literature and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Literature's current Return-on-Tangible-Equity is -25.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Literature stock overvalued right now?
Based on GuruFocus' analysis, China Literature (CHLLF) is currently considered Possible Value Trap. The stock's GF Value™ is $4.28, compared to a current price of $2.55 — trading 40.4% below its estimated fair value. The current Return-on-Tangible-Equity is -25.01%. China Literature's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For China Literature (CHLLF), the current Return-on-Tangible-Equity is -25.01% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Literature (CHLLF) Overvalued in 2026?
Based on GuruFocus' analysis, China Literature stock appears to be undervalued.
The current stock price of $2.55 is trading 40.4% below its estimated GF Value™ of $4.28.
GuruFocus considers China Literature to be Possible Value Trap.
Key valuation signals for CHLLF:
Return-on-Tangible-Equity: -25.01%
GF Value™: $4.28 vs. price of $2.55 (40.4% below fair value)
No single metric tells the full story. See the CHLLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Literature Ltd is an investment holding company. The company, along with its subsidiaries, provides online reading services, copyright commercialization, writer cultivation and brokerage, and operation of text work reading. It generates its revenue from Online reading through self-owned platform products. It operates in two segments: Online business, Intellectual property operations, and others. The Online business segment that derives the majority of revenue comprises online paid reading, online advertising, and game publishing. The Intellectual property operations and other segment include licensing and distribution of film and television properties, copyrights licensing, sales of adaptation rights and scripts, sales of physical books, and in-house online games operations.
71GF Score
Get the complete analysis for CHLLF
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CHLLF has been successfully added to your 
