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Scienjoy Holding Corporation Reports Second Quarter and First Half 2025 Unaudited Financial Results

Scienjoy Holding Corporation, a frontrunner in the interactive entertainment sector within China, has made public its financial results for the second quarter and first half of fiscal year 2025, concluding on June 30, 2025. This period has shown varied performance metrics, reflecting both challenges and ongoing strategies to further enhance their ecosystem.

Second Quarter Overview

In the second quarter, Scienjoy experienced a revenue decrease to RMB 349 million (approximately $48.7 million), a decline from RMB 374.8 million in the corresponding period of 2024. Notably, their gross profit also witnessed a slight dip, falling to RMB 63.7 million ($8.9 million) from RMB 64.7 million the previous year. Interestingly, the gross margin increased from 17.3% to 18.2% due to improved revenue per paying user, which underscores the company's effectiveness in maximizing its high-quality paying user base.

Operational income fell to RMB 23.3 million ($3.2 million), down from RMB 28.6 million in 2024. This decline partially reflects a significant drop in net income attributable to the company's shareholders, which decreased to RMB 22.6 million ($3.2 million) from RMB 35.3 million.

First Half Performance

For the first half of 2025, total revenues also fell, totaling RMB 656.4 million ($91.6 million), a decrease from RMB 691.1 million in the first half of 2024. However, gross profit exhibited growth, climbing by 4.6% to RMB 123.2 million ($17.2 million), alongside an increase in gross margin from 17% to 18.8%. This contrast indicates that while revenue from paying users fell, the profitability per transaction improved.

The company’s cash and cash equivalents also witnessed a healthy uptick, reaching RMB 298.5 million ($41.7 million), signifying robust liquidity to support future innovation and operational activities. Despite the overall decrease in net income, the adjusted net income attributable to shareholders was reported at RMB 19.4 million ($2.7 million), down from RMB 47.5 million in the previous year.

Focus on Innovations and Strategic Adjustments

Victor He, Chairman and CEO of Scienjoy, highlighted the ongoing transitions within the company. The focus for 2025 remains on integrating live streaming with gaming, aiming to broaden their core business while enhancing the overall user experience. He pointed out the company’s commitment to nurturing high-quality broadcasters and leveraging innovative technologies such as AI and big data to ensure a compelling user environment.

Particularly notable is their progress with AI Vista, a community co-created through artificial intelligence, which amassed a substantial collection of AI-generated content by the end of Q2. This indicates a strong forward momentum in line with their product development roadmap.

Denny Tang, CFO of Scienjoy, added insights on their financial discipline, emphasizing that while they encountered accounting-related declines in net income, the operational cash generation remained unaffected, showcasing management effectiveness.

Conclusion

As Scienjoy navigates through the challenges posed by a competitive live streaming marketplace, their trajectory toward consolidating their operations, enhancing user engagement through AI-driven technologies, and exploring global market opportunities underlines their resilient strategy. The future looks promising as they embark on an ambitious plan aimed at achieving sustainable growth and profitability, with a clear motto of 'AI for Everyday Life' underpinning their initiatives.

With aspirations to further develop their business framework around AI Performers, Scienjoy is determined to remain at the forefront of the interactive entertainment revolution, responding dynamically to fluctuations in user demands and market trends.