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Scienjoy Holding Corporation Financial Overview

On November 26, 2025, Scienjoy Holding Corporation, known as a leader in interactive entertainment within China, released its unaudited financial results covering the first nine months of the year. The findings indicate both challenges and advancements within the company as it navigates a competitive landscape.

Revenue and Profitability Trends

In total, the company experienced a revenue decline of 5.3%, amounting to RMB 959.3 million (approximately USD 134.7 million) when compared to RMB 1,012.5 million for the same timeframe in 2024. This drop was largely attributed to a decreasing number of paying users amidst strong competition in China’s mobile live streaming sector. Notably, the total paying users numbered 332,408, a significant decrease from last year's 386,455.

Despite the decline in revenue, Scienjoy’s gross profit showed resilience with only a slight decrease to RMB 177.9 million (USD 25.0 million). Interestingly, the company's income from operations surged by an impressive 30.9%, rising to RMB 46.2 million (USD 6.5 million) from RMB 35.3 million in the previous year, showcasing an effective operational strategy and cost control measures.

Management Commentary

Mr. Victor He, Chairman and CEO, remarked on the company’s strategic direction which now leans heavily into blending live streaming with gaming through artificial intelligence technologies. This proactive strategy is aimed at enhancing user engagement while also improving performance across platforms.

Moreover, Scienjoy is keen on expanding its AI Vista initiative, a creative platform leveraging AI for dynamic user experiences, which aims to revolutionize interactions in entertainment, education, and marketing sectors. He emphasized their goal of transitioning from a dominant domestic player to a more robust global artificial intelligence ecosystem platform.

Challenges Ahead

Although income from operations is on a positive trajectory, net income saw a downturn, dropping to RMB 14.9 million (USD 2.1 million) from RMB 34.2 million reported last year. Income attributable to shareholders also decreased, bringing concerns about profitability in the long term. Mr. Denny Tang, CFO, addressed these concerns, highlighting one-off losses from investment buybacks and market fluctuations. Nevertheless, he expressed confidence in their fundamental business strategies and cash reserves, which remain stable, ensuring sufficient liquidity for innovation and expansion.

Overall, significant increases were noted in operational expenses, particularly in areas such as sales and marketing, general administrative costs, and research and development. Such investments reflect Scienjoy’s commitment to a forward-thinking approach, aiming to bolster long-term growth even amid periodic revenue upheavals.

Outlook

As Scienjoy heads towards its future endeavors, the emphasis on artificial intelligence and operational refinement positions it well against external pressures. With the intent to enhance user experience and streamline internal processes, the company is strategically poised to weather market challenges and expand its footprint both locally and globally.

Looking ahead, Scienjoy remains focused on fostering innovation and enhancing user interactions as they aim to deliver sustainable returns for shareholders and continued growth in the interactive entertainment sector. This dual strategy of operational efficiency and adaptive innovation will likely be crucial as they navigate the remaining months of 2025 and beyond.