Scienjoy(SJ) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenues decreased by 5.3% to RMB 959.3 million (US$ 134.7 million) for the nine months ended September 30, 2025, compared to RMB 1,012.5 million in the same period of 2024[7]. - Income from operations increased by 30.9% to RMB 46.2 million (US$ 6.5 million) for the nine months ended September 30, 2025, up from RMB 35.3 million in the same period of 2024[7]. - Net income decreased to RMB 14.9 million (US$ 2.1 million) for the nine months ended September 30, 2025, down from RMB 34.2 million in the same period of 2024[18]. - Adjusted net income attributable to the Company's shareholders decreased to RMB 26.7 million (US$ 3.8 million) for the nine months ended September 30, 2025, from RMB 50.8 million in the same period of 2024[19]. - Total revenues for the nine months ended September 30, 2025, were RMB 959,252, a decrease of 5.5% compared to RMB 1,012,518 for the same period in 2024[33]. - Net income attributable to the Company's shareholders for the nine months ended September 30, 2025, was RMB 20,242, a significant decline of 52.7% from RMB 42,691 in 2024[35]. - Adjusted net income attributable to the Company's shareholders for the nine months ended September 30, 2025, was RMB 26,706, down from RMB 50,840 in 2024[35]. - The Company reported a basic earnings per share of RMB 0.49 for the nine months ended September 30, 2025, compared to RMB 1.03 for the same period in 2024[33]. User Metrics - Total paying users decreased to 332,408 for the nine months ended September 30, 2025, down from 386,455 in the same period of 2024[8]. Profitability and Margins - Gross profit decreased to RMB 177.9 million (US$ 25.0 million) for the nine months ended September 30, 2025, from RMB 179.6 million in the same period of 2024, while gross margin increased to 18.5% from 17.7%[10]. - Gross profit for the nine months ended September 30, 2025, was RMB 177,918, slightly down from RMB 179,576 in 2024, resulting in a gross margin of approximately 18.6%[33]. Cash and Assets - Cash and cash equivalents increased to RMB 254.1 million (US$ 35.7 million) as of September 30, 2025, up from RMB 252.5 million as of December 31, 2024[20]. - Total current assets increased to RMB 544,644 as of December 31, 2024, from RMB 479,398 as of September 30, 2025, reflecting a growth of 13.6%[28]. - The Company’s cash and cash equivalents were RMB 252,540 as of December 31, 2024, showing a slight decrease from RMB 254,081 as of September 30, 2025[28]. - The Company’s total assets reached RMB 1,405,185 as of December 31, 2024, compared to RMB 1,380,741 as of September 30, 2025, marking an increase of 1.8%[28]. Liabilities and Equity - Total liabilities increased to RMB 219,869 as of December 31, 2024, compared to RMB 172,599 as of September 30, 2025, indicating a rise of 27.4%[28]. - The Company’s total equity was RMB 1,185,316 as of December 31, 2024, compared to RMB 1,208,142 as of September 30, 2025, reflecting a decrease of 1.9%[31]. Strategic Initiatives - The Company is expanding its AI Vista platform into AI Vista Live, enhancing user interaction and content generation capabilities[5]. - The Company aims to deepen AI innovation and enhance operational efficiency while pursuing global expansion[6]. Research and Development - Research and development expenses increased by 5.1% to RMB 60.7 million (US$ 8.5 million) for the nine months ended September 30, 2025, from RMB 57.8 million in the same period of 2024[14].