Scienjoy Holding Corporation Reports Nine Months ended September 30, 2025 Unaudited Financial Results

Core Insights - Scienjoy Holding Corporation reported a revenue decrease of 5.3% year-over-year, totaling 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 [6][7] - Despite the revenue decline, income from operations increased by 30.9% to RMB 46.2 million (US$ 6.5 million) [11][16] - The company is focusing on enhancing its "live streaming + gaming" ecosystem through artificial intelligence to improve user experience and operational efficiency [3][5] Financial Performance - Total revenues decreased to RMB 959.3 million (US$ 134.7 million) from RMB 1,012.5 million in the same period of 2024 [6][7] - Gross profit slightly decreased to RMB 177.9 million (US$ 25.0 million) from RMB 179.6 million in the same period of 2024, while gross margin improved to 18.5% from 17.7% [10][11] - Net income decreased to RMB 14.9 million (US$ 2.1 million) from RMB 34.2 million in the same period of 2024 [16][17] - Adjusted net income attributable to shareholders decreased to RMB 26.7 million (US$ 3.8 million) from RMB 50.8 million in the same period of 2024 [17][27] Operational Highlights - The number of paying users decreased to 332,408 for the nine months ended September 30, 2025, compared to 386,455 in the same period of 2024, attributed to increased competition in China's mobile live streaming market [8][9] - The company is expanding its AI Vista platform into AI Vista Live, which aims to enhance user interaction and content generation [4][5] - Operating expenses decreased to RMB 131.7 million (US$ 18.5 million) from RMB 144.3 million in the same period of 2024, indicating improved cost management [10][15] Cash and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of RMB 254.1 million (US$ 35.7 million), an increase from RMB 252.5 million as of December 31, 2024 [7][18] - The company maintains stable cash reserves, ensuring liquidity for ongoing innovation and global expansion [6][12]