BEIJING, Oct. 26, 2026 /PRNewswire/ -- Scienjoy Holding Corporation ("Scienjoy", the "Company", or "we") (NASDAQ: SJ), an AI technology company powered by a dual engine of "digital entertainment + enterprise AI solutions", today announced its financial results for the second quarter and first half of fiscal year 2026 ended June 30, 2026.
Second Quarter 2026 Operating and Financial Summaries
- Total revenue decreased to RMB305.4 million (US$45.0 million) for the three months ended June 30, 2026 from RMB349.0 million in the same period of 2025.
- Gross profit decreased to RMB55.4 million (US$8.2 million) for the three months ended June 30, 2026 from RMB63.7 million in the same period of 2025. Gross margin decreased slightly to 18.1% for the three months ended June 30, 2026 from 18.2% in the same period of 2025.
- Income from operations decreased to RMB12.8 million (US$1.9 million) for the three months ended June 30, 2026 from RMB23.3 million in the same period of 2025.
- Net income decreased to RMB11.2 million (US$1.7 million) for the three months ended June 30, 2026 from RMB22.7 million in the same period of 2025.
- Net income attributable to the Company's shareholders decreased to RMB11.1 million (US$1.6 million) for the three months ended June 30, 2026 from RMB22.6 million in the same period of 2025.
- Adjusted net income attributable to the Company's shareholders decreased to RMB12.9 million (US$1.9 million) for the three months ended June 30, 2026 from RMB24.9 million in the same period of 2025.
First Half 2026 Operating and Financial Summaries
- Total revenue decreased to RMB588.1 million (US$86.7 million) for the six months ended June 30, 2026 from RMB656.4 million in the same period of 2025.
- Gross profit decreased to RMB105.5 million (US$15.6 million) for the six months ended June 30, 2026 from RMB123.2 million in the same period of 2025. Gross margin decreased to 17.9% for the six months ended June 30, 2026 from 18.8% in the same period of 2025.
- Income from operations decreased to RMB24.1 million (US$3.5 million) for the six months ended June 30, 2026 from RMB37.0 million in the same period of 2025.
- Net income increased by 92.7% to RMB18.8 million (US$2.8 million) for the six months ended June 30, 2026 from RMB9.7 million in the same period of 2025.
- Net income attributable to the Company's shareholders increased by 48.0% to RMB20.0 million (US$2.9 million) for the six months ended June 30, 2026 from RMB13.5 million in the same period of 2025.
- Adjusted net income attributable to the Company's shareholders increased by 15.1% to RMB22.3 million (US$3.3 million) for the six months ended June 30, 2026 from RMB19.4 million in the same period of 2025.
- As of June 30, 2026, the Company had RMB329.9 million (US$48.6 million) in cash and cash equivalents, which represented an increase of RMB22.3 million from RMB307.7 million as of December 31, 2025.
Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "The first half of 2026 marked continued progress in executing our AI-driven growth strategy. While maintaining a resilient livestreaming business, we further advanced the commercialization of our AI technologies across our existing business ecosystem and new industry applications.
"A key milestone during the period was the continued expansion of AI Vista Live (AI Performer), our flagship AI platform for real-time interactive digital humans serving both consumer and enterprise markets. By integrating AI technology into our core livestreaming business, we are enhancing operational efficiency, and unlocking new monetization opportunities for AI-powered services, particularly through forward deployed engineer (FDE) solutions that embed our AI engines directly within customers' organization to address real-world operational needs. During this transformation, we also achieved meaningful progress in our global expansion. Building on our growing AI ecosystem in Dubai, we entered into a comprehensive strategic partnership with a leading enterprise technology channel provider under a listed conglomerate, which is also a partner of the Microsoft Cloud Ecosystem. We believe this collaboration will strengthen the commercial deployment of AI Vista Live across East and Southeast Asia and further expand our global market presence.
"Beyond livestreaming, we are steadily extending our AI capabilities into the education sector, with solutions designed to support course content development, administrative system management, and the organization and utilization of teaching and research outcomes. These initiatives reflect our broader strategy of translating AI capabilities into practical solutions for diverse enterprise and institutional needs.
"Looking ahead, we remain focused on accelerating commercialization, expanding our international footprint, and broadening the application of our AI solutions across industries and business scenarios. By leveraging our established industry expertise and technology capabilities, we aim to build a scalable, AI-driven business platform and create sustainable, long-term value for our shareholders."
Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "Our financial strategy continues to emphasize disciplined capital allocation, operational efficiency, sustainable profitability, and long-term value creation. At the same time, we have maintained strategic investment in AI innovation and global commercialization while exercising prudent expense management. These efforts contributed to a 48.0% year-over-year increase in net income attributable to the Company's shareholders during the first half of 2026.
"Moving forward, we believe our strong technology capabilities, disciplined financial management, and healthy balance sheet provide the flexibility to support future growth initiatives while maintaining operational resilience. With cash and cash equivalents increasing by RMB22.3 million compared with the end of fiscal year 2025, we are well positioned to pursue strategic opportunities, invest in innovation, and continue creating long-term shareholder value."
Second Quarter 2026 Financial Results
Total revenue decreased to RMB305.4 million (US$45.0 million) for the three months ended June 30, 2026 from RMB349.0 million in the same period of 2025, primarily caused by a decrease in paying users due to competitive landscape of China's mobile live streaming market, partially offset by an increase of RMB295 in overall average live streaming revenue per paying user ("ARPPU") to RMB2,353 for the three months ended June 30, 2026 from RMB2,058 for the same period of 2025. Total paying users were 125,028 for the three months ended June 30, 2026, as compared to 165,239 in the same period of 2025.
Cost of revenue decreased to RMB250.1 million (US$36.9 million) for the three months ended June 30, 2026 from RMB285.4 million in the same period of 2025. The decrease was primarily attributable to a decrease of RMB29.2 million in the Company's revenue sharing fees and a decrease of RMB9.0 million in the Company's user acquisition costs, partially offset by an increase of RMB2.9 million in other costs.
Gross profit decreased to RMB55.4 million (US$8.2 million) for the three months ended June 30, 2026 from RMB63.7 million in the same period of 2025. Gross margin decreased to 18.1% for the three months ended June 30, 2026 from 18.2% in the same period of 2025 due to higher revenue sharing fees ratio in oversea mobile live streaming market during the second quarter in 2026.
Total operating expenses increased by 5.4% to RMB42.6 million (US$6.3 million) for the three months ended June 30, 2026 from RMB40.4 million in the same period of 2025.
- Sales and marketing expenses decreased to RMB1.0 million (US$0.2 million) for the three months ended June 30, 2026 from RMB1.3 million in the same period of 2025, primarily attributable to fewer sales and marketing activities.
- General and administrative expenses decreased to RMB17.3 million (US$2.6 million) for the three months ended June 30, 2026 from RMB21.0 million in the same period of 2025, primarily caused by a decrease of RMB2.0 million in professional consulting fee and a decrease of RMB1.7 million in amortization of intangible assets.
- Research and development expenses increased by 43.2% to RMB25.0 million (US$3.7 million) for the three months ended June 30, 2026 from RMB17.4 million in the same period of 2025, due to an increase of RMB6.2 million in employee salary and welfare and an increase of RMB2.3 million in technical service fee, offset by a decrease of RMB0.9 million in share-based compensation.
- Reversal of credit losses was RMB0.7 million (US$0.1 million) for the three months ended June 30, 2026, as compared to allowance for credit losses of RMB0.6 million in the same period of 2025, due to improved collection.
Income from operations decreased to RMB12.8 million (US$1.9 million) for the three months ended June 30, 2026 from RMB23.3 million in the same period of 2025.
Change in fair value of investmentin marketable security decreased to a loss of RMB3.8 million (US$0.6 million) for the three months ended June 30, 2026 from RMB6.8 million in the same period of 2025. The change was primarily attributable to the fair value changes in investments in a publicly traded company.
Investment loss decreased to RMB0.2 million (US$0.03 million) for the three months ended June 30, 2026 from RMB0.6 million in the same period of 2025. The decreased investment loss was primarily attributable to more income distributed by long-term investments.
Interest income, net increased by 202.4% to RMB1.4 million (US$0.2 million) for the three months ended June 30, 2026 from RMB0.5 million in the same period of 2025. The increase was primarily due to higher average bank deposits held.
Other expenses net was RMB1.1 million (US$0.2 million) for the three months ended June 30, 2026, as compared to other income, net of RMB7.6 million in the same period of 2025, due to decreased government subsidies.
Foreign exchange loss, net decreased to RMB0.2 million (US$0.03 million) for the three months ended June 30, 2026 from RMB1.6 million in the same period of 2025.
Income tax benefit increased by 793.8% to RMB2.4 million (US$0.4 million) for the three months ended June 30, 2026 from RMB0.3 million in the same period of 2025.
Net income decreased to RMB11.2 million (US$1.7 million) for the three months ended June 30, 2026 from RMB22.7 million in the same period of 2025 as a result of the foregoing.
Net income attributable to the Company's shareholders decreased to RMB11.1 million (US$1.6 million) for the three months ended June 30, 2026 from RMB22.6 million in the same period of 2025.
Adjusted net incomeattributable to the Company's shareholders decreased to RMB12.9 million (US$1.9 million) for the three months ended June 30, 2026 from RMB24.9 million in the same period of 2025.
Basic and diluted net income per ordinary share was RMB0.26 (US$0.04) and RMB0.26 (US$0.04) for the three months ended June 30, 2026, respectively. In comparison, basic and diluted net income per ordinary share was RMB0.54 and RMB0.54 in the same period of 2025, respectively.
Adjusted basic and diluted net income per ordinary share was RMB0.31 (US$0.05) and RMB0.31 (US$0.05) for the three months ended June 30, 2026, respectively. In comparison, adjusted basic and diluted net income per ordinary share was RMB0.60 and RMB0.60 in the same period of 2025, respectively.
First Half 2026 Financial Results
Total revenues decreased to RMB588.1 million (US$86.7 million) for the six months ended June 30, 2026 from RMB656.4 million in the same period of 2025, primarily caused by decrease of paying users due to competitive landscape of China's mobile live streaming market, partially offset by an increase of RMB390 in overall ARPPU to RMB2,908 for the six months ended June 30, 2026 from RMB2,518 for the same period of 2025. Total paying users were 196,374 for the six months ended June 30, 2026, decreased by approximately 23% as compared to 253,888 in the same period of 2025.
Cost of revenues decreased to RMB482.6 million (US$71.1 million) for the six months ended June 30, 2026 from RMB533.2 million in the same period of 2025. The decrease was primarily attributable to a decrease of RMB39.3 million in the Company's revenue sharing fees and RMB15.4 million in the Company's user acquisition costs, offset by an increase of RMB4.0 million in the Company's other costs.
Gross profit decreased to RMB105.5 million (US$15.6 million) for the six months ended June 30, 2026 from RMB123.2 million in the same period of 2025. The gross margin decreased to 17.9% for the six months ended June 30, 2026 from 18.8% in the same period of 2025 due to higher revenue sharing fees ratio in oversea mobile live streaming market during the six months ended June 30, 2026.
Total operating expenses decreased to RMB81.4 million (US$12.0 million) for the six months ended June 30, 2026 from RMB86.2 million in the same period of 2025.
- Sales and marketing expenses decreased to RMB1.9 million (US$0.3 million) for the six months ended June 30, 2026 from RMB3.4 million in the same period of 2025, primarily attributable to fewer sales and marketing activities.
- General and administrative expenses decreased to RMB35.7 million (US$5.3 million) for the six months ended June 30, 2026 from RMB44.4 million in the same period of 2025. The decrease was primarily due to a decrease of RMB5.0 million in professional consulting fee and a decrease of RMB3.4 million in amortization of intangible assets.
- Research and development expenses increased by 20.5% to RMB44.6 million (US$6.6 million) for the six months ended June 30, 2026 from RMB37.0 million for the six months ended June 30, 2025, due to an increase of RMB8.4 million in employee salary and welfare and an increase of RMB2.6 million in technical service fee, offset by a decrease of RMB3.1 million in share-based compensation.
- Reversal for credit losses was RMB0.7 million (US$0.1 million) for the six months ended June 30, 2026, as compared to allowance for credit losses of RMB1.4 million in the same period of 2025, primarily due to improved collection.
Income from operations decreased to RMB24.1 million (US$3.5 million) for the six months ended June 30, 2026 from RMB37.0 million in the same period of 2025.
Change in fair value of investment in marketable security decreased to a loss of RMB5.2 million (US$0.8 million) for the six months ended June 30, 2026 from RMB31.1 million in the same period of 2025. The decrease was primarily attributable to the fair value changes in investments in publicly traded company.
Investment loss decreased to RMB0.07 million (US$0.01 million) for the six months ended June 30, 2026 from RMB1.0 million in the same period of 2025. The decreased investment loss was primarily attributable to more income distributed by long-term investments.
Interest income, net increased by 105.0% to RMB2.0 million (US$0.3 million) for the six months ended June 30, 2026 from RMB1.0 million in the same period of 2025. The increase was primarily due to higher average bank deposits held.
Other expense, net was RMB1.0 million (US$0.2 million) for the six months ended June 30, 2026, as compared to other income, net of RMB9.1 million in the same period of 2025. The change was primarily due to decreased government subsidies and one-time compensation income.
Foreign exchange loss, net decreased to RMB0.5 million (US$0.1 million) for the six months ended June 30, 2026 from RMB2.6 million in the same period of 2025.
Income tax expense decreased to RMB0.5 million (US$0.1 million) for the six months ended June 30, 2026 from RMB2.6 million in the same period of 2025.
Net income increased by 92.7% to RMB18.8 million (US$2.8 million) for the six months ended June 30, 2026 from RMB9.7 million in the same period of 2025 as a result of the foregoing.
Net incomeattributable to the Company's shareholders increased by 48.0% to RMB20.0 million (US$2.9 million) for the six months ended June 30, 2026 from RMB13.5 million in the same period of 2025.
Adjusted net income attributable to the Company's shareholders increased by 15.1% to RMB22.3 million (US$3.3 million) for the six months ended June 30, 2026 from RMB19.4 million in the same period of 2025.
Basic and diluted net income per ordinary share was RMB0.48 (US$0.07) and RMB0.48 (US$0.07) for the six months ended June 30, 2026, respectively. In comparison, basic and diluted net income per ordinary share was RMB0.32 and RMB0.32 in the same period of 2025, respectively.
Adjusted basic and diluted net income per ordinary share was RMB0.53 (US$0.08) and RMB0.53 (US$0.08) for the six months ended June 30, 2026, respectively. In comparison, adjusted basic and diluted net income per ordinary share was RMB0.47 and RMB0.47 in the same period of 2025, respectively.
As of June 30, 2026, the Company had cash and cash equivalent balance of RMB329.9 million (US$48.6 million), which represented an increase of RMB22.3 million from RMB307.7 million as of December 31, 2025.
Use of Non-GAAP Financial Measures
Adjusted net income attributable to the Company's shareholders is calculated as net income attributable to the Company's shareholders adjusted for share-based compensation. Adjusted basic and diluted net income per ordinary share is non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics in accordance with U.S. GAAP.
For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB amounts could have been, or could be, converted, realized or settled in U.S. dollars at that rate on June 30, 2026, or at any other rate.
Recent Developments
On July 1, 2026, the Company signed an investment agreement to invest up to RMB70.0 million into Hangzhou Puhongtianze Management Consulting Partnership ("Puhong"), a limited partnership, for a 23.3% equity interest and was subsequently admitted as a limited partner of Puhong.
On July 26, 2026, the Company signed an investment agreement, pursuant to which it invested HK$45.0 million into Ventus Value Investment LPF Partnership (the "Ventus Partnership") as a limited partner. The term of the Ventus Partnership is for five years, provided that the term may be extended by the general partner of the Ventus Partnership for an additional two-year period. The Ventus Partnership raised total capital of HK$100.0 million, in which another limited partner contributed the remaining HK$55.0 million.
On September 2, 2026, the Company entered a sale and purchase agreement (the "SPA" and the transaction as contemplated therein, the "Transaction"), through its wholly-owned subsidiary Scienjoy Innovation Labs Inc. ("Scienjoy Innovation", incorporated on July 16, 2026), to acquire 239,234,000 ordinary shares (the "Shares") of Leader Education Limited ("Leader Education", a listed company on the HKEX), an investment holding company that provides private higher education services in China, from Shuren Education Limited ("Shuren"), Leader Education's controlling shareholder, for HK$102.69 million. The Shares represent 29.9% of the issued and outstanding share capital of Leader Education. The closing of the Transaction is subject to mutually agreed conditions, which includes: (i) Scienjoy Innovation being satisfied with the results of its due diligence of Leader Education and its subsidiaries; (ii) the absence of any material breach of warranties in the SPA by Shuren; (iii) all necessary waivers, consents, and/or notifications having been obtained; (iv) the continued listing of Leader Education's ordinary shares on the Main Board of The Stock Exchange of Hong Kong Limited on or before the closing date; and (v) no suspension in trading of Leader Education's ordinary shares had occurred for more than ten consecutive business days. The Transaction was closed on October 15, 2026. This Transaction is deemed to be a related party transaction since the Company's independent director, Jun Lu, is also an executive director of Leader Education.
About Scienjoy HoldingCorporation
Scienjoy Holding Corporation ("Scienjoy" or the "Company", NASDAQ: SJ) is a technology company powered by a dual engine of "digital entertainment + enterprise AI solutions," with AI at the core of its business strategy. The Company has a long track record of providing digital entertainment services to global users, building extensive expertise in digital content, multimodal interaction, and business operations. Leveraging its foundational AI technologies and business agent engines, which have been validated through real-world applications, Scienjoy is extending its capabilities to enterprise customers across a range of industries. Through its forward deployed engineer (FDE) model, AI applications, and intelligent solutions, the Company integrates AI into real-world business processes and operational systems, transforming technological capabilities into tangible business value.
Looking ahead, Scienjoy aims to further strengthen its AI capabilities across the application, model, and computing layers, while driving the synergistic development of its consumer-facing (2C) and enterprise-facing (2B) businesses. By continuously expanding the practical applications of AI across industries and business scenarios, the Company seeks to build a scalable AI-driven business platform and extend the boundaries of AI commercialization.
For more information, please visit http://ir.scienjoy.com/.
Safe Harbor Statement
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission ("SEC") from time to time. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.
For investor and media inquiries, please contact:
Investor Relations Contacts
Denny Tang
Chief Financial Officer
Scienjoy Holding Corporation
+86-10-64428188
ir@scienjoy.com
Ascent Investor Relations LLC
Tina Xiao
+1-646-932-7242
investors@ascent-ir.com
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share and per share data or otherwise stated)
As of As of
December 31,
June 30,
2025 2026 2026
RMB RMB US$
ASSETS
Current assets
Cash and cash equivalents 307,650 329,927 48,625
Accounts receivable, net 43,290 45,518 6,709
Due from a related party 100
Investment in marketable security 8,561 3,319 489
Prepaid expenses and other current assets 23,607 27,719 4,085
Total current assets 383,208 406,483 59,908
Non-current assets
Property and equipment, net 2,244 1,941 286
Intangible assets, net 4 1
Long term investments 271,261 269,985 39,791
Long term deposits and other assets 1,741 2,051 302
Right-of-use assets-operating lease 14,695 21,262 3,134
Deferred tax assets 37,288 37,257 5,491
Total non-current assets 327,229 332,500 49,005
TOTAL ASSETS 710,437 738,983 108,913
LIABILITIES AND EQUITY
Current liabilities
Accounts payable 16,665 27,247 4,016
Deferred revenue 50,464 52,509 7,738
Accrued salary and employee benefits 15,184 10,065 1,483
Income tax payable 10,899 10,054 1,482
Lease liabilities-operating lease -current 3,641 6,273 925
Accrued expenses and other current liabilities 9,728 10,245 1,510
Total current liabilities 106,581 116,393 17,154
Non-current liabilities
Lease liabilities-operating lease -non-current 10,399 14,185 2,091
Total non-current liabilities 10,399 14,185 2,091
TOTAL LIABILITIES 116,980 130,578 19,245
Commitments and contingencies
EQUITY
Ordinary share, no par value, unlimited Class A ordinary shares and
Class B ordinary shares authorized, 39,537,710 Class A ordinary
shares and 2,925,058 Class B ordinary shares issued as of December
31, 2025, respectively; 40,472,829 Class A ordinary shares and
2,925,058 Class B ordinary shares issued and outstanding as of June
30, 2026, respectively.
Class A ordinary shares 451,666 474,831 69,981
Class B ordinary shares 23,896 23,896 3,522
Shares to be issued 20,817
Treasury stocks (19,952) (20,411) (3,008)
Statutory reserves 34,091 35,181 5,185
Retained earnings 92,024 110,901 16,345
Accumulated other comprehensive income 12,867 6,930 1,021
Total shareholders' equity 615,409 631,328 93,046
Non-controlling interests (21,952) (22,923) (3,378)
Total equity 593,457 608,405 89,668
TOTAL LIABILITIES AND EQUITY 710,437 738,983 108,913
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(All amounts in thousands, except share and per share data or otherwise stated)
For the six months ended June 30,
2025 2026 2026
RMB RMB US$
Live streaming - consumable virtual items revenue 630,084 564,951 83,263
Live streaming - time based virtual item revenue 9,258 6,092 898
Technical services and others 17,025 17,024 2,509
Total revenue 656,367 588,067 86,670
Cost of revenue (533,195) (482,554) (71,120)
Gross profit 123,172 105,513 15,550
Sales and marketing expenses (3,412) (1,911) (282)
General and administrative expenses (44,379) (35,651) (5,254)
Research and development expenses (36,999) (44,599) (6,573)
(Allowance for) reversal of credit losses (1,400) 724 107
Income from operations 36,982 24,076 3,548
Change in fair value of investment in marketable security (31,092) (5,242) (773)
Investments loss (971) (70) (10)
Interest income, net 996 2,042 301
Other income (expenses), net 9,072 (1,018) (150)
Foreign exchange loss, net (2,630) (499) (74)
Income before income taxes 12,357 19,289 2,842
Income tax expense (2,608) (503) (74)
Net income 9,749 18,786 2,768
Less: net loss attributable to non-controlling interest (3,744) (1,181) (174)
Net income attributable to the Company's shareholders 13,493 19,967 2,942
Other comprehensive income (loss):
Other comprehensive income (loss) - foreign currency translation adjustment 995 (5,727) (844)
Comprehensive income 10,744 13,059 1,924
Less: comprehensive loss attributable to non-controlling interests (3,574) (971) (143)
Comprehensive income attributable to the Company's shareholders 14,318 14,030 2,067
Weighted average number of shares
Basic 41,578,079 41,987,039 41,987,039
Diluted 41,655,404 41,987,039 41,987,039
Earnings per share
Basic 0.32 0.48 0.07
Diluted 0.32 0.48 0.07
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(All amounts in thousands, except share and per share data or otherwise stated)
Ordinary shares Shares Treasury stocks Statutory Retained Accumulated Non- Total
to be other controlling
comprehensive
Shares Amount issued shares Amount reserves earnings Income interests equity
RMB RMB RMB RMB RMB RMB RMB RMB
Balance as of December 31, 2024 41,847,784 468,058 20,817 (1,048,178) (19,952) 50,705 662,499 16,967 (13,778) 1,185,316
Net income 13,493 (3,744) 9,749
Share-based compensation 489,984 5,897 5,897
Appropriation to statutory reserves 490 (490)
Foreign currency translation adjustments 825 170 995
Balance as of June 30, 2025 42,337,768 473,955 20,817 (1,048,178) (19,952) 51,195 675,502 17,792 (17,352) 1,201,957
Ordinary shares Shares Treasury stocks Statutory Retained Accumulated Non- Total
to be other controlling
comprehensive
Shares Amount issued shares Amount reserves earnings Income interests equity
RMB RMB RMB RMB RMB RMB RMB RMB
Balance as of December 31, 2025 42,462,768 475,562 20,817 (1,048,178) (19,952) 34,091 92,024 12,867 (21,952) 593,457
Net income 19,967 (1,181) 18,786
Share-based compensation 298,428 2,348 2,348
Treasury stocks (89,952) (459) (459)
Appropriation to statutory reserves 1,090 (1,090)
Issuance of shares for acquisition of Weiliantong 636,691 20,817 (20,817)
Foreign currency translation adjustments (5,937) 210 (5,727)
Balance as of June 30, 2026 43,397,887 498,727 (1,138,130) (20,411) 35,181 110,901 6,930 (22,923) 608,405
Balance as of June 30, 2026 (US$) 43,397,887 73,503 (1,138,130) (3,008) 5,185 16,345 1,021 (3,378) 89,668
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands, except share and per share data or otherwise stated)
For the six months ended June 30,
2025 2026 2026
RMB RMB US$
Cash flows from operating activities
Net income 9,749 18,786 2,768
Adjustments to reconcile net income to net cash provided by operating
activities
Depreciation of property and equipment 724 570 84
Amortization of intangible assets 3,480
Allowance for (reversal of) credit losses 1,400 (724) (107)
Loss from disposal of property and equipment 1
Deferred tax (benefit) expense (831) 8 1
Change in fair value of investment in marketable security 31,092 5,242 773
Investments loss 971 70 10
Share-based compensation 5,897 2,348 346
Amortization of right-of-use assets-operating lease 3,492 2,997 442
Changes in operating assets and liabilities
Accounts receivable 1,956 (3,582) (528)
Prepaid expense and other current assets (3) (5,286) (779)
Long term deposits and other assets 67 (310) (46)
Accounts payable 3,028 10,584 1,560
Deferred revenue 9,012 2,045 301
Accrued salary and employee benefits (12,132) (5,119) (754)
Accrued expenses and other current liabilities (3,338) 518 76
Income tax payable 1,079 (845) (125)
Lease liabilities-operating lease (4,672) (3,146) (464)
Net cash provided by operating activities 50,972 24,156 3,558
Cash flows from investing activities
Cash acquired from acquisition 28
Payment for (receipts from) long term investments (6,000) 632 93
Purchase of property and equipment and intangible assets (261) (276) (41)
Net cash (used in) provided by investing activities (6,233) 356 52
Cash flows from financing activities
(Advance to) proceeds from related parties (100) 100 15
Share repurchase (459) (68)
Net cash used in financing activities (100) (359) (53)
Effect of foreign exchange rate changes on cash and cash equivalents 1,311 (1,876) (274)
Net increase in cash and cash equivalents 45,950 22,277 3,283
Cash and cash equivalents at beginning of the period 252,540 307,650 45,342
Cash and cash equivalents at end of the period 298,490 329,927 48,625
Supplemental disclosures of cash flow information:
Income taxes paid 2,210 1,333 196
Supplemental non-cash investing and financing information:
Right-of-use assets-operating lease obtained in exchange for lease 16,442 9,564 1,410
liabilities-operating lease
Issuance of Class A ordinary shares for acquisition 20,817 3,068
Reconciliations of Non-GAAP Results
(All amounts in thousands, except share and per share data or otherwise stated)
For the three months ended For the six months ended
June 30, June 30, June 30, June 30, June 30, June 30,
2025 2026 2026 2025 2026 2026
RMB RMB US$ RMB RMB US$
Net income attributable to the Company's shareholders 22,583 11,092 1,635 13,493 19,967 2,942
Less:
Share based compensation (2,322) (1,810) (267) (5,897) (2,348) (346)
Adjusted net income attributable to the Company's shareholders* 24,905 12,902 1,902 19,390 22,315 3,288
Adjusted net income attributable to the Company's shareholders
per ordinary share*
Basic 0.60 0.31 0.05 0.47 0.53 0.08
Diluted 0.60 0.31 0.05 0.47 0.53 0.08
"Adjusted net income attributable to the Company's shareholders" is defined as net income attributable to the
Company's shareholders excluding share-based compensation.
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SOURCE Scienjoy Holding Corporation
