Scienjoy Holding Corporation Reports Second Quarter and First Half 2024 Unaudited Financial Results

Rhea-AI Summary

Scienjoy Holding (NASDAQ: SJ) reported its Q2 and H1 2024 financial results. Q2 highlights include:

• Total revenues up 3.2% to RMB374.8 million (US$51.6 million)
• Gross profit increased 28.3% to RMB64.7 million (US$8.9 million)
• Income from operations surged 148.0% to RMB28.6 million (US$3.9 million)
• Net income decreased to RMB33.4 million (US$4.6 million) due to changes in fair value of investments

H1 2024 results showed similar trends with revenue up 3.6% and gross profit up 30.1%. The company is focusing on global expansion and metaverse innovation, particularly its SJ-Verse platform. Scienjoy expects Q3 2024 revenues between RMB303-323 million.

Positive

• Total revenues increased by 3.2% to RMB374.8 million in Q2 2024
• Gross profit surged by 28.3% to RMB64.7 million in Q2 2024
• Income from operations increased by 148.0% to RMB28.6 million in Q2 2024
• H1 2024 total revenues grew by 3.6% to RMB691.1 million
• H1 2024 gross profit increased by 30.1% to RMB117.8 million
• Average revenue per paying user (ARPPU) increased from RMB1,690 to RMB1,943 in Q2 2024

Negative

• Net income decreased by 60.6% to RMB33.4 million in Q2 2024
• Adjusted net income attributable to shareholders decreased by 55.6% to RMB38.5 million in Q2 2024
• Cash and cash equivalents decreased from RMB205.5 million to RMB188.8 million as of June 30, 2024

Financial Analyst

Scienjoy's Q2 2024 results show mixed signals. While revenue grew 3.2% YoY to RMB374.8 million, net income declined 60.6% to RMB33.4 million. The revenue growth is modest, indicating steady demand for interactive entertainment in China. However, the significant drop in net income is concerning, primarily due to changes in fair value of marketable securities.

Positively, gross profit surged 28.3% YoY and income from operations jumped 148%, showcasing improved operational efficiency. The company's focus on metaverse and AI-driven content could be a long-term growth driver, but it's still early to gauge its impact on financials.

The 3.6% revenue growth for H1 2024 suggests a stable but not explosive growth trajectory. Investors should monitor the company's ability to translate its metaverse and AI initiatives into tangible financial results in the coming quarters.

Tech Expert

Scienjoy's strategic focus on metaverse and AI-Generated Content (AIGC) is timely and potentially transformative. The SJ-Verse platform, with its emphasis on personalized content and social integration, aligns well with current tech trends. The company's efforts to build a Dubai-centric metaverse ecosystem demonstrate a unique approach to localization within a global strategy.

The investment in AIGC technologies is particularly noteworthy. If successfully implemented, this could significantly enhance user engagement and content diversity, potentially leading to increased user retention and monetization opportunities. However, the effectiveness of these initiatives in driving user growth and revenue remains to be seen.

While the tech strategy seems sound, the modest revenue growth suggests that these innovations haven't yet translated into significant financial gains. The coming quarters will be important in determining whether Scienjoy can leverage its tech investments into substantial market advantages.

Market Research Analyst

Scienjoy's performance reflects broader trends in the Chinese interactive entertainment market. The increase in Average Revenue Per Paying User (ARPPU) from RMB1,690 to RMB1,943 in Q2 indicates a willingness among users to spend more, possibly due to economic recovery in China. This trend is positive for the industry as a whole.

The company's global expansion strategy, starting with Dubai, is intriguing. The Middle East and North Africa (MENA) region represents a potentially lucrative market for interactive entertainment. However, success will depend on Scienjoy's ability to adapt its content and business model to local preferences and regulations.

The decrease in user acquisition costs suggests a maturing market where Scienjoy has established a stable share. While this reduces expenses, it may also indicate organic growth opportunities in the domestic market, underlining the importance of the company's international expansion and innovation initiatives.

BEIJING, Aug. 29, 2024 /PRNewswire/ -- Scienjoy Holding Corporation ("Scienjoy", the "Company", or "we") (NASDAQ: SJ), an interactive entertainment leader in the Chinese market, today announced its financial results for the second quarter and first half of fiscal year 2024 ended June 30, 2024.

Second Quarter 2024 Operating and Financial Summaries

• Total revenues increased by 3.2% to RMB374.8 million (US$51.6 million) for the three months ended June 30, 2024 from RMB363.2 million in the same period of 2023.
• Gross profit increased by 28.3% to RMB64.7 million (US$8.9 million) for the three months ended June 30, 2024 from RMB50.4 million in the same period of 2023.
• Income from operations increased by 148.0% to RMB28.6 million (US$3.9 million) for the three months ended June 30, 2024 from RMB11.5 million in the same period of 2023.
• Net income was RMB33.4 million (US$4.6 million) for the three months ended June 30, 2024, as compared with RMB84.9 million in the same period of 2023. The decrease in net income was primarily attributed to the change in fair value of investment in marketable security, which does not affect the Company's normal business operations. The change in fair value of investment in marketable security was primarily attributable to the fair value changes in investments in publicly traded company. The share price of publicly traded company experienced a moderate increase during the three months ending June 30, 2024, compared to a significant increase during the same period of 2023.
• Net income attributable to the Company's shareholders was RMB35.3 million (US$4.9 million) for the three months ended June 30, 2024, as compared with RMB84.7 million in the same period of 2023.
• Adjusted net income attributable to the Company's shareholders was RMB38.5 million (US$5.3 million) for the three months ended June 30, 2024, as compared with RMB86.8 million in the same period of 2023.

First Half 2024 Operating and Financial Summaries

• Total revenues increased by 3.6% to RMB691.1 million (US$95.1 million) for the six months ended June 30, 2024 from RMB667.4 million in the same period of 2023.
• Gross profit increased by 30.1% to RMB117.8 million (US$16.2 million) for the six months ended June 30, 2024 from RMB90.5 million in the same period of 2023.
• Income from operations increased by 136.5% to RMB38.9 million (US$5.3 million) for the six months ended June 30, 2024 from RMB16.4 million in the same period of 2023.
• Net income was RMB36.2 million (US$5.0 million) for the six months ended June 30, 2024, as compared with RMB79.3 million in the same period of 2023. The decrease in net income was primarily attributed to the change in fair value of investment in marketable security, which does not affect the Company's normal business operations. The change in fair value of investment in marketable security was primarily attributable to the fair value changes in investments in publicly traded company. The share price of publicly traded company experienced a moderate increase during the six months ending June 30, 2024, compared to a significant increase during the same period of 2023.
• Net income attributable to the Company's shareholders was RMB41.9 million (US$5.8 million) for the six months ended June 30, 2024, as compared with RMB81.6 million in the same period of 2023.
• Adjusted net income attributable to the Company's shareholders was RMB47.5 million (US$6.5 million) for the six months ended June 30, 2024, as compared with RMB92.0 million in the same period of 2023.
• As of June 30, 2024, the Company had RMB188.8 million (US$26.0 million) in cash and cash equivalents, as compared with RMB205.5 million as of December 31, 2023.

Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "The first half of 2024 has shown solid growth in both our revenue and gross profit, reaffirming our confidence in and expectations for our existing strategy focused on global expansion and metaverse innovation. As emerging AI algorithms and applications rapidly integrate into daily life, our metaverse platform, SJ-Verse, has been energized with groundbreaking innovations and significant momentum. These advancements include more targeted and personalized content, deeper social integration, comprehensive developer support, and enhanced platform connectivity. During this period, SJ-Verse has remained on course with its established goals, notably through partnerships with local creators, service providers and third-party developers to build a metaverse ecosystem uniquely characterized by Dubai's culture. This initiative is designed to resonate with local preferences while nurturing a diverse global community of engaged users. Furthermore, we continue to make substantial investments in AI-Generated Content (AIGC) technologies, viewing them as a promising and profitable avenue within the metaverse landscape. We believe that by integrating AIGC technology into all our product offerings, we could attract and retain a larger global user base, offering a constantly evolving portfolio filled with surprises and entertainment. Looking ahead, we will be empowered by these revolutionary AI-driven innovations, enabling us to diversify risks and seize more growth opportunities within the future metaverse ecosystem."

Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "We are pleased to report robust results for the first half of 2024, despite external challenges and market volatilities. In the second quarter and first half of fiscal year 2024, our revenue experienced steady growth of 3.2% and 3.6%, respectively; gross profit increased substantially by 28.3% and 30.1%, respectively; and income from operations surged by 148.0% and 136.5%, respectively. These figures reinforce our confidence in the effectiveness of our strategic initiatives and our unwavering commitment to executing them more efficiently. We are actively engaged in the metaverse industry, one of the most dynamic and innovative frontiers in today's rapidly evolving world, with each spark of innovation presenting an opportunity for growth. Therefore, we remain vigilant, striving to stay ahead of trends and seize these opportunities. Simultaneously, we view business globalization as the path to becoming a significant player in the global metaverse arena. Going forward, we are committed to delivering more shareholder value by remaining steadfast in our dedication to innovation and our growth strategies."

Second Quarter 2024 Financial Results

Total revenues increased by 3.2% to RMB374.8 million (US$51.6 million) for the three months ended June 30, 2024 from RMB363.2 million in the same period of 2023, primarily caused by increase of average revenue per paying user ("ARPPU") as the economy recovers in China. The overall ARPPU for the three months ended June 30, 2023 and 2024 was RMB1,690 and RMB1,943, respectively. 

Cost of revenues decreased by 0.8% to RMB310.1 million (US$42.7 million) for the three months ended June 30, 2024 from RMB312.7 million in the same period of 2023. The decrease was primarily attributable to a 60.2%, or RMB15.1 million, year-over-year decrease in users acquisition costs for the three months ended June 30, 2023, due to the fact that the Company already had a stable market share, and a decrease of RMB0.9 million in bandwidth related costs, as well as a decrease of RMB1.3 million in others costs. The decreased cost was partially offset by an increase of RMB14.7 million in revenue sharing fees, which was in line with the increase of revenue.

Gross profit increased by 28.3% to RMB64.7 million (US$8.9 million) for the three months ended June 30, 2024 from RMB50.4 million in the same period of 2023.

Total operating expenses decreased by 7.1% to RMB36.1 million (US$5.0 million) for the three months ended June 30, 2024 from RMB38.9 million in the same period of 2023.

• Sales and marketing expenses decreased by 26.5% to RMB0.2 million (US$0.03 million) for the three months ended June 30, 2024 from RMB0.3 million in the same period of 2023, primarily due to fewer marketing activities.
• General and administrative expenses decreased by 13.0% to RMB16.7 million (US$2.3 million) for the three months ended June 30, 2024 from RMB19.1 million in the same period of 2023, primarily caused by a decrease of RMB2.7 million in share based compensation.
• Research and development expenses decreased by 3.3% to RMB17.5 million (US$2.4 million) and RMB18.1 million for the three months ended June 30, 2024 and 2023, due to a decrease of RMB1.6 million employee salary and welfare and a decrease of RMB0.4 million in share base compensation, offset by an increase of RMB1.5 million in technical services.
• Provision for credit losses increased by 29.2% to RMB1.8 million (US$0.2 million) for the three months ended June 30, 2024 from RMB1.4 million in the same period of 2023.

Income from operations increased by 148.0% to RMB28.6 million (US$3.9 million) for the three months ended June 30, 2024 from RMB11.5 million in the same period of 2023.

Change in fair value of contingent consideration was Nil for the three months ended June 30, 2024, as compared to a gain of RMB2.5 million in the same period of 2023. Change in fair value of contingent consideration is derived from earn out liabilities resulted from historical acquisitions. The fair value of the contingent consideration is re-measured at each reporting period, and the change in fair value is recognized as either income or expense. 

Change in fair value of warrant liabilities was Nil for the three months ended June 30, 2024, as compared to a gain of RMB2.1 million in the same period of 2023. The fair value of the Company's warrants derivative liability assumed from the SPAC acquisition is re-measured to its fair value at the end of each reporting period, with the change being recorded as other expense or gain. In February 2024, the Company's warrants expired according to the terms of the warrant agreement. As of February 6, 2024, the Company has no warrants issued and outstanding.

Change in fair value of investment in marketable security decreased by 89.0% to a gain of RMB7.0 million (US$1.0 million) for the three months ended June 30, 2024 from a gain of RMB63.6 million in the same period of 2023. The change was primarily attributable to the fair value changes in investments in publicly traded company. The share price of publicly traded company experienced a moderate increase during the three months ending June 30, 2024, compared to a significant increase during the same period of 2023.

Investment loss decreased by 71.2% to RMB1.1 million (US$0.2 million) for the three months ended June 30, 2024 from RM3.9 million in the same period of 2023. The investment loss was primarily attributable to one-time share of unrealized loss in the long-term investments. 

Income tax expense was RMB3.0 million for the three months ended June 30, 2024, as compared with income tax benefit of RMB6.5 million in the same period of 2023, which was mainly due to more taxable income.

Net income decreased by 60.6% to RMB33.4 million (US$4.6 million) for the three months ended June 30, 2024 from RMB84.9 million in the same period of 2023. The decrease in net income was primarily attributed to the change in fair value of investment in marketable security mentioned above, which does not affect the Company's normal business operations.

Net income attributable to the Company's shareholders decreased by 58.3% to RMB35.3 million (US$4.9 million) for the three months ended June 30, 2024 from RMB84.7 million in the same period of 2023.

Adjusted net income attributable to the Company's shareholders decreased by 55.6% to RMB38.5 million (US$5.3 million) for the three months ended June 30, 2024 from RMB86.8 million in the same period of 2023. 

Basic and diluted net income per ordinary share was RMB0.86 (US$0.12) and RMB0.85 (US$0.12) for the three months ended June 30, 2024, respectively. In comparison, basic and diluted net income per ordinary share was RMB2.09 and RMB2.08 in the same period of 2023, respectively.

Adjusted basic and diluted net income per ordinary share was RMB0.94 (US$0.13) and RMB0.93 (US$0.13) for the three months ended June 30, 2024, respectively. In comparison, adjusted basic and diluted net income per ordinary share was RMB2.15 and RMB2.13 in the same period of 2023, respectively.

First Half 2024 Financial Results

Total net revenues increased by 3.6% to RMB691.1 million (US$95.1 million) for the six months ended June 30, 2024 from RMB667.4 million in the same period of 2023, primarily caused by increase of average ARPPU as the economy recovers in China. The overall ARPPU for the six months ended June 30, 2023 and 2024 was RMB2,002 and RMB2,407, respectively. 

Cost of revenues decreased by 0.6% to RMB573.3 million (US$78.9 million) for the six months ended June 30, 2024 from RMB576.9 million in the same period of 2023. The decrease was primarily attributable to a 56.6%, or RMB22.2 million, year-over-year decrease in the Company's user acquisition costs due to the fact that the Company already had a stable market share, and a decrease of RMB1.3 million in bandwidth related costs, as well as a decrease of RMB2.7 million in others costs. partially offset by an increase of RMB22.7 million in revenue sharing fees, which was in line with the increase of revenue. 

Gross profit increased by 30.1% to RMB117.8 million (US$16.2 million) for the six months ended June 30, 2024 from RMB90.5 million in the same period of 2023.

Total operating expenses increased by 6.5% to RMB78.9 million (US$10.9 million) for the six months ended June 30, 2024 from RMB74.1 million in the same period of 2023.

• Sales and marketing expenses increased by 367.2% to RMB2.2 million (US$0.3 million) for the six months ended June 30, 2024 from RMB0.5 million in the same period of 2023, primarily attributable to sales and marketing activities in our new subsidiaries in Dubai. The Company is taking initiative in Dubai market, aiming at global expansion starting from the dynamic Middle East and North Africa (MENA) region.
• General and administrative expenses increased by 0.3% to RMB36.6 million (US$5.0 million) for the six months ended June 30, 2024 from RMB36.5 million in the same period of 2023. The increase was primarily due to an increase of RMB4.1 million in employee salary and welfare and RMB1.0 million membership fees, offset by a decrease of RMB2.6 million in office renovation expenses and a decrease of RMB2.4 million in. share based compensation.
• Research and development expenses increased by 11.8% to RMB39.1 million (US$5.4 million) from RMB34.9 million for the six months ended June 30, 2024 and 2023, due to an increase of RMB5.9 million in technical services fees, offset by a decrease of RMB1.6 million in employee salary and welfare.
• Provision for credit losses decreased by 49.5% to RMB1.1 million (US$0.2 million) for the six months ended June 30, 2024 from RMB2.2 million in the same period of 2023.

Income from operations increased by136.5% to RMB38.7 million (US$5.3 million) for the six months ended June 30, 2024 from RMB16.4 million in the same period of 2023.

Change in fair value of contingent consideration was Nil for the six months ended June 30, 2024, as compared to a loss of RMB2.0 million in the same period of 2023. Change in fair value of contingent consideration is derived from earn out liabilities resulted from historical acquisitions. The fair value of the contingent consideration is re-measured at each reporting period, and the change in fair value is recognized as either income or expense. 

Change in fair value of warrant liabilities was Nil for the six months ended June 30, 2024, as compared to a gain of RMB0.2 million in the same period of 2023. The fair value of the Company's warrants derivative liability assumed from the SPAC acquisition is re-measured to its fair value at the end of each reporting period, with the change being recorded as other expense or gain. In February 2024, the Company's warrants expired according to the terms of the warrant agreement. As of February 6, 2024, the Company has no warrants issued and outstanding.

Change in fair value of investment in marketable security decreased by 94.2% to a gain of RMB3.8 million (US$0.5 million) for the six months ended June 30, 2024 from a gain of RMB65.1 million in the same period of 2023. The change was primarily attributable to the fair value changes in investments in publicly traded company. The share price of publicly traded company experienced a moderate increase during the six months ending June 30, 2024, compared to a significant increase during the same period of 2023.

Investment loss decreased by 18.0% to RMB3.4 million (US$0.5 million) for the six months ended June 30, 2024 from RMB4.1 million in the same period of 2023. The investment loss was primarily attributable to one-time share of unrealized loss in the long-term investments. 

Income tax expense was RMB7.7 million for the six months ended June 30, 2024, as compared with income tax benefit of RMB0.6 million in the same period of 2023, which was mainly due to more taxable income.

Net income decreased by 54.3%to RMB36.2 million (US$5.0 million) for the six months ended June 30, 2024 from RMB79.3 million in the same period of 2023. The decrease in net income was primarily attributed to the change in fair value of investment in marketable security mentioned above, which does not affect the Company's normal business operations.

Net income attributable to the Company's shareholders decreased by 48.6% to RMB41.9 million (US$5.8 million) for the six months ended June 30, 2024 from RMB81.6 million in the same period of 2023.

Adjusted net income attributable to the Company's shareholders decreased by 48.3% to RMB47.5 million (US$6.5 million) for the six months ended June 30, 2024 from RMB92.0 million in the same period of 2023. 

Basic and diluted net income per ordinary share was RMB1.02(US$0.14) and RMB1.01 (US$0.14) for the six months ended June 30, 2024, respectively. In comparison, basic and diluted net income per ordinary share was RMB2.02 and RMB2.01 in the same period of 2023, respectively.

Adjusted basic and diluted net income per ordinary share was RMB1.16 (US$0.16) and RMB1.15 (US$0.16) for the six months ended June 30, 2024., respectively. In comparison, adjusted basic and diluted net income per ordinary share was RMB2.28 and RMB2.26 in the same period of 2023, respectively.

As of June 30, 2024, the Company had RMB188.8 million (US$26.0 million) in cash and cash equivalents, which represented a decrease of RMB16.7 million from RMB205.5 million as of December 31, 2023. 

Business Outlook

The Company expects its total net revenues to be in the range of RMB303 million to RMB323 million in the third quarter of 2024. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.

About Scienjoy Holding Corporation

Scienjoy is a pioneering Nasdaq-listed interactive entertainment leader. Driven by the vision of shaping a metaverse lifestyle, Scienjoy leverages AI-powered technology to create immersive experiences that resonate with global audiences, fostering meaningful connections and redefining entertainment. For more information, please visit http://ir.scienjoy.com/.

Use of Non-GAAP Financial Measures

Adjusted net income is calculated as net income adjusted for change in fair value of contingent consideration, change in fair value of warrant liability and 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 US 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 RMB7.2672 to US$1.00, the noon buying rate in effect on June 30, 2024, 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, 2024, or at any other rate.

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 our 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 

 

 

 

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,
		2023				2024				2024
		RMB				RMB				US$
ASSETS
Current assets
Cash and cash equivalents			205,465				188,764				25,975
Accounts receivable, net			260,979				246,812				33,962
Prepaid expenses and other current assets			78,653				59,840				8,234
Amounts due from related parties			355				-				-
Investment in marketable security			31,525				35,290				4,856
Total current assets			576,977				530,706				73,027
Property and equipment, net			2,193				1,863				256
Intangible assets, net			412,154				408,690				56,238
Goodwill			182,467				182,536				25,118
Long term investment			254,411				267,519				36,812
Long term deposits and other assets			726				731				101
Right-of-use assets-operating lease			12,157				8,544				1,176
Deferred tax assets			7,379				5,222				719
Total non-current assets			871,487				875,105				120,420
TOTAL ASSETS			1,448,464				1,405,811				193,447
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable			73,183				35,034				4,820
Accrued salary and employee benefits			14,763				9,394				1,293
Accrued expenses and other current liabilities			27,610				8,244				1,134
Income tax payable			13,005				9,196				1,265
Lease liabilities-operating lease -current			7,974				6,101				840
Deferred revenue			97,586				84,997				11,696
Total current liabilities			234,121				152,966				21,048
Non-current liabilities
Deferred tax liabilities			59,818				59,109				8,134
Lease liabilities-operating lease -non-current			4,798				2,773				382
Total non-current liabilities			64,616				61,882				8,516
TOTAL LIABILITIES			298,737				214,848				29,564
Commitments and contingencies
EQUITY
Ordinary share, no par value, unlimited Class A ordinary shares and     Class B ordinary shares authorized, 38,113,879 Class A ordinary     shares and 2,925,058 Class B ordinary shares issued and outstanding     as of December 31, 2023, respectively; 38,920,797 Class A ordinary     shares and 2,925,058 Class B ordinary shares issued and outstanding     as of June 30, 2024, respectively.
Class A ordinary shares			423,623				439,212				60,438
Class B ordinary shares			23,896				23,896				3,288
Shares to be issued			30,777				20,817				2,865
Treasury stocks			(19,216)				(19,216)				(2,644)
Statutory reserves			44,698				48,040				6,611
Retained earnings			628,821				667,399				91,837
Accumulated other comprehensive income			17,965				17,357				2,388
Total shareholders' equity			1,150,564				1,197,505				164,783
Non-controlling interests			(837)				(6,542)				(900)
Total equity			1,149,727				1,190,963				163,883
TOTAL LIABILITIES AND EQUITY			1,448,464				1,405,811				193,447

 

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(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,
		2023				2024				2024				2023				2024				2024
		RMB				RMB				US$				RMB				RMB				US$
Livestreaming - consumable     virtual items revenue			349,629				362,293				49,853				640,740				671,308				92,375
Livestreaming - time based     virtual items revenue			6,379				6,542				900				11,890				12,516				1,722
Technical services and others			7,143				6,005				826				14,812				7,315				1,007
Total revenues			363,151				374,840				51,579				667,442				691,139				95,104
Cost of revenues			(312,718)				(310,117)				(42,674)				(576,913)				(573,329)				(78,893)
Gross profit			50,433				64,723				8,905				90,529				117,810				16,211
Operating expenses
Sales and marketing expenses			(257)				(189)				(26)				(466)				(2,177)				(300)
General and administrative     expenses			(19,148)				(16,650)				(2,291)				(36,457)				(36,580)				(5,034)
Research and development     expenses			(18,135)				(17,534)				(2,413)				(34,945)				(39,061)				(5,375)
Provision for doubtful accounts			(1,369)				(1,769)				(243)				(2,230)				(1,126)				(155)
Total operating expenses			(38,909)				(36,142)				(4,973)				(74,098)				(78,944)				(10,864)
Income from operations			11,524				28,581				3,932				16,431				38,866				5,347
Change in fair value of     contingent consideration			2,540				-				-				(1,978)				-				-
Change in fair value of warrants     liability			2,085				-				-				153				-				-
Change in fair value of     investment in marketable     security			63,570				6,991				962				65,148				3,764				518
Investment loss			(3,870)				(1,114)				(153)				(4,088)				(3,354)				(462)
Interest income, net			691				449				62				1,095				2,428				334
Other income, net			354				575				79				525				688				95
Foreign exchange gain, net			1,454				974				134				1,421				1,508				208
Income before income taxes			78,348				36,456				5,016				78,707				43,900				6,040
Income tax benefits (expenses)			6,526				(3,035)				(418)				632				(7,673)				(1,056)
Net income			84,874				33,421				4,598				79,339				36,227				4,984
Less: net income (loss)     attributable to noncontrolling     interest			138				(1,919)				(264)				(2,247)				(5,693)				(783)
Net income attributable to the     Company's shareholders			84,736				35,340				4,862				81,586				41,920				5,767
Other comprehensive loss:
Other comprehensive loss -     foreign currency translation     adjustment			(511)				(172)				(24)				(498)				(608)				(84)
Comprehensive income			84,363				33,249				4,574				78,841				35,619				4,900
Less: comprehensive income     (loss) attributable to non-     controlling interests			138				(1,919)				(264)				(2,247)				(5,693)				(783)
Comprehensive income     attributable to the     Company's shareholders			84,225				35,168				4,838				81,088				41,312				5,683
Weighted average number of     shares*
Basic			40,447,415				41,164,872				41,164,872				40,447,415				41,164,872				41,164,872
Diluted			40,771,279				41,334,310				41,334,310				40,660,023				41,461,415				41,461,415
Earnings per share
Basic			2.09				0.86				0.12				2.02				1.02				0.14
Diluted			2.08				0.85				0.12				2.01				1.01				0.14

 

 

 

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,
		2023		2024		2024		2023		2024		2024
		RMB		RMB		US$		RMB		RMB		US$
Net income attributable to the     Company's shareholders		84,736		35,340		4,862		81,586		41,920		5,767
Less:
Change in fair value of     contingent consideration		2,540		-		-		(1,978)		-		-
Change in fair value of warrants     liability		2,085		-		-		153		-		-
Share based compensation		(6,720)		(3,194)		(440)		(8,613)		(5,629)		(775)
Adjusted net income     attributable to the     Company's shareholders*		86,831		38,534		5,302		92,024		47,549		6,542
Adjusted net income     attributable to the     Company's shareholders     per ordinary share*
Basic		2.15		0.94		0.13		2.28		1.16		0.16
Diluted		2.13		0.93		0.13		2.26		1.15		0.16
"Adjusted net income attributable to the Company's shareholders" is defined as net income attributable to the Company's shareholders excluding change in fair value of contingent consideration, change in fair value of warrant liability and share based compensation. For more information, refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Results" above.

 

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SOURCE Scienjoy Holding Corporation

FAQ

What was Scienjoy's (SJ) revenue growth in Q2 2024?

Scienjoy's total revenues increased by 3.2% to RMB374.8 million (US$51.6 million) in Q2 2024 compared to the same period in 2023.

How did Scienjoy's (SJ) net income change in Q2 2024?

Scienjoy's net income decreased by 60.6% to RMB33.4 million (US$4.6 million) in Q2 2024 compared to RMB84.9 million in Q2 2023, primarily due to changes in fair value of investments.

What is Scienjoy's (SJ) revenue forecast for Q3 2024?

Scienjoy expects its total net revenues to be in the range of RMB303 million to RMB323 million in the third quarter of 2024.

How much did Scienjoy's (SJ) gross profit increase in H1 2024?

Scienjoy's gross profit increased by 30.1% to RMB117.8 million (US$16.2 million) for the six months ended June 30, 2024.