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Scienjoy Holding Corporation (SJ)

Description

Scienjoy Holding Corporation operates a portfolio of mobile live-streaming platforms in China, connecting professional broadcasters with users through interactive video, virtual gifts and light gaming features, supplemented by technical service offerings.

Historical Reports

Financial Information

Report Date
2025-04-30
Report Period
Fiscal Year Ended December 2024
Debt
$0 (no material debt outstanding)
Debt History
Debt has been eliminated; no outstanding bank or long-term borrowings.
Debt Trend
Decreasing

Profit Information

Profit
RMB 26.7 million (approx. USD 3.7 million)
Profit History
Turned from a loss of RMB 35.0 million in 2023 to a net profit of RMB 26.7 million in 2024.
Profit Trend
Increasing

Detailed Report

Scienjoy Holding Corporation Annual Financial Report

Report Date: 2025-04-30
Period Covered: Fiscal Year Ended December 31, 2024

1. Profit & Debt Analysis

  • Revenue: RMB 1,363.4 million (USD 186.8 million), down 7% vs. prior year.
  • Gross Profit: RMB 245.4 million (18.0% margin) vs. RMB 192.7 million (13.2%) in 2023.
  • Net Income: RMB 26.7 million (USD 3.7 million), a swing from a RMB 35.0 million loss in 2023.
  • Debt: No bank debt or other significant borrowings outstanding as of December 31, 2024.

2. Reasons for Profit Turnaround

  • ARPPU Improvement: Average revenue per paying user rose slightly to RMB 2,714 in 2024, supported by deeper monetization across five live-streaming brands.
  • Cost Control: Marketing and user-acquisition spend was optimized, and platform subsidies were reduced.
  • Non-operating Gains: A RMB 25.4 million gain from a publicly traded investment partly offset operational headwinds.

3. Pros and Cons

  • Pros:
    • Diversified multi-platform footprint (Showself, Lehai, Haixiu, Beelive & Hongle)
    • Improved gross margin (up 5pp) and a return to net profit
    • Minimal balance-sheet risk—no debt, strong cash position (RMB 252.5 million).
  • Cons:
    • Revenue declined 7% amid intense competition in China’s live-streaming market
    • Heavy reliance on in-app virtual-gift model; ARPPU growth may plateau
    • Regulatory and VIE-structure risks remain elevated.

Prepared by the Financial Analysis Team

Statistics Breakdown

Revenue by Platform (2024):

  • Showself: RMB 330.3 million (24.2% of total)
  • Lehai: RMB 330.3 million (24.2%)
  • Haixiu: RMB 271.8 million (19.9%)
  • Beelive: RMB 212.0 million (15.5%)
  • Hongle: RMB 198.1 million (14.5%)
  • Tech & Other Services: RMB 20.8 million (1.7%)

Paying-User & ARPPU Trends:

  • Total Paying Users: 494,652 (-11% vs. 2023)
  • ARPPU (RMB): 2,714 (vs. 2,592 in 2023)

Earnings Contribution by Geography:

  • 98% China, 2% Other (Middle East, SEA expansion via Beelive/Verse)

Company Direction Insights

Scienjoy has returned to profitability through disciplined cost control and improved virtual-gift monetization. The cash-rich, debt-free balance sheet supports continued investment in AI-driven content matching and overseas expansion (MENA, SEA). Key future challenges include navigating PRC livestreaming regulations and VIE enforcement risks, diversifying beyond the gift model (e-commerce, hybrid O2O), and sustaining ARPPU gains in a maturing market. Management should prioritize:

  • Deepening technology-enabled user engagement via AI/AR
  • Expanding international growth channels under Verse and scenovo brands
  • Strengthening VIE structure safeguards and tax-residency compliance
  • Exploring strategic M&A in adjacent social entertainment segments

Overall, Scienjoy’s financial health is improving, but regulatory oversight and single-model risks call for prudent diversification and structural resilience planning.