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

Core Viewpoint - Scienjoy Holding Corporation reported solid growth in revenue and gross profit for the first half of fiscal year 2024, driven by strategic initiatives focused on global expansion and metaverse innovation, despite a decrease in net income primarily due to changes in the fair value of investments in marketable securities [4][5]. Financial Performance Summary Second Quarter 2024 - Total revenues increased by 3.2% to RMB374.8 million (US$51.6 million) compared to RMB363.2 million in the same period of 2023 [2][6]. - Gross profit rose by 28.3$8.9 million) from RMB50.4 million in the same period of 2023 [2][7]. - Income from operations surged by 148.0% to RMB28.6 million (US$3.9 million) from RMB11.5 million in the same period of 2023 [2][10]. - Net income decreased by 60.6$4.6 million) from RMB84.9 million in the same period of 2023, attributed to changes in fair value of investments [2][13]. First Half 2024 - Total revenues increased by 3.6% to RMB691.1 million (US$95.1 million) from RMB667.4 million in the same period of 2023 [3][15]. - Gross profit increased by 30.1$16.2 million) from RMB90.5 million in the same period of 2023 [3][16]. - Income from operations rose by 136.5% to RMB38.9 million (US$5.3 million) from RMB16.4 million in the same period of 2023 [3][18]. - Net income decreased by 54.3$5.0 million) from RMB79.3 million in the same period of 2023, primarily due to changes in fair value of investments [3][21]. Cost and Expense Management - Cost of revenues decreased by 0.6% to RMB573.3 million (US$78.9 million) for the first half of 2024, primarily due to a significant reduction in user acquisition costs [15]. - Total operating expenses increased by 6.5$10.9 million) for the first half of 2024, with notable increases in research and development expenses [16][17]. Strategic Initiatives - The company is focusing on the metaverse industry and integrating AI technologies into its platform, SJ-Verse, to enhance user engagement and content personalization [4][5]. - Partnerships with local creators and service providers in Dubai are aimed at building a culturally resonant metaverse ecosystem [4][5]. Outlook - The company expects total net revenues for the third quarter of 2024 to be in the range of RMB303 million to RMB323 million, reflecting current market conditions [24].