Operating profit increased by 313.7% year-on-year.

Net income increased by approximately $10 million year-on-year.

peking, November 25, 2024 / usa Today / -- Scienjoy Holdings Limited (referred to as "Scienjoy", nasdaq stock code: SJ) publicly announced the unaudited financial performance for the first three quarters ended September 30, 2024.

2024 first three quarters operating and financial summary

• Revenue was RMB 1.0125 billion (about USD 0.1443 billion), while in the same period of 2023 it was RMB 1.0366 billion.
• Gross profit increased by 29.6% year-on-year, from RMB 0.1386 billion in the same period of 2023 to RMB 0.1796 billion (about USD 25.6 million).
• Operating profit increased by 313.7% year-on-year, from RMB 8.5 million in the same period of 2023 to RMB 35.3 million (about USD 5 million).
• Net income increased by RMB 71.5 million year-on-year, from a net loss of RMB 37.3 million in the same period of 2023 to a net income of RMB 34.2 million (about USD 4.9 million).
• The net income attributable to the company's shareholders was RMB 42.7 million (approximately USD 6.1 million), while the net loss attributable to the company's shareholders in the same period of 2023 was RMB 34.7 million.
• The adjusted net income attributable to the company's shareholders increased by RMB 72.8 million year-on-year, from an adjusted net loss of RMB 22 million in the same period of 2023 to an adjusted net income of RMB 50.8 million (approximately USD 7.2 million).
• As of September 30, 2024, cash and cash equivalents were RMB 0.2173 billion (approximately USD 31 million), an increase of RMB 11.8 million from RMB 0.2055 billion as of December 31, 2023.

Victor He, Chairman and CEO of Scienjoy, commented: "We are pleased to announce that as of September 30, 2024, the financial performance in the first three quarters has been good, with a notable 29.6% growth in gross profit. This growth not only highlights our success in converting high-quality paying users into sustainable profitability, but also demonstrates that even with the impact of promotional activities on user base and revenue weakening, we can still maintain profitability. The further growth in average revenue per paying user further proves our strong profitability in the competitive market. As part of the global expansion plan, we continue to advance strategic initiatives in the Dubai market, focusing on the vibrant Middle East and North Africa regions. In addition to geographical expansion, we continue to increase investment in cutting-edge AI-generated content technologies, which are crucial to enhancing user experience across our platforms. The advancement of AI technology enables us to provide highly personalized, immersive, and engaging content that resonates with our global users. With clear objectives and a robust execution plan, we believe our business strategy is steadily moving forward towards further growth. Looking ahead to the fourth quarter of 2024, we are confident in maintaining the current business momentum and creating more value for shareholders."

Scienjoy CFO Mr. Deng Bentong (Denny Tang) added: "We are very pleased to achieve excellent financial performance in the first three quarters ending September 30, 2024. These results reflect the success of our prudent and forward-looking growth strategy, as well as the outstanding execution of team collaboration. During this period, our gross profit increased by 29.6%, demonstrating our ability to convert high-quality paid users, while operating profit also increased by 313.7%. The significant growth in operating profit reflects our optimization of cost management and the expansion of operational scale while increasing investment in growth plans. In addition, we turned a loss into a profit compared to the same period last year, achieving a net income of $4.9 million. These achievements demonstrate the resilience of our financial foundation, further strengthened through net profit attributable to shareholders of $6.1 million. This reaffirms our determination to implement strategic initiatives. Looking ahead, we will continue to focus on business growth opportunities, steadily enhance our business strength in the metaverse field, and expand global influence. We believe that these measures will create lasting and profound value for shareholders, enabling us to maintain outstanding performance in the rapidly changing digital economy wave."

About Scienjoy

Scienjoy Holdings Co., Ltd. (NASDAQ: SJ) is a pioneering interactive entertainment leader listed on NASDAQ. Driven by the vision of shaping the metaverse lifestyle, the company uses AI technology to create immersive experiences, connect with global audiences meaningfully, and redefine entertainment. For more information, please visit.

Safe Harbor Statement

Some statements in this press release are "forward-looking statements" referred to in the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 in the United States. When used in this press release, words such as "estimate", "expect", "anticipate", "expect", "predict", "plan", "intend", "believe", "seek", "may", "will", "should", "future", "proposed" and variations of these words or similar 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 beyond the company's control that may cause the actual results or results to substantially differ from those discussed in the forward-looking statements. Important factors include: the ability to manage growth; the ability to identify and integrate acquisitions of other businesses in the future; the ability to obtain additional financing to fund capital expenditures in the future; fluctuations in general economic and business conditions; factors that may cause costs or other factors to adversely affect our profitability; litigation involving patents, intellectual property and other matters; potential changes in legislative and regulatory environments; impact of epidemics. Forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those described more fully in filings made by the company from time to time with the Securities and Exchange Commission ("SEC"). Except as required by applicable law, the company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Such information is only applicable as of the date of release of this press release.

For investor and media inquiries, please contact:

Deng Bentong CFO
Scienjoy Holding Corporation
+86-10-64428188
ir@scienjoy.com

Ascent Investor Relations, LLC
Tina Xiao
+1-646-932-7242
investors@ascent-ir.com