SJ · Scienjoy Holding Corporation

Scienjoy Holding Corporation reported a challenging fiscal year 2025, swinging to a net loss of RMB595.0 million from a net income of RMB26.7 million in the prior year. The significant loss was primarily attributable to major non-cash accounting items totaling RMB712.3 million, specifically a full impairment of RMB186.2 million on goodwill and RMB398.8 million on intangible assets. These impairments were triggered by regulatory and tax policy changes in China's livestreaming industry, a significant decrease in paying users, and declining operating income in the second half of 2025. Operationally, total revenues declined to RMB1,241.6 million from RMB1,363.4 million, driven by a drop in paying users from 494,652 to 383,695 amidst a competitive landscape. Despite the revenue decline, gross margins improved to 18.3% from 18.0%, attributed to higher Average Revenue Per Paying User (ARPPU). The company also faced a 316.2% increase in provision for credit losses to RMB127.3 million due to credit risks associated with third-party virtual currency distributors. Management emphasized that the core live streaming business remains profitable and highlighted a 21.8% increase in cash and cash equivalents to RMB307.7 million, positioning the company to continue investments in AI innovation and global expansion.