Scienjoy Q2 profit falls to RMB11.1M as revenue dips
Second-quarter revenue and shareholder income were lower than a year earlier, although first-half shareholder income rose 48.0%.
Sentiment and the balance of points
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Scienjoy Holding Corp. reported second-quarter 2026 revenue of RMB305.4 million, down from RMB349.0 million a year earlier, and net income attributable to shareholders of RMB11.1 million versus RMB22.6 million. For the six months ended June 30, 2026, revenue was RMB588.1 million, compared with RMB656.4 million in 2025; the company attributed the decrease primarily to fewer paying users (196,374 versus 253,888), partly offset by average revenue per paying user rising to RMB2,908 from RMB2,518. First-half net income attributable to shareholders rose 48.0% to RMB20.0 million, while operating cash flow fell to RMB24.2 million from RMB51.0 million. Cash and cash equivalents were RMB329.9 million as of June 30, 2026.
After the period, Scienjoy’s wholly owned subsidiary completed the purchase of 239,234,000 Leader Education ordinary shares from Shuren Education Limited for HK$102.69 million on October 15, 2026; the shares represented 29.9% of Leader Education’s issued and outstanding share capital. Scienjoy identified the transaction as related-party because its independent director, Jun Lu, is also an executive director of Leader Education.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointFirst-half net income attributable to shareholders rose 48.0% to RMB20.0 million.
Negative
- Moderate pointSecond-quarter net income attributable to shareholders fell to RMB11.1 million from RMB22.6 million.
- Moderate pointFirst-half revenue declined to RMB588.1 million from RMB656.4 million.
- Moderate pointFirst-half operating cash flow fell to RMB24.2 million from RMB51.0 million.
Key Figures
Key Terms
average live streaming revenue per paying user (ARPPU) financial
revenue sharing fees financial
forward deployed engineer (FDE) technical
variable interest entity (VIE) regulatory
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Scienjoy (SJ) perform in the second quarter of 2026?
How many Leader Education shares did Scienjoy (SJ) acquire?
What July 2026 investments did Scienjoy (SJ) make?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October
Commission File Number:
(Translation of registrant’s name into English)
Room 1118, 11th Floor, Building 3, Wangzhou Rd. No.99, Liangzhu Street
Yuhang District, Hangzhou, Zhejiang
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit 99.1 to this report is a press release of Scienjoy Holding Corporation (the “Company”), dated October 26, 2026, regarding the Company’s unaudited condensed consolidated financial results for the six months ended June 30, 2026.
Attached as Exhibit 99.2 to this report is Management’s Discussion and Analysis.
Attached as Exhibit 99.3 to this report is the Company’s unaudited condensed consolidated financial statements.
1
EXPLANATORY NOTE
This Form 6-K is hereby incorporated by reference into the registration statement of the Company on Form S-8 (Registration Number 333-256373), the registration statement of the Company on Form S-8 (Registration Number 333-289804), and the registration statement of the Company on Form F-3 (Registration Number 333-280628), to the extent not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
2
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release | |
| 99.2 | Management’s Discussion and Analysis | |
| 99.3 | Unaudited Condensed Consolidated Financial Statements | |
| 101. | INS Inline XBRL Instance Document | |
| 101. | SCH Inline XBRL Taxonomy Extension Schema Document | |
| 101. | CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101. | DEF Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101. | LAB Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101. | PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Scienjoy Holding Corporation | ||
| By: | /s/ Xiaowu He | |
| Name: | Xiaowu He | |
| Title: | Chief Executive Officer | |
Date: October 26, 2026
4
Exhibit 99.1
Scienjoy Holding Corporation Reports Second Quarter and First Half 2026 Unaudited Financial Results
BEIJING, October 26, 2026 /PRNewswire/ -- Scienjoy Holding Corporation (“Scienjoy”, the “Company”, or “we”) (NASDAQ: SJ), an AI technology company powered by a dual engine of “digital entertainment + enterprise AI solutions”, today announced its financial results for the second quarter and first half of fiscal year 2026 ended June 30, 2026.
Second Quarter 2026 Operating and Financial Summaries
| ● | Total revenue decreased to RMB305.4 million (US$45.0 million) for the three months ended June 30, 2026 from RMB349.0 million in the same period of 2025. |
| ● | Gross profit decreased to RMB55.4 million (US$8.2 million) for the three months ended June 30, 2026 from RMB63.7 million in the same period of 2025. Gross margin decreased slightly to 18.1% for the three months ended June 30, 2026 from 18.2% in the same period of 2025. |
| ● | Income from operations decreased to RMB12.8 million (US$1.9 million) for the three months ended June 30, 2026 from RMB23.3 million in the same period of 2025. |
| ● | Net income decreased to RMB11.2 million (US$1.7 million) for the three months ended June 30, 2026 from RMB22.7 million in the same period of 2025. |
| ● | Net income attributable to the Company’s shareholders decreased to RMB11.1 million (US$1.6 million) for the three months ended June 30, 2026 from RMB22.6 million in the same period of 2025. |
| ● | Adjusted net income attributable to the Company’s shareholders decreased to RMB12.9 million (US$1.9 million) for the three months ended June 30, 2026 from RMB24.9 million in the same period of 2025. |
First Half 2026 Operating and Financial Summaries
| ● | Total revenue decreased to RMB588.1 million (US$86.7 million) for the six months ended June 30, 2026 from RMB656.4 million in the same period of 2025. |
| ● | Gross profit decreased to RMB105.5 million (US$15.6 million) for the six months ended June 30, 2026 from RMB123.2 million in the same period of 2025. Gross margin decreased to 17.9% for the six months ended June 30, 2026 from 18.8% in the same period of 2025. |
| ● | Income from operations decreased to RMB24.1 million (US$3.5 million) for the six months ended June 30, 2026 from RMB37.0 million in the same period of 2025. |
| ● | Net income increased by 92.7% to RMB18.8 million (US$2.8 million) for the six months ended June 30, 2026 from RMB9.7 million in the same period of 2025. |
| ● | Net income attributable to the Company’s shareholders increased by 48.0% to RMB20.0 million (US$2.9 million) for the six months ended June 30, 2026 from RMB13.5 million in the same period of 2025. |
| ● | Adjusted net income attributable to the Company’s shareholders increased by 15.1% to RMB22.3 million (US$3.3 million) for the six months ended June 30, 2026 from RMB19.4 million in the same period of 2025. |
| ● | As of June 30, 2026, the Company had RMB329.9 million (US$48.6 million) in cash and cash equivalents, which represented an increase of RMB22.3 million from RMB307.7 million as of December 31, 2025. |
Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, “The first half of 2026 marked continued progress in executing our AI-driven growth strategy. While maintaining a resilient livestreaming business, we further advanced the commercialization of our AI technologies across our existing business ecosystem and new industry applications.
“A key milestone during the period was the continued expansion of AI Vista Live (AI Performer), our flagship AI platform for real-time interactive digital humans serving both consumer and enterprise markets. By integrating AI technology into our core livestreaming business, we are enhancing operational efficiency, and unlocking new monetization opportunities for AI-powered services, particularly through forward deployed engineer (FDE) solutions that embed our AI engines directly within customers’ organization to address real-world operational needs. During this transformation, we also achieved meaningful progress in our global expansion. Building on our growing AI ecosystem in Dubai, we entered into a comprehensive strategic partnership with a leading enterprise technology channel provider under a listed conglomerate, which is also a partner of the Microsoft Cloud Ecosystem. We believe this collaboration will strengthen the commercial deployment of AI Vista Live across East and Southeast Asia and further expand our global market presence.
“Beyond livestreaming, we are steadily extending our AI capabilities into the education sector, with solutions designed to support course content development, administrative system management, and the organization and utilization of teaching and research outcomes. These initiatives reflect our broader strategy of translating AI capabilities into practical solutions for diverse enterprise and institutional needs.
“Looking ahead, we remain focused on accelerating commercialization, expanding our international footprint, and broadening the application of our AI solutions across industries and business scenarios. By leveraging our established industry expertise and technology capabilities, we aim to build a scalable, AI-driven business platform and create sustainable, long-term value for our shareholders.”
Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, “Our financial strategy continues to emphasize disciplined capital allocation, operational efficiency, sustainable profitability, and long-term value creation. At the same time, we have maintained strategic investment in AI innovation and global commercialization while exercising prudent expense management. These efforts contributed to a 48.0% year-over-year increase in net income attributable to the Company’s shareholders during the first half of 2026.
“Moving forward, we believe our strong technology capabilities, disciplined financial management, and healthy balance sheet provide the flexibility to support future growth initiatives while maintaining operational resilience. With cash and cash equivalents increasing by RMB22.3 million compared with the end of fiscal year 2025, we are well positioned to pursue strategic opportunities, invest in innovation, and continue creating long-term shareholder value.”
Second Quarter 2026 Financial Results
Total revenue decreased to RMB305.4 million (US$45.0 million) for the three months ended June 30, 2026 from RMB349.0 million in the same period of 2025, primarily caused by a decrease in paying users due to competitive landscape of China’s mobile live streaming market, partially offset by an increase of RMB295 in overall average live streaming revenue per paying user (“ARPPU”) to RMB2,353 for the three months ended June 30, 2026 from RMB2,058 for the same period of 2025. Total paying users were 125,028 for the three months ended June 30, 2026, as compared to 165,239 in the same period of 2025.
Cost of revenue decreased to RMB250.1 million (US$36.9 million) for the three months ended June 30, 2026 from RMB285.4 million in the same period of 2025. The decrease was primarily attributable to a decrease of RMB29.2 million in the Company’s revenue sharing fees and a decrease of RMB9.0 million in the Company’s user acquisition costs, partially offset by an increase of RMB2.9 million in other costs.
Gross profit decreased to RMB55.4 million (US$8.2 million) for the three months ended June 30, 2026 from RMB63.7 million in the same period of 2025. Gross margin decreased to 18.1% for the three months ended June 30, 2026 from 18.2% in the same period of 2025 due to higher revenue sharing fees ratio in oversea mobile live streaming market during the second quarter in 2026.
2
Total operating expenses increased by 5.4% to RMB42.6 million (US$6.3 million) for the three months ended June 30, 2026 from RMB40.4 million in the same period of 2025.
| ● | Sales and marketing expenses decreased to RMB1.0 million (US$0.2 million) for the three months ended June 30, 2026 from RMB1.3 million in the same period of 2025, primarily attributable to fewer sales and marketing activities. |
| ● | General and administrative expenses decreased to RMB17.3 million (US$2.6 million) for the three months ended June 30, 2026 from RMB21.0 million in the same period of 2025, primarily caused by a decrease of RMB2.0 million in professional consulting fee and a decrease of RMB1.7 million in amortization of intangible assets. |
| ● | Research and development expenses increased by 43.2% to RMB25.0 million (US$3.7 million) for the three months ended June 30, 2026 from RMB17.4 million in the same period of 2025, due to an increase of RMB6.2 million in employee salary and welfare and an increase of RMB2.3 million in technical service fee, offset by a decrease of RMB0.9 million in share-based compensation. |
| ● | Reversal of credit losses was RMB0.7 million (US$0.1 million) for the three months ended June 30, 2026, as compared to allowance for credit losses of RMB0.6 million in the same period of 2025, due to improved collection. |
Income from operations decreased to RMB12.8 million (US$1.9 million) for the three months ended June 30, 2026 from RMB23.3 million in the same period of 2025.
Change in fair value of investment in marketable security decreased to a loss of RMB3.8 million (US$0.6 million) for the three months ended June 30, 2026 from RMB6.8 million in the same period of 2025. The change was primarily attributable to the fair value changes in investments in a publicly traded company.
Investment loss decreased to RMB0.2 million (US$0.03 million) for the three months ended June 30, 2026 from RMB0.6 million in the same period of 2025. The decreased investment loss was primarily attributable to more income distributed by long-term investments.
Interest income, net increased by 202.4% to RMB1.4 million (US$0.2 million) for the three months ended June 30, 2026 from RMB0.5 million in the same period of 2025. The increase was primarily due to higher average bank deposits held.
Other expenses net was RMB1.1 million (US$0.2 million) for the three months ended June 30, 2026, as compared to other income, net of RMB7.6 million in the same period of 2025, due to decreased government subsidies.
Foreign exchange loss, net decreased to RMB0.2 million (US$0.03 million) for the three months ended June 30, 2026 from RMB1.6 million in the same period of 2025.
Income tax benefit increased by 793.8% to RMB2.4 million (US$0.4 million) for the three months ended June 30, 2026 from RMB0.3 million in the same period of 2025.
Net income decreased to RMB11.2 million (US$1.7 million) for the three months ended June 30, 2026 from RMB22.7 million in the same period of 2025 as a result of the foregoing.
Net income attributable to the Company’s shareholders decreased to RMB11.1 million (US$1.6 million) for the three months ended June 30, 2026 from RMB22.6 million in the same period of 2025.
Adjusted net income attributable to the Company’s shareholders decreased to RMB12.9 million (US$1.9 million) for the three months ended June 30, 2026 from RMB24.9 million in the same period of 2025.
Basic and diluted net income per ordinary share was RMB0.26 (US$0.04) and RMB0.26 (US$0.04) for the three months ended June 30, 2026, respectively. In comparison, basic and diluted net income per ordinary share was RMB0.54 and RMB0.54 in the same period of 2025, respectively.
3
Adjusted basic and diluted net income per ordinary share was RMB0.31 (US$0.05) and RMB0.31 (US$0.05) for the three months ended June 30, 2026, respectively. In comparison, adjusted basic and diluted net income per ordinary share was RMB0.60 and RMB0.60 in the same period of 2025, respectively.
First Half 2026 Financial Results
Total revenues decreased to RMB588.1 million (US$86.7 million) for the six months ended June 30, 2026 from RMB656.4 million in the same period of 2025, primarily caused by decrease of paying users due to competitive landscape of China’s mobile live streaming market, partially offset by an increase of RMB390 in overall ARPPU to RMB2,908 for the six months ended June 30, 2026 from RMB2,518 for the same period of 2025. Total paying users were 196,374 for the six months ended June 30, 2026, decreased by approximately 23% as compared to 253,888 in the same period of 2025.
Cost of revenues decreased to RMB482.6 million (US$71.1 million) for the six months ended June 30, 2026 from RMB533.2 million in the same period of 2025. The decrease was primarily attributable to a decrease of RMB39.3 million in the Company’s revenue sharing fees and RMB15.4 million in the Company’s user acquisition costs, offset by an increase of RMB4.0 million in the Company’s other costs.
Gross profit decreased to RMB105.5 million (US$15.6 million) for the six months ended June 30, 2026 from RMB123.2 million in the same period of 2025. The gross margin decreased to 17.9% for the six months ended June 30, 2026 from 18.8% in the same period of 2025 due to higher revenue sharing fees ratio in oversea mobile live streaming market during the six months ended June 30, 2026.
Total operating expenses decreased to RMB81.4 million (US$12.0 million) for the six months ended June 30, 2026 from RMB86.2 million in the same period of 2025.
| ● | Sales and marketing expenses decreased to RMB1.9 million (US$0.3 million) for the six months ended June 30, 2026 from RMB3.4 million in the same period of 2025, primarily attributable to fewer sales and marketing activities. |
| ● | General and administrative expenses decreased to RMB35.7 million (US$5.3 million) for the six months ended June 30, 2026 from RMB44.4 million in the same period of 2025. The decrease was primarily due to a decrease of RMB5.0 million in professional consulting fee and a decrease of RMB3.4 million in amortization of intangible assets. |
| ● | Research and development expenses increased by 20.5% to RMB44.6 million (US$6.6 million) for the six months ended June 30, 2026 from RMB37.0 million for the six months ended June 30, 2025, due to an increase of RMB8.4 million in employee salary and welfare and an increase of RMB2.6 million in technical service fee, offset by a decrease of RMB3.1 million in share-based compensation. |
| ● | Reversal for credit losses was RMB0.7 million (US$0.1 million) for the six months ended June 30, 2026, as compared to allowance for credit losses of RMB1.4 million in the same period of 2025, primarily due to improved collection. |
Income from operations decreased to RMB24.1 million (US$3.5 million) for the six months ended June 30, 2026 from RMB37.0 million in the same period of 2025.
Change in fair value of investment in marketable security decreased to a loss of RMB5.2 million (US$0.8 million) for the six months ended June 30, 2026 from RMB31.1 million in the same period of 2025. The decrease was primarily attributable to the fair value changes in investments in publicly traded company.
4
Investment loss decreased to RMB0.07 million (US$0.01 million) for the six months ended June 30, 2026 from RMB1.0 million in the same period of 2025. The decreased investment loss was primarily attributable to more income distributed by long-term investments.
Interest income, net increased by 105.0% to RMB2.0 million (US$0.3 million) for the six months ended June 30, 2026 from RMB1.0 million in the same period of 2025. The increase was primarily due to higher average bank deposits held.
Other expense, net was RMB1.0 million (US$0.2 million) for the six months ended June 30, 2026, as compared to other income, net of RMB9.1 million in the same period of 2025. The change was primarily due to decreased government subsidies and one-time compensation income.
Foreign exchange loss, net decreased to RMB0.5 million (US$0.1 million) for the six months ended June 30, 2026 from RMB2.6 million in the same period of 2025.
Income tax expense decreased to RMB0.5 million (US$0.1 million) for the six months ended June 30, 2026 from RMB2.6 million in the same period of 2025.
Net income increased by 92.7% to RMB18.8 million (US$2.8 million) for the six months ended June 30, 2026 from RMB9.7 million in the same period of 2025 as a result of the foregoing.
Net income attributable to the Company’s shareholders increased by 48.0% to RMB20.0 million (US$2.9 million) for the six months ended June 30, 2026 from RMB13.5 million in the same period of 2025.
Adjusted net income attributable to the Company’s shareholders increased by 15.1% to RMB22.3 million (US$3.3 million) for the six months ended June 30, 2026 from RMB19.4 million in the same period of 2025.
Basic and diluted net income per ordinary share was RMB0.48 (US$0.07) and RMB0.48 (US$0.07) for the six months ended June 30, 2026, respectively. In comparison, basic and diluted net income per ordinary share was RMB0.32 and RMB0.32 in the same period of 2025, respectively.
Adjusted basic and diluted net income per ordinary share was RMB0.53 (US$0.08) and RMB0.53 (US$0.08) for the six months ended June 30, 2026, respectively. In comparison, adjusted basic and diluted net income per ordinary share was RMB0.47 and RMB0.47 in the same period of 2025, respectively.
As of June 30, 2026, the Company had cash and cash equivalent balance of RMB329.9 million (US$48.6 million), which represented an increase of RMB22.3 million from RMB307.7 million as of December 31, 2025.
Use of Non-GAAP Financial Measures
Adjusted net income attributable to the Company’s shareholders is calculated as net income attributable to the Company’s shareholders adjusted for 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 U.S. 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.
5
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 RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, 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, 2026, or at any other rate.
Recent Developments
On July 1, 2026, the Company signed an investment agreement to invest up to RMB70.0 million into Hangzhou Puhongtianze Management Consulting Partnership (“Puhong”), a limited partnership, for a 23.3% equity interest and was subsequently admitted as a limited partner of Puhong.
On July 26, 2026, the Company signed an investment agreement, pursuant to which it invested HK$45.0 million into Ventus Value Investment LPF Partnership (the “Ventus Partnership”) as a limited partner. The term of the Venus Partnership is for five years, provided that the term may be extended by the general partner of the Ventus Partnership for an additional two-year period. The Ventus Partnership raised total capital of HK$100.0 million, in which another limited partner contributed the remaining HK$55.0 million.
On September 2, 2026, the Company entered a sale and purchase agreement (the “SPA” and the transaction as contemplated therein, the “Transaction”), through its wholly-owned subsidiary Scienjoy Innovation Labs Inc. (“Scienjoy Innovation”, incorporated on July 16, 2026), to acquire 239,234,000 ordinary shares (the “Shares”) of Leader Education Limited (“Leader Education”, a listed company on the HKEX), an investment holding company that provides private higher education services in China, from Shuren Education Limited (“Shuren”), Leader Education’s controlling shareholder, for HK$102.69 million. The Shares represent 29.9% of the issued and outstanding share capital of Leader Education. The closing of the Transaction is subject to mutually agreed conditions, which includes: (i) Scienjoy Innovation being satisfied with the results of its due diligence of Leader Education and its subsidiaries; (ii) the absence of any material breach of warranties in the SPA by Shuren; (iii) all necessary waivers, consents, and/or notifications having been obtained; (iv) the continued listing of Leader Education’s ordinary shares on the Main Board of The Stock Exchange of Hong Kong Limited on or before the closing date; and (v) no suspension in trading of Leader Education’s ordinary shares had occurred for more than ten consecutive business days. The Transaction was closed on October 15, 2026. This Transaction is deemed to be a related party transaction since the Company’s independent director, Jun Lu, is also an executive director of Leader Education.
About Scienjoy Holding Corporation
Scienjoy Holding Corporation (“Scienjoy” or the “Company”, NASDAQ: SJ) is a technology company powered by a dual engine of “digital entertainment + enterprise AI solutions,” with AI at the core of its business strategy. The Company has a long track record of providing digital entertainment services to global users, building extensive expertise in digital content, multimodal interaction, and business operations. Leveraging its foundational AI technologies and business agent engines, which have been validated through real-world applications, Scienjoy is extending its capabilities to enterprise customers across a range of industries. Through its forward deployed engineer (FDE) model, AI applications, and intelligent solutions, the Company integrates AI into real-world business processes and operational systems, transforming technological capabilities into tangible business value.
Looking ahead, Scienjoy aims to further strengthen its AI capabilities across the application, model, and computing layers, while driving the synergistic development of its consumer-facing (2C) and enterprise-facing (2B) businesses. By continuously expanding the practical applications of AI across industries and business scenarios, the Company seeks to build a scalable AI-driven business platform and extend the boundaries of AI commercialization.
For more information, please visit http://ir.scienjoy.com/.
6
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 the Company’s 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
7
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share and per share data or otherwise stated)
| As of December 31, | As of June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 307,650 | 329,927 | 48,625 | |||||||||
| Accounts receivable, net | 43,290 | 45,518 | 6,709 | |||||||||
| Due from a related party | 100 | - | - | |||||||||
| Investment in marketable security | 8,561 | 3,319 | 489 | |||||||||
| Prepaid expenses and other current assets | 23,607 | 27,719 | 4,085 | |||||||||
| Total current assets | 383,208 | 406,483 | 59,908 | |||||||||
| Non-current assets | ||||||||||||
| Property and equipment, net | 2,244 | 1,941 | 286 | |||||||||
| Intangible assets, net | - | 4 | 1 | |||||||||
| Long term investments | 271,261 | 269,985 | 39,791 | |||||||||
| Long term deposits and other assets | 1,741 | 2,051 | 302 | |||||||||
| Right-of-use assets-operating lease | 14,695 | 21,262 | 3,134 | |||||||||
| Deferred tax assets | 37,288 | 37,257 | 5,491 | |||||||||
| Total non-current assets | 327,229 | 332,500 | 49,005 | |||||||||
| TOTAL ASSETS | 710,437 | 738,983 | 108,913 | |||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable | 16,665 | 27,247 | 4,016 | |||||||||
| Deferred revenue | 50,464 | 52,509 | 7,738 | |||||||||
| Accrued salary and employee benefits | 15,184 | 10,065 | 1,483 | |||||||||
| Income tax payable | 10,899 | 10,054 | 1,482 | |||||||||
| Lease liabilities-operating lease -current | 3,641 | 6,273 | 925 | |||||||||
| Accrued expenses and other current liabilities | 9,728 | 10,245 | 1,510 | |||||||||
| Total current liabilities | 106,581 | 116,393 | 17,154 | |||||||||
| Non-current liabilities | ||||||||||||
| Lease liabilities-operating lease -non-current | 10,399 | 14,185 | 2,091 | |||||||||
| Total non-current liabilities | 10,399 | 14,185 | 2,091 | |||||||||
| TOTAL LIABILITIES | 116,980 | 130,578 | 19,245 | |||||||||
| Commitments and contingencies | ||||||||||||
| EQUITY | ||||||||||||
| Ordinary share, no par value, unlimited Class A ordinary shares and Class B ordinary shares authorized, 39,537,710 Class A ordinary shares and 2,925,058 Class B ordinary shares issued as of December 31, 2025, respectively; 40,472,829 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of June 30, 2026, respectively. | ||||||||||||
| Class A ordinary shares | 451,666 | 474,831 | 69,981 | |||||||||
| Class B ordinary shares | 23,896 | 23,896 | 3,522 | |||||||||
| Shares to be issued | 20,817 | - | - | |||||||||
| Treasury stocks | (19,952 | ) | (20,411 | ) | (3,008 | ) | ||||||
| Statutory reserves | 34,091 | 35,181 | 5,185 | |||||||||
| Retained earnings | 92,024 | 110,901 | 16,345 | |||||||||
| Accumulated other comprehensive income | 12,867 | 6,930 | 1,021 | |||||||||
| Total shareholders’ equity | 615,409 | 631,328 | 93,046 | |||||||||
| Non-controlling interests | (21,952 | ) | (22,923 | ) | (3,378 | ) | ||||||
| Total equity | 593,457 | 608,405 | 89,668 | |||||||||
| TOTAL LIABILITIES AND EQUITY | 710,437 | 738,983 | 108,913 | |||||||||
8
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(All amounts in thousands, except share and per share data or otherwise stated)
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Live streaming - consumable virtual items revenue | 630,084 | 564,951 | 83,263 | |||||||||
| Live streaming - time based virtual item revenue | 9,258 | 6,092 | 898 | |||||||||
| Technical services and others | 17,025 | 17,024 | 2,509 | |||||||||
| Total revenue | 656,367 | 588,067 | 86,670 | |||||||||
| Cost of revenue | (533,195 | ) | (482,554 | ) | (71,120 | ) | ||||||
| Gross profit | 123,172 | 105,513 | 15,550 | |||||||||
| Sales and marketing expenses | (3,412 | ) | (1,911 | ) | (282 | ) | ||||||
| General and administrative expenses | (44,379 | ) | (35,651 | ) | (5,254 | ) | ||||||
| Research and development expenses | (36,999 | ) | (44,599 | ) | (6,573 | ) | ||||||
| (Allowance for) reversal of credit losses | (1,400 | ) | 724 | 107 | ||||||||
| Income from operations | 36,982 | 24,076 | 3,548 | |||||||||
| Change in fair value of investment in marketable security | (31,092 | ) | (5,242 | ) | (773 | ) | ||||||
| Investments loss | (971 | ) | (70 | ) | (10 | ) | ||||||
| Interest income, net | 996 | 2,042 | 301 | |||||||||
| Other income (expenses), net | 9,072 | (1,018 | ) | (150 | ) | |||||||
| Foreign exchange loss, net | (2,630 | ) | (499 | ) | (74 | ) | ||||||
| Income before income taxes | 12,357 | 19,289 | 2,842 | |||||||||
| Income tax expense | (2,608 | ) | (503 | ) | (74 | ) | ||||||
| Net income | 9,749 | 18,786 | 2,768 | |||||||||
| Less: net loss attributable to non-controlling interest | (3,744 | ) | (1,181 | ) | (174 | ) | ||||||
| Net income attributable to the Company’s shareholders | 13,493 | 19,967 | 2,942 | |||||||||
| Other comprehensive income (loss): | ||||||||||||
| Other comprehensive income (loss) - foreign currency translation adjustment | 995 | (5,727 | ) | (844 | ) | |||||||
| Comprehensive income | 10,744 | 13,059 | 1,924 | |||||||||
| Less: comprehensive loss attributable to non-controlling interests | (3,574 | ) | (971 | ) | (143 | ) | ||||||
| Comprehensive income attributable to the Company’s shareholders | 14,318 | 14,030 | 2,067 | |||||||||
| Weighted average number of shares | ||||||||||||
| Basic | 41,578,079 | 41,987,039 | 41,987,039 | |||||||||
| Diluted | 41,655,404 | 41,987,039 | 41,987,039 | |||||||||
| Earnings per share | ||||||||||||
| Basic | 0.32 | 0.48 | 0.07 | |||||||||
| Diluted | 0.32 | 0.48 | 0.07 | |||||||||
9
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(All amounts in thousands, except share and per share data or otherwise stated)
| Ordinary shares | Shares to be | Treasury stocks | Statutory | Retained | Accumulated other comprehensive | Non- controlling | Total | |||||||||||||||||||||||||||||||||
| Shares | Amount | issued | shares | Amount | reserves | earnings | Income | interests | equity | |||||||||||||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | 41,847,784 | 468,058 | 20,817 | (1,048,178 | ) | (19,952 | ) | 50,705 | 662,499 | 16,967 | (13,778 | ) | 1,185,316 | |||||||||||||||||||||||||||
| Net income | - | - | - | - | - | - | 13,493 | - | (3,744 | ) | 9,749 | |||||||||||||||||||||||||||||
| Share-based compensation | 489,984 | 5,897 | - | - | - | - | - | - | - | 5,897 | ||||||||||||||||||||||||||||||
| Appropriation to statutory reserves | - | - | - | - | - | 490 | (490 | ) | - | - | - | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | - | - | - | - | - | 825 | 170 | 995 | ||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | 42,337,768 | 473,955 | 20,817 | (1,048,178 | ) | (19,952 | ) | 51,195 | 675,502 | 17,792 | (17,352 | ) | 1,201,957 | |||||||||||||||||||||||||||
| Ordinary shares | Shares to be | Treasury stocks | Statutory | Retained | Accumulated other comprehensive | Non- controlling | Total | |||||||||||||||||||||||||||||||||
| Shares | Amount | issued | shares | Amount | reserves | earnings | Income | interests | equity | |||||||||||||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | 42,462,768 | 475,562 | 20,817 | (1,048,178 | ) | (19,952 | ) | 34,091 | 92,024 | 12,867 | (21,952 | ) | 593,457 | |||||||||||||||||||||||||||
| Net income | - | - | - | - | - | - | 19,967 | - | (1,181 | ) | 18,786 | |||||||||||||||||||||||||||||
| Share-based compensation | 298,428 | 2,348 | - | - | - | - | - | - | - | 2,348 | ||||||||||||||||||||||||||||||
| Treasury stocks | - | - | - | (89,952 | ) | (459 | ) | - | - | - | - | (459 | ) | |||||||||||||||||||||||||||
| Appropriation to statutory reserves | - | - | - | - | - | 1,090 | (1,090 | ) | - | - | - | |||||||||||||||||||||||||||||
| Issuance of shares for acquisition of Weiliantong | 636,691 | 20,817 | (20,817 | ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | - | - | - | - | - | (5,937 | ) | 210 | (5,727 | ) | ||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | 43,397,887 | 498,727 | - | (1,138,130 | ) | (20,411 | ) | 35,181 | 110,901 | 6,930 | (22,923 | ) | 608,405 | |||||||||||||||||||||||||||
| Balance as of June 30, 2026 (US$) | 43,397,887 | 73,503 | - | (1,138,130 | ) | (3,008 | ) | 5,185 | 16,345 | 1,021 | (3,378 | ) | 89,668 | |||||||||||||||||||||||||||
10
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands, except share and per share data or otherwise stated)
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | 9,749 | 18,786 | 2,768 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
| Depreciation of property and equipment | 724 | 570 | 84 | |||||||||
| Amortization of intangible assets | 3,480 | - | - | |||||||||
| Allowance for (reversal of) credit losses | 1,400 | (724 | ) | (107 | ) | |||||||
| Loss from disposal of property and equipment | 1 | - | - | |||||||||
| Deferred tax (benefit) expense | (831 | ) | 8 | 1 | ||||||||
| Change in fair value of investment in marketable security | 31,092 | 5,242 | 773 | |||||||||
| Investments loss | 971 | 70 | 10 | |||||||||
| Share-based compensation | 5,897 | 2,348 | 346 | |||||||||
| Amortization of right-of-use assets-operating lease | 3,492 | 2,997 | 442 | |||||||||
| Changes in operating assets and liabilities | ||||||||||||
| Accounts receivable | 1,956 | (3,582 | ) | (528 | ) | |||||||
| Prepaid expense and other current assets | (3 | ) | (5,286 | ) | (779 | ) | ||||||
| Long term deposits and other assets | 67 | (310 | ) | (46 | ) | |||||||
| Accounts payable | 3,028 | 10,584 | 1,560 | |||||||||
| Deferred revenue | 9,012 | 2,045 | 301 | |||||||||
| Accrued salary and employee benefits | (12,132 | ) | (5,119 | ) | (754 | ) | ||||||
| Accrued expenses and other current liabilities | (3,338 | ) | 518 | 76 | ||||||||
| Income tax payable | 1,079 | (845 | ) | (125 | ) | |||||||
| Lease liabilities-operating lease | (4,672 | ) | (3,146 | ) | (464 | ) | ||||||
| Net cash provided by operating activities | 50,972 | 24,156 | 3,558 | |||||||||
| Cash flows from investing activities | ||||||||||||
| Cash acquired from acquisition | 28 | - | - | |||||||||
| Payment for (receipts from) long term investments | (6,000 | ) | 632 | 93 | ||||||||
| Purchase of property and equipment and intangible assets | (261 | ) | (276 | ) | (41 | ) | ||||||
| Net cash (used in) provided by investing activities | (6,233 | ) | 356 | 52 | ||||||||
| Cash flows from financing activities | ||||||||||||
| (Advance to) proceeds from related parties | (100 | ) | 100 | 15 | ||||||||
| Share repurchase | - | (459 | ) | (68 | ) | |||||||
| Net cash used in financing activities | (100 | ) | (359 | ) | (53 | ) | ||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | 1,311 | (1,876 | ) | (274 | ) | |||||||
| Net increase in cash and cash equivalents | 45,950 | 22,277 | 3,283 | |||||||||
| Cash and cash equivalents at beginning of the period | 252,540 | 307,650 | 45,342 | |||||||||
| Cash and cash equivalents at end of the period | 298,490 | 329,927 | 48,625 | |||||||||
| Supplemental disclosures of cash flow information: | ||||||||||||
| Income taxes paid | 2,210 | 1,333 | 196 | |||||||||
| Supplemental non-cash investing and financing information: | ||||||||||||
| Right-of-use assets-operating lease obtained in exchange for lease liabilities-operating lease | 16,442 | 9,564 | 1,410 | |||||||||
| Issuance of Class A ordinary shares for acquisition | - | 20,817 | 3,068 | |||||||||
11
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, | |||||||||||||||||||
| 2025 | 2026 | 2026 | 2025 | 2026 | 2026 | |||||||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||
| Net income attributable to the Company’s shareholders | 22,583 | 11,092 | 1,635 | 13,493 | 19,967 | 2,942 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Share based compensation | (2,322 | ) | (1,810 | ) | (267 | ) | (5,897 | ) | (2,348 | ) | (346 | ) | ||||||||||||
| Adjusted net income attributable to the Company’s shareholders* | 24,905 | 12,902 | 1,902 | 19,390 | 22,315 | 3,288 | ||||||||||||||||||
| Adjusted net income attributable to the Company’s shareholders per ordinary share* | ||||||||||||||||||||||||
| Basic | 0.60 | 0.31 | 0.05 | 0.47 | 0.53 | 0.08 | ||||||||||||||||||
| Diluted | 0.60 | 0.31 | 0.05 | 0.47 | 0.53 | 0.08 | ||||||||||||||||||
“Adjusted net income attributable to the Company’s shareholders” is defined as net income attributable to the Company’s shareholders excluding share-based compensation.
12
Exhibit 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS
You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and the related notes. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors
| A. | Operating Results |
Overview
Scienjoy Holding Corporation (“we” or the “Company”) was originally incorporated on May 2, 2018 as a British Virgin Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. On May 7, 2020, we consummated the acquisition of Scienjoy Inc. As a result of the business combination, we became the holding company of Scienjoy Inc. and we changed our name from “Wealthbridge Acquisition Limited” to “Scienjoy Holding Corporation.”
We are an interactive entertainment leader in the Chinese market and operates platforms on both PC and mobile apps, through which users can enjoy immersive and interactive entertainment live streaming. We had approximately 333.4 million registered users by the end of June 30, 2026, increased from 332.3 million registered users for the year ended December 31, 2025.
We adopt a multi-platform strategy and all platforms are categorized as “SHOW live streaming” in which professional broadcasters provide live streaming entertainment for users primarily in the form of performances (such as singing, dancing, and talk shows). Broadcasters on all platforms have been professionally trained by relevant broadcaster agents to provide more professional content. Despite the similarity in contents, the different platforms adopt different operation strategies, such as, to name a few, different broadcaster policy, events, promotion, and games. We provide a technological infrastructure to enable broadcasters, online users and viewers to interact with each other during live streaming. All platforms can be accessed for free. We mainly derive our revenue from sales of virtual items on the platforms. Users can purchase virtual currency to purchase virtual items for use on the platforms. Users can recharge their virtual currency on the platforms through various online third-party payment platforms, such as WeChat Pay or AliPay.
Recent Developments
On July 1, 2026, the Company signed an investment agreement to invest up to RMB70.0 million into Hangzhou Puhongtianze Management Consulting Partnership (“Puhong”), a limited partnership, for a 23.3% equity interest and was subsequently admitted as a limited partner of Puhong.
On July 26, 2026, the Company signed an investment agreement, pursuant to which it invested HK$45.0 million into Ventus Value Investment LPF Partnership (the “Ventus Partnership”) as a limited partner. The term of the Ventus Partnership is for five years, provided that the term may be extended by the general partner of the Ventus Partnership for an additional two-year period. The Venus Partnership raised total capital of HK$100.0 million, in which another limited partner contributed the remaining HK$55.0 million.
On September 2, 2026, the Company entered a sale and purchase agreement (the “SPA” and the transaction as contemplated therein, the “Transaction”), through its wholly-owned subsidiary Scienjoy Innovation Labs Inc. (“Scienjoy Innovation”, incorporated on July 16, 2026), to acquire 239,234,000 ordinary shares (the “Shares”) of Leader Education Limited (“Leader Education”, a listed company on the HKEX), an investment holding company that provides private higher education services in China, from Shuren Education Limited (“Shuren”), Leader Education’s controlling shareholder, for HK$102.69 million. The Shares represent 29.9% of the issued and outstanding share capital of Leader Education. The closing of the Transaction is subject to mutually agreed conditions, which includes: (i) Scienjoy Innovation being satisfied with the results of its due diligence of Leader Education and its subsidiaries; (ii) the absence of any material breach of warranties in the SPA by Shuren; (iii) all necessary waivers, consents, and/or notifications having been obtained; (iv) the continued listing of Leader Education’s ordinary shares on the Main Board of The Stock Exchange of Hong Kong Limited on or before the closing date; and (v) no suspension in trading of Leader Education’s ordinary shares had occurred for more than ten consecutive business days. The Transaction was closed on October 15, 2026. This Transaction is deemed to be a related party transaction since the Company’s independent director, Jun Lu, is also an executive director of Leader Education.
Key Factors Affecting Our Results of Operations
General Factors
Development of the mobile live streaming market in China over the past decade has been influenced by a number of macroeconomic and technological factors and trends, including increasing disposable income and demand for cultural and entertainment activities and increased use of the mobile internet. Our business and operating results are affected by general factors affecting China’s entertainment live streaming industry, which may include the following:
| ● | China’s overall macroeconomic landscape; |
| ● | China’s overall entertainment and mobile entertainment growth; |
| ● | Usage and penetration rate of mobile Internet and mobile payment; |
| ● | Growth and competitive landscape of China’s mobile live streaming market, especially entertainment SHOW live streaming; and |
| ● | Governmental policies affecting China’s live streaming industry; |
Unfavorable changes in any of these general industry conditions could negatively affect demand for our services and materially and adversely affect its results of operations.
Specific Factors
While our business is influenced by general factors affecting the mobile live streaming industry in China, we believe our results of operations are more directly affected by company specific factors, including the following major factors:
Our ability to retain broadcasters and enhance user experience
We continue to improve our operational capability with more attractive contents, such as music, dancing, talk shows, traditional drama, online competitions and offline events, to further enhance user experience. We are offering different content and games to incentivize users to pay for our services. Therefore, quality broadcasters and interesting content are essential to our operations. In order to retain quality broadcasters, we have developed a revenue sharing policy, pursuant to which we share revenue generated on the platforms with talents agencies, which in turn share revenue with broadcasters. Additionally, in order to maintain the quality of broadcasters and service, we are conservative in hiring broadcasters and has adopted strict operation procedures for screening broadcasters before hiring. We primarily work with professional agents to identify and retain new broadcasters. The increasing number of trained broadcasters, who provide better quality performance, also contributes to improved average live streaming revenue per paying user (“ARPPU”) and our paying ratio.
Our ability to maintain and expand our user base
User base is another key factor for success in the mobile live streaming industry. We endeavor to provide attractive content to keep users on our platforms as long as possible. Our multi-platform strategy attempt to retain users by providing diversified content, promotions and an enhanced user experience.
With respect to user base, our mobile live show streaming sector differs from other mobile live streaming sectors such as the pan-entertainment live streaming and game live streaming sector. In live show streaming, each broadcaster interacts in real time with users and therefore the number of users that each broadcaster can entertain at the same period in his/her video room is limited, which provides for a more unique user experience than those found in other live streaming sectors.
2
We continue to seek opportunities to grow our user base and enhance our user engagement. Our ability to do so largely depends on our ability to recruit, train, and retain high quality broadcasters and on our ability to produce high quality content. We also intend to continue to invest in our brand recognition.
Our ability to improve innovative technologies
The ability to understand market traffic and pair users with suitable broadcasters and associated activities is key for user stickiness and monetization in the mobile show live streaming industry. By using big data analytics to understand individual user behavior and industry trends, we intend to continually adjust our platform to better guide users to appropriate broadcasters as well as to analyze traffic on other sites to select the best methods and targets for user acquisition.
Summary Consolidated Statements of Operations and Comprehensive Income
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| Amounts in thousands of RMB and US$ | RMB | RMB | US$ | |||||||||
| Total revenue | 656,367 | 588,067 | 86,670 | |||||||||
| Cost of revenues | (533,195 | ) | (482,554 | ) | (71,120 | ) | ||||||
| Gross profit | 123,172 | 105,513 | 15,550 | |||||||||
| Sales and marketing expenses | (3,412 | ) | (1,911 | ) | (282 | ) | ||||||
| General and administrative expenses | (44,379 | ) | (35,651 | ) | (5,254 | ) | ||||||
| Research and development expenses | (36,999 | ) | (44,599 | ) | (6,573 | ) | ||||||
| (Allowance for) reversal of credit losses | (1,400 | ) | 724 | 107 | ||||||||
| Income from operations | 36,982 | 24,076 | 3,548 | |||||||||
| Change in fair value of investment in marketable security | (31,092 | ) | (5,242 | ) | (773 | ) | ||||||
| Investments loss | (971 | ) | (70 | ) | (10 | ) | ||||||
| Interest income, net | 996 | 2,042 | 301 | |||||||||
| Other income (expenses), net | 9,072 | (1,018 | ) | (150 | ) | |||||||
| Foreign exchange loss, net | (2,630 | ) | (499 | ) | (74 | ) | ||||||
| Income before income taxes | 12,357 | 19,289 | 2,842 | |||||||||
| Income tax expense | (2,608 | ) | (503 | ) | (74 | ) | ||||||
| Net income | 9,749 | 18,786 | 2,768 | |||||||||
| Less: net loss attributable to non-controlling interest | (3,744 | ) | (1,181 | ) | (174 | ) | ||||||
| Net income attributable to the Company’s shareholders | 13,493 | 19,967 | 2,942 | |||||||||
Revenues
Our revenues consist of live streaming revenue and technical services revenue. We generate technical services revenue from providing technical development and advisory services, however, we deem the technical services revenue as not material. Our revenue is mostly from the sales of virtual items used in our live streaming business.
Virtual items are categorized as consumable and time-based items. Consumable items, as virtual gift service, are consumed and used by users upon purchase, while time-based virtual items, such as privilege titles, could be used for a fixed period of time. Accordingly, revenue is recognized at the time when the virtual item is delivered and consumed if the virtual item is a consumable item or, in the case of time-based virtual item, recognized ratably over the period each virtual item is made available to the user, which is usually over one to multiple months and does not exceed one year. For the six months ended June 30, 2025 and 2026, revenue from consumable virtual items represented over 96% of the total net revenue.
3
As we continue to grow our live streaming business, and enhance our user engagement and expand virtual gifting scenarios to increase users’ willingness to pay, we expect our revenue from the sales of virtual items in our live streaming business to increase.
The following table sets forth types of our revenue for the periods indicated:
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| Amounts in thousands of RMB and US$ | RMB | RMB | US$ | |||||||||
| Live streaming - consumable virtual items revenue | 630,084 | 564,951 | 83,263 | |||||||||
| Live streaming - time based virtual item revenue | 9,258 | 6,092 | 898 | |||||||||
| Technical services and others | 17,025 | 17,024 | 2,509 | |||||||||
| Total revenue | 656,367 | 588,067 | 86,670 | |||||||||
As of June 30, 2026, we operated five brands of live streaming platforms, consisting of: Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming (including BeeLive Chinese version – Mifeng) and Hongle Live Streaming. The following table sets forth our revenue by platforms for the periods indicated:
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| Amounts in thousands of RMB and US$ | RMB | RMB | US$ | |||||||||
| Showself | 165,985 | 143,165 | 21,100 | |||||||||
| Lehai | 136,694 | 178,448 | 26,300 | |||||||||
| Haixiu | 117,037 | 91,173 | 13,437 | |||||||||
| Beelive | 118,955 | 98,688 | 14,545 | |||||||||
| Hongle | 100,671 | 59,569 | 8,779 | |||||||||
| Technical services and others | 17,025 | 17,024 | 2,509 | |||||||||
| TOTAL | 656,367 | 588,067 | 86,670 | |||||||||
The total number of paying users at Showself Live, Lehai Live, Haixiu Live, BeeLive Live and Hongle Live for the periods indicated is as following:
| For the six months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| Showself | 46,724 | 38,408 | ||||||
| Lehai | 70,060 | 64,135 | ||||||
| Haixiu | 61,556 | 38,809 | ||||||
| Beelive | 33,221 | 27,488 | ||||||
| Hongle | 42,327 | 27,534 | ||||||
| TOTAL | 253,888 | 196,374 | ||||||
The ARPPU by Showself Live, Lehai Live, Haixiu Live, BeeLive Live and Hongle Live is as following:
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| In RMB and US$ | RMB | RMB | US$ | |||||||||
| Showself | 3,552 | 3,727 | 549 | |||||||||
| Lehai | 1,951 | 2,782 | 410 | |||||||||
| Haixiu | 1,901 | 2,349 | 346 | |||||||||
| BeeLive | 3,581 | 3,590 | 529 | |||||||||
| Hongle | 2,378 | 2,163 | 319 | |||||||||
| Overall average | 2,518 | 2,908 | 429 | |||||||||
Our ARPPU in each platform may fluctuate from period to period due to the mix of live streaming services purchased by the paying users. The overall ARPPU for the six months ended June 30, 2025 and 2026 was RMB2,518 and RMB2,908, respectively.
4
Cost of Revenues
Our cost of revenues primarily consists of (i) revenue sharing fees, including payments to various broadcasters and content providers, (ii) user acquisition costs, (iii) bandwidth related costs, and (iv) other costs.
The table below shows the cost of revenues for the periods indicated.
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| Amounts in thousands of RMB and US$ | RMB | RMB | US$ | |||||||||
| Revenue sharing fees | 478,482 | 439,156 | 64,724 | |||||||||
| User acquisition costs | 31,701 | 16,280 | 2,399 | |||||||||
| Bandwidth related costs | 2,622 | 2,752 | 406 | |||||||||
| Others | 20,390 | 24,366 | 3,591 | |||||||||
| TOTAL | 533,195 | 482,554 | 71,120 | |||||||||
Revenue sharing fees cost: Our revenue sharing fees represent our payment to broadcasters based on a percentage of revenue from sales of virtual items, including virtual gifts and other subscription-based privileges. Revenue sharing fees were 73% and 75% of revenues for the six months ended June 30, 2025 and 2026, respectively.
User acquisition costs: We acquire users primarily through viral marketing, or word-of-mouth marketing, and online download. We provide online downloads of our apps via various third-party websites, including online advertising networks, internet portals and mobile application stores. We pay such third parties a fee for each registered user account acquired through them.
Bandwidth related cost: Bandwidth related cost consists of fees that we pay to telecommunication service providers for server hosting, bandwidth and content delivery-related services such as CDN (content delivery network).
Others: Other costs include (i) fees that we pay to third-party payment processing platforms through which our users purchase our virtual currencies, technology service costs, and content producing costs, (ii) personnel fees directly related to the revenue such as operation employees’ salary and benefits, and (iii) depreciation and amortization expense for servers and other equipment, and intangibles directly related to operating the platforms. For the six months ended June 30, 2025 and 2026, other cost represented approximately 3% and 4% of total revenue, respectively.
Operating Expenses
Our operating expenses consist of (i) sales and marketing expenses, (ii) research and development expenses, (iii) general and administrative expenses, and (iv) (allowance for) reversal of credit losses.
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| Amounts in thousands of RMB and US$ | RMB | RMB | US$ | |||||||||
| Sales and marketing expenses | (3,412 | ) | (1,911 | ) | (282 | ) | ||||||
| General and administrative expenses | (44,379 | ) | (35,651 | ) | (5,254 | ) | ||||||
| Research and development expenses | (36,999 | ) | (44,599 | ) | (6,573 | ) | ||||||
| (Allowance for) reversal of credit losses | (1,400 | ) | 724 | 107 | ||||||||
Sales and marketing expenses: Our sales and marketing expenses mainly consist of (i) salaries and benefits for sales and marketing employees, and (ii) branding and advertisement expenses, including advertisements, holding promotional events and developing and designing marketing campaigns. We expect to target sales and marketing expenditures to attract targeted paying users.
5
General and administrative expenses: Our general and administrative expenses primarily consist of (i) salaries and benefits for our general and administrative staff, (ii) consulting fees, (iii) other expenses primarily including general office expenses, and (iv) office rental expenses. As a public company, we incur additional costs to comply with reporting obligations under the U.S. securities laws.
Research and development expenses: Our research and development expenses primarily consist of (i) salaries and benefits for our research and development employees, and (ii) other expenses primarily including depreciation related to research use. We expect our research and development expenses to continue to grow as we continue to invest in innovative technologies to offer users a better experience.
(Allowance for) reversal of credit losses: We maintain an allowance for credit losses which reflects our best estimate of amounts that potentially will not be collected. When we determine the allowance for credit losses, we take into consideration various factors including but not limited to collection history and credit-worthiness of the debtors as well as the age of the individual receivables account.
Results of Operations
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Revenue: Total revenue decreased to RMB588.1million for the six months ended June 30, 2026 from RMB656.4 million in the same period of 2025, primarily caused by decrease of paying users due to competitive landscape of China’s mobile live streaming market, partially offset by an increase of RMB390 in overall ARPPU to RMB 2,908 for the six months ended June 30, 2026 from RMB2,518 for the same period of 2025. Total paying users were 196,374 for the six months ended June 30, 2026, decreased by approximately 23% as compared to 253,888 in the same period of 2025.
Cost of revenue: Our cost of revenue decreased to RMB482.6 million for the six months ended June 30, 2026 from RMB533.2 million in the same period of 2025. The decrease was primarily attributable to a decrease of RMB39.3 million in our revenue sharing fees and RMB15.4 million in our user acquisition costs, offset by an increase of RMB4.0 million in our other costs.
Gross profit: Our gross profit decreased to RMB105.5 million for the six months ended June 30, 2026 from RMB123.2 million in the same period of 2025. The gross margin decreased to 17.9% for the six months ended June 30, 2026 from 18.8% in the same period of 2025 due to higher revenue sharing fees ratio in oversea mobile live streaming market during the six months ended June 30, 2026.
Total operating expenses: Total operating expenses decreased to RMB81.4 million for the six months ended June 30, 2026 from RMB86.2 million in the same period of 2025.
| ● | Sales and marketing expenses: Our sales and marketing expenses decreased to RMB1.9 million for the six months ended June 30, 2026 from RMB3.4 million in the same period of 2025, primarily attributable to fewer sales and marketing activities. |
| ● | General and administrative expenses: Our general and administrative expenses decreased to RMB35.7 million for the six months ended June 30, 2026 from RMB44.4 million in the same period of 2025. The decrease was primarily due to a decrease of RMB5.0 million in professional consulting fee and a decrease of RMB3.4 million in amortization of intangible assets. |
| ● | Research and development expenses: Our research and development expenses increased by 20.5% to RMB44.6 million for the six months ended June 30, 2026 from RMB37.0 million in the same period of 2025, due to an increase of RMB8.4 million in employee salary and welfare and an increase of RMB2.6 million in technical service fee, offset by a decrease of RMB3.1 million in share-based compensation. |
| ● | (Allowance for) reversal of credit losses: Our reversal of credit losses was RMB0.7 million for the six months ended June 30, 2026, as compared to allowance for credit losses of RMB1.4 million in the same period of 2025, primarily due to improved collection. |
6
Change in fair value of investment in marketable security: Change in fair value of investment in marketable security decreased to loss of RMB5.2 million for the six months ended June 30, 2026 from RMB31.1 million in the same period of 2025. The decrease was primarily attributable to the fair value changes in investments in publicly traded company.
Investment loss: Investment loss decreased to RMB0.07 million for the six months ended June 30, 2026 from RMB1.0 million in the same period of 2025. The decreased investment loss was primarily attributable to more income distributed by long-term investments.
Interest income: Interest income increased by 105.0% to RMB2.0 million for the six months ended June 30, 2026 from RMB1.0 million in the same period of 2025. The increase was primarily due to higher average bank deposits held.
Other expenses, net: Other loss, net was RMB1.0 million for the six months ended June 30, 2026, as compared to other income, net of RMB9.1 million in the same period of 2025. The change was primarily due to decreased government subsidies and one-time compensation income.
Foreign exchange loss: Foreign exchange loss decreased to RMB0.5 million for the six months ended June 30, 2026 from RMB2.6 million in the same period of 2025.
Income tax expense: Income tax expense decreased to RMB0.5 million for the six months ended June 30, 2026 from RMB2.6 million in the same period of 2025.
Net income: As a result of the foregoing, net income increased by 92.7% to RMB18.8 million for the six months ended June 30, 2026 from RMB9.7 million in the same period of 2025.
| B. | Liquidity and Capital Resources |
Cash Flows and Working Capital
The Company sources of liquidity are primarily from the cash earned from its operating activities and proceeds from financing activities. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company’s cash and cash equivalents consist of cash on hand and demand deposits placed with banks or other financial institutions which are unrestricted as to withdrawal and use and have original maturities less than three months. Cash and cash equivalents also consist of funds earned from the operating revenues which were held at the third-party platform fund accounts which are unrestricted as to immediate use or withdraw.
As of December 31, 2025 and June 30, 2026, RMB301.0 million and RMB321.6 million respectively, were deposited with major financial institutions located in the PRC. Management believes that these financial institutions are of high credit quality and continually monitor the credit worthiness of these financial institutions. Historically, deposits in Chinese banks are secure due to the state policy on protecting depositors’ interests.
A majority of the Company’s expense transactions are denominated in RMB and a significant portion of assets and liabilities of the Company and its subsidiaries (including the VIEs) are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the PBOC. Remittances in currencies other than RMB by the Companies in China must be processed through the PBOC or other PRC foreign exchange regulatory bodies which require certain supporting documentation in order to effect the remittance.
7
The Company intends to finance its future working capital requirements and capital expenditures from cash generated from operating activities and funds raised from financing activities. The Company believes that its current cash and cash equivalents, together with its cash generated from operating activities and financing activities, will be sufficient to meet its present anticipated working capital requirements and capital expenditures for at least the next 12 months. However, the Company may decide to enhance its liquidity position or increase its cash reserve for future investments or operations through additional capital and finance funding. Issuance of additional equity securities, including convertible debt securities, would dilute the Company earnings per share. The incurrence of debt would divert cash for working capital and capital expenditures to service debt obligations and could result in operating and financial covenants that restrict the Company’s operations and its ability to pay dividends to its shareholders.
As a holding company with no material operations of its own, the Company conducts its operations primarily through its PRC subsidiaries and its variable interest entity (VIE) and the VIE’s subsidiaries. The Company is permitted under PRC laws and regulations to provide funding to its PRC subsidiaries in China through capital contributions or loans, subject to the approval of government authorities and limits on the amount of capital contributions and loans.
The following table presents the summary of the Company’s cash flow data.
| For the six months ended June 30 | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| Amounts in thousands of RMB and US$ | RMB | RMB | US$ | |||||||||
| Net cash provided by operating activities | 50,972 | 24,156 | 3,558 | |||||||||
| Net cash (used in) provided by investing activities | (6,233 | ) | 356 | 52 | ||||||||
| Net cash used in financing activities | (100 | ) | (359 | ) | (53 | ) | ||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | 1,311 | (1,876 | ) | (274 | ) | |||||||
| Net increase in cash and cash equivalents | 45,950 | 22,277 | 3,283 | |||||||||
| Cash and cash equivalents at beginning of the period | 252,540 | 307,650 | 45,342 | |||||||||
| Cash and cash equivalents at end of the period | 298,490 | 329,927 | 48,625 | |||||||||
Operating Activities
Net cash provided by or used in operating activities consisted primarily of the Company’s net income/loss adjusted by non-cash adjustments, such as provision for doubtful accounts, and adjusted by changes in operating assets and liabilities, such as accounts receivable.
Net cash provided by operating activities was RMB51.0 million for the six months ended June 30, 2025. The difference between the net cash provided by operating activities and net income of RMB9.7 million was primarily attributable to non-cash adjustment of RMB46.2 million, an increase in deferred revenue of RMB9.0 million due to slowly recognized revenue and an increase in accounts payable of RMB3.0 million, a decrease in accounts receivable of RMB2.0 million and an increase in income tax payable of RMB1.1 million, partially offset by a decrease in accrued salary and employee benefits of RMB12.1 million due to distributed employees year-end bonuses, a decrease in lease liabilities -operating lease of RMB4.7 million and a decrease accrued expenses and other current payables of RMB3.3 million.
Net cash provided by operating activities was RMB24.2 million for the six months ended June 30, 2026. The difference between the net cash provided by operating activities and net income of RMB18.8 million was primarily attributable to non-cash adjustment of RMB10.5 million, an increase in accounts payable of RMB10.6 million and an increase in deferred revenue of RMB2.0 million, partially offset by an increase in prepaid expense and other current assets of RMB5.3 million, an decrease in accrued salary and employee benefits of RMB5.1 million an increase in accounts receivable of RMB3.6 million and decreased in lease liabilities of RMB3.1 million.
8
Investing Activities
Net cash used in investing activities was primarily due to (a) purchases of property and equipment such as electronic equipment, and intangible assets such as trademark, software copyrights, and patents; (b) payment for long term investment.
Net cash used in investing activities was RMB6.2 million for the six months ended June 30, 2025, primarily due to RMB6.0 million paid for long term investments and RMB0.3 million paid for property and equipment.
Net cash provided by investing activities was RMB0.4 million for the six months ended June 30, 2026, primarily due to RMB0.6 million received from long term investments and RMB0.3 million paid for property and equipment.
Financing Activities
Net cash used in financing activities was RMB0.1 million for the six months ended June 30, 2025, primarily due to advance of RMB0.1 million to related parties.
Net cash used in financing activities was RMB0.4 million for the six months ended June 30, 2026, primarily due to proceed of RMB0.1 million from related parties, offset by RMB0.5 million paid for share repurchase.
Capital Expenditures.
For the six months ended June 30, 2025 and 2026, the Company’s capital expenditure amounted to RMB0.3 million and RMB0.3 million, respectively. The Company intends to fund its future capital expenditures with the existing cash balance and other financing alternatives. The Company will continue to make capital expenditures to support the growth of its business.
| C. | Research and Development, Patents and Licenses, etc. |
See “Item 4. Information on the Company—B. Business Overview—Our Technology” and “Item 4. Information on the Company—B. Business Overview—Intellectual Property” of our annual report on Form 20-F for the fiscal year ended December 31, 2025 filed with the SEC on April 23, 2026.
| D. | Trend Information |
Other than as described elsewhere in this report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse effect on our revenue, income from continuing operations, profitability, liquidity or capital resources, or that would cause our reported financial information not necessarily to be indicative of future operating results or financial condition.
| E. | Critical Accounting Estimates |
In preparing the unaudited condensed consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accounting estimates are deemed critical if they involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. The following critical accounting estimate was identified for the six months ended June 30, 2026:
Allowance for credit losses:
The Company determines the allowance for credit losses taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. The Company performs ongoing credit evaluations of the debtors, and assesses allowance for credit loss on a portfolio basis. When specific debtors are identified as no longer sharing the same risk profile as the current pool, they are removed from the pool and evaluated separately. Accounts receivable is written off when there is no reasonable expectation of recovery. Account balances are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable. Given the regulatory and tax policy changes for the livestreaming industry starting in the second half of 2025 and accordingly increasing credit risk of our debtors in the livestreaming industry, we provided additional allowance for credit loss for debtors with high risk and delinquent accounts. As a result, our provision for credit loss was RMB133.0 million and RMB132.2 million as of December 31, 2025 and June 30, 2026, respectively. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. The Company will continue to periodically review the allowance and make necessary adjustments accordingly.
A summary of our significant accounting policies which are important to the portrayal of our financial condition and results of operations is set forth in Note 2 to our unaudited condensed consolidated financial statements included elsewhere in this filing.
9
Exhibit 99.3
SCIENJOY HOLDING CORPORATION
INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
| Page | ||
| Unaudited Condensed Consolidated Balance Sheets as of December 31, 2025 and June 30, 2026 | F-2 | |
| Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the Six Months Ended June 30, 2025 and 2026 | F-3 | |
| Unaudited Condensed Consolidated Statements of Changes in Equity for the Six Months Ended June 30, 2025 and 2026 | F-4 | |
| Unaudited Condensed Six Months Ended June 30, 2025 and 2026 | F-5 | |
| Notes to the Unaudited Condensed Consolidated Financial Statements | F-6 |
F-1
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share and per share data or otherwise stated)
| As of December 31, | As of June 30, |
|||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | ||||||||||||
| Accounts receivable, net | ||||||||||||
| Due from a related party | - | - | ||||||||||
| Investment in marketable security | ||||||||||||
| Prepaid expenses and other current assets | ||||||||||||
| Total current assets | ||||||||||||
| Non-current assets | ||||||||||||
| Property and equipment, net | ||||||||||||
| Intangible assets, net | - | |||||||||||
| Long term investments | ||||||||||||
| Long term deposits and other assets | ||||||||||||
| Right-of-use assets-operating lease | ||||||||||||
| Deferred tax assets | ||||||||||||
| Total non-current assets | ||||||||||||
| TOTAL ASSETS | ||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable | ||||||||||||
| Deferred revenue | ||||||||||||
| Accrued salary and employee benefits | ||||||||||||
| Income tax payable | ||||||||||||
| Lease liabilities-operating lease -current | ||||||||||||
| Accrued expenses and other current liabilities | ||||||||||||
| Total current liabilities | ||||||||||||
| Non-current liabilities | ||||||||||||
| Lease liabilities-operating lease -non-current | ||||||||||||
| Total non-current liabilities | ||||||||||||
| TOTAL LIABILITIES | ||||||||||||
| Commitments and contingencies | ||||||||||||
| EQUITY | ||||||||||||
| Ordinary share, no par value, unlimited Class A ordinary shares and Class B ordinary shares authorized, | ||||||||||||
| Class A ordinary shares | ||||||||||||
| Class B ordinary shares | ||||||||||||
| Shares to be issued | - | - | ||||||||||
| Treasury stocks | ( | ) | ( | ) | ( | ) | ||||||
| Statutory reserves | ||||||||||||
| Retained earnings | ||||||||||||
| Accumulated other comprehensive income | ||||||||||||
| Total shareholders’ equity | ||||||||||||
| Non-controlling interests | ( | ) | ( | ) | ( | ) | ||||||
| Total equity | ||||||||||||
| TOTAL LIABILITIES AND EQUITY | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-2
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(All amounts in thousands, except share and per share data or otherwise stated)
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Live streaming - consumable virtual items revenue | ||||||||||||
| Live streaming - time based virtual item revenue | ||||||||||||
| Technical services and others | ||||||||||||
| Total revenue | ||||||||||||
| Cost of revenue | ( | ) | ( | ) | ( | ) | ||||||
| Gross profit | ||||||||||||
| Sales and marketing expenses | ( | ) | ( | ) | ( | ) | ||||||
| General and administrative expenses | ( | ) | ( | ) | ( | ) | ||||||
| Research and development expenses | ( | ) | ( | ) | ( | ) | ||||||
| (Allowance for) reversal of credit losses | ( | ) | ||||||||||
| Income from operations | ||||||||||||
| Change in fair value of investment in marketable security | ( | ) | ( | ) | ( | ) | ||||||
| Investments loss | ( | ) | ( | ) | ( | ) | ||||||
| Interest income, net | ||||||||||||
| Other income (expenses), net | ( | ) | ( | ) | ||||||||
| Foreign exchange loss, net | ( | ) | ( | ) | ( | ) | ||||||
| Income before income taxes | ||||||||||||
| Income tax expense | ( | ) | ( | ) | ( | ) | ||||||
| Net income | ||||||||||||
| Less: net loss attributable to non-controlling interest | ( | ) | ( | ) | ( | ) | ||||||
| Net income attributable to the Company’s shareholders | ||||||||||||
| Other comprehensive income (loss): | ||||||||||||
| Other comprehensive income (loss) - foreign currency translation adjustment | ( | ) | ( | ) | ||||||||
| Comprehensive income | ||||||||||||
| Less: comprehensive loss attributable to non-controlling interests | ( | ) | ( | ) | ( | ) | ||||||
| Comprehensive income attributable to the Company’s shareholders | ||||||||||||
| Weighted average number of shares | ||||||||||||
| Basic | ||||||||||||
| Diluted | ||||||||||||
| Earnings per share | ||||||||||||
| Basic | ||||||||||||
| Diluted | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-3
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(All amounts in thousands, except share and per share data or otherwise stated)
| Ordinary shares | Shares to be | Treasury stocks | Statutory | Retained | Accumulated other comprehensive | Non- controlling |
Total | |||||||||||||||||||||||||||||||||
| Shares | Amount | issued | shares | Amount | reserves | earnings | Income | interests | equity | |||||||||||||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | - | - | ( | ) | |||||||||||||||||||||||||||||||
| Share-based compensation | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
| Appropriation to statutory reserves | - | - | - | - | - | ( | ) | - | - | - | ||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||
| Ordinary shares | Shares to be | Treasury stocks | Statutory | Retained | Accumulated other comprehensive | Non- controlling |
Total | |||||||||||||||||||||||||||||||||
| Shares | Amount | issued | shares | Amount | reserves | earnings | Income | interests | equity | |||||||||||||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | - | - | ( | ) | |||||||||||||||||||||||||||||||
| Share-based compensation | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
| Treasury stocks | - | - | - | ( | ) | ( | ) | - | - | - | - | ( | ) | |||||||||||||||||||||||||||
| Appropriation to statutory reserves | - | - | - | - | - | ( | ) | - | - | - | ||||||||||||||||||||||||||||||
| Issuance of shares for acquisition of Weiliantong | ( | ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | - | - | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Balance as of June 30, 2026 | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||
| Balance as of June 30, 2026 (US$) | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-4
SCIENJOY HOLDING CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands, except share and per share data or otherwise stated)
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
| Depreciation of property and equipment | ||||||||||||
| Amortization of intangible assets | - | - | ||||||||||
| Allowance for (reversal of) credit losses | ( | ) | ( | ) | ||||||||
| Loss from disposal of property and equipment | - | - | ||||||||||
| Deferred tax (benefit) expense | ( | ) | ||||||||||
| Change in fair value of investment in marketable security | ||||||||||||
| Investments loss | ||||||||||||
| Share-based compensation | ||||||||||||
| Amortization of right-of-use assets-operating lease | ||||||||||||
| Changes in operating assets and liabilities | ||||||||||||
| Accounts receivable | ( | ) | ( | ) | ||||||||
| Prepaid expense and other current assets | ( | ) | ( | ) | ( | ) | ||||||
| Long term deposits and other assets | ( | ) | ( | ) | ||||||||
| Accounts payable | ||||||||||||
| Deferred revenue | ||||||||||||
| Accrued salary and employee benefits | ( | ) | ( | ) | ( | ) | ||||||
| Accrued expenses and other current liabilities | ( | ) | ||||||||||
| Income tax payable | ( | ) | ( | ) | ||||||||
| Lease liabilities-operating lease | ( | ) | ( | ) | ( | ) | ||||||
| Net cash provided by operating activities | ||||||||||||
| Cash flows from investing activities | ||||||||||||
| Cash acquired from acquisition | - | - | ||||||||||
| Payment for (receipts from) long term investments | ( | ) | ||||||||||
| Purchase of property and equipment and intangible assets | ( | ) | ( | ) | ( | ) | ||||||
| Net cash (used in) provided by investing activities | ( | ) | ||||||||||
| Cash flows from financing activities | ||||||||||||
| (Advance to) proceeds from related parties | ( | ) | ||||||||||
| Share repurchase | - | ( | ) | ( | ) | |||||||
| Net cash used in financing activities | ( | ) | ( | ) | ( | ) | ||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | ( | ) | ( | ) | ||||||||
| Net increase in cash and cash equivalents | ||||||||||||
| Cash and cash equivalents at beginning of the period | ||||||||||||
| Cash and cash equivalents at end of the period | ||||||||||||
| Supplemental disclosures of cash flow information: | ||||||||||||
| Income taxes paid | ||||||||||||
| Supplemental non-cash investing and financing information: | ||||||||||||
| Right-of-use assets-operating lease obtained in exchange for lease liabilities-operating lease | ||||||||||||
| Issuance of Class A ordinary shares for acquisition | - | |||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
F-5
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
1. ORGANIZATION AND PRINCIPAL ACTIVITIES
Scienjoy Holding Corporation (“Scienjoy” or the “Company”, NASDAQ: SJ) is a technology company powered by a dual engine of “digital entertainment + enterprise AI solutions,” with AI at the core of its business strategy. The Company has a long track record of providing digital entertainment services to global users, building extensive expertise in digital content, multimodal interaction, and business operations. Leveraging its foundational AI technologies and business agent engines, which have been validated through real-world applications, Scienjoy is extending its capabilities to enterprise customers across a range of industries. Through its forward deployed engineer (FDE) model, AI applications, and intelligent solutions, the Company integrates AI into real-world business processes and operational systems, transforming technological capabilities into tangible business value.
(a) Organization
Subsidiaries and VIEs include the following:
| Subsidiaries | Date of incorporation | Place of incorporation | Percentage of direct/indirect ownership | Principal activities | ||||||
| Scienjoy Inc. | % | |||||||||
| Scienjoy Pte. Ltd. (“Scienjoy SG”) | % | |||||||||
| Scienjoy International Limited (“Scienjoy HK”) | % | |||||||||
| Scienjoy BeeLive Limited (“SIL”) | % | |||||||||
| Golden Shield Enterprises Limited (“Golden Shield”) | % | |||||||||
| Scienjoy Verse Tech Ltd. (“Scienjoy Verse”) (a 51% owned subsidiary of Scienjoy SG) | % | |||||||||
| Scienjoy Meta Technology LLC (“Scienjoy Meta”) (a wholly owned subsidiary of Scienjoy Verse) | % | |||||||||
| Scenovo Pte. Ltd. (“Scenovo SG”) (a 51% owned subsidiary of Scienjoy SG) | % | |||||||||
| SJ Verse Global Media LLC (“SJ Verse”) (a 90% owned subsidiary of Scenovo SG) | % | |||||||||
| Techjoy Pte. Ltd. (“Techjoy SG”) (a 70% owned subsidiary of Scenovo SG) | % | |||||||||
| Fashionfly Limited (a wholly owned subsidiary of Scenovo SG) | % | |||||||||
| Star Home Global Media FZ-LLC (a 70% owned subsidiary of Scenovo SG) | % | |||||||||
| SH Entertainment Co., Ltd. (“SH Entertainment”) (a 70% owned subsidiary of Scenovo SG) | % | |||||||||
| Sixiang Wuxian (Beijing) Technology Co., Ltd. (“WXBJ”) (a wholly owned subsidiary of Scienjoy HK) | % | |||||||||
| Sixiang Zhihui (Beijing) Technology Co., Ltd. (“ZH”) (a wholly owned subsidiary of WXBJ) | % | |||||||||
F-6
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)
(a) Organization (continued)
| Subsidiaries | Date of incorporation | Place of incorporation | Percentage of direct/indirect ownership | Principal activities | ||||||
| Sixiang Yingyue (Shanghai) Technology Co., Ltd. (“SXYY”) (a wholly owned subsidiary of WXBJ) | % | |||||||||
| Holgus Sixiang Information Technology Co., Ltd. (“Holgus X”) (a wholly owned subsidiary of ZH) (1) | % | |||||||||
| Kashgar Sixiang Times Internet Technology Co., Ltd. (“Kashgar Times”) (a wholly owned subsidiary of ZH) (2) | % | |||||||||
| Kashgar Sixiang Lehong Information Technology Co., Ltd. (“Kashgar Lehong”) (a wholly owned subsidiary of ZH) | % | |||||||||
| Holgus Sixiang Haohan Internet Technology Co., Ltd. (“Holgus H”) (a wholly owned subsidiary of ZH) | % | |||||||||
| Sixiang ZhiHui (Hainan) Technology Co., Ltd. (“ZHHN”) (a wholly owned subsidiary of ZH) | % | |||||||||
| Sixiang Wuxian (Zhejiang) Culture Technology Co., Ltd. (“WXZJ”) (a wholly owned subsidiary of Scienjoy HK) | % | |||||||||
| Sixiang Zhihui (Zhejiang) Culture Technology Co., Ltd. (“ZHZJ”) (a wholly owned subsidiary of WXZJ) | % | |||||||||
| VIEs | ||||||||||
| Zhihui Qiyuan (Beijing) Technology Co., Ltd. (“QY”) (Controlled through contractual agreements by WXBJ) | % | |||||||||
| Beijing Sixiang Shiguang Technology Co., Ltd. (“SG”) (a wholly owned subsidiary of QY) | % | |||||||||
| Hai Xiu (Beijing) Technology Co., Ltd. (“HX”) (a wholly owned subsidiary of QY) | % | |||||||||
| Beijing Le Hai Technology Co., Ltd. (“LH”) (a wholly owned subsidiary of QY) | % | |||||||||
| Sixiang Mifeng (Tianjin) Technology Co., Ltd. (“MF”) (a wholly owned subsidiary of QY) | % | |||||||||
| Changxiang Infinite Technology (Beijing) Co., Ltd. (“CX”) (a wholly owned subsidiary of MF) | % | |||||||||
F-7
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)
(a) Organization (continued)
| Subsidiaries | Date of incorporation | Place of incorporation | Percentage of direct/indirect ownership | Principal activities | ||||||
| Zhihui QiYuan (Hainan) Investment Co., Ltd. (“QYHN”) (an 80% owned subsidiary of QY and a 20% owned subsidiary of MF) | % | |||||||||
| Beijing Weiliantong Technology Co., Ltd. (“WLT”) (a wholly owned subsidiary of QY) | % | |||||||||
| Chuangda Zhihui (Beijing) Technology Co., Ltd. (“CDZH”) (a wholly owned subsidiary of SG) | % | |||||||||
| Beijing Huayi Dongchen Technology Co., Ltd. (“HYDC”) (a wholly owned subsidiary of CDZH) | % | |||||||||
| Hongcheng Huiying (Zhejiang)Technology Industry Development Co., Ltd. (“HCHY”) (a 51% owned subsidiary of QYHN) | % | |||||||||
| Hangzhou Sixiang Fengjing Culture Technology Co., Ltd. (“SXFJ”) (a 51% owned subsidiary of QYHN) | % | |||||||||
| Sixiang Qiyuan (Hangzhou) Culture Technology Co., Ltd. (“QYHZ”) (Controlled through contractual agreements by WXZJ) | % | |||||||||
| Xiuli (Zhejiang) Culture Technology Co., Ltd. (“XLZJ”) (a wholly owned subsidiary of QYHZ) | % | |||||||||
| Leku (Zhejiang) Culture Technology Co., Ltd. (“LKZJ”) (a wholly owned subsidiary of QYHZ) | % | |||||||||
| Haifan (Zhejiang) Culture Technology Co., Ltd. (“HFZJ”) (a wholly owned subsidiary of QYHZ) | % | |||||||||
| Xiangfeng (Zhejiang) Culture Technology Co., Ltd. (“XFZJ”) (a wholly owned subsidiary of QYHZ) | % | |||||||||
| Hongren (Zhejiang) Culture Technology Co., Ltd. (“HRZJ”) (a wholly owned subsidiary of QYHZ) | % | |||||||||
| (1) | |
| (2) |
F-8
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of presentation and principles of consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2025 and 2026 are not necessarily indicative of the results that may be expected for the full year. The information included in this interim report should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in Scienjoy Holding Corporation’s annual financial statements for the fiscal year ended December 31, 2025 filed with the SEC on April 23, 2026.
The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries, and its VIE and VIE’s subsidiaries over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIE are eliminated upon consolidation.
(b) Business combinations
The Company accounts for all business combinations under the purchase method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). The purchase method of accounting requires that the consideration transferred to be allocated to net assets including separately identifiable assets and liabilities the Company acquired, based on their estimated fair value. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of the cost of the acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the identifiable net assets of the acquiree, the difference is recognized directly in earnings. The determination and allocation of fair values to the identifiable net assets acquired and liabilities assumed is based on various assumptions and valuation methodologies requiring considerable judgment from management. Although the Company believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material.
(c) Use of estimates
The preparation of the unaudited condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Areas where management uses subjective judgment include, but are not limited to those applied in the Company’s forecasted results of operations and cash flows, which are used in the determination of fair value for goodwill and indefinite-lived intangible asset impairment testing; revenue recognition, estimating the useful lives of long-lived assets and intangible assets, valuation assumptions in performing asset impairment tests of long-lived assets, allowance for credit losses, and impairment of long-term investments.
F-9
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d) Foreign currency
The functional currency of the Company is in US dollars and the functional currency of the Company’s subsidiaries and VIEs are local currencies, as determined based on the criteria of Accounting Standards Codification (“ASC”) 830 (“ASC 830”) “Foreign Currency Matters”. The reporting currency of the Company is Renminbi (“RMB”).
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange in place at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statement of operations.
Assets and liabilities of the Company translated from their respective functional currencies to the reporting currency at the exchange rates at the balance sheet dates, equity accounts are translated at historical exchange rates and revenues and expenses are translated at the average exchange rates in effect during the reporting period. The resulting foreign currency translation adjustment are recorded in other comprehensive income (loss).
(e) Convenience translation
Translations of balances in the consolidated balance sheets, consolidated statements of operations and comprehensive income (loss) and consolidated statements of cash flows from RMB into USD (or “US$”) as of and for the six months ended June 30, 2026 are solely for the convenience of the reader and were calculated at the rate of US$
(f) Accounts receivable and allowance for credit losses
Accounts receivable is stated at the historical carrying amount net of allowance for credit losses.
The Company maintains an allowance for credit losses which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for credit losses taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. The Company adopted this guidance effective January 1, 2023. The Company performs ongoing credit evaluations of the debtors, and assesses allowance for credit loss on a portfolio basis. When specific debtors are identified as no longer sharing the same risk profile as the current pool, they are removed from the pool and evaluated separately. Account balances are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable.
(g) Investment in marketable security
Marketable securities consist of investments in equity securities with readily determinable fair values. Marketable equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities, in accordance with ASC 320. The Company accounts for investments in marketable equity securities with readily determinable fair values in accordance with ASC Topic 321, Investments - Equity Securities (“ASC 321”). These investments are measured at fair value with the related gains and losses, including unrealized, recognized in investment income (loss).
F-10
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(h) Long term investment
ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative.
Equity Investments with readily determinable fair values
Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date.
Equity investments without readily determinable fair values
After the adoption of this new accounting standard, the Company elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investment in current earnings. Changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Reasonable efforts shall be made to identify price changes that are known or that can reasonably be known.
Equity investments accounted for using the equity method
The Company accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control, using the equity method. The Company adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment. The Company assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entity, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investments in a privately held entity, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary.
(i) Fair value of financial instruments
Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value:
| ● | Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
| ● | Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. |
| ● | Level 3 — inputs to the valuation methodology are unobservable. |
F-11
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(i) Fair value of financial instruments (continued)
The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, other receivables included in prepaid expenses and other current assets, accounts payables, balances with related parties and other current liabilities, approximate their fair values because of the short-term maturity of these instruments.
Assets and Liabilities Measured or Disclosed at Fair Value on a recurring basis
The following tables represent the fair value hierarchy of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and June 30, 2026:
| As of December 31, 2025 | ||||||||||||||||
| Fair Value Measurement at the Reporting Date using | ||||||||||||||||
| Quoted price in active markets for identical assets Level 1 | Significant other observable inputs Level 2 | Significant unobservable inputs Level 3 | Total | |||||||||||||
| RMB | RMB | RMB | RMB | |||||||||||||
| Financial assets: | ||||||||||||||||
| Investment in marketable equity security | - | - | ||||||||||||||
| As of June 30, 2026 | ||||||||||||||||
| Fair Value Measurement at the Reporting Date using | ||||||||||||||||
| Quoted price in active markets for identical assets Level 1 | Significant other observable inputs Level 2 | Significant unobservable inputs Level 3 | Total | |||||||||||||
| RMB | RMB | RMB | RMB | |||||||||||||
| Financial assets: | ||||||||||||||||
| Investment in marketable equity security | - | - | ||||||||||||||
F-12
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(j) Revenue recognition
The Company applies the ASU 2014-09, Revenue from Contracts with Customers — Topic 606 for its revenue recognition for all periods presented. Revenues are recognized when control of the promised virtual items or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those virtual items or services. Revenue is recorded, net of sales related taxes and surcharges.
Live streaming
The Company is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. The Company is responsible for providing a technological infrastructure to enable the broadcasters, online users and viewers to interact through live streaming platforms. All the platforms can be accessed for free. The Company mainly derives the revenue from sales of virtual items in the platforms. The Company has a recharge system for users to purchase the Company’s virtual currency then purchase virtual items for use. Users can recharge via various online third-party payment platforms, including WeChat Pay, AliPay and other payment platforms. Virtual currency is non-refundable and often consumed soon after it is purchased.
The Company designs, creates and offers various virtual items for sales to users with pre-determined stand-alone selling price. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to broadcasters to show support for their favorite broadcasters, or purchase time-based virtual items for one or multiple months for a monthly fee, which provide users with recognized status, such as priority speaking rights or special symbols over a period of time.
The Company shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with broadcasters and talent agencies in accordance with their revenue sharing arrangements. Broadcasters, who do not have revenue sharing arrangements with the Company, are not entitled to any revenue sharing fee. The Company also utilizes third-party payment collection channels, which charges the payment handling cost for users to purchase the virtual currency directly from it. The payment handling costs are recorded in cost of sales.
The Company evaluates and determines that it is the principal and views users to be its customers, because the Company controls the virtual items before they are transferred to users. Its control is evidenced by the Company’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Company being primarily responsible to the users for the delivery of the virtual items as well as having full discretion in establishing pricing for the virtual items. Accordingly, the Company reports live streaming revenues on a gross basis with the amounts billed to users recorded as revenues and revenue sharing fee paid to broadcasters and related agencies recorded as cost of revenues.
Sales proceeds are initially recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. The Company has determined that each individual virtual item represents a distinct performance obligation. Accordingly, live streaming revenue is recognized immediately when the consumable virtual item is used, or in the case of time-based virtual items, revenue is recognized over the fixed period on a straight-line basis. The Company does not have further obligations to the user after the virtual items are consumed. The Company’s live streaming virtual items are generally sold without right of return and the Company does not provide any other credit and incentive to its users. Unconsumed virtual currency is recorded as deferred revenue.
The Company also cooperates with independent third-party distributors to sell virtual currency through annual distribution agreements with these distributors. Third-party distributors purchase virtual currency from the Company with no refund provision according to the annual distribution agreements, and they are responsible for selling the virtual currency to end users. They may engage their own sales representatives, which are referred to as “sales agents” to directly sell to individual end users. The Company has no control over such “sales agents”. The Company has discretion to determine the price of the virtual currency sold to its third-party distributors, but has no discretion as to the price at which virtual currency is sold by its third-party distributors to the sales agents.
F-13
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(j) Revenue recognition (continued)
Technical services and others
The Company generated technical and other revenues from providing multi-channel network (“MCN”) agency service, technical development, advisory and others, which accounts for only approximately
Practical expedients and exemptions
The Company’s contracts have an original duration of one year or less. Accordingly, the Company does not disclose the value of unsatisfied performance obligations.
Revenue by types and platforms
The following table sets forth types of our revenue for the periods indicated:
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Live streaming - consumable virtual items revenue | ||||||||||||
| Live streaming - time based virtual item revenue | ||||||||||||
| Technical services and others | ||||||||||||
| Total revenue | ||||||||||||
As of June 30, 2026, the Company operated five brands of live streaming platforms, consisting of: Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming (including BeeLive Chinese version – Mifeng) and Hongle Live Streaming.
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Showself | ||||||||||||
| Lehai | ||||||||||||
| Haixiu | ||||||||||||
| Beelive | ||||||||||||
| Hongle | ||||||||||||
| Technical services and others | ||||||||||||
| TOTAL | ||||||||||||
Contract balances
Contract balances include accounts receivable and deferred revenue. Accounts receivable primarily represent cash due from distributors and are recorded when the right to consideration is unconditional. The allowance for credit losses reflects the best estimate of probable losses inherent to the account receivable balance. Deferred revenue primarily includes unconsumed virtual currency and unamortized revenue from time-based virtual items in the Company’s platforms, where there is still an obligation to be provided by the Company, which will be recognized as revenue when all of the revenue recognition criteria are met. Due to the generally short-term duration of the relevant contracts, all performance obligations are satisfied within one year.
F-14
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k) Government subsidies
Government subsidies are primarily referred to the amounts received from various levels of local governments from time to time which are granted for general corporate purposes and to support its ongoing operations in the region. The grants are determined at the discretion of the relevant government authority and there are no restrictions on their use. The government subsidies amounted to RMB
(l) Cost of revenues
Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists primarily of (i) revenue sharing fees and content costs, including payments to various broadcasters, and content providers, (ii) bandwidth costs, (iii) salaries and welfare, (iv) depreciation and amortization expense for servers and other equipment, and intangibles directly related to operating the platform, (v) user acquisition costs (vi) payment handling costs, and (vii) other costs.
(m) Sales and marketing expenses
Sales and marketing expenses consist primarily of advertising and market promotion expenses. The advertising and market promotion expenses amounted to RMB
(n) Income taxes
The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. The Company follows the liability method in accounting for income taxes in accordance to ASC topic 740 (“ASC 740”), Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. A valuation allowance would be recorded against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized.
The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Company’s uncertain tax positions and determining its provision for income taxes. The Company recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statement of comprehensive loss. The Company did not recognize any interest and penalties associated with uncertain tax positions for six months ended June 30, 2025 and 2026. As of December 31, 2025 and June 30, 2026, the Company did not have any significant unrecognized uncertain tax positions.
(o) Value added tax (“VAT”)
Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates range up to
F-15
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(p) Earnings (loss) per share
The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Class A ordinary shares and Class B ordinary shares have the same rights in dividend, Therefore, basic and diluted loss per share is the same for both classes of ordinary shares. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Contingently issuable shares were not included in the computation of diluted shares outstanding if they were not issuable should the end of the reporting period have been the end of the contingency period. For the six months ended June 30, 2025, there was
(q) Non-controlling interests
As of June 30, 2026, non-controlling interests represent
(r) Segment reporting
ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company’s long-lived assets are substantially all located in the PRC and majority of the Company’s revenues are derived from the PRC. Therefore, no geographical segments are presented. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Group’s the chief operating decision maker (CODM) for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision-maker (“CODM”) has been identified as its Chief Executive Officer.
F-16
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(s) Recent accounting pronouncements
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Both early adoption and retrospective application are permitted. The Company is currently evaluating the impact of this accounting standard update on its unaudited condensed consolidated financial statements and related disclosures.
In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. ASU 2025-03 clarifies the guidance to determine the accounting acquirer in a business combination that is effected primarily by exchanging equity interests, when the legal acquiree is a variable interest entity (“VIE”) that meets the definition of a business. ASU 2025-03 requires entities to consider the same factors in ASC 805, Business Combinations, required for determining which entity is the accounting acquirer in other acquisition transactions. ASU 2025-03 is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-03 is required to be applied on a prospective basis to any acquisition transaction that occurs after the initial application date. The Company is currently assessing the impact this standard will have on the Company’s unaudited condensed consolidated financial statements.
In May 2025, the FASB issued ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). ASU 2025-04 revises the definition of the term performance condition for share-based consideration payable to a customer to incorporate conditions that are based on the volume or monetary amount of a customer’s purchases or potential purchases. ASU 2025-04 also eliminates the policy election to account for forfeitures as they occur for awards with service conditions. ASU 2025-04 also clarifies that ASC 606 variable consideration guidance does not apply to share-based payments to customers; instead, vesting probability should be assessed solely under ASC 718, Compensation—Stock Compensation. ASU 2025-04 is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-04 may be applied on either a modified retrospective basis or on a retrospective basis. The Company is currently assessing the impact this standard will have on the Company’s unaudited condensed consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software to modernize the accounting for internal-use software costs, primarily by simplifying the requirements to capitalize software development costs. This update is effective beginning with the Company’s 2028 fiscal year annual reporting period, with early adoption permitted. The Company is currently assessing the impact this standard will have on the Company’s unaudited condensed consolidated financial statements.
In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities to establish authoritative guidance on the accounting for government grants received by business entities. This update is effective beginning with the Company’s 2029 fiscal year annual reporting period, with early adoption permitted. The Company is currently assessing the impact this standard will have on the Company’s unaudited condensed consolidated financial statements.
F-17
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(s) Recent accounting pronouncements (continued)
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvement. ASU 2025-11 is intended to improve the navigability of required interim disclosures and clarify when that guidance is applicable, and also to provide additional guidance on what disclosures should be provided in interim reporting periods. ASU 2025-11 is effective for public business entities for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Group is currently evaluating the impact of ASU 2025-11 on its unaudited condensed financial statements and related disclosures.
In December 2025, the FASB issued ASU 2025-12, Codification Improvements. ASU 2025-12 makes thirty-three incremental improvements to generally accepted accounting principles. ASU 2025-12 is effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The Group is currently evaluating the impact of ASU 2025-12 on its unaudited condensed financial statements and related disclosures
Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have a material impact on the unaudited condensed consolidated financial position, statements of operations and cash flows.
3. CONCENTRATION OF RISK
(a) Credit risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, other receivables included in prepaid expenses, other current assets, and amounts due from related parties. As of December 31, 2025 and June 30, 2026, RMB
For the credit risk related to accounts receivable, the Company adopted Credit Losses (Topic 326) effective January 1, 2023. The Company performs ongoing credit evaluations of its debtors and assesses allowance for credit loss on a portfolio basis. When specific debtors are identified as no longer sharing the same risk profile as the current pool, they are removed from the pool and evaluated separately. The Company makes specific bad debt provisions based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Account balances are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable. In estimating expected credit losses, the Company considered the uncertainties associated with regulatory policy changes in the industry and recent and expected market trends. The Company’s exposure to credit losses may increase if its debtors are adversely affected by changes, such as economic pressures or uncertainty associated with local and industry, or other customer-specific factors. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. The Company will continue to periodically review the allowance and make necessary adjustments accordingly.
F-18
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
3. CONCENTRATION OF RISK (Continued)
(b) Currency convertibility risk
Majority of the Company’s businesses are transacted in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China. However, the unification of the exchange rates does not imply the convertibility of RMB (¥) into US$ ($) or other foreign currencies. All foreign exchange transactions continue to take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts.
(c) Significant customers
For the six months ended June 30, 2025 and 2026, no customer individually represents greater than
(d) Significant suppliers
For the six months ended June 30, 2025 and 2026, no vendor accounted for greater than
4. ACCOUNTS RECEIVABLE, NET
Accounts receivable and allowance for credit losses consist of the following:
| As of December 31, | As of June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Accounts receivable | ||||||||||||
| Less: allowance for credit losses | ( | ) | ( | ) | ( | ) | ||||||
| Accounts receivable, net | ||||||||||||
An analysis of the allowance for credit losses is as follows:
| For the year ended December 31, | For the six months ended June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Beginning balance | ||||||||||||
| Additions (reversal) | ( | ) | ( | ) | ||||||||
| Exchange difference | ( | ) | - | |||||||||
| Ending balance | ||||||||||||
F-19
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
4. ACCOUNTS RECEIVABLE, NET (CONTINUED)
Three unrelated distributors accounted for
5. LONG TERM INVESTMENTS
| Equity investments accounted for using the equity method (ii) | Equity investments without readily determinable fair value (i) | Total | ||||||||||
| RMB | RMB | RMB | ||||||||||
| Balance as of January 1, 2025 | ||||||||||||
| Additions | ||||||||||||
| Decrease | ( | ) | ( | ) | ( | ) | ||||||
| Share of gain in equity method investees | - | |||||||||||
| Exchange difference | ( | ) | - | ( | ) | |||||||
| Balance as of December 31, 2025 | ||||||||||||
| Equity investments accounted for using the equity method (ii) | Equity investments without readily determinable fair value(i) | Total | Total | |||||||||||||
| RMB | RMB | RMB | US$ | |||||||||||||
| Balance as of January 1, 2026 | ||||||||||||||||
| Decrease | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Share of loss in equity method investees | ( | ) | - | ( | ) | ( | ) | |||||||||
| Exchange difference | ( | ) | - | ( | ) | ( | ) | |||||||||
| Balance as of June 30, 2026 | ||||||||||||||||
F-20
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
5. LONG TERM INVESTMENTS (CONTINUED)
| (i) | Cost-method investments include the following items:
In 2020, the Company invested RMB
On May 27, 2021, the Company invested RMB
On December 9, 2022, the Company invested RMB
On December 19, 2022, the Company invested RMB
On October 9, 2021, the Company signed an investment agreement to invest up to RMB
On March 12, 2024, the Company entered into an equity purchase agreement with Qingdao LP for a consideration of RMB
On December 23, 2024, the Company invested RMB |
F-21
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
5. LONG TERM INVESTMENTS (CONTINUED)
| (ii) |
On October 9, 2021, the Company signed an investment agreement to invest up to RMB
On September 6, 2023, the Company signed a share purchase agreement to invest up to US$
On July 8, 2025, the Company signed a share purchase agreement to invest up to RMB |
The Company believes there was no material market environment change or impairment indicator for long-term investments.
F-22
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
6. RIGHT-OF-USE ASSETS
The Company has several operating leases for offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Supplemental balance sheet information related to operating leases was as follows:
| As of December 31, | As of June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Right-of-use assets, net | ||||||||||||
| Operating lease liabilities - current | ||||||||||||
| Operating lease liabilities - non-current | ||||||||||||
| Total operating lease liabilities | ||||||||||||
The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2025 and June 30, 2026:
| As of December 31, | As of June 30, | |||||||
| 2025 | 2026 | |||||||
| Remaining lease term and discount rate: | ||||||||
| Weighted average remaining lease term (years) | ||||||||
| Weighted average discount rate (%) | ||||||||
Information related to operating lease activities for the six months ended June 30, 2025 and 2026 is set forth below:
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Operating lease right-of-use assets obtained in exchange for lease liabilities | ||||||||||||
| Operating lease expense | ||||||||||||
| Amortization of right-of-use assets | ||||||||||||
| Interest of lease liabilities | ||||||||||||
| Total operating lease expense | ||||||||||||
The following is a schedule of maturities of lease liabilities as of June 30, 2026:
| RMB | US$ | |||||||
| Twelve months ending June 30, | ||||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| Total future minimum lease payments | ||||||||
| Less: imputed interest | ( | ) | ( | ) | ||||
| Present value of lease liabilities | ||||||||
F-23
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
7. INCOME TAXES
Enterprise income tax
British Virgin Islands
Under the current laws of the British Virgin Islands, the Company incorporated in the British Virgin Islands is not subject to tax on income or capital gain. Additionally, the British Virgin Islands does not impose a withholding tax on payments of dividends to shareholders.
Cayman Islands
Under the current laws of the Cayman Islands, the subsidiary of the Company incorporated in the Cayman Islands is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.
Singapore
Under Singapore tax laws, subsidiaries in Singapore are subject to statutory income tax rate at
Dubai
Subsidiaries in Dubai are subject to statutory income tax rate at
Hong Kong
Under the current Hong Kong Inland Revenue Ordinance, the subsidiary of the Company in Hong Kong is subject to
South Korea
Under South Korea tax laws, subsidiaries incorporated in South Korea are subject to graduate rates ranging from
The PRC
The Company’s subsidiaries and the VIE that are each incorporated in the PRC are subject to Corporate Income Tax (“CIT”) on the taxable income as reported in their respective statutory financial statements adjusted in accordance with the new PRC Enterprise Income Tax Laws (“PRC Income Tax Laws”) effective from January 1, 2008. Pursuant to the PRC Income Tax Laws, the Company’s PRC subsidiaries and the VIE are subject to a CIT statutory rate of
Under the PRC Income Tax Laws, an enterprise which qualifies as a High and New Technology Enterprise (“the HNTE”) is entitled to a preferential tax rate of
F-24
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
7. INCOME TAXES (CONTINUED)
Under the PRC Income Tax Laws, during the period from January 1, 2010 to December 31, 2030, an enterprise which established in region of Holgus and Kashgar is entitled to a preferential tax rate of
Holgus X qualifies for the conditions and entitled for a preferential tax rate of
Uncertain tax positions
The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2025 and June 30, 2026, the Company did not have any significant unrecognized uncertain tax positions.
The Company did not incur any interest or penalty related to potential underpaid income tax expenses for the six months ended June 30, 2025 and 2026, and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from June 30, 2026.
The income tax expenses comprise:
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Current income tax expense | ||||||||||||
| Deferred income tax expense (benefit) | ( | ) | ||||||||||
| Income tax expenses | ||||||||||||
A reconciliation of the differences between the statutory tax rate and the effective tax rate for CIT for the six months ended June 30, 2025 and 2026 is as follows:
| For the six months ended June 30, | ||||||||
| 2025 | 2026 | |||||||
| Income tax computed at PRC statutory tax rate | % | % | ||||||
| Effect of tax-preferential entities | % | ( | )% | |||||
| Non-deductible expenses and others | ( | )% | ( | )% | ||||
| Income tax expense | % | % | ||||||
F-25
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
7. INCOME TAXES (CONTINUED)
The components of deferred taxes are as follows:
| As of December 31, | As of June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Deferred tax assets: | ||||||||||||
| Allowance for credit losses | ||||||||||||
| Net operating losses carried forward | ||||||||||||
| Total deferred tax assets | ||||||||||||
Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets for the Company. Thus, there were no valuation allowances as of December 31, 2025 and June 30, 2026 for the deferred tax assets.
8. RELATED PARTY BALANCES AND TRANSACTIONS
In addition to the information disclosed elsewhere in the financial statements, the principal related parties with which the Company had transactions during the years presented are as follows:
| Name of Related Parties | Relationship with the Company | |
| Beijing Junwei Technology Co., Ltd |
As of December 31, 2025 and June 30, 2026, the amounts due from related party are as follows:
| As of December 31, | As of June 30, | |||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Amount due from related party | ||||||||||||
| Beijing Junwei Technology Co., Ltd (i) | - | - | ||||||||||
| Total | - | - | ||||||||||
| (i) |
F-26
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
9. SHAREHOLDERS’ EQUITY
Ordinary Shares
The Company is authorized to issue an unlimited number of no par value Class A ordinary shares and Class B ordinary shares.
As of June 30, 2026, the Company had
Treasury Shares
As of December 31, 2025,
In January 2026, the Company repurchased an aggregate of
As of December 31, 2025 and June 30, 2026,
Shares to be issued
As of December 31, 2025, shares to be issued represented the Company’s obligation to issue
2021 Equity Incentive Plan
On August 3, 2021, the Employee Share Option Committee (the “ESOP Committee”) of the Company approved a resolution which appointed the Chief Executive Officer and Chief Operating Officer as Authorized Officer of ESOP Committee to grant share options to employees, directors, advisors, consultants and service providers of the Company. In 2021, the ESOP Committee approved the granting Restricted Share Units (“RSU”) under the 2021 Equity Incentive Plan. On July 19, 2025, the board of directors (the “Board”) adopted resolutions by written consent to approve the Amendment of the 2021 Equity Incentive Plan (the “Amended Plan”) solely to (i) increase the number of Ordinary Shares available for issuance under the Original Plan from
As of December 31, 2025, the Company had
F-27
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
10. STATUTORY RESERVES AND RESTRICTED NET ASSETS
The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the unaudited condensed consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries.
In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least
Foreign exchange and other regulations in the PRC may further restrict the Company’s VIE from transferring funds to the Company in the form of dividends, loans and advances. Amounts restricted include paid-in capital, additional paid-in capital and statutory reserves of the Company’s PRC Subsidiaries and the equity of VIE, as determined pursuant to PRC generally accepted accounting principles. As of December 31, 2025 and June 30, 2026, restricted net assets of the Company’s PRC subsidiaries and VIE were RMB
11. COMMITMENTS AND CONTINGENCIES
(a) Capital and Other Commitments
The Company did not have significant capital and other commitments as of December 31, 2025 and June 30, 2026.
(b) Contingencies
From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the unaudited condensed consolidated financial statements.
F-28
SCIENJOY HOLDING CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share and per share data or otherwise stated)
12. SUBSEQUENT EVENTS
On July 1, 2026, the Company signed an investment agreement to invest up to RMB
On July 26, 2026, the Group signed an investment agreement, pursuant to which the Group invested HK$
On September 2, 2026, the Group entered a sale and purchase agreement (the “SPA” and the transaction as contemplated therein, the “Transaction”), through its wholly-owned subsidiary Scienjoy Innovation Labs Inc. (“Scienjoy Innovation”, incorporated on July 16, 2026), to acquire
The Group evaluated all events and transactions that occurred after June 30, 2026 up through the date the Group issued these unaudited condensed consolidated financial statements and concluded that other than the events disclosed above or elsewhere in these unaudited condensed consolidated financial statements, there is no other subsequent event occurred that would require recognition or disclosure in the Group’s unaudited condensed consolidated financial statements.
F-29