- Scienjoy Holding (SJ, Financial) posted a net income of RMB26.7 million, a significant improvement from a RMB35.0 million loss in 2023.
- Gross profit increased by 27.4% to RMB245.4 million, while gross margin rose to 18.0% from 13.2%.
- Cash and cash equivalents increased to RMB252.5 million, showing a robust financial position.
Scienjoy Holding Corporation (SJ) announced its fiscal year 2024 financial results, revealing a notable improvement in profitability despite facing revenue challenges. Total revenues for the year decreased by 6.9% to RMB1,363.4 million (approximately US$186.8 million), compared to RMB1,464.9 million in 2023. This decline was primarily due to a reduction in paying users, dropping to 494,652 from 557,692 the previous year.
Despite lower revenues, the company saw a significant rise in gross profit by 27.4%, reaching RMB245.4 million, and a gross margin improvement from 13.2% to 18.0%. Income from operations surged by 78.5% to RMB40.7 million, marking an impressive turnaround from a net loss of RMB35.0 million in 2023 to a net income of RMB26.7 million by the end of 2024.
Scienjoy's cash and cash equivalents grew by RMB47.1 million, totaling RMB252.5 million as of December 31, 2024, strengthening its financial stance. The company continues its strategic focus on Artificial Intelligence Generated Content (AIGC) technologies and Metaverse development, while expanding its global presence through its Dubai hub, targeting the Middle East and North Africa (MENA) region.
Operating expenses saw a rise, with research and development costs increasing by 20.4% and sales and marketing expenses surging by 420.2%, reflecting investments in global expansion and future capabilities.
