Scienjoy Reports Second Quarter 2023 Unaudited Financial Results - Sep 6, 2023

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Scienjoy Reports Second Quarter 2023 Unaudited Financial Results

Second Quarter 2023 Adjusted Net Income Attributable to the Company's Shareholders up 41.3% Year Over Year

BEIJING, Sept. 6, 2023 /PRNewswire/ -- Scienjoy Holding Corporation ("Scienjoy", the "Company", or "We") (NASDAQ: SJ), a leading provider of live streaming and entertainment platforms, today announced its financial results for the second quarter and first half of fiscal year 2023 ended June 30, 2023.

Second Quarter 2023 Operating and Financial Highlights

  • Total net revenues was RMB363.2 million (US$50.1 million) for the three months ended June 30, 2023, as compared with RMB506.5 million in the same period of 2022. 

  • Gross profit was RMB50.4 million (US$7.0 million) for the three months ended June 30, 2023, as compared with RMB93.2 million in the same period of 2022.

  • Net income attributable to the Company's shareholders increased by 25.2% to RMB84.7 million (US$11.7 million) for the three months ended June 30, 2023, from RMB67.7 million in the same period of 2022.

  • Adjusted net income attributable to the Company's shareholders increased by 41.3% to RMB86.8 million (US$12.0 million) for the three months ended June 30, 2023, from RMB61.5 million in the same period of 2022. 

  • Total paying users was 210,673 for the three months ended June 30, 2023, as compared with 268,722 in the same period of 2022.

First Half 2023 Operating and Financial Highlights

  • Total net revenues was RMB667.4 million (US$92.0 million) for the six months ended June 30, 2023, as compared with RMB970.0 million in the same period of 2022.

  • Gross profit was RMB90.5 million (US$12.5 million) for the six months ended June 30, 2023, as compared with RMB207.6 million in the same period of 2022.

  • Net income attributable to the Company's shareholders was RMB81.6 million (US$11.2 million) for the six months ended June 30, 2023, as compared with RMB150.9 million in the same period of 2022.

  • Adjusted net income attributable to the Company's shareholders was RMB92.0 million (US$12.7 million) for the six months ended June 30, 2023, as compared with RMB139.2 million in the same period of 2022.

  • Total paying users was 325,924 for the six months ended June 30, 2023, as compared with 445,753 in the same period of 2022.

  • As of June 30, 2023, the Company had RMB202.8 million (US$28.0 million) in cash and cash equivalents, which represented an increase of RMB27.5 million from RMB175.3 million as of December 31, 2022.

Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "The rapid evolution of the Metaverse and AI technology is not only altering the landscape of online entertainment but reshaping the way we at Scienjoy see our future. The potential to immerse consumers in richer, more intelligent, and individualized experiences opens doors to boundless business horizons. Building on our earlier commitment, we're now doubling down on crafting our distinct open Metaverse platform and ecosystem. With our recent strategic investment in DVCC TECHNOLOGY L.L.C ("DVCC"), Scienjoy is taking bold steps to embrace the metaverse revolution. This collaboration is a testament to our forward-looking vision and commitment to innovation. By leveraging cutting-edge AI technology, we are excited to usher in a new era of entertainment experiences. The "Dubai Verse Cup" project developed by DVCC is based on our SJ Verse platform and showcases our metaverse lifestyle. This partnership is just the beginning, and we're eager to provide even more groundbreaking applications in the near future, further redefining how people connect and engage in the metaverse."

Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "During the second quarter of 2023, we have seen a significant increase of 41.3% to RMB86.8 million (US$12.0 million) in adjusted net income attributable to the Company's shareholders, despite a decrease in net revenues. The financial results underscore our unwavering profitability even within the context of a challenging macroeconomic landscape. We are monitoring the industry trends closely while honing our business strategies to seize growth opportunities and augment our revenue streams.

We remain focused on growing our live streaming business, making every effort to enhance our user engagement and expand virtual scenarios to optimize our platforms. The investment in DVCC is not only a strategic move, but also an investment in the future of entertainment. As we expand our footprint into the metaverse, we believe this venture aligns perfectly with our growth strategy. We're excited about the potential synergies this collaboration brings to Scienjoy, as we capitalize on the evolving landscape of virtual experiences and interconnected platforms. Specifically, we will continue to invest in the development of our Metaverse platform and meanwhile expand our business on the global market. We have strong faith in the potential for our business growth as well as our value generation capacity."

Second Quarter 2023 Financial Results

Total net revenues decreased to RMB363.2 million (US$50.1 million) for the three months ended June 30, 2023 from RMB506.5 million in the same period of 2022, primarily caused by decrease of paying users and average ARPPU due to competitive landscape of China's mobile live streaming market. 

Cost of revenues decreased to RMB312.7 million (US$43.1 million) for the three months ended June 30, 2023 from RMB413.4 million in the same period of 2022. This decrease was primarily attributable to a year-over-year decrease of RMB97.4 million, or 26.2%, in the Company's revenue sharing fees and content costs, which was in line with the decrease of revenue for the three months ended June 30, 2023 due to fewer marketing activities.

Gross profit decreased to RMB50.4 million (US$7.0 million) for the three months ended June 30, 2023 from RMB93.2 million in the same period of 2022.

Total operating expenses increased to RMB38.9 million (US$5.4 million) for the three months ended June 30, 2023 from RMB37.5 million in the same period of 2022.

  • Sales and marketing expenses decreased to RMB257,000 (US$35,000) for the three months ended June 30, 2023 from RMB452,000 in the same period of 2022, primarily due to fewer marketing activities.

  • General and administrative expenses increased to RMB19.1 million (US2.6 million) for the three months ended June 30, 2023 from RMB15.4 million in the same period of 2022, primarily caused by increase of RMB3.9 million in share based compensation

  • Research and development expenses amounted to RMB18.1 million (US$2.5 million) and RMB18.3 million for the three months ended June 30, 2023 and 2022.

  • Provision for doubtful accounts decreased to RMB1.4 million (US$189,000) for the three months ended June 30, 2023 from RMB3.4 million in the same period of 2022.

Income from operations decreased to RMB11.5 million (US$1.6 million) for the three months ended June 30, 2023 from RMB55.6 million in the same period of 2022.

Change in fair value of contingent consideration decreased to a gain of RMB2.5 million (US$350,000) for the three months ended June 30, 2023 from RMB6.1 million in the same period of 2022. Change in fair value of contingent consideration is derived from acquisition of Beelive on August 10, 2020, and acquisition of Hongle on January 1, 2022 which involved payments of future contingent consideration upon the achievement of certain financial performance targets and specific market price levels. Earn out liabilities are recorded for the estimated fair value of the contingent consideration on the merger date. The fair value of the contingent consideration is re-measured at each reporting period, and the change in fair value is recognized as either income or expense.

Change in fair value of warrant liabilities decreased to a gain of RMB2.1 million (US$288,000) for the three months ended June 30, 2023 from RMB3.9 million in the same period of 2022. The Company's warrants assumed from the SPAC acquisition that has complex terms, such as a clause in which the warrant agreements contain a cash settlement provision whereby the holders could settle the warrants for cash upon a fundamental transaction that is considered outside of the control of management are considered to be a derivative that are recorded as a liability at fair value. The warrant derivative liability is adjusted to its fair value at the end of each reporting period, with the change being recorded as other expense or gain.

Change in fair value of investment in marketable security increased to a gain of RMB63.6 million (US$8.8 million) for the three months ended June 30, 2023 from RMB406,000 in the same period of 2022. In January 2021, the Company, through its wholly owned subsidiary, Scienjoy Inc., purchased from Cross Wealth Investment Holding Limited, an entity related to one directors of the Company, 606,061 ordinary shares of Goldenbridge Acquisition Limited ("Goldenbridge") for an aggregated consideration of US$2 million. Goldenbridge was formed as a special purpose acquisition company, and completed a de-spac transaction on May 23, 2023 with its new ticker " SDA" The investment was classified as investment in marketable security, which is adjusted to its fair value at the end of each reporting period, with the change being recorded as other expense or gain.

Investment loss amounted to a loss of RMB3.9 million (US$534,000) for the three months ended June 30, 2023 as compared with an income of RMB346,000 in the same period of 2022. Investment loss was primary related to impairment of RMB3.8 million in investment in Beijing Dunengmaihuo Culture Media Co., Ltd. due to sluggish financial conditions and operating performances for the three months ended June 30, 2023. Investment income primarily resulted from the Company's investment in Qingdao Sixiang Zhuohong Private Equity LP for the three months ended June 30, 2022.

Net income increased to RMB84.9 million (US$11.7 million) for the three months ended June 30, 2023 from RMB67.4 million in the same period of 2022.

Net income attributable to the Company's shareholders increased to RMB84.7 million (US$11.7 million) for the three months ended June 30, 2023 from RMB67.7 million in the same period of 2022.

Adjusted net income attributable to the Company's shareholders increased to RMB86.8 million (US$12.0 million) for the three months ended June 30, 2023 from RMB61.5 million in the same period of 2022. 

Basic and diluted net income per ordinary share was RMB2.09 (US$0.29) and RMB2.08 (US$0.29) for the three months ended June 30, 2023, respectively. In comparison, basic and diluted net income per ordinary share were both RMB1.75 in the same period of 2022.

Adjusted basic and diluted net income per ordinary share were both RMB2.15 (US$0.30) and RMB2.13 (US$0.29) for the three months ended June 30, 2023, respectively. In comparison, adjusted basic and diluted net income per ordinary share were both RMB1.59 in the same period of 2022.

First Half 2023 Financial Results

Total net revenues decreased to RMB667.4 million (US$92.0 million) for the six months ended June 30, 2023 from RMB970.0 million in the same period of 2022, primarily caused by decrease of paying users and average ARPPU due to competitive landscape of China's mobile live streaming market. 

Cost of revenues decreased to RMB576.9 million (US$79.6 million) for the six months ended June 30, 2023 from RMB762.3 million in the same period of 2022. This decrease was primarily attributable to a year-over-year decrease of RMB169.3 million, or 24.9%, in the Company's revenue sharing fees and content costs, which was in line with the decrease of revenue for the six months ended June 30, 2023  

Gross profit decreased to RMB90.5 million (US$12.5 million) for the six months ended June 30, 2023 from RMB207.6 million in the same period of 2022.

Total operating expenses increased to RMB74.1 million (US$10.2 million) for the six months ended June 30, 2023 from RMB73.8 million in the same period of 2022.

  • Sales and marketing expenses decreased to RMB466,000 (US$64,000) for the six months ended June 30, 2023 from RMB1.0 million in the same period of 2022, primarily due to fewer marketing activities.

  • General and administrative expenses increased to RMB36.5 million (US$5.0 million) for the six months ended June 30, 2023 from RMB34.5 million in the same period of 2022, primarily caused by increase of RMB3.3 million in share based compensation and RMB2.5 million decoration expenses, offset by decrease of RMB3.8 million in consulting and professional fees.

  • Research and development expenses amounted to RMB34.9 million (US$4.8 million) and RMB35.1 million for the six months ended June 30, 2023 and 2022.

  • Provision for doubtful accounts decreased to RMB2.2 million (US$308,000) for the six months ended June 30, 2023 from RMB3.1 million in the same period of 2022.

Income from operations decreased to RMB16.4 million (US$2.3 million) for the six months ended June 30, 2023 from RMB133.9 million in the same period of 2022.

Change in fair value of contingent consideration decreased to a loss of RMB2.0 million (US$273,000) for the six months ended June 30, 2023 from a gain of RMB10.8 million in the same period of 2022. Change in fair value of contingent consideration is derived from acquisition of Beelive on August 10, 2020, and acquisition of Hongle on January 1, 2022 which involved payments of future contingent consideration upon the achievement of certain financial performance targets and specific market price levels. Earn out liabilities are recorded for the estimated fair value of the contingent consideration on the merger date. The fair value of the contingent consideration is re-measured at each reporting period, and the change in fair value is recognized as either income or expense.

Change in fair value of warrant liabilities decreased to a gain of RMB153,000 (US$21,000) for the six months ended June 30, 2023 from RMB8.4 million in the same period of 2022. The Company's warrants assumed from the SPAC acquisition that has complex terms, such as a clause in which the warrant agreements contain a cash settlement provision whereby the holders could settle the warrants for cash upon a fundamental transaction that is considered outside of the control of management are considered to be a derivative that are recorded as a liability at fair value. The warrant derivative liability is adjusted to its fair value at the end of each reporting period, with the change being recorded as other expense or gain.

Change in fair value of investment in marketable security increased to a gain of RMB65.1 million (US$9.0 million) for the six months ended June 30, 2023 from RMB867,000 in the same period of 2022. In January 2021, the Company, through its wholly owned subsidiary, Scienjoy Inc., purchased from Cross Wealth Investment Holding Limited, an entity related to one directors of the Company, 606,061 ordinary shares of Goldenbridge Acquisition Limited ("Goldenbridge") for an aggregated consideration of US$2 million. Goldenbridge was formed as a special purpose acquisition company and completed a de-spac transaction on May 23, 2023 with its new ticker " SDA". The investment was classified as investment in marketable security, which is adjusted to its fair value at the end of each reporting period, with the change being recorded as other expense or gain.

Investment loss amounted to a loss of RMB4.1 million (US$564,000) for the six months ended June 30, 2023 as compared with an income of RMB597,000 in the same period of 2022. Investment loss primary related to impairment of RMB3.8 million in investment in Beijing Dunengmaihuo Culture Media Co., Ltd. due to sluggish financial conditions and operating performances for the six months ended June 30, 2023. Investment income primarily resulted from the Company's investment in Qingdao Sixiang Zhuohong Private Equity LP for the six months ended June 30, 2022.

Net income decreased to RMB79.3 million (US$10.9 million) for the six months ended June 30, 2023 from RMB150.6 million in the same period of 2022.

Net income attributable to the Company's shareholders decreased to RMB81.6 million (US$11.2 million) for the six months ended June 30, 2023 from RMB150.9 million in the same period of 2022.

Adjusted net income attributable to the Company's shareholders decreased to RMB92.0 million (US$12.7 million) for the six months ended June 30, 2023 from RMB139.2 million in the same period of 2022. 

Basic and diluted net income per ordinary share was RMB2.02(US$0.28) and RMB2.01 (US$0.28) for the six months ended June 30, 2023. In comparison, basic and diluted net income per ordinary share were both RMB4.06 in the same period of 2022.

Adjusted basic and diluted net income per ordinary share was RMB2.28 (US$0.31) and RMB2.26 (US$0.31) for the six months ended June 30, 2023. In comparison, adjusted basic and diluted net income per ordinary share were both RMB3.75 in the same period of 2022.

As of June 30, 2023, the Company had RMB202.8 million (US$28.0 million) in cash and cash equivalents, which represented an increase of RMB27.5 million from RMB175.3 million as of December 31, 2022. 

Business Outlook

The Company expects its total net revenues to be in the range of RMB330 million to RMB360 million in the third quarter of 2023. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change, particularly with respect to the potential impact of COVID-19 on the economy in China and other markets around the world.

Recent Development

On September 6, 2023, the Company announced its strategic investment of US$3 million to acquire a 30% equity interest in DVCC TECHNOLOGY L.L.C, a Dubai-based metaverse company dedicated to transforming entertainment through innovation. This pivotal move signifies Scienjoy's unwavering commitment to metamorphosing its business transformation strategy from mobile entertainment to metaverse lifestyle, catalyzed by global expansion starting from the dynamic Middle East and North Africa (MENA) region.

About Scienjoy Holding Corporation

Scienjoy Holdings Corporation (NASDAQ: SJ) is a pioneering Nasdaq-listed interactive entertainment leader. Driven by the vision of shaping a metaverse lifestyle, Scienjoy leverages AI-powered technology to create immersive experiences that resonate with global audiences, fostering meaningful connections and redefining entertainment. For more information, please visit http://ir.scienjoy.com/.

Use of Non-GAAP Financial Measures

Adjusted net income is calculated as net income adjusted for change in fair value of contingent consideration, change in fair value of warrant liability and 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 US 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.

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 RMB7.2513 to US$1.00, the noon buying rate in effect on June 30, 2023, 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, 2023, or at any other rate.

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 our 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.

Investor Relations Contacts

Denny Tang
Chief Financial Officer
Scienjoy Holding Corporation
+86-10-64428188
ir@scienjoy.com 

Tina Xiao
Ascent Investor Relations
+1 (917) 609-0333
tina.xiao@ascent-ir.com  

 

 

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,




2022



2023




RMB



RMB



USD


ASSETS










Current assets










Cash and cash equivalents



175,292




202,760




27,962


Accounts receivable, net



316,657




255,101




35,179


Prepaid expenses and other current assets



115,170




95,373




13,153


Amounts due from related parties



1,115




63




9


Investment in marketable security



40,548




105,697




14,576


Total current assets



648,782




658,994




90,879















Property and equipment, net



2,735




2,303




318


Intangible assets, net



419,055




415,597




57,313


Goodwill



172,781




172,781




23,828


Long term investment



234,176




234,588




32,351


Long term deposits and other assets



953




955




132


Right-of-use assets-operating lease



19,209




15,725




2,169


Deferred tax assets



4,337




5,347




737


Total non-current assets



853,246




847,296




116,848


TOTAL ASSETS



1,502,028




1,506,290




207,727















LIABILITIES AND SHAREHOLDERS' EQUITY













Current liabilities













Bank loan



5,000




5,000




690


Accounts payable



116,251




57,236




7,892


Accrued salary and employee benefits



12,428




9,234




1,273


Accrued expenses and other current liabilities



13,264




4,840




668


Contingent consideration – earn-out liability



4,336




6,314




871


Warrant liabilities



166




15




2


Income tax payable



13,531




10,399




1,434


Lease liabilities-operating lease -current



7,174




7,527




1,038


Deferred revenue



93,383




86,384




11,913


Total current liabilities



265,533




186,949




25,781















Non-current liabilities













Deferred tax liabilities



61,236




60,527




8,347


Lease liabilities-operating lease -non-current



12,773




8,874




1,224


Total non-current liabilities



74,009




69,401




9,571


TOTAL LIABILITIES



339,542




256,350




35,352















Commitments and contingencies


























EQUITY













Ordinary share, no par value, unlimited Class A ordinary shares and
     Class B ordinary shares authorized, 36,684,668 Class A ordinary
      shares and 2,925,058 Class B ordinary shares issued and outstanding
      as of December 31, 2022, respectively. 37,679,786 Class A ordinary
      shares and 2,925,058 Class B ordinary shares issued and outstanding
      as of June 30, 2023, respectively*













Class A ordinary shares



396,880




418,599




57,728


Class B ordinary shares



23,896




23,896




3,295


Shares to be issued



33,923




20,817




2,871


Treasury stocks



(16,482)




(16,482)




(2,273)


Statutory reserves



39,208




42,949




5,923


Retained earnings



665,099




742,944




102,457


Accumulated other comprehensive income



18,070




17,572




2,423


Total shareholders' equity



1,160,594




1,250,295




172,424


Non-controlling interests



1,892




(355)




(49)


Total equity



1,162,486




1,249,940




172,375


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY



1,502,028




1,506,290




207,727


 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(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,




2022



2023



2023



2022



2023



2023




RMB



RMB



US$



RMB



RMB



US$


Livestreaming - consumable
     virtual items revenue



497,330




349,629




48,216




940,768




640,740




88,362


Livestreaming - time based
      virtual items revenue



6,917




6,379




880




14,382




11,890




1,640


Technical services and others



2,281




7,143




985




14,823




14,812




2,042


Total revenues



506,528




363,151




50,081




969,973




667,442




92,044


Cost of revenues



(413,376)




(312,718)




(43,126)




(762,345)




(576,913)




(79,560)


Gross profit



93,152




50,433




6,955




207,628




90,529




12,484


Operating expenses

























Sales and marketing expenses



(452)




(257)




(35)




(1,036)




(466)




(64)


General and administrative
     expenses



(15,406)




(19,148)




(2,641)




(34,514)




(36,457)




(5,028)


Provision for doubtful accounts



(3,353)




(1,369)




(189)




(3,094)




(2,230)




(308)


Research and development
     expenses



(18,313)




(18,135)




(2,501)




(35,128)




(34,945)




(4,819)


Total operating expenses



(37,524)




(38,909)




(5,366)




(73,772)




(74,098)




(10,219)


Income from operations



55,628




11,524




1,589




133,856




16,431




2,265


Change in fair value of
     contingent consideration



6,050




2,540




350




10,790




(1,978)




(273)


Change in fair value of warrants
     liability



3,883




2,085




288




8,382




153




21


Change in fair value of
      investment



406




63,570




8,767




867




65,148




8,984


Investment income (loss)



346




(3,870)




(534)




597




(4,088)




(564)


Interest income



755




745




103




1,251




1,182




163


Interest expense



(13)




(54)




(7)




(13)




(87)




(12)


Other income, net



26




354




49




86




525




72


Foreign exchange gain (loss),
     net



(513)




1,454




201




(453)




1,421




196


Income before income taxes



66,568




78,348




10,806




155,363




78,707




10,852


Income tax benefits (expenses)



807




6,526




900




(4,762)




632




87


Net income



67,375




84,874




11,706




150,601




79,339




10,939


Less: net income (loss)
      attributable to noncontrolling
     interest



(299)




138




19




(299)




(2,247)




(310)


Net income attributable to the
     Company's shareholders



67,674




84,736




11,687




150,900




81,586




11,249



























Other comprehensive income:

























Other comprehensive income
     (loss) - foreign currency
      translation adjustment



602




(511)




(70)




566




(498)




(69)


Comprehensive income



67,977




84,363




11,636




151,167




78,841




10,870


Less: comprehensive income
      (loss) attributable to non-
     controlling interests



(299)




138




19




(299)




(2,247)




(310)


Comprehensive income
      attributable to the
     Company's shareholders



68,276




84,225




11,617




151,466




81,088




11,180



























Weighted average number of
      shares*

























Basic



38,602,936




40,447,415




40,447,415




37,122,362




40,447,415




40,447,415


Diluted



38,602,936




40,771,279




40,771,279




37,122,362




40,660,023




40,660,023


Earnings per share

























Basic



1.75




2.09




0.29




4.06




2.02




0.28


Diluted



1.75




2.08




0.29




4.06




2.01




0.28


 

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,




2022



2023



2023



2022



2023



2023




RMB



RMB



US$



RMB



RMB



US$


Net income attributable to the
     Company's shareholders



67,674




84,736




11,687




150,900




81,586




11,249


Less:

























Change in fair value of
     contingent consideration



6,050




2,540




350




10,790




(1,978)




(273)


Change in fair value of warrants
     liability



3,883




2,085




288




8,382




153




21


Share based compensation



(3,711)




(6,720)




(927)




(7,437)




(8,613)




(1,188)


Adjusted net income
      attributable to the
     Company's shareholders*



61,452




86,831




11,976




139,165




92,024




12,689


Adjusted net income
      attributable to the
     Company's shareholders per ordinary share*

























Basic



1.59




2.15




0.30




3.75




2.28




0.31


Diluted



1.59




2.13




0.29




3.75




2.26




0.31


 

"Adjusted net income attributable to the Company's shareholders" is defined as net income attributable to the Company's shareholders excluding change in fair value of contingent consideration, change in fair value of warrant liability and share based compensation. For more information, refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Results" above.

SOURCE Scienjoy Holding Corporation