Operating profit increased by 313.7% year-on-year

Net profit increased by approximately US$10 million year-on-year

BEIJING, Nov. 25, 2024 /PRNewswire/ -- Sixiang Unlimited Holdings Ltd. ("Sixiang Unlimited", NASDAQ: SJ) announced its unaudited financial results for the three quarters ended September 30, 2024.

Operational and financial highlights for the first three quarters of 2024

  • Revenue was RMB 1.0125 billion (approximately US$144.3 million), compared with RMB 1.0366 billion in the same period of 2023.
  • Gross profit increased 29.6% year-on-year to RMB 179.6 million (approximately US$25.6 million) from RMB 138.6 million in the same period of 2023.
  • Operating profit increased by 313.7% year-on-year, from RMB 8.5 million in the same period of 2023 to RMB 35.3 million (approximately US$5 million).
  • Net profit increased by RMB 71.5 million year-on-year, from a net loss of RMB 37.3 million in the same period of 2023 to a net profit of RMB 34.2 million (approximately US$4.9 million).
  • The net profit attributable to the company's shareholders was RMB 42.7 million (approximately US$6.1 million), compared with a net loss attributable to the company's shareholders of RMB 34.7 million in the same period of 2023.
  • Adjusted net profit attributable to shareholders of the Company increased by RMB 72.8 million year-on-year, from an adjusted net loss attributable to shareholders of the Company of RMB 22.0 million in the same period of 2023 to an adjusted net profit attributable to shareholders of the Company of RMB 50.8 million (approximately US$7.2 million).
  • As of September 30, 2024, cash and cash equivalents were RMB 217.3 million (approximately US$31 million), an increase of RMB 11.8 million from RMB 205.5 million as of December 31, 2023.

Mr. Victor He , Chairman and CEO of ThinkShare, commented, "We are pleased to announce strong financial results for the three quarters ending September 30, 2024, with a particularly notable 29.6% increase in gross profit. This growth not only highlights our success in converting high-quality paying users into sustained profitability, but also demonstrates that we can maintain profitability even as the impact of promotional activities on our user base and revenue has weakened. The growth in average revenue per paying user further demonstrates our strong profitability in a highly competitive market. As part of our global expansion plan, we continue to advance our strategic initiatives in the Dubai market, focusing on the dynamic Middle East and North Africa region. In addition to geographical expansion, we continue to increase our investment in cutting-edge AI-generated content technologies, which are critical to enhancing user experience across platforms. Advances in AI technology enable us to provide highly personalized, immersive and engaging content that resonates with our global users. With clear goals and a sound execution plan, we believe our business strategy is moving steadily towards further growth. Looking ahead to the fourth quarter of 2024, we are confident that we can maintain the current growth momentum of our business and create more value for our shareholders."

Mr. Denny Tang , CFO of ThinkShare, added, "We are very pleased to have achieved excellent financial results for the first three quarters ended September 30, 2024. These results reflect the success of our prudent and forward-looking growth strategy and the excellent execution of our team collaboration. During this period, our gross profit increased by 29.6%, demonstrating our ability to convert high-quality paying users, while operating profit also increased by 313.7%. The significant increase in operating profit reflects our optimization of cost management and the improvement of operating scale while increasing investment in growth plans. In addition, we turned a loss into a profit compared with the same period last year, achieving a net profit of US$4.9 million. These results demonstrate the resilience of our financial foundation, which was further strengthened by a net profit attributable to shareholders of US$6.1 million. This strengthens our determination to execute strategic initiatives. Looking ahead, we will continue to focus on business growth opportunities, steadily enhance our business strength in the metaverse, and expand our global influence. We believe that these initiatives will create lasting and far-reaching value for shareholders and enable us to maintain outstanding performance in the rapidly changing digital economy."

About ThinkShare

SCIENJOY Holdings, Inc. (NASDAQ: SJ) is a pioneering Nasdaq-listed interactive entertainment leader. Driven by a vision to shape the Metaverse lifestyle, the company leverages artificial intelligence technology to create engaging experiences that meaningfully connect with audiences around the world and redefine entertainment. For more information, please visit http://ir.scienjoy.com/ .

Safe Harbor Statement

Certain statements in this press release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimate," "project," "anticipate," "expect," "forecast," "plan," "intend," "believe," "seek," "may," "will," "should," "future," "propose" and variations of these words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results and involve numerous known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the Company's control, that could cause actual outcomes or results to differ materially from those discussed in the forward-looking statements. Important factors include: ability to manage growth; ability to identify and integrate additional 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 that adversely affect our profitability; litigation involving patents, intellectual property and other matters; potential changes in the legislative and regulatory environment; and the impact of pandemics. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those more fully described from time to time in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"). The Company assumes 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 press release.

For investor and media inquiries, please contact:

Deng Bentong CFO
 ThinkShare Unlimited Holdings Limited
+86-10-64428188
ir@scienjoy.com

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