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.

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SOURCE Scienjoy Holding Corporation

Scienjoy Reports Second Quarter 2023 Unaudited Financial Results