Scienjoy posts 2025 loss on major impairments | SJ SEC Filing

Exhibit 99.1

Scienjoy Holding
Corporation Reports Fiscal Year 2025 Financial Results

BEIJING, April 23, 2026
/PRNewswire/ —Scienjoy Holding Corporation (“Scienjoy”, the “Company”, or “we”) (NASDAQ: SJ),
a leader in interactive entertainment in China, today announced its financial results for the year ended December 31, 2025.

Fiscal Year 2025 Operating
and Financial Summaries

Note on Net Loss
for Fiscal Year 2025

The net loss of RMB595.0 million (US$85.1 million) reported for the year ended December 31, 2025 was primarily driven by several major
non-cash accounting items amounting to RMB712.3 million (US$101.9 million) that had no impact on the Company’s cash and liquidity
position or its ability to continue as a going concern. These major items include provisions for credit losses, impairment of goodwill
and intangible assets.

Mr. Victor He, Chairman
and Chief Executive Officer of Scienjoy, commented, “2025 was a year of continued execution and strategic progress for Scienjoy.
Our live streaming business, given our recent global expansion, continues to be profitable which demonstrates the resilience of our core
operations. At the same time, we are accelerating our AI strategy. Building on our AIGC foundation with AI Vista, we are expanding into
agentic AI with AI Vista Live!, which serves both B2C and B2B markets. AI Vista enables real-time, interactive AI performers for consumers
while also providing scalable enterprise solutions across multiple industries. Supported by strong underlying financial performance and
a solid cash position, we are well positioned for future growth and deliver long-term value to our shareholders.”

Mr. Denny Tang, Chief
Financial Officer of Scienjoy, added, “In the fourth quarter of 2025, we conducted a review of our assets and recorded certain non-cash
impairment provisions which did not impact our core operations or cash flow. Apart from these accounting effects, we believe our business
remains strong, supported by our core operations and continued Average Revenue Per Paying User (ARPPU) growth. Additionally, our cash
and cash equivalents increased by 21.8% during the year, reflecting our operationally-driven capability to sustain on-going business operations
and support planned expansion. With a healthy balance sheet, we are well positioned to support continued investment in AI innovation and
global expansion.”

Fiscal Year 2025 Financial
Results

Total revenues decreased
to RMB1,241.6 million (US$177.5 million) for the year ended December 31, 2025 from RMB1,363.4 million for the year ended December 31,
2024 primarily caused by a decrease of paying users due to the increasing competitive landscape of China’s mobile live streaming
market. Total paying users were 383,695 for the year ended December 31, 2025, compared to 494,652 for the year ended December 31, 2024. 

Cost of revenues decreased to RMB1,014.5
million (US$145.1 million) for the year ended December 31, 2025 from RMB1,117.9 million for the year ended December 31, 2024. The decrease
was primarily attributable to a decrease of RMB128.3 million in the Company’s revenue sharing fees, offset by an increase of RMB23.4
million in the Company’s user acquisition costs.

Gross profit decreased
to RMB227.2 million (US$32.5 million) for the year ended December 31, 2025 from RMB245.4 million for the year ended December 31, 2024.
Gross margins increased to 18.3% for the year ended December 31, 2025 from 18.0% in the year ended December 31, 2024 due to higher average
live streaming revenue per paying user (“ARPPU”) during the year ended December 31, 2025, demonstrating the Company’s
effectiveness in converting high-quality paying user to its profit growth.

Total operating expenses increased
by 49.5% to RMB306.1 million (US$43.8 million) for the year ended December 31, 2025 from RMB204.7 million for the year ended December
31, 2024.

Loss from operations
was RMB78.9 million (US$11.3 million) for the year ended December 31, 2025, as compared to an income from operations of RMB40.7 million
for the year ended December 31, 2024.

Change in fair value of investment in marketable
security was a loss of RMB29.1 million (US$4.2 million) for the year ended December 31, 2025, as compared to a gain of RMB6.1 million
for the year ended December 31, 2024. The change was attributable to the fair value changes in investments in publicly traded companies. 

Investment income
increased to RMB8.7 million (US$1.2 million) for the year ended December 31, 2025, as compared to investment loss of RMB5.7 million for
the year ended December 31, 2024. The increase in investment income was attributable to share of unrealized gain in long-term investments. 

Impairment of long-term
investments was nil for the year ended December 31, 2025, as compared to RMB10.4 million for the year ended December 31, 2024.

Interest income decreased to RMB1.7 million
(US$0.2 million) for the year ended December 31, 2025 from RMB3.2 million for the year ended December 31, 2024. The decrease was primarily
due to a lower interest rate environment relative to previous periods.

Impairment for goodwill During the fourth
quarter of 2025, as a part of its annual impairment assessment, the Company assessed its internal forecast along with several events and
circumstances that could affect the significant inputs used to determine the fair value of the Company’s reporting unit, including
the significance of the amount, if any, of excess carrying value over fair value, consistency of the Company’s current and forecasted
operating margins and cash flows, budgeted-to-actual performance, timing of the expected effects of the Company’s strategic initiatives,
overall change in economic climate, changes in the industry and competitive environment, changes to the Company’s risk-adjusted
discount rates and earnings quality and sustainability. After considering all available evidence in the evaluation of goodwill impairment
indicators including but not limited to regulatory and tax policy changes in China for the livestreaming industry starting in the second
half of 2025, a significant decrease in paying users for the year ended December 31, 2025, and a continuous decline in the Company’s
operating income during the second half of 2025, the Company determined it appropriate to perform the quantitative assessment of the Company
as of December 31, 2025. The quantitative impairment test involves the use of significant estimates and assumptions to evaluate the impact
of operational and economic changes on each reporting unit. The Company estimates the fair value using the income valuation approach with
assistance of a third-party valuation firm. The income approach applies a fair value methodology to the single reporting unit based on
discounted cash flows. This analysis requires significant estimates and judgments, including (i) the estimation of future revenue, projected
gross profit margins, projected operating costs, projected operating income margins, and projected capital expenditures, which are dependent
on internal cash flow forecasts; and (ii) determination of the risk-adjusted discount rates. As a result of such goodwill impairment test,
the Company recorded a full impairment of RMB186.2 million (US$26.6 million) on goodwill for the year ended December 31, 2025. The Company
bases fair value estimates on assumptions that the Company believes to be reasonable but that are unpredictable and inherently uncertain.
Actual future results may differ from those estimates.

Impairment for intangible assets During
annual impairment test performed in the fourth quarter of 2025, the Company identified several triggering events indicating that the carrying
value of its intangible assets may exceed their fair value. These indicators included regulatory and tax policy changes in China for the
livestreaming industry starting in the second half of 2025, the significant decrease in paying users for the year ended December 31, 2025,
and a continuous decline in the Company’s operating income during the second half of 2025. The Company performed a quantitative
assessment as of December 31, 2025 using an income approach. The income approach utilized a discounted cash flow model based on the assumptions
including management’s best estimates of the expected future cash flows, risk-adjusted discount rate, and the estimated useful life
of the asset group with assistance of a third-party valuation firm. Based on this analysis, the Company determined that the carrying values
of its intangible assets were no longer recoverable. As a result of the fair value test, the Group recorded a full impairment of RMB398.8
million (US$57.0 million) on intangible assets for the year ended December 31, 2025.

Other income, net increased by 442.7% to
RMB8.7 million (US$1.2 million) for the year ended December 31, 2025 from RMB1.6 million for the year ended December 31, 2024. The increase
was primarily due to increased government subsidies and a one-time compensation income. There is no assurance that the Company will continue
to receive these subsidies in the future.

Foreign exchange loss was RMB1.6 million
(US$0.2 million) for the year ended December 31, 2025, as compared to foreign exchange gain of RMB3.8 million for the year ended December
31, 2024.

Income tax benefit
was RMB80.4 million (US$11.5 million) for the year ended December 31, 2025, as compared to income tax expenses of RMB12.6 million for
the year ended December 31, 2024.

Net loss was RMB595.0
million (US$85.1 million) for the year ended December 31 2025, as compared to a net income of RMB26.7 million for the year ended
December 31, 2024. 

Net loss attributable
to the Company’s shareholders was RMB587.1 million (US$84.0 million) for the year ended December 31, 2025, as compared
to a net income attributable to the Company’s shareholders of RMB39.7 million for the year ended December 31, 2024.

Adjusted net loss
attributable to the Company’s shareholders was RMB579.6 million (US$82.9 million) for the year ended December 31, 2025,
as compared to adjusted net income attributable to the Company’s shareholders of RMB50.3 million for the year ended December 31,
2024.

Basic and diluted
net loss attributable to the Company’s shareholders per ordinary share were both RMB14.05 (US$2.01) for the year ended
December 31, 2025. In comparison, basic and diluted net income attributable to the Company’s shareholders per ordinary share was
RMB0.96 and RMB 0.95 for the year ended December 31, 2024.

Adjusted basic and
diluted net loss attributable to the Company’s shareholders per ordinary share were both RMB13.87 (US$1.98) for the year
ended December 31, 2025. In comparison, adjusted basic and diluted net income attributable to the Company’s shareholders per ordinary
share was RMB1.22 and RMB1.21 for the year ended December 31, 2024.

As of December 31, 2025,
the Company had cash and cash equivalent balance of RMB307.7 million (US$44.0 million), which represented an increased by of RMB55.1 million
from RMB252.5 million as of December 31, 2024. 

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
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 RMB6.9931 to US$1.00, the noon buying rate in effect on December 31, 2025,
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 December 31, 2025, or at any other rate.

About Scienjoy Holding Corporation

Scienjoy 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/.

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.

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

CONSOLIDATED BALANCE
SHEETS

(All amounts in thousands,
except share and per share data or otherwise stated)

CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOME

(All amounts in thousands,
except share and per share data or otherwise stated)

Reconciliations of
Non-GAAP Results

(All amounts in thousands,
except share and per share data or otherwise stated)

“Adjusted net income
attributable to the Company’s shareholders” is defined as net income attributable to the Company’s shareholders excluding
share based compensation.