About Scienjoy Holding

Scienjoy Holding Corporation provides mobile live streaming platforms in China. The company focuses on interactive show live streaming from broadcasters to users. The company had 154,192 active show broadcasters for the year ended December 31, 2022. The company had over 300 million registered users by the end of December 31, 2022. For the year ended December 31, 2022, the number of paying users was approximately 702,372. The company operates a mobile live streaming business by which it provides live streaming entertainment from professional broadcasters to the end-users, allowing for operation of live social video communities. Using the company's mobile applications, users can select broadcasters and enter real time video rooms to interact with them. In addition to the real-time interaction, users can also view photos posted by broadcasters in their personal pages, leave comments, and engage in private chats with broadcasters when such broadcasters are not streaming. In addition, users can also play simple, fun games using virtual currencies within the video rooms while watching live streaming of a broadcaster. Users can purchase virtual currency on the company's platforms and can use such virtual currency to buy virtual items for broadcasters to show their support. The company shares revenues generated on the platforms with talents agencies, which in turn share revenues with broadcasters. The platforms' annual average revenue per paid user (ARPPU) was RMB 2,725 for the year ended December 31, 2022. Strategy The key elements of the company's strategy are to provide more engaging and professional content; further expand its mobile live streaming business in China and overseas; diversify the live streaming business; explore technology services business; continue to invest in and develop technologies such as virtual reality (VR)/augmented reality (AR) and artificial intelligence (AI); and tap into the next phase of explosive industry potential through M&A. Platforms The company operates its live streaming communities through multiple platforms, each with its own mobile applications. After the acquisition of Beelive, the company operates primarily six platforms: Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming Chinese (MiFeng), BeeLive International, and Hongle Live Streaming. These platforms together make it the leading provider of mobile show live streaming. Showself Live Streaming Showself Live Streaming is the company's first live streaming platform and remains the most popular of its platforms in terms of registered users and revenue. Showself Live Streaming is widely accessible to most mobile internet users in China because the company's live streaming-enabled features only require minimal bandwidth. The following is the typical screenshot for the mobile application of Showself Live Streaming. Lehai Live Streaming Lehai Live Streaming adheres to the concept of 'having fun together.' Haixiu Live Streaming Haixiu Live Streaming is the company's third platform. BeeLive Chinese (MiFeng) BeeLive Chinese (MiFeng) focuses more on the need of social communications of the company's users, therefore people tend to use them more often as a tool of communication with friends and peers. BeeLive International BeeLive International provides Arabic language service covering the Middle East and Thai language service covering Southeast Asia and the Middle East. Hongle Live Streaming Hongle Live Streaming more focuses on enabling ordinary people to broadcast timely with their mobile phones. As a result, comparably, it has a broader mobile broadcaster base and its broadcasters tend to be much younger. Layout and Functions of The Mobile Application of the company's Platforms The layout and functions of the mobile applications of the company's platforms are substantially the same. Square: This page serves as a menu for streaming broadcasters. Users can search this page for broadcasters they want to watch. For users who do not already know any broadcasters or have no existing preference as to which broadcasters they want to watch, several groupings of broadcasters who are conducting ongoing live streaming are presented in the square under different headings to help viewers find a broadcaster they will enjoy. These groupings are organized under different labels, such as recommended broadcasters (based on comprehensive analysis and mining of user-specific data, such as user's location, login time, retention, daily activity, and consumer behavior), broadcasters located in the same city as the users, broadcasters followed by the user, broadcasters recently viewed by the user, and broadcaster PK (broadcasters competing against each other in terms of value of gifts received within ten minutes), and other labels. Broadcasters' names, number of online viewers, and grade based on the value of gifts received by such broadcaster along with a snapshot of the stream are provided on the pages for viewers' use in selecting a broadcaster. These pages are updated with a new batch of broadcasters with every refresh by users, presenting them with a wider range of broadcasters to choose from. For new users, this interface provides them with an easy way to start exploring the platform. For existing users, broadcasters with closest relationship in terms of chat frequency and value of gifts sent are always presented in the first page of the square if the broadcaster is online and this makes it easier for users to closely watch live streaming of broadcasters they have followed. In all cases, clicking on a broadcaster's picture will take users to a real time video room from which they can view and interact with the broadcaster. Ranking Lists: This page presents lists of top broadcasters by various criteria, including highest value of gifts received by the broadcasters (on a daily, weekly, monthly and all-time basis) and greatest number of virtual flowers or the specially designated weekly star gifts. Received by broadcasters. These ranking lists provide further information to viewers about broadcasters' popularity to help them identify top broadcasters and can also motivate users to support their favorite broadcasters on the list. This also promotes positive competition between broadcasters. The page also contains lists of viewers (by account name) that have spent the highest amount of virtual currency in the last day, week, month and all-time. Guardian Teams: Guardian teams are small groups of users organized by users with sufficient high user grades and which other users can join. This function allows small groups of like-minded users to interact online, form friendships, and support their favorite broadcasters as a group. This encourages user engagement and active participation. This also helps to improve user experience and enhance users' paying willingness. The guardian team page shows rankings of guardian teams by various criteria, including highest value of virtual currencies spent by guardian teams (on a daily and all-time basis) and the value of gifts received by the broadcasters from top guardian teams (on a weekly and bi-weekly basis). Discovery: This page allows users to follow photos posted by broadcasters and activities organized by the platform. It is also the page through which users can purchase virtual items using Xiu Bi, the virtual currency used on the platform. Me: Users can check and manage their personal accounts through this page. Personal account information displayed mainly includes the broadcasters by such users, virtual currency balance, virtual items purchased, guardian teams to which the users belong and intimate broadcasters list. Content on the company's Platforms The company has a number of live broadcasting platforms. They provide entertainment content for users and has actively explored new entertainment, new agency, and other fields in the upstream and downstream industry, combining entertainment, agents, and mobile Internet to create online entertainment online-merge-offline (OMO). For the agents, the platforms provide support for product activities, brand building, management empowerment, data support, and technical tools, and help it clarify its development path and strategy from the perspective of industry analysis. For the broadcasters, the platforms have provided training through agents for items, such as stage decoration, lighting, music, attire, makeup, costumes, talent skills (such as singing, dancing, talk show and musical instruments), communication skills, and service awareness. The platforms, agents, and broadcasters rely on each other and bridge the path for each other to build a healthy and stable entertainment ecology. For the company, the establishment of a content security system is not only a means of defense but also a strong strategic offense. Quality and engaging content is the core of the company's development. One way for the company to offer engaging content is to organize a variety of original shows on its platforms, such as Singer Alliance, Run Ms. Cang Run and King of Brain PK. Secondly, the company's platforms make efforts to support talented broadcasters by organizing special shows for these broadcasters, such as Crown of Weekly Star and The Showself Voice. Thirdly, the company's platforms continue to expand their shows to new areas, such as traditional opera and intangible cultural heritages. These shows include the live streaming series of Revisiting the Intangible Cultural Heritage, Beauty of Quintessential Chinese Culture, and I Write a Love Poem for My Hometown. Users The company has an active and well-structured user base. In 2014, the company transformed itself from a social network platform to a show live streaming platform. The company has also accumulated a diversified user group through constant innovation and promotion. Broadcasters The supply of talented and popular broadcasters is essential to the company, particularly given its focus on developing professionally generated content. Broadcasters serve as the primary interface with users and, therefore, the success of its platforms depend largely on the talent and popularity of the broadcasters. Engagement of Broadcasters The company primarily cooperates with online and offline broadcaster agents, or the talent agents, to recruit and manage broadcasters on an ongoing basis. Each of the platforms also has an online application process for registered users to become broadcasters and the company will select certain applicants and refer them to the appropriate talent agents. As such, the company enters into all contracts with the talent agents, as opposed to with each broadcaster on an individual basis. Before broadcasting on the platform, all broadcasters must agree to the terms and conditions of the company's platforms, which includes the rules of the platforms that the broadcasters must abide by while live streaming and also the legal consequences for violation of the rules. The company provides more resources and support to such broadcasters by recommending their contents to potential interested users, increasing user traffic, and improving their popularity. Cooperation with the Talent Agencies Talent agencies recruit broadcasters and provide live streaming content to the company. The company shares revenue with the talent agencies, who pay salaries to or share fees with their broadcasters. Talent agencies are also responsible for educating and training the broadcasters on live streaming skills and techniques, such as dress codes, room settings and communication skills. The use of talent agencies also frees the company from direct dealings with the broadcasters. Monitoring and Management of Broadcasters The company sets out rules with which broadcasters must comply with while using its platforms, including compliance with laws and regulations of the PRC (the People's Republic of China), no performances involving guns, knives or threats to lives, no infringement of legal rights of others and no pornography. The company has the right to monitor and manage the performances of any broadcasters on its platforms. Marketing The company's marketing and promotional strategy includes among others, the use of third-party marketing channels to both promote its platforms and acquire users. These marketing channels primarily include advertising agencies, which provide it with market visibility and numerous opportunities to attract new users. The company typically enters into one-year framework agreements with such advertising agencies, which require it to purchase a minimum aggregate amount of advertising during the terms of the agreements. The company is generally able to monitor the performance and effectiveness of the advertisements directly or through the advertising agencies. The company uses mobile application platforms, such as the Apple App Store and Android App Download Centers, to dispense and showcases its mobile platforms to a wide audience, as well as to advertise the positive customer feedback, which its platforms have received. Users can download the apps from these application platforms for free. Users are also able to review and rate its applications through these platforms. Quality Control and Content Monitoring The company has programmers with extensive application testing experience who systematically test its platforms to ensure that they conform to its standards. The company is also required under PRC laws and regulations, such as the Administrative Provisions on Mobile Internet Applications Information Services, to monitor content on its platforms. The company has developed a comprehensive technology to screen content on its applications against a filter list, item by item. The filter list compiles content and behaviors that the company has determined, taking into account relevant PRC laws and regulations, to be likely to be indicative of inappropriate, politically-sensitive, provocative or inflammatory language, sexually-suggestive language and body movements, full or partial nudity or illegal content or activities, abusive language or actions towards other users, spam, scams, or acts and threats of violence. Content identified as falling into the filter list would be blocked or removed from the company's platforms. In addition, the company regularly reviews any complaints alleging the inappropriate nature of content on its platforms and remove such content promptly. Broadcasters are also responsible for monitoring the content in their rooms and ensuring that their rooms comply with applicable laws and regulations and terms of the company's service. Broadcasters can block users who transmit inappropriate information from posting comments in their rooms or exclude users from their rooms. Broadcasters also have the ability to promote certain users to act as moderators to help manage rooms in this way. The company also monitors and takes measures to deal with any infringements of its content policies by broadcasters. Payment Users are able to purchase virtual items the company sells on its platforms by using virtual currency. Generally, users purchase virtual currency from third-party distributors with which the company has entered agreements. Users are also able to purchase virtual currency directly from its platforms using various payment channels, such as Alipay and WeChat Pay. Once users have purchased such virtual currency, they are able to purchase virtual items. Intellectual Property As of April 18, 2023, the company had registered 242 copyrights in China, 19 domain names, 10 patents for live streaming technology, and 104 trademarks, including the Showself, Haixiu, and Lehai logos. Competition The company's competitors in the mobile live streaming market in China include other providers of show live streaming products, such as Hello Group and JOYY, as well as other pan-entertainment streaming platforms, such as Inke, Huafang, and gaming streaming DOYU and HUYA. Research and Development For the year ended December 31, 2022, the company's research and development expenses were RMB67.5 million. History Scienjoy Holding Corporation was founded in 2011. The company was incorporated under the laws of the Cayman Islands in 2017.