Netjoy Holdings (Netjoy) reported interim revenue of RMB1.48 billion for the six months ended 30 June 2025, down 5.04% year-on-year. Gross profit dropped 39.29% to RMB78.86 million, with gross margin narrowing to 5.33% from 8.33%.

The group recorded a net loss of RMB25.58 million versus a profit of RMB23.85 million a year earlier, citing rising traffic and operating costs. Adjusted net loss stood at RMB20.98 million, compared with an adjusted profit of RMB42.94 million in the prior-year period.

Segment performance • Intelligent Marketing Solutions contributed 93% of revenue at RMB1.38 billion, down 5.85%. Gross profit slid 51.04% to RMB40.13 million, with margin at 2.92%. • E-commerce Solutions grew 66.25% to RMB69.23 million; gross profit surged 170.91% to RMB31.02 million, lifting margin to 44.81%. • Innovative Business (micro-short plays) delivered RMB35.06 million revenue; gross profit reached RMB7.71 million, a 21.99% margin.

Balance sheet and liquidity Total assets rose to RMB2.51 billion, while total equity attributable to shareholders edged down 2.11% to RMB929.03 million. Cash and bank balances stood at RMB503 million. Netjoy reduced bank borrowings to RMB521.04 million from RMB603.15 million; finance costs declined to RMB8.47 million.

Operational highlights • Gross billing increased 15.78% to RMB4.24 billion, reflecting demand from 39,687 advertising clients across 329 industry verticals. • Key account customers rose 12.68% to 1,075. • Healthcare, financial services and emerging e-commerce sectors drove new client growth. • AI initiatives advanced: the “Letui Assistant” AI Agent processed more than 3,000 orders worth over RMB20 million; the first AIGC-generated animation short play was launched, with additional AI live-action projects under development.

Strategic focus Management reiterated its three-pillar strategy of “platformisation, diversification and internationalisation,” targeting: 1. Expansion of integrated cloud marketing services and deeper AIGC deployment. 2. Higher-margin growth in e-commerce, especially beauty, personal care and pet categories. 3. Two-way cross-border services, supporting Chinese brands overseas and foreign brands entering China, alongside monetisation of an overseas micro-short-play app.

Governance and outlook During the period the company experienced management changes, including the resignation of former CEO Wang Chen on 30 July 2025. Netjoy continues to address Stock Exchange resumption guidance after trading suspension on 1 April 2025, with ongoing forensic and internal-control reviews highlighted.

Netjoy plans to leverage AI-driven content production and multi-platform distribution to enhance efficiency and profitability while maintaining focus on financial discipline and cash preservation.