Netjoy Holdings Limited reported a modest profit for the six months ended 30 June 2026, reversing the prior-year loss on the back of improved margins despite lower top-line volumes.

Revenue fell 18.40 % year-on-year to RMB 1.21 billion, reflecting deliberate business restructuring and a softer advertising market. Gross profit, however, jumped 43.79 % to RMB 113.39 million as gross margin widened to 9.39 % from 5.33 %.

The company recorded net profit of RMB 0.89 million versus a RMB 25.58 million loss a year earlier; adjusted net profit reached RMB 8.98 million.

Intelligent marketing solutions remained the core contributor, supplying 90.1 % of total revenue. Segment sales declined 20.88 % to RMB 1.09 billion, yet gross margin improved to 6.31 %. E-commerce service solutions booked RMB 58.25 million in revenue with a 47.92 % margin, while innovative business (mainly micro-drama content) generated RMB 60.94 million at a 27.59 % margin.

Operating metrics showed tighter cost control: administrative expenses dipped 2.35 % to RMB 46.18 million and research & development spending fell 37.10 % to RMB 4.93 million after organisational streamlining, although selling and distribution expenses rose 19.79 % to RMB 55.87 million.

Netjoy’s balance sheet strengthened. Cash and bank balances stood at RMB 62.62 million, down from RMB 396.72 million after repaying borrowings; interest-bearing bank debt shrank to RMB 19.24 million from RMB 329.03 million. The current ratio improved to 1.96 and the debt-to-asset ratio eased to 0.48.

No interim dividend was declared. The unaudited results were reviewed by the board’s Audit Committee.