Netjoy Holdings Limited reported audited results for the year ended 31 December 2025, highlighting a sharp turnaround in profitability metrics despite a drop in top-line revenue.
Revenue and Profitability • 2025 revenue fell 6.73% year-on-year to RMB 2.94 billion, chiefly due to a deliberate pull-back from lower-margin activities. • Gross profit jumped 119.57% to RMB 268.48 million, lifting gross margin by 5.26 percentage points to 9.14%. • Loss before tax narrowed 89.74% to RMB 47.71 million; net loss shrank 88.51% to RMB 53.10 million. • Adjusted net loss, excluding share-based payments, FX movements and tax, declined 91.70% to RMB 36.91 million. • Net loss margin improved from 14.67% to 1.81%.
Segment Performance 1. Intelligent Marketing Solutions – Revenue: RMB 2.61 billion, down 13.21%; share of group revenue: 88.84%. – Gross profit: RMB 95.18 million, up 96.35%; margin rose to 3.65%. – Served 1,535 advertisers (+9% YoY) across 395 verticals; online games, financial services and internet services contributed a combined 85.5% of segment sales. – AI adoption lifted content-creation efficiency by 50% and expanded AIGC output 15-fold.
2. E-commerce Service Solutions – Revenue: RMB 123.65 million (+74.64%). – Gross profit: RMB 67.21 million (+52.30%); margin at 54.36%. – Focus remained on high-potential personal-care category; one partner brand’s GMV exceeded RMB 100 million.
3. Innovative Business (Micro-short Plays & Related Content) – Revenue: RMB 204.19 million (previous year RMB 71.76 million). – Gross profit: RMB 106.09 million; margin at 51.96%. – Over 90 micro-short plays produced/distributed; first AI-generated titles launched.
Cash Flow & Balance Sheet • Operating cash flow remained positive; year-end cash and bank balances stood at RMB 396.72 million. • Interest-bearing bank borrowings decreased to RMB 329.03 million (2024: RMB 603.15 million). • Current ratio improved to 1.66 (times) and debt-to-asset ratio eased to 0.57 (times).
Strategic Priorities Netjoy reiterated its “platformization, diversification and internationalization” agenda, aiming to: • Intensify AI deployment across creative, distribution and analytics functions. • Deepen presence on emerging media channels and expand e-commerce coverage in high-growth verticals. • Pursue cross-border opportunities by supporting Chinese brands overseas and assisting foreign brands entering China.
Corporate Updates • Trading in Netjoy shares remains suspended since 1 April 2025 pending fulfilment of the Hong Kong Stock Exchange’s resumption guidance, including completion of forensic investigation, internal-control enhancements and publication of all outstanding financial information. • No dividend was proposed for 2025.
Outlook Management targets continued gross-margin expansion and sustainable growth by accelerating AI-driven efficiencies, broadening revenue streams and enhancing global reach, while working toward full regulatory compliance to resume share trading.