Benzinga | May 17, 2021 08:08AM EDT

Scienjoy Holding Enters Framework Agreement With Qingyin Culture; Co. To 'everage Qingyin Culture's content advantages to accelerate its deployment in the WeChat ecosystem'

Scienjoy Holding Corporation ("Scienjoy", the "Company") (NASDAQ:SJ), a leading live entertainment mobile streaming platform in China, today announced that it has entered into a strategic framework agreement with Qingyin (Beijing) Culture Technology Co., Ltd. ("Qingyin Culture"), a leading multi-channel network (MCN) on WeChat Channels, a short video platform embedded in WeChat.

As part of this agreement, Scienjoy will leverage Qingyin Culture's content advantages to accelerate its deployment in the WeChat ecosystem, build a closed loop of private domain traffic operation and market for its e-commerce business.

Qingyin Culture is a MCN that originated in the WeChat Channels ecosystem. Its primary user demographic is women aged 20 to 40 years old who live in first-tier to fourth-tier cities in China. Qingyin Culture operates livestreaming and integrates private domain e-commerce businesses, ranging from physical products to training courses. It carries out in-depth and efficient conversion of hundreds of millions of views at the operational and business levels into e-commerce sales. Qingyin Culture has achieved successful commercialization in both the advertising and e-commerce sectors, becoming one of the top MCNs in the WeChat Channels ecosystem in terms of the number of followers.

Over the last few years, China's short-video industry has witnessed rapid growth. According to the 47th Statistical Report on Internet Development in China released by the China Internet Network Information Center (CNNIC), by December 2020 the number of short-video users in the country reached 873 million, accounting for 88.3% of total national Internet users and representing a year-over-year increase of 100 million. Besides the popular short-video platforms Kuaishou and Douyin, WeChat Channels, which benefits from WeChat's super traffic entrance and existing social network functions, has become one of the largest short-video platforms and an important front for content creators and internet marketing one year after launch.

As Scienjoy endeavors to build a livestreaming ecosystem centered on e-commerce and entertainment, the development of cooperation agreements with MCNs will be a key driving force for the Company's future growth. The strategic cooperation between Scienjoy and Qingyin Culture will give full scope to the business and resource advantages of the two and further empower both parties in their respective fields through synergy and innovation. Drawing on Qingyin Culture's efficient conversion capabilities at the WeChat Channels account operation and commercial level, Scienjoy can quickly access the WeChat ecosystem for more business expansion in terms of WeChat livestreaming, private domain traffic conversion and e-commerce livestreaming. Qingyin Culture will also integrate Scienjoy's resources and technological advantages in the mobile entertainment livestreaming industry, and strengthen its position as one of the top MCNs on the WeChat Channels platform.

"MCN content production is an important part of our full mobile livestreaming ecosystem," commented Victor He, Chairman and CEO of Scienjoy. "Increasing exploration and cooperation in different industries will enable us to provide diversified value services for more Scienjoy users, and provide the Company with more favorable operation, traffic and business support, which may further enhance the Company's revenue capabilities and bring greater value to shareholders."