洪恩公佈2026年第一季業績 收入跌13.3%至1.825億元 淨收入挫83%

EX-99.1
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tm2619281d1_ex99-1.htm
EXHIBIT 99.1

 

 

Exhibit 99.1

 

 

iHuman Inc. Announces First Quarter 2026 Unaudited
Financial Results

 

BEIJING, China, Jun. 29, 2026 -- iHuman Inc.
(NYSE: IH) (“iHuman” or the “Company”), a leading provider of tech-powered knowledge and personal growth products,
today announced its unaudited financial results for the first quarter ended March 31, 2026.

 

First Quarter 2026 Highlights

 

·Revenues were RMB182.5 million
(US$26.5 million), compared with RMB210.4 million in the same period last year.

·Gross profit was RMB122.0 million
(US$17.7 million), compared with RMB143.8 million in the same period last year.

·Operating loss was RMB10.1 million
(US$1.5 million), compared with an operating income of RMB21.6 million in the same period last year.

·Net income was RMB4.5 million
(US$0.7 million), compared with RMB26.5 million in the same period last year.

·Average total MAUs1
for the first quarter were 23.62 million, compared with 26.51 million in the same period last year.

 

Dr. Peng Dai, Director and Chief Executive
Officer of iHuman, commented, “In the first quarter of 2026, we continued to navigate a challenging operating environment with focus
and resolve. While evolving demographic trends in China continued to create near-term pressure on our financial results in certain user
segments, we remained committed to strengthening our foundation for long-term growth by optimizing our existing offerings, accelerating
new product development, enhancing AI capabilities, and expanding our international presence. We believe these will further reinforce
our competitive positioning and prepare iHuman for its next phase of growth.

 

As part of our AI strategy, we continue to expand
the application of next-generation AI technologies across knowledge acquisition and personal development, enhancing our AI agent capabilities
to enable more interactive, personalized, and emotionally engaging user experiences. During the quarter, our AI-native app Xiaomo Writing
continued to evolve around the writing journey through Xiaoyudian, its core AI agent, which guides children in observing, thinking,
and expressing themselves. Built on adaptive interaction and long-term personalized memory, Xiaoyudian continuously learns each
user’s expression style, thinking patterns, and learning behaviors, enabling increasingly personalized support and encouragement
over time. The app also features a dedicated parent-facing AI agent that translates learning progress into clear and actionable insights,
helping parents better understand and participate in their children’s development. Unlike general-purpose AI learning tools, AI
agents designed around specific learning objectives and long-term learner development are better equipped to understand context, build
personalized knowledge over time, and provide targeted support. We believe this approach not only creates a differentiated product experience,
but also positions us to build a scalable AI agent ecosystem that can extend across broader learning scenarios and wider age groups over
time.

 

Beyond our product and AI innovation efforts,
we implemented the acquisition of the businesses and assets related to All Knowledge and Perfect Lingo, marking an important
milestone in expanding our product ecosystem, broadening our user reach across a wider range of ages and learning needs, and increasing
our total addressable market. We believe these additions will further enhance the depth and diversity of our ecosystem, strengthen our
AI innovation capabilities, and unlock exciting new opportunities to serve learners throughout every stage of their lifelong learning
journeys. We are also delighted to welcome Mr. Teng Li as Co-Chief Executive Officer and Ms. Congyu Lin as Chief Strategy Officer.
Their entrepreneurial vision, strategic insight, and extensive industry experience will strengthen our leadership team and help accelerate
our next phase of innovation and growth.

 

 

1
 “Average total MAUs” refers to the monthly average of the sum of the MAUs of each of the Company’s
apps during a specific period, which is counted based on the number of unique mobile devices through which such app is accessed at least
once in a given month, and duplicate access to different apps is not eliminated from the total MAUs calculation.

 

  1 

  

 

 

Looking ahead, we believe our expanding product
ecosystem, strengthening AI capabilities, and growing global user community will continue to reinforce iHuman’s long-term positioning
and drive continued growth.”

 

Mr. Teng Li, Co-Chief Executive Officer of
iHuman, stated, “I am excited to join iHuman at such an important stage of its development. All Knowledge and Perfect
Lingo share iHuman’s longstanding commitment to leveraging technology, high-quality content, and thoughtful product design to
create engaging and meaningful learning experiences. Through All Knowledge, we have built a vibrant community for knowledge discovery
and lifelong learning, combining rich humanities content, AI literacy, and innovative learning tools to support intellectual exploration
and continuous personal growth. Perfect Lingo is an AI-powered language learning platform that combines personalized learning with
rich, real-world content, helping users across a broad range of ages and backgrounds build language proficiency. We see strong alignment
in vision and values, as well as significant opportunities to build on each other’s strengths. By bringing together our complementary
products, content assets, user communities, and AI capabilities, we believe we can create richer learning experiences, reach a broader
range of users, and accelerate innovation and growth across our ecosystem. I look forward to working closely with the team as we continue
building products that inspire curiosity, support lifelong learning, and create lasting value for our users.”

 

Ms. Vivien Weiwei Wang, Director and Chief
Financial Officer of iHuman, added, “During the quarter, we remained focused on execution while continuing to invest in the key
capabilities and strategic initiatives that we believe will support our long-term growth. As part of this strategy, we intentionally increased
investments in new product exploration and development, AI capabilities, international market expansion, and targeted marketing initiatives
designed to strengthen our long-term competitive position. We are prioritizing long-term value creation. While these investments impacted
our near-term financial results, we believe they will enhance our innovation capabilities, broaden our growth opportunities, and create
a stronger foundation for sustainable growth over the long-term.

 

Our existing IP portfolio continued to demonstrate
enduring appeal among children and families. At Kunpeng Animation Studio, we further strengthened our original animation capabilities
and continued expanding the Cosmicrew universe. Recently, we launched Little Cosmicrew, a new series centered on the childhood
stories of the beloved Cosmicrew characters. By exploring the friendships, adventures, and formative experiences that shaped these
characters before they became the heroes audiences know today, the series delivers a relatable and emotionally engaging viewing experience
for young audiences, further deepening audience affinity and extending the long-term vitality of the Cosmicrew franchise.

 

Moving forward, we will continue investing in
high-quality content development, AI-driven innovation, international expansion, and user engagement, while maintaining a thoughtful approach
to capital allocation and investment efficiency. We believe these strategic investments will further strengthen our competitive position
and create sustainable long-term value for our users and shareholders.”

 

First Quarter 2026 Unaudited Financial Results

 

Revenues

 

Revenues were RMB182.5 million (US$26.5 million),
compared with RMB210.4 million in the same period last year. The decrease in revenues was primarily due to the decline in China’s
newborn population and more conservative consumer spending.

 

Average total MAUs for the quarter were 23.62
million, compared with 26.51 million in the same period last year. The decrease in MAUs was primarily due to the decline in China’s
newborn population.

 

Cost of Revenues

 

Cost of revenues was RMB60.5 million (US$8.8 million),
compared with RMB66.7 million in the same period last year. The decline in cost of revenues was in line with the decrease in revenues.

 

  2 

  

 

 

Gross Profit and Gross Margin

 

Gross profit was RMB122.0 million (US$17.7 million),
compared with RMB143.8 million in the same period last year. Gross margin was 66.8%, compared with 68.3% in the same period last year.

 

Operating Expenses

 

Total operating expenses were RMB132.1 million
(US$19.1 million), an increase of 8.1% from RMB122.2 million in the same period last year.

 

Research and development expenses were RMB56.5
million (US$8.2 million), compared with RMB55.4 million in the same period last year.

 

Sales and marketing expenses were RMB50.2 million (US$7.3 million),
an increase of 21.6% from RMB41.3 million in the same period last year, primarily due to increased strategic spending on promotional activities
and brand enhancement.

 

General and administrative expenses were RMB25.4
million (US$3.7 million), compared with RMB25.5 million in the same period last year.

 

Operating Income (Loss)

 

Operating loss was RMB10.1 million (US$1.5 million),
compared with an operating income of RMB21.6 million in the same period last year.

 

Net Income

 

Net income was RMB4.5 million (US$0.7 million),
compared with RMB26.5 million in the same period last year.

 

Basic and diluted net income per ADS were RMB0.09
(US$0.01) and RMB0.09 (US$0.01), respectively, compared with RMB0.51 and RMB0.49 in the same period last year. Each ADS represents five
Class A ordinary shares of the Company.

 

Deferred Revenue and Customer Advances

 

Deferred revenue and customer advances were RMB208.1
million (US$30.2 million) as of March 31, 2026, compared with RMB219.9 million as of December 31, 2025.

 

Cash, Cash Equivalents and Short-term Investments

 

Cash, cash equivalents and short-term investments
were RMB1,099.9 million (US$159.5 million) as of March 31, 2026, compared with RMB1,151.1 million as of December 31, 2025. The
decrease was primarily due to the payment of annual bonuses to employees in the first quarter.

 

Acquisition of Businesses and Assets

 

Following the execution of the asset transfer
agreements announced on May 31, 2026, integration activities relating to the acquisitions of the businesses and assets of All
Knowledge (全知识) and Perfect Lingo (万词王) (the “Acquisitions”) are progressing
as planned. The acquisitions are expected to further expand the Company’s product ecosystem and user reach while strengthening its
AI capabilities across broader learning scenarios. The total consideration consists of upfront payments of RMB67.0 million for All
Knowledge and RMB27.0 million for Perfect Lingo, subject to potential purchase price adjustments. The purchase prices would
be adjusted downward to RMB51.0 million for All Knowledge and RMB21.0 million for Perfect Lingo if certain material adverse
events occur. In addition, the sellers may be entitled to contingent earn-out payments of up to RMB29.0 million for All Knowledge
and RMB12.0 million for Perfect Lingo in cash, subject to the achievement of certain financial conditions over the next three years.
The transaction pricing was supported by an independent third-party valuation prepared by a Big Four accounting firm. As previously disclosed,
the Acquisitions constitute related party transactions due to common control between the sellers and the Company, and have been approved
by the Company’s board of directors and audit committee.

 

  3 

  

 

 

Exchange Rate Information

 

The U.S. dollar (US$) amounts disclosed in this
press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience
of the reader. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical
release of the Board of Governors of the Federal Reserve System as of March 31, 2026, which was RMB6.8980 to US$1.00. The percentages
stated in this press release are calculated based on the RMB amounts.

 

Non-GAAP Financial Measures

 

iHuman considers and uses non-GAAP financial measures,
such as adjusted operating income (loss), adjusted net income and adjusted diluted net income per ADS, as supplemental metrics in reviewing
and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles
generally accepted in the United States of America (“U.S. GAAP”). iHuman defines adjusted operating income (loss), adjusted
net income and adjusted diluted net income per ADS as operating income (loss), net income and diluted net income per ADS excluding share-based
compensation expenses, respectively. Adjusted operating income (loss), adjusted net income and adjusted diluted net income per ADS enable
iHuman’s management to assess its operating results without considering the impact of share-based compensation expenses, which are
non-cash charges. iHuman believes that these non-GAAP financial measures provide useful information to investors in understanding and
evaluating the Company’s current operating performance and prospects in the same manner as management does, if they so choose.

 

Non-GAAP financial measures are not defined under
U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which
possibly do not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue
to be incurred in our business and are not reflected in the presentation of the non-GAAP financial measures. In addition, the non-GAAP
financial measures iHuman uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore
their comparability may be limited. The presentation of these non-GAAP financial measures is not intended to be considered in isolation
from or as a substitute for the financial information prepared and presented in accordance with GAAP.

 

Safe Harbor Statement

 

This announcement contains forward-looking statements.
These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,”
 “future,” “intends,” “plans,” “believes,” “estimates” and similar statements.
Statements that are not historical facts, including statements about iHuman’s beliefs and expectations, are forward-looking statements.
Among other things, the description of the management’s quotations in this announcement contains forward-looking statements. iHuman
may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”),
in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors
or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual
results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iHuman’s
growth strategies; its future business development, financial condition and results of operations; its ability to continue to attract
and retain users, convert non-paying users into paying users and increase the spending of paying users, the trends in, and size of, the
market in which iHuman operates; its expectations regarding demand for, and market acceptance of, its products and services; its expectations
regarding its relationships with business partners; general economic and business conditions; regulatory environment; and assumptions
underlying or related to any of the foregoing. Further information regarding these and other risks is included in iHuman’s filings
with the SEC. All information provided in this press release is as of the date of this press release, and iHuman does not undertake any
obligation to update any forward-looking statement, except as required under applicable law.

 

  4 

  

 

 

About iHuman Inc.

 

iHuman Inc. is a leading provider of tech-powered
knowledge and personal growth products. Backed by 30 years of experience serving children and families, iHuman combines cutting-edge technologies,
a distinctive edutainment philosophy, and high-quality original content to help users expand their horizons, unlock their potential, and
foster personal growth. The Company has built a comprehensive product ecosystem spanning interactive digital applications, smart devices,
consumer products, and a popular, award-winning animation division. By integrating AI, machine learning, AR/VR, 3D engines, and big data
analytics with meticulously crafted content, iHuman delivers engaging and highly personalized experiences for users of all ages, helping
them acquire knowledge, develop skills, and enhance their overall capabilities. Through its rapidly expanding international presence,
iHuman is cultivating a vibrant global user community and extending the reach of its products, content, and proprietary IPs to families
and users around the world.

 

For more information about iHuman, please visit:
https://ir.ihuman.com/

 

For investor and media enquiries, please contact:

 

iHuman Inc. 

Mr. Justin Zhang

Investor Relations Director

Phone: +86-10-5780-6606

E-mail: [email protected]

 

Christensen Advisory

Ms. Alice Li

Phone: +86-10-5900-1548

E-mail: [email protected]

 

  5 

  

 

 

iHuman Inc.

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands of Renminbi (“RMB”)
and U.S. dollars (“US$”)

except for number of shares, ADSs, per share
and per ADS data)

 

 
   
 December 31,  
 March 31,  
 March 31, 

 
   
 2025  
 2026  
 2026 

 
   
  RMB  
  RMB  
  US$ 

 
 ASSETS 
     
     
    

 
 Current assets 
     
     
    

 
 Cash and cash equivalents 
  1,151,120  
  356,478  
  51,678 

 
 Short-term investments 
  -  
  743,457  
  107,779 

 
 Accounts receivable, net 
  47,070  
  51,452  
  7,459 

 
 Inventories, net 
  21,388  
  27,828  
  4,034 

 
 Amounts due from related parties 
  4,314  
  3,340  
  484 

 
 Prepayments and other current assets 
  74,483  
  76,036  
  11,023 

 
 Total current assets 
  1,298,375  
  1,258,591  
  182,457 

 
 Non-current assets 
     
     
    

 
 Property and equipment, net 
  2,563  
  2,682  
  389 

 
 Intangible assets, net 
  17,634  
  17,103  
  2,479 

 
 Operating lease right-of-use assets 
  11,586  
  11,146  
  1,616 

 
 Long-term investment 
  26,333  
  26,333  
  3,817 

 
 Other non-current assets 
  11,864  
  11,509  
  1,669 

 
 Total non-current assets 
  69,980  
  68,773  
  9,970 

 
 Total assets 
  1,368,355  
  1,327,364  
  192,427 

 
   
     
     
    

 
 LIABILITIES 
     
     
    

 
 Current liabilities 
     
     
    

 
 Accounts payable 
  25,083  
  28,123  
  4,077 

 
 Deferred revenue and customer advances 
  219,913  
  208,085  
  30,166 

 
 Amounts due to related parties 
  1,066  
  2,397  
  347 

 
 Accrued expenses and other current liabilities 
  115,749  
  83,313  
  12,078 

 
 Dividend payable 
  -  
  35,477  
  5,143 

 
 Current operating lease liabilities 
  2,166  
  2,166  
  314 

 
 Total current liabilities 
  363,977  
  359,561  
  52,125 

 
 Non-current liabilities 
     
     
    

 
 Non-current operating lease liabilities 
  9,208  
  8,799  
  1,276 

 
 Total non-current liabilities 
  9,208  
  8,799  
  1,276 

 
 Total liabilities 
  373,185  
  368,360  
  53,401 

 
 SHAREHOLDERS’ EQUITY 
     
     
    

 
 Ordinary shares (par value of US$0.0001 per share, 700,000,000 Class A shares authorized as of December 31, 2025 and March 31, 2026; 125,122,382 Class A shares issued and 111,541,887 outstanding as of December 31, 2025; 125,122,382 Class A shares issued and 111,564,312 outstanding as of March 31, 2026; 200,000,000 Class B shares authorized, 144,000,000 Class B ordinary shares issued and outstanding as of December 31, 2025 and March 31, 2026; 100,000,000 shares (undesignated) authorized, nil shares (undesignated) issued and outstanding as of December 31, 2025 and March 31, 2026) 
  186  
  186  
  27 

 
 Additional paid-in capital 
  960,641  
  960,720  
  139,275 

 
 Treasury stock 
  (43,483) 
  (43,483) 
  (6,304)

 
 Statutory reserves 
  8,463  
  8,463  
  1,227 

 
 Accumulated other comprehensive income 
  16,134  
  10,770  
  1,561 

 
 Retained earnings 
  53,229  
  22,348  
  3,240 

 
 Total shareholders’ equity 
  995,170  
  959,004  
  139,026 

 
 Total liabilities and shareholders’ equity 
  1,368,355  
  1,327,364  
  192,427 

 

 

  6 

  

 

 

iHuman Inc.

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS

 

(Amounts in thousands of Renminbi (“RMB”)
and U.S. dollars (“US$”)

except for number of shares, ADSs, per share
and per ADS data)

 

 
   
 For the three months ended 

 
   
 March 31,  
 March 31,  
 March 31, 

 
   
 2025  
 2026  
 2026 

 
   
 RMB  
 RMB  
 US$ 

 
 Revenues 
  210,439  
  182,496  
  26,456 

 
 Cost of revenues 
  (66,663) 
  (60,520) 
  (8,774)

 
   
     
     
    

 
 Gross profit 
  143,776  
  121,976  
  17,682 

 
   
     
     
    

 
 Operating expenses 
     
     
    

 
 Research and development expenses 
  (55,385) 
  (56,500) 
  (8,191)

 
 Sales and marketing expenses 
  (41,255) 
  (50,175) 
  (7,274)

 
 General and administrative expenses 
  (25,539) 
  (25,388) 
  (3,680)

 
 Total operating expenses 
  (122,179) 
  (132,063) 
  (19,145)

 
 Operating income (loss) 
  21,597  
  (10,087) 
  (1,463)

 
 Other income, net 
  8,000  
  14,611  
  2,118 

 
 Income before income taxes 
  29,597  
  4,524  
  655 

 
 Income tax expenses 
  (3,079) 
  (8) 
  (1)

 
 Net income 
  26,518  
  4,516  
  654 

 
   
     
     
    

 
 Net income per ADS: 
     
     
    

 
 - Basic 
  0.51  
  0.09  
  0.01 

 
 - Diluted 
  0.49  
  0.09  
  0.01 

 
   
     
     
    

 
 Weighted average number of ADSs: 
     
     
    

 
 - Basic 
  51,888,345  
  51,109,944  
  51,109,944 

 
 - Diluted 
  53,884,134  
  53,060,129  
  53,060,129 

 
   
     
     
    

 
 Total share-based compensation expenses included in: 
     
     
    

 
 Cost of revenues 
  8  
  3  
  0 

 
 Research and development expenses 
  110  
  32  
  5 

 
 Sales and marketing expenses 
  16  
  (15) 
  (2)

 
 General and administrative expenses 
  104  
  28  
  4 

 

 

  7 

  

 

 

iHuman Inc.

 

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP
RESULTS

 

(Amounts in thousands of
Renminbi (“RMB”) and U.S. dollars (“US$”)

except for number of shares, ADSs, per share
and per ADS data)

 

 
   
 For the three months ended 

 
   
 March 31,  
 March 31,  
 March 31, 

 
   
 2025  
 2026  
 2026 

 
   
 RMB  
 RMB  
 US$ 

 
 Operating income (loss) 
  21,597  
  (10,087) 
  (1,463)

 
 Share-based compensation expenses 
  238  
  48  
  7 

 
 Adjusted operating income (loss) 
  21,835  
  (10,039) 
  (1,456)

 
   
     
  　  
  　 

 
 Net income 
  26,518  
  4,516  
  654 

 
 Share-based compensation expenses 
  238  
  48  
  7 

 
 Adjusted net income 
  26,756  
  4,564  
  661 

 
   
     
     
    

 
 Diluted net income per ADS 
  0.49  
  0.09  
  0.01 

 
 Impact of non-GAAP adjustments 
  0.01  
  0.00  
  0.00 

 
 Adjusted diluted net income per ADS 
  0.50  
  0.09  
  0.01 

 
   
     
     
    

 
 Weighted average number of ADSs – diluted 
  53,884,134  
  53,060,129  
  53,060,129 

 
 Weighted average number of ADSs – adjusted 
  53,884,134  
  53,060,129  
  53,060,129 

 

 

  8