Shares of iHuman Inc. (NYSE: IH), a leading provider of tech-powered intellectual development products in China, soared by 23.42% on September 27, 2024, defying the company's mixed second-quarter financial results.

iHuman reported a 10.7% year-over-year decline in revenue to $29.6 million for the second quarter of 2024, attributing the drop to more conservative consumer spending. Additionally, the company's net income fell to $3.4 million, down from $42.1 million in the same period last year.

However, investors appeared to be focused on iHuman's strategic initiatives and growth prospects, which could offset the near-term financial challenges. The company's average total monthly active users (MAUs) rose 20.8% year-over-year to 24.57 million, reflecting strong user engagement and potential for future growth.

During the quarter, iHuman expanded its product lineup with the launch of the iHuman Pinyin Reader, designed to help children master Pinyin through interactive learning experiences. Additionally, the company's international expansion gained momentum, with its Cosmicrew franchise expanding into several global markets, including the United States, United Kingdom, Australia, and Singapore.

iHuman's healthy financial position, with $155.4 million in cash, cash equivalents, and time deposits as of June 30, 2024, also provided investors with confidence in the company's ability to continue investing in innovation and growth initiatives.