Beijing, China – Despite having a healthy cash reserve, Sohu, a Chinese internet company, is facing challenges due to a decline in advertising revenue and ongoing issues in its gaming division.

The company, known for its online portal and gaming platforms, reported a decrease in advertising earnings, leading to a 20% drop in total revenue. Sohu’s gaming business is also struggling, with a decrease in revenue and active user numbers.

Sohu’s attempt to diversify its revenue streams through e-commerce and search services has not been successful in offsetting the losses in its core advertising and gaming businesses. The company’s stock price has reflected these challenges, declining over 30% in the past year.

As a result, Sohu is looking into cost-cutting measures and restructuring to improve profitability. The company is also exploring potential partnerships and collaborations to boost its online presence and offerings.

Despite these efforts, Sohu acknowledges that the road ahead may be difficult, especially with the uncertainty surrounding the future of the advertising and gaming industries in China. The company remains cautious but optimistic about its ability to navigate these challenges and emerge stronger in the long run.