ACROFAN

HUYA Inc. Reports Second Quarter 2021 Unaudited Financial Results

GUANGZHOU, China, Aug. 17, 2021 /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game live streaming platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2021. Second Quarter 2021 Highlights Total net revenues for the second quarter of 2021 increased by 9.8% to RMB2,962.4 million (US$458.8 million), from RMB2,697.2 million for the same period of 2020. Net income attributable to HUYA Inc. was RMB186.3 million (US$28.8 million) for the second quarter of 2021, compared with RMB206.8 million for the same period of 2020. Non-GAAP net income attributable to HUYA Inc.[1] was RMB250.1 million (US$38.7 million) for the second quarter of 2021, compared with RMB331.0 million for the same period of 2020. Average mobile MAUs[2] of Huya Live in the second quarter of 2021 increased by 2.6% to 77.6 million, from 75.6 million in the same period of 2020. Total number of paying users[3] of Huya Live in the second quarter of 2021 reached 5.6 million, compared with 6.2 million in the same period of 2020. "In the second quarter, we amplified our efforts in enriching our content offerings and attracting users, which drove steady growth of mobile users. Average mobile MAUs of Huya Live reached 77.6 million in the second quarter of 2021," said Mr. Rongjie Dong, Chief Executive Officer of Huya. "Going forward, it is crucial for us to continue to expand our content ecosystem and optimize user experience in order to solidify our foundation for future growth opportunities." Ms. Catherine Liu, Chief Financial Officer of Huya, commented, "Our strong execution capabilities sustained our top-line growth in the quarter, resulting in a 9.8% year-over-year increase in total net revenues to RMB2,962.4 million. We will remain firmly committed to our corporate strategy of investing in quality content, growing user base and improving monetization to maintain and strengthen our leading position in the game live streaming industry." [1] "Non-GAAP net income attributable to HUYA Inc." is defined as net income attributable to HUYA Inc. before share-based compensation expenses, gain on fair value change of investments and equity investee's investments, and equity investee's partial disposal of its investment, net of income taxes. For more information, please refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release. [2] Refers to average monthly active users on mobile apps. Average mobile MAUs for any period is calculated by dividing (i) the sum of active users on the mobile apps for each month during such relevant period, by (ii) the number of months during such relevant period. [3] Refers to the sum of user accounts that purchased various products and services on our platform at least once during such relevant period. Second Quarter 2021 Financial Results Total net revenues for the second quarter of 2021 increased by 9.8% to RMB2,962.4 million (US$458.8 million), from RMB2,697.2 million for the same period of 2020. Live streaming revenues increased by 0.6% to RMB2,579.2 million (US$399.5 million) for the second quarter of 2021, from RMB2,565.1 million for the same period of 2020, primarily due to the increase in the overseas live streaming revenues. Advertising and other revenues increased by 189.9% to RMB383.2 million (US$59.4 million) for the second quarter of 2021, from RMB132.2 million for the same period of 2020, primarily driven by the revenues from licensing of content. Cost of revenues increased by 12.2% to RMB2,381.1 million (US$368.8 million) for the second quarter of 2021 from RMB2,122.2 million for the same period of 2020, primarily attributable to the increase in revenue sharing fees and content costs. Revenue sharing fees and content costs increased by 21.2% to RMB2,039.2 million (US$315.8 million) for the second quarter of 2021 from RMB1,682.9 million for the same period of 2020, primarily due to the increase in revenue sharing fees, and the increase in spending in e-sports content and on content creators. Bandwidth costs decreased by 35.3% to RMB171.4 million (US$26.5 million) for the second quarter of 2021 from RMB264.8 million for the same period of 2020, primarily due to improved bandwidth cost management and continued technology enhancement efforts. Gross profit increased by 1.1% to RMB581.3 million (US$90.0 million) for the second quarter of 2021 from RMB575.0 million for the same period of 2020. Gross margin was 19.6% for the second quarter of 2021, compared with 21.3% for the same period of 2020. Research and development expenses increased by 15.6% to RMB207.9 million (US$32.2 million) for the second quarter of 2021 from RMB179.9 million for the same period of 2020, primarily attributable to increased personnel-related expenses. Sales and marketing expenses increased by 45.9% to RMB167.0 million (US$25.9 million) for the second quarter of 2021 from RMB114.5 million for the same period of 2020, primarily attributable to increased marketing expenses to promote the Company's content, products, services and brand name. General and administrative expenses decreased by 48.5% to RMB72.1 million (US$11.2 million) for the second quarter of 2021 from RMB140.0 million for the same period of 2020, primarily due to lower share-based compensation expenses. Operating income increased by 0.3% to RMB181.9 million (US$28.2 million) for the second quarter of 2021 from RMB181.4 million for the same period of 2020. Operating margin was 6.1% for the second quarter of 2021, compared with 6.7% for the same period of 2020. Interest and short-term investments income was RMB57.7 million (US$8.9 million) for the second quarter of 2021, compared with RMB77.7 million for the same period of 2020, primarily attributable to decreased interest rates. Income tax expenses increased by 13.7% to RMB58.3 million (US$9.0 million) for the second quarter of 2021 from RMB51.3 million for the same period of 2020. Net income attributable to HUYA Inc. for the second quarter of 2021 was RMB186.3 million (US$28.8 million), compared with RMB206.8 million for the same period of 2020. Non-GAAP net income attributable to HUYA Inc. for the second quarter of 2021, which excludes share-based compensation expenses, gain on fair value change of investments and equity investee's investments, and equity investee's partial disposal of its investment, net of income taxes, was RMB250.1 million (US$38.7 million), compared with RMB331.0 million for the same period of 2020. Diluted net income per American depositary share ("ADS") was RMB0.77 (US$0.12) for the second quarter of 2021, compared with RMB0.87 for the same period of 2020. Each ADS represents one Class A ordinary share of the Company. Non-GAAP diluted net income per ADS was RMB1.04 (US$0.16) for the second quarter of 2021, compared with RMB1.40 for the same period of 2020. Balance Sheets and Cash Flow As of June 30, 2021, the Company had cash and cash equivalents, short-term deposits and short-term investments of RMB10,738.2 million (US$1,663.1 million), compared with RMB10,651.1 million as of March 31, 2021. The increase was primarily due to net cash provided by operating activities of RMB173.6 million (US$26.9 million) for the second quarter of 2021. Conference Call The Company's management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time on August 17, 2021 (7:00 p.m. Beijing/Hong Kong time on August 17, 2021). For participants who wish to join the call, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, Direct Event passcode, a unique registrant ID and an e-mail with detailed instructions to join the conference call. Participant Online Registration: https://apac.directeventreg.com/registration/event/4068808 After registration is complete, please dial-in at least 10 minutes before the scheduled start time of the earnings call and enter the Direct Event passcode and registrant ID as instructed to connect to the call. Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.huya.com. A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until August 23, 2021, by dialing the following telephone numbers: United States: +1-646-254-3697 International: +61-2-8199-0299 Hong Kong, China: +852-3051-2780 Replay Access Code: 4068808 About HUYA Inc. HUYA Inc. is a leading game live streaming platform in China with a large and active game live streaming community. The Company cooperates with e-sports event organizers, as well as major game developers and publishers, and has developed e-sports live streaming as one of the most popular content genres on its platform. The Company has created an engaged, interactive and immersive community for game enthusiasts of China's young generation. Building on its success in game live streaming, Huya has also extended its content to other entertainment content genres. Huya's open platform also functions as a marketplace for broadcasters and talent agencies to congregate and closely collaborate with the Company. Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. Huya uses non-GAAP gross profit, non-GAAP operating income, non-GAAP net income attributable to HUYA Inc., non-GAAP net income attributable to ordinary shareholders, and non-GAAP basic and diluted net income per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses allocated in cost of revenues. Non-GAAP operating income is operating income excluding share-based compensation expenses. Non-GAAP net income attributable to HUYA Inc. is net income attributable to HUYA Inc. excluding share-based compensation expenses, gain on fair value change of investments and equity investee's investments, and equity investee's partial disposal of its investment, net of income taxes. Non-GAAP net income attributable to ordinary shareholders is net income attributable to ordinary shareholders excluding share-based compensation expenses, gain on fair value change of investments and equity investee's investments, and equity investee's partial disposal of its investment, net of income taxes. Non-GAAP basic and diluted net income per ADS is non-GAAP net income attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ADS. The Company believes that separate analysis and exclusion of the impact of (i) share-based compensation expenses, and (ii) gain on fair value change of investments and equity investee's investments, and equity investee's partial disposal of its investment, net of income taxes add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the effect of (i) share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business, and (ii) gain on fair value change of investments and equity investee's investments, and equity investee's partial disposal of its investment, net of income taxes, which both may recur when there is observable price change in the future. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. 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 U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "HUYA Inc. Reconciliations of GAAP and Non-GAAP Results" near the end of this release. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.4566 to US$1.00, the rate in effect as of June 30, 2021 as certified for customs purposes by the Federal Reserve Bank of New York. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. 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. Among other things, the business outlook and quotations from management in this announcement, as well as Huya's strategic and operational plans, contain forward-looking statements. Huya may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("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. Statements that are not historical facts, including statements about Huya's beliefs and expectations, are forward-looking statements. 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: Huya's goals and strategies; Huya's future business development, results of operations and financial condition; the expected growth of the game live streaming market; the expectation regarding the rate at which to gain active users, especially paying users; Huya's ability to monetize the user base; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to Huya's business operations and the economy in China and elsewhere generally; any adverse changes in laws, regulations, rules, policies or guidelines applicable to Huya; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huya's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Huya does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China: HUYA Inc.Investor RelationsTel: +86-20-2290-7829E-mail: ir@huya.com The Piacente Group, Inc.Jenny CaiTel: +86-10-6508-0677E-mail: huya@tpg-ir.com In the United States: The Piacente Group, Inc. Brandi PiacenteTel: +1-212-481-2050E-mail: huya@tpg-ir.com HUYA INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except share, ADS, per share data and per ADS data) As of December 31, As of June 30, 2020 2021 2021 RMB RMB US$ Assets Current assets Cash and cash equivalents 3,293,573 3,262,190 505,249 Restricted cash and short-term deposits 164,889 110,341 17,090 Short-term deposits 5,974,790 6,371,240 986,779 Short-term investments 1,206,539 1,104,743 171,103 Accounts receivable, net 71,237 91,819 14,220 Amounts due from related parties, net 64,802 193,915 30,034 Prepayments and other current assets, net 495,108 639,344 99,022 Total current assets 11,270,938 11,773,592 1,823,497 Non-current assets Deferred tax assets 48,313 57,425 8,894 Investments 467,206 504,944 78,206 Property and equipment, net 94,555 86,905 13,460 Intangible assets, net 62,796 94,915 14,700 Right-of-use assets, net 87,418 95,145 14,736 Prepayments and other non-current assets 379,461 393,789 60,990 Total non-current assets 1,139,749 1,233,123 190,986 Total assets 12,410,687 13,006,715 2,014,483 Liabilities and shareholders' equity Current liabilities Accounts payable 10,083 56,130 8,693 Advances from customers and deferred revenue 485,878 375,636 58,179 Income taxes payable 56,861 18,619 2,884 Accrued liabilities and other current liabilities 1,707,289 1,775,771 275,030 Amounts due to related parties 95,457 266,219 41,232 Lease liabilities due within one year 29,227 36,421 5,641 Total current liabilities 2,384,795 2,528,796 391,659 Non-current liabilities Lease liabilities 57,620 59,460 9,209 Deferred tax liabilities 13,350 11,900 1,843 Deferred revenue 178,144 170,845 26,461 Total non-current liabilities 249,114 242,205 37,513 Total liabilities 2,633,909 2,771,001 429,172 HUYA INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except share, ADS, per share data and per ADS data) As of December 31, As of June 30, 2020 2021 2021 RMB RMB US$ Shareholders' equity Class A ordinary shares (US$0.0001 par value; 750,000,000 shares authorized as of December 31, 2020 and June 30, 2021, respectively; 83,490,841 and 84,742,413 shares issued and outstanding as of December 31, 2020 and June 30, 2021, respectively) 55 56 9 Class B ordinary shares (US$0.0001 par value; 2 00,000,000 shares authorized as of December 31, 2020 and June 30, 2021, respectively; 152,357,321 and 152,357,321 shares issued and outstanding as of December 31, 2020 and June 30, 2021, respectively) 100 100 15 Additional paid-in capital 11,465,575 11,617,578 1,799,334 Statutory reserves 122,429 122,429 18,962 Accumulated deficit (1,883,643) (1,511,854) (234,156) Accumulated other comprehensive income 72,262 7,405 1,147 Total shareholders' equity 9,776,778 10,235,714 1,585,311 Total liabilities and shareholders' equity 12,410,687 13,006,715 2,014,483 HUYA INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (All amounts in thousands, except share, ADS, per share data and per ADS data) Three Months Ended Six Months Ended June 30,2020 March 31,2021 June 30,2021 June 30,2021 June 30,2020 June 30,2021 June 30,2021 RMB RMB RMB US$ RMB RMB US$ Net revenues Live streaming 2,565,057 2,392,275 2,579,178

DouYu International Holdings Limited Reports Second Quarter 2021 Unaudited Financial Results

WUHAN, China, Aug. 16, 2021 /PRNewswire/ -- DouYu International Holdings Limited ("DouYu" or the "Company") (Nasdaq: DOYU), a leading game-centric live streaming platform in China and a pioneer in the eSports value chain, today announced its unaudited financial results for the second quarter ended June 30, 2021. Second Quarter 2021 Financial and Operational Highlights Total net revenues in the second quarter of 2021 were RMB2,336.8 million (US$361.9 million), compared with RMB2,508.2 million in the same period of 2020. Gross profit in the second quarter of 2021 was RMB306.5 million (US$47.5 million), compared with RMB522.9 million in the same period of 2020. Net loss in the second quarter of 2021 was RMB181.7 million (US$28.1 million), compared with a net income of RMB319.3 million in the same period of 2020. Adjusted net loss in the second quarter of 2021 was RMB145.1 million (US$22.5 million), compared with an adjusted net income of RMB322.9 million in the same period of 2020. Average mobile MAUs in the second quarter of 2021 increased by 3.9% to 60.7 million from 58.4 million in the same period of 2020. Quarterly average paying user count in the second quarter of 2021 was 7.2 million, compared with 7.6 million in the same period of 2020. Mr. Shaojie Chen, Chief Executive Officer of DouYu, commented, "Our core operating metric continued to grow at a steady pace in the second quarter of 2021, with our quarterly average mobile MAUs increased by 3.9% year over year to 60.7 million. Looking ahead, we plan to continue expanding our content ecosystem both upstream and downstream to cover each link of the game industry value chain. We will also bolster our industry leadership through the continuous execution of our live streaming, video, content, and community strategies." Mr. Hao Cao, Vice President of DouYu, commented, "In the second quarter of 2021, our total revenues were RMB2.34 billion and gross profit was RMB307 million, representing a gross margin of 13.1%. During the quarter, we continued to increase our investments in proprietary content production while further upgrading the functions and content of our video and community related products. Going forward, we will continue exploring new methods to improve our monetization capabilities and generate long-term shareholder value." Second Quarter 2021 Financial Results Total net revenues in the second quarter of 2021 were RMB2,336.8 million (US$361.9 million), compared with RMB2,508.2 million in the same period of 2020. Live streaming revenues in the second quarter of 2021 were RMB2,178.1 million (US$337.3 million), compared with RMB2,319.9 million in the same period of 2020. The decrease in year-over-year comparison was mostly due to the decrease in user time as a result of the recovery from the COVID-19 pandemic and less stay-at-home time. This decline was partially offset by increased mobile MAU and improvements in user engagement as a result of the Company's increased sales and marketing initiatives. Advertising and other revenues in the second quarter of 2021 were RMB158.7 million (US$24.6 million), compared with RMB188.3 million in the same period of 2020. The year-over-year decrease was primarily attributable to the trend of game advertisers normalizing their marketing expenditures, which were relatively higher in the same period last year due to the COVID-19 pandemic. Cost of revenues in the second quarter of 2021 was RMB2,030.2 million (US$314.4 million), compared with RMB1,985.3 million in the same period of 2020. This increase was primarily due to revenue sharing fees and content costs increased by RMB51.9 million, partially offset by bandwidth costs decreased by RMB6.6 million. Revenue sharing fees and content costs in the second quarter of 2021 increased by 3.0% to RMB1,806.8 million (US$279.8 million) from RMB1,754.9 million in the same period of 2020. This increase was due to the Company's increased investments in the broadcasting rights for eSports tournaments, in-house production of PGC contents, and quality streamers in the overseas market. Bandwidth costs in the second quarter of 2021 decreased by 3.9% to RMB161.8 million (US$25.1 million) from RMB168.4 million in the same period of 2020. This decrease was mainly due to continuous in-house technology upgrades, which led to higher bandwidth efficiency and lower bandwidth usage costs. Gross profit in the second quarter of 2021 was RMB306.5 million (US$47.5 million), compared with RMB522.9 million in the same period of 2020. Gross margin in the second quarter of 2021 was 13.1%, compared with 20.8% in the same period of 2020. This decrease was primarily due to the increase in content costs and the decrease in revenues, partially offset by the decrease in bandwidth costs. Sales and marketing expenses in the second quarter of 2021 were RMB295.0 million (US$45.7 million), compared with RMB142.1 million in the same period of 2020. This increase was mainly attributable to the increased promotional channels for user acquisition and increased promotions and branding activities. Research and development expenses in the second quarter of 2021 were RMB123.0 million (US$19.1 million), compared with RMB94.9 million in the same period of 2020. This increase was primarily attributable to additional investments in technical personnel due to Company's further overseas expansion and technology infrastructure upgrade to enhance user experience. General and administrative expenses in the second quarter of 2021 were RMB102.6 million (US$15.9 million), compared with RMB79.5 million in the same period of 2020. This increase was primarily due to the increase in professional service fees during the quarter. Other operating income, net in the second quarter of 2021 was RMB16.7 million (US$2.6 million), compared with RMB32.5 million in the same period of 2020. Loss from operations in the second quarter of 2021 was RMB197.4 million (US$30.6 million), compared with a profit from operations of RMB238.9 million in the same period of 2020. Adjusted operating loss in the second quarter of 2021, which adds back share-based compensation expenses, was RMB165.1 million (US$25.6 million), compared with an adjusted operating income of RMB272.7 million in the same period of 2020. Income tax expenses in the second quarter of 2021 and 2020 were nil due to the Company's cumulative net losses and the resulting tax loss carry forward. Net loss in the second quarter of 2021 was RMB181.7 million (US$28.1 million), compared with a net income of RMB319.3 million in the same period of 2020. Adjusted net loss in the second quarter of 2021, which excludes share-based compensation expenses, share of income in equity method investments, and impairment loss of investments, was RMB145.1 million (US$22.5 million), compared with an adjusted net income of RMB322.9 million in the same period of 2020.2 Basic and diluted net loss per ADS[1] in the second quarter of 2021 were RMB0.45 (US$0.07) and RMB0.45 (US$0.07) respectively. Adjusted basic and diluted net loss per ADS in the second quarter of 2021 were RMB0.35 (US$0.05) and RMB0.35 (US$0.05) respectively. [1] Every ten ADSs represent one ordinary share. Conference Call Information The Company will hold a conference call on Monday, Aug 16, 2021, at 7:00 am Eastern Time (or 7:00 pm Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers: International: 1-412-317-6061 United States Toll Free: 1-888-317-6003 Mainland China Toll Free: 4001-206115 Hong Kong Toll Free: 800-963976 Singapore Toll Free: 800-120-5863 Conference ID: 1268939 The replay will be accessible through Monday, Aug 23, 2021, by dialing the following numbers: International: 1-412-317-0088 United States Toll Free: 1-877-344-7529 Conference ID: 10159457 A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.douyu.com/. About DouYu International Holdings Limited Headquartered in Wuhan, China, DouYu International Holdings Limited (Nasdaq: DOYU) is a leading game-centric live streaming platform in China and a pioneer in the eSports value chain. DouYu operates its platform on both PC and mobile apps, through which users can enjoy immersive and interactive games and entertainment live streaming. DouYu's platform brings together a deep pool of top live streamers. By providing a sustainable streamer development system built on advanced technology infrastructure and capabilities, DouYu helps ensure a consistent supply of quality content. Through collaborations with a variety of participants across the eSports value chain, the Company has gained coveted access to a wide variety of premium eSports content, which further attracts viewers and enhances user experience. For more information, please see http://ir.douyu.com/. Use of Non-GAAP Financial Measures Adjusted operating income (loss) is calculated as operating income (loss) adjusted for share-based compensation expenses. Adjusted net income is calculated as net loss adjusted for share-based compensation expenses, share of income (loss) in equity method investments, gain on disposal of investment or subsidiaries and impairment loss on investments. Adjusted net income attributable to DouYu is calculated as net income attributable to DouYu adjusted for share-based compensation expenses, share of income (loss) in equity method investments, gain on disposal of investment or subsidiaries and impairment loss of investments. Adjusted basic and diluted net income per ordinary share is non-GAAP net income attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The Company adjusted the impact of (i) share-based compensation expenses, (ii) share of income (loss) in equity method investments, (iii) gain on disposal of investment or subsidiaries and (iv) impairment loss of investments to understand and evaluate the Company's core operating performance. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB amounts could have been, or could be, converted, realized or settled in U.S. dollars at that rate on June 30, 2021, or at any other rate. Safe Harbor Statement This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the Securities Exchange Commission. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. Investor Relations Contact Doris LiDouYu International Holdings LimitedEmail: ir@douyu.tv Phone: +1 (646) 224-6934 Robin YangICR, Inc. Email: DouYu.IR@icrinc.com Phone: +1 (646) 224-6934 Media Relations Contact Doris LiDouYu International Holdings LimitedEmail: pr_douyu@douyu.tv Phone: +1 (646) 308-1475 Edmond LococoICR, Inc.Email: DouYu.PR@icrinc.com Phone: +1 (646) 308-1475 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except share, ADS, per share and per ADS data) As of December 31 As of June 30 2020 2021 2021 ASSETS RMB RMB US$ (1) Current assets: Cash and cash equivalents 5,279,902 5,372,180 832,045 Restricted cash 11,875 10,703 1,658 Short-term bank deposits 2,230,229 1,260,000 195,149 Accounts receivable, net 199,744 176,970 27,409 Prepayments 66,257 65,826 10,195 Amounts due from related parties 9,045 11,519 1,784 Other current assets 236,704 394,574 61,112 Total current assets 8,033,756 7,291,772 1,129,352 Property and equipment, net 37,792 31,274 4,844 Intangible assets, net 141,672 101,439 15,711 Long-term bank deposits 100,000 746,010 115,542 Investments 500,659 538,955 83,473 Goodwill 12,933 12,804 1,983 Right-of-use assets, net 62,141 41,497 6,427 Other non-current assets 19,004 41,460 6,422 Total non-current assets 874,201 1,513,439 234,402 TOTAL ASSETS 8,907,957 8,805,211 1,363,754 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Current liabilities: Accounts payable 986,073 922,029 142,804 Advances from customers 10,911 7,956 1,232 Deferred revenue 242,013 201,638 31,230 Accrued expenses and other current liabilities 384,041 483,302 74,854 Amounts due to related parties 223,525 431,019 66,756 Lease liabilities due within one year 36,281 29,112 4,509 Total current liabilities 1,882,844 2,075,056 321,385 Lease liabilities 16,952 10,124 1,568 Deferred revenue 30,779 24,378 3,776 Total non-current liabilities 47,731 34,502 5,344 TOTAL LIABILITIES 1,930,575 2,109,558 326,729 (1) Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021, in the H.10 statistical release of the Federal Reserve Board. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except share, ADS, per share and per ADS data) As of December 31 As of June 30 2020 2021 2021 RMB RMB US$ (1) SHAREHOLDERS' EQUITY Ordinary shares 23 23 4 Treasury shares (695,098) (695,098) (107,657) Additional paid-in capital 10,486,398 10,552,003 1,634,297 Accumulated deficit (2,863,219) (3,072,246) (475,830) Accumulated other comprehensive income 10,911 (52,435) (8,121) Total DouYu Shareholders' Equity 6,939,015 6,732,247 1,042,693 Noncontrolling interests 38,367 (36,594) (5,668) Total Shareholders' Equity 6,977,382 6,695,653 1,037,025 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8,907,957 8,805,211 1,363,754 (1) Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021, in the H.10 statistical release of theFederal Reserve Board. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (All amounts in thousands, except share, ADS, per share and per ADS data) Three Months Ended Six Months Ended June 30, 2020 March 31, 2021 June 30, 2021 June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2021 RMB RMB RMB US$ (1) RMB RMB US$ (1) Net revenues 2,508,152 2,152,687 2,336,771 361,920 4,786,187 4,489,459 695,329 Cost of revenues (1,985,270) (1,892,499) (2,030,223) (314,442) (3,777,451) (3,922,722) (607,552) Gross profit 522,882 260,188 306,548 47,478 1,008,736 566,737 87,777 Operating income (expenses)(2) Sales and marketing expenses (142,058) (209,877) (294,953) (45,682) (249,414) (504,829) (78,188) General and administrative expenses (79,470) (88,074) (102,624) (15,894) (164,050) (190,698) (29,535) Research and development expenses (94,920) (111,264) (123,015) (19,053) (187,808) (234,280) (36,285) Other operating income, net 32,454 23,924 16,681 2,584 49,032 40,605 6,289 Total operating expenses (283,994) (385,291) (503,911) (78,045) (552,240) (889,202) (137,719) Income (loss) from operations 238,888 (125,103) (197,363) (30,567) 456,496 (322,465) (49,942) Other income (expenses), net (8,382) 127 178 28 (18,400) 305 47 Interest income, net 50,106 20,930 19,768 3,062 95,150 40,697 6,303 Gain on disposal of subsidiary 23,526 - - - 23,526 - - Income (loss) before income taxes and share of income (loss) in equity method investments 304,138 (104,046) (177,417) (27,477) 556,772 (281,463) (43,592) Income tax expense - - - - - - - Share of income (loss) in equity method investments 15,132 2,213 (4,243) (657) 17,024 (2,029) (314) Net income (loss) 319,270 (101,833) (181,660) (28,134) 573,796 (283,492) (43,906) Less: Net loss attributable to noncontrolling interest (16,775) (39,814) (34,651) (5,367) (22,699) (74,465) (11,533) Net income (loss) attributable to ordinary shareholders of the Company 336,045 (62,019) (147,009)

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