ACROFAN

HUYA Inc. Reports Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results

GUANGZHOU, China, March 21, 2023 /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 fourth quarter and fiscal year ended December 31, 2022. Fourth Quarter 2022 Highlights Total net revenues for the fourth quarter of 2022 were RMB2,102.2 million (US$304.8 million), compared with RMB2,808.7 million for the same period of 2021. Net loss attributable to HUYA Inc. was RMB524.4 million (US$76.0 million) for the fourth quarter of 2022, compared with RMB312.7 million for the same period of 2021. Non-GAAP net loss attributable to HUYA Inc.[1] was RMB440.0 million (US$63.8 million) for the fourth quarter of 2022, compared with RMB241.7 million for the same period of 2021. Average mobile MAUs[2] of Huya Live for the fourth quarter of 2022 was 85.5 million, compared with 85.4 million for the same period of 2021. Total number of paying users[3] of Huya Live for the fourth quarter of 2022 was 5.5 million, compared with 5.6 million for the same period of 2021. Fiscal Year 2022 Highlights Total net revenues in fiscal year 2022 were RMB9,220.5 million (US$1,336.8 million), compared with RMB11,351.4 million in 2021. Net loss attributable to HUYA Inc. in fiscal year 2022 was RMB486.7 million (US$70.6 million), compared with a net income attributable to HUYA Inc. of RMB583.5 million in 2021. Non-GAAP net loss attributable to HUYA Inc. in fiscal year 2022 was RMB281.4 million (US$40.8 million), compared with a non-GAAP net income attributable to HUYA Inc. of RMB454.4 million in 2021. Average mobile MAUs of Huya Live in fiscal year 2022 was 84.3 million, compared with 80.9 million in 2021. Average quarterly paying users of Huya Live in fiscal year 2022 was 5.6 million, compared with 5.8 million in 2021. "We ended a challenging 2022 with our full-year average mobile MAUs of Huya Live up by 4.2% to 84.3 million and annual total revenues of approximately RMB9.2 billion. In the fourth quarter, we continued to bring high-quality e-sports tournaments and entertainment programs to our users. We also enhanced the interactive experience between broadcasters and viewers through in-depth collaborations with game studios, helping us stabilize our user scale and achieve healthy user engagement levels," said Mr. Rongjie Dong, Chief Executive Officer of Huya. "While we may face continued pressure from the volatile market environment in the near term, we are shoring up our long term prospects. We will continue to reinforce Huya's core competencies and actively explore a diversified business ecosystem for new growth opportunities, while maintaining our leadership position in the game live streaming market." Ms. Ashley Xin Wu, Vice President of Finance of Huya, commented, "Against the backdrop of macro headwinds and the COVID-19 pandemic resurgence at the end of the year, our total revenues were RMB2.1 billion for the fourth quarter of 2022. Lower revenues and higher content costs associated with a large e-sports event in the quarter contributed to a gross loss for the period. At the same time, we continued to promote operational efficiencies, reducing our total operating expenses in the fourth quarter by 34.7% year-over-year. Looking ahead, we will further optimize our cost and expense structure and focus our resources on areas with better returns to strengthen our operational and financial performance." [1] "Non-GAAP net loss attributable to HUYA Inc." is defined as net loss attributable to HUYA Inc. excluding (i) share-based compensation expenses, (ii) gain on fair value change of investments, net of income taxes, (iii) gain arising from disposal of an equity investment, net of income taxes, (iv) impairment loss of investments and (v) loss on equity method investment, net of income taxes. For more information, please refer to the section titled "Use of Non-GAAP Financial Measures" and the table captioned "HUYA Inc. Unaudited 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. Fourth Quarter 2022 Financial Results Total net revenues for the fourth quarter of 2022 were RMB2,102.2 million (US$304.8 million), compared with RMB2,808.7 million for the same period of 2021. Live streaming revenues were RMB1,975.2 million (US$286.4 million) for the fourth quarter of 2022, compared with RMB2,612.9 million for the same period of 2021, primarily due to lower average spending per paying user and a decreased number of paying users on Huya Live, as the recent macro and regulatory environment adversely affected the sentiment of the Company's paying users. Advertising and other revenues were RMB127.0 million (US$18.4 million) for the fourth quarter of 2022, compared with RMB195.8 million for the same period of 2021, primarily due to soft demand for advertising services resulting from the challenging macro environment, and lower content sub-licensing revenues. Cost of revenues decreased by 15.0% to RMB2,386.4 million (US$346.0 million) for the fourth quarter of 2022 from RMB2,807.7 million for the same period of 2021, primarily due to decreased revenue sharing fees and content costs, as well as bandwidth costs. Revenue sharing fees and content costs decreased by 11.9% to RMB2,170.6 million (US$314.7 million) for the fourth quarter of 2022 from RMB2,463.1 million for the same period of 2021, primarily due to the decrease in revenue sharing fees associated with the decline in live streaming revenues. This was partially offset by the increase in spending on e-sports content, which was mainly related to the higher content cost booked for a large e-sports event that occurred in the fourth quarter of 2022. Bandwidth costs decreased by 45.5% to RMB99.5 million (US$14.4 million) for the fourth quarter of 2022 from RMB182.7 million for the same period of 2021, primarily due to improved bandwidth cost management and continued technology enhancement efforts, as well as less overseas bandwidth usage as a result of the strategic adjustment in the Company's overseas business to focus on key markets. Gross loss was RMB284.2 million (US$41.2 million) for the fourth quarter of 2022, compared with a gross profit of RMB1.1 million for the same period of 2021, primarily due to lower revenues and increased content costs related to e-sports content. Gross margin was negative 13.5% for the fourth quarter of 2022, compared with approximately zero for the same period of 2021. Research and development expenses decreased by 30.0% to RMB143.9 million (US$20.9 million) for the fourth quarter of 2022 from RMB205.7 million for the same period of 2021, primarily due to decreased personnel-related expenses and share-based compensation expenses. Sales and marketing expenses decreased by 48.2% to RMB113.2 million (US$16.4 million) for the fourth quarter of 2022 from RMB218.5 million for the same period of 2021, primarily due to decreased marketing and promotion fees, as well as personnel-related expenses. General and administrative expenses decreased by 12.6% to RMB79.1 million (US$11.5 million) for the fourth quarter of 2022 from RMB90.5 million for the same period of 2021, primarily due to decreased share-based compensation expenses. Other income was RMB43.8 million (US$6.4 million) for the fourth quarter of 2022, compared with RMB56.3 million for the same period of 2021, primarily due to lower tax refunds and government subsidies. Operating loss was RMB576.7 million (US$83.6 million) for the fourth quarter of 2022, compared with RMB457.3 million for the same period of 2021. Interest and short-term investments income were RMB101.7 million (US$14.7 million) for the fourth quarter of 2022, compared with RMB61.6 million for the same period of 2021, primarily due to increased interest rates. Net loss attributable to HUYA Inc. was RMB524.4 million (US$76.0 million) for the fourth quarter of 2022, compared with RMB312.7 million for the same period of 2021. Non-GAAP net loss attributable to HUYA Inc., which excludes share-based compensation expenses, impairment loss of investments and loss on equity method investment, net of income taxes, was RMB440.0 million (US$63.8 million) for the fourth quarter of 2022, compared with RMB241.7 million for the same period of 2021, which excludes share-based compensation expenses. Basic and diluted net loss per American depositary share ("ADS") were each RMB2.16 (US$0.31) for the fourth quarter of 2022. Basic and diluted net loss per ADS were each RMB1.31 for the fourth quarter of 2021. Each ADS represents one Class A ordinary share of the Company. Non-GAAP basic and diluted net loss per ADS were each RMB1.81 (US$0.26) for the fourth quarter of 2022. Non-GAAP basic and diluted net loss per ADS were each RMB1.01 for the fourth quarter of 2021. As of December 31, 2022, the Company had cash and cash equivalents, short-term deposits, short-term investments and long-term deposits of RMB10,749.2 million (US$1,558.5 million), compared with RMB11,008.2 million as of September 30, 2022. Fiscal Year 2022 Financial Results Total net revenues were RMB9,220.5 million (US$1,336.8 million) in fiscal year 2022, compared with RMB11,351.4 million in the prior year. Live streaming revenues were RMB8,195.9 million (US$1,188.3 million) in fiscal year 2022, compared with RMB10,186.2 million in the prior year, primarily due to lower average spending per paying user and a decreased number of paying users on Huya Live, as the macro and regulatory environment during the year adversely affected the sentiment of the Company's paying users. Advertising and other revenues were RMB1,024.6 million (US$148.5 million) in fiscal year 2022, compared with RMB1,165.2 million in the prior year, due to soft demand for advertising services resulting from the challenging macro environment. Cost of revenues decreased by 11.7% to RMB8,609.6 million (US$1,248.3 million) in fiscal year 2022 from RMB9,751.2 million in the prior year, primarily due to decreased revenue sharing fees and content costs, as well as bandwidth costs. Revenue sharing fees and content costs decreased by 10.0% to RMB7,535.7 million (US$1,092.6 million) in fiscal year 2022 from RMB8,374.6 million in the prior year, primarily due to the decrease in revenue sharing fees associated with declined live streaming revenues, and lower costs related to content creators, partially offset by the increase in spending on e-sports content. Bandwidth costs decreased by 24.7% to RMB537.2 million (US$77.9 million) in fiscal year 2022 from RMB713.7 million in the prior year, primarily due to improved bandwidth cost management and continued technology enhancement efforts, as well as less overseas bandwidth usage as a result of the strategic adjustment in the Company's overseas business to focus on key markets. Gross profit was RMB610.9 million (US$88.6 million) in fiscal year 2022, compared with RMB1,600.3 million in the prior year, primarily due to lower revenues and increased content costs related to e-sports content. Gross margin was 6.6% in fiscal year 2022, compared with 14.1% in fiscal year 2021. Research and development expenses decreased by 16.9% to RMB680.4 million (US$98.6 million) in fiscal year 2022 from RMB818.9 million in the prior year, primarily due to decreased share-based compensation expenses and personnel-related expenses. Sales and marketing expenses decreased by 36.4% to RMB482.9 million (US$70.0 million) in fiscal year 2022 from RMB759.5 million in the prior year, primarily due to decreased marketing and promotion fees, as well as personnel-related expenses. General and administrative expenses were RMB320.4 million (US$46.5 million) in fiscal year 2022, compared with RMB326.8 million in the prior year, primarily attributable to decreased share-based compensation expenses. Other income was RMB166.3 million (US$24.1 million) in fiscal year 2022, compared with RMB274.7 million in the prior year, primarily attributable to lower tax refunds and government subsidies in fiscal year 2022 and realized damages received in the first quarter of 2021 from a favorable outcome in a broadcaster-related lawsuit. Operating loss was RMB706.5 million (US$102.4 million) in fiscal year 2022, compared with RMB30.2 million in the prior year. Interest and short-term investments income were RMB298.2 million (US$43.2 million) in fiscal year 2022, compared with RMB247.0 million in the prior year, primarily due to increased interest rates. Share of loss in equity method investments, net of income taxes was RMB0.5 million (US$0.1 million) in fiscal year 2022, compared with share of income in equity method investments, net of income taxes of RMB379.2 million in the prior year, primarily due to the investment gain related to a disposal of equity investment in the third quarter of 2021, as disclosed in a Form 6-K filed on July 6, 2021. Net loss attributable to HUYA Inc. was RMB486.7 million (US$70.6 million) in fiscal year 2022, compared with a net income attributable to HUYA Inc. of RMB583.5 million in the prior year. Non-GAAP net loss attributable to HUYA Inc., which excludes share-based compensation expenses, gain on fair value change of investments, net of income taxes, impairment loss of investments, and loss on equity method investment, net of income taxes was RMB281.4 million (US$40.8 million) in fiscal year 2022, compared with a non-GAAP net income attributable to HUYA Inc. of RMB454.4 million in the prior year, which excludes share-based compensation expenses, gain on fair value change of investments, net of income taxes, and gain arising from disposal of an equity investment, net of income taxes. Basic and diluted net loss per ADS were each RMB2.02 (US$0.29) in fiscal year 2022. Basic and diluted net income per ADS were RMB2.45 and RMB2.41, respectively, in fiscal year 2021. Non-GAAP basic and diluted net loss per ADS were each RMB1.17 (US$0.17) in fiscal year 2022. Non-GAAP basic and diluted net income per ADS were RMB1.91 and RMB1.88, respectively, in fiscal year 2021. Conference Call The Company's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on March 21, 2023 (8:00 p.m. Beijing/Hong Kong time on March 21, 2023). For participants who wish to join the call, please complete online registration using the link provided below 20 minutes prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Participant Online Registration: https://register.vevent.com/register/BI2946f2083b1740f6aced48c04ff6e362 Once complete the registration, please dial-in at least 10 minutes before the scheduled start time of the earnings call and enter the personal PIN as instructed to connect to the call. A live webcast of the earnings call will be accessible at https://ir.huya.com and a replay of the webcast will be available following the session. 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 (loss), non-GAAP operating (loss) income, non-GAAP net (loss) income attributable to HUYA Inc., non-GAAP net (loss) income attributable to ordinary shareholders, non-GAAP basic and diluted net (loss) income per ordinary shares, and non-GAAP basic and diluted net (loss) income per ADS, which are non-GAAP financial measures. Non-GAAP gross profit (loss) is gross profit (loss) excluding share-based compensation expenses allocated in cost of revenues. Non-GAAP operating (loss) income is operating (loss) income excluding share-based compensation expenses. Non-GAAP net (loss) income attributable to HUYA Inc. is net (loss) income attributable to HUYA Inc. excluding share-based compensation expenses, gain on fair value change of investments, net of income taxes, gain arising from disposal of an equity investment, net of income taxes, to the extent applicable, and impairment loss of investments. Non-GAAP net (loss) income attributable to ordinary shareholders is net (loss) income attributable to ordinary shareholders excluding share-based compensation expenses, gain on fair value change of investments, net of income taxes, gain arising from the disposal of an equity investment, net of income taxes, impairment loss of investments, and loss on equity method investment, net of income taxes, to the extent applicable. Non-GAAP basic and diluted net (loss) income per ADS is non-GAAP net (loss) income attributable to ordinary shareholders divided by weighted average number of ADS used in the calculation of non-GAAP basic and diluted net (loss) income per ADS. The Company believes that separate analysis and exclusion of the impact of (i) share-based compensation expenses, (ii) gain on fair value change of investments, net of income taxes, (iii) gain arising from disposal of an equity investment, net of income taxes, (iv) impairment loss of investments, and (v) loss on equity method 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 measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures represent 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, net of income taxes, (iii) gain arising from disposal of an equity investment, net of income taxes, (iv) impairment loss of investments, and (v) loss on equity method investment, net of income taxes, which 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 (loss) 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 a non-GAAP financial measure in isolation from or as an alternative to the financial measures 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. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this announcement. 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 RMB6.8972 to US$1.00, the noon buying rate in effect on December 30, 2022, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to in this announcement could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. 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; Huya's efforts in complying with applicable data privacy and security regulations; 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 regulatory developments 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 December 31, 2021 2022 2022 RMB RMB US$ Assets Current assets Cash and cash equivalents 1,790,784 655,241 95,001 Restricted cash 55,670 4,050 587 Short-term deposits 8,351,945 9,018,298 1,307,530 Short-term investments 816,331 3,117 452 Accounts receivable, net 88,034 75,898 11,004 Amounts due from related parties, net 148,560 59,702 8,656 Prepayments and other current assets, net 664,945 637,225 92,389 Total current assets 11,916,269 10,453,531 1,515,619 Non-current assets Long-term deposits - 1,072,548 155,505 Deferred tax assets 20,245 - - Investments 608,617 906,215 131,389 Property and equipment, net 79,611 200,893 29,127 Intangible assets, net 83,942 57,810 8,382 Right-of-use assets, net 395,371 345,136 50,040 Prepayments and other non-current assets 150,887 110,874 16,075 Total non-current assets 1,338,673 2,693,476 390,518 Total assets 13,254,942 13,147,007 1,906,137 Liabilities and shareholders' equity Current liabilities Accounts payable 12,579 22,517 3,265 Advances from customers and deferred revenue 459,509 445,620 64,609 Income taxes payable 5,944 28,924 4,194 Accrued liabilities and other current liabilities 1,845,452 1,592,455 230,884 Amounts due to related parties 216,128 81,814 11,862 Lease liabilities due within one year 36,473 29,801 4,321 Total current liabilities 2,576,085 2,201,131 319,135 Non-current liabilities Lease liabilities 45,084 8,617 1,249 Deferred tax liabilities 4,597 20,533 2,977 Deferred revenue 118,975 73,354 10,635 Total non-current liabilities 168,656 102,504 14,861

DouYu International Holdings Limited Reports Fourth Quarter and Full Year 2022 Unaudited Financial Results

WUHAN, China, March 20, 2023 /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 fourth quarter and the full year ended December 31, 2022. Fourth Quarter 2022 Financial and Operational Highlights Total net revenues in the fourth quarter of 2022 were RMB1,681.1 million (US$243.7 million) compared with RMB2,327.9 million in the same period of 2021. Gross profit in the fourth quarter of 2022 was RMB186.1 million (US$27.0 million), compared with RMB244.7 million in the same period of 2021. Net income in the fourth quarter of 2022 was RMB41.8 million (US$6.1 million), compared with net loss of RMB193.2 million in the same period of 2021. Adjusted net loss[1] in the fourth quarter of 2022 was RMB4.3 million (US$0.6 million), compared with RMB150.7 million in the same period of 2021. Average mobile MAUs[2] in the fourth quarter of 2022 decreased by 8.0% to 57.4 million from 62.4 million in the same period of 2021. Quarterly average paying user[3] count in the fourth quarter of 2022 was 5.6 million, compared with 7.3 million in the same period of 2021. Full Year 2022 Financial Highlights Total net revenues for the full year of 2022 were RMB7,108.2 million (US$1,030.6 million), compared with RMB9,165.3 million in the same period of 2021. Gross profit for the full year of 2022 was RMB990.1 million (US$143.6 million), compared with RMB1,089.9 million in the same period of 2021. Net loss for the full year of 2022 was RMB90.4 million (US$13.1 million), compared with RMB620.2 million in the same period of 2021. Adjusted net loss[1] for the full year of 2021 was RMB7.6 million (US$1.1 million), compared with RMB439.3 million in the same period of 2021. Mr. Shaojie Chen, Chief Executive Officer of DouYu, commented, "Against the backdrop of a complex and volatile macro environment throughout 2022, we remained committed to our core growth strategy of fostering a vibrant game-centric content ecosystem. We concluded the year with steady business performance through a mix of operational adaptations, including revenue optimization, a selective copyright procurement strategy, and investments in self-produced content. In the fourth quarter, our mobile MAUs were 57.4 million, a slight increase over the prior quarter. Looking ahead, we will dedicate ourselves to driving growth based on our content ecosystem as we prioritize content enrichment and community-wide interactions to boost user stickiness and retention, other than emphasizing the short-term growth of our business. Building on our continuous efforts to cultivate high-quality game-centric content and engage core users, we will strive to maintain our leading position in China's live-streaming gaming industry while exploring new growth avenues, propelling DouYu's healthy and sustainable development." Mr. Hao Cao, Vice President of DouYu, commented, "In the fourth quarter of 2022, our total revenues were RMB1.68 billion. Our gross profit was RMB186.1 million, with a gross margin of 11.1%. Meanwhile, our adjusted net loss was RMB4.3 million. Throughout the year, while continuously investing in high-quality self-produced content and optimizing our revenue structure, we made good progress in reducing costs and improving efficiency by adjusting our livestreaming operations and optimizing our business spending. In 2022, our full-year gross profit improved to 13.9%, and our adjusted net loss narrowed significantly to RMB7.6 million. Moving forward, as part of our strategic focus on healthy long-term growth, our revenue may experience some immediate impact, which we believe is critical to our balanced growth. We will also fine-tune our operating model while exploring new monetization channels, striving to create long-term value for our shareholders." Fourth Quarter 2022 Financial Results Total net revenues in the fourth quarter of 2022 decreased by 27.8% to RMB1,681.1 million (US$243.7 million), compared with RMB2,327.9 million in the same period of 2021. Livestreaming revenues in the fourth quarter of 2022 decreased by 27.7% to RMB1,596.7 million (US$231.5 million) from RMB2,209.4 million in the same period of 2021. The decrease was primarily due to the continued adjustments to certain interactive features and related operations, as well as the negative impact of streamers' decreased activities following the end of Covid-19 restrictions. Advertising and other revenues in the fourth quarter of 2022 were RMB84.3 million (US$12.2 million), compared with RMB118.5 million in the same period of 2021. The decrease was primarily due to the soft demand for advertisements in the weak macro economy. The decrease was partially offset by the increase in other revenues contributed by game-specific membership services. Cost of revenues in the fourth quarter of 2022 was RMB1,495.0 million (US$216.8 million), a decrease of 28.2% compared with RMB2,083.2 million in the same period of 2021. Revenue sharing fees and content costs in the fourth quarter of 2022 decreased to RMB1,271.1 million (US$184.3 million) from RMB1,846.9 million in the same period of 2021. The decrease was primarily due to decreased revenue sharing fees in accordance with the decrease in livestreaming revenues, as well as a significant decrease in copyright costs which was attributed to a selective procurement strategy. Bandwidth costs in the fourth quarter of 2022 decreased by 17.6% to RMB138.4 million (US$20.1 million) from RMB167.9 million in the same period of 2021. The decrease was mainly due to the year-over-year reduction in peak bandwidth usage in the absence of purchased eSport tournament copyright. Gross profit in the fourth quarter of 2022 was RMB186.1 million (US$27.0 million), compared with RMB244.7 million in the same period of 2021. Gross margin in the fourth quarter of 2022 improved to 11.1% from 10.5% in the same period of 2021. The increase in gross margin was primarily due to the decreases in both revenue sharing fees and copyright costs as a percentage of total net revenues, which were partially offset by the increase in self-produced content costs as a percentage of total net revenues. Sales and marketing expenses in the fourth quarter of 2022 decreased 45.9% to RMB123.9 million (US$18.0 million) from RMB229.2 million in the same period of 2021. The decrease was mainly attributable to the significant decrease in marketing expenses for user acquisition and branding expenses. Research and development expenses in the fourth quarter of 2022 decreased 39.2% to RMB80.6 million (US$11.7 million) from RMB132.6 million in the same period of 2021. The decrease was primarily attributable to the decrease in personnel-related expenses. General and administrative expenses in the fourth quarter of 2022 decreased 44.1% to RMB55.2 million (US$8.0 million) from RMB98.8 million in the same period of 2021, mainly due to decreases in share-based compensation expenses and professional service fees. Other operating income, net in the fourth quarter of 2022 was RMB17.6 million (US$2.5 million), compared with RMB13.9 million in the same period of 2021. Loss from operations in the fourth quarter of 2022 was RMB56.0 million (US$8.1 million), compared with RMB201.9 million in the same period of 2021. Adjusted operating loss, which adds back share-based compensation expenses, was RMB56.0 million (US$8.1 million), compared with adjusted loss from operations of RMB168.7 million in the same period of 2021. Net income in the fourth quarter of 2022 was RMB41.8 million (US$6.1 million), compared with net loss of RMB193.2 million in the same period of 2021. Adjusted net loss, which excludes share-based compensation expenses, the share of (loss) income in equity method investments, and impairment loss of investments, was RMB4.3 million (US$0.6 million) in the fourth quarter of 2022, compared with adjusted net loss of RMB150.7 million in the same period of 2021. Basic and diluted net income per ADS[4] in the fourth quarter of 2022 were both RMB0.14 (US$0.02). Adjusted basic and diluted net loss per ADS in the fourth quarter of 2022 were both RMB0.003 (US$0.0004). Full Year 2022 Financial Results Total net revenues for the full year of 2022 were RMB7,108.2 million (US$1,030.6 million), compared with RMB9,165.3 million in the same period of 2021. The decrease was primarily driven by the year-over-year decrease in livestreaming revenues and advertising and other revenues. Gross profit for the full year of 2022 was RMB990.1 million (US$143.6 million), compared with RMB1,089.9 million in the same period of 2021. Loss from operations for the full year of 2022 was RMB198.9 million (US$28.8 million), compared with RMB648.7 million in the same period of 2021. Adjusted net loss for the full year of 2022, which excludes share-based compensation expenses, the share of loss (income) in equity method investments, and impairment loss of investments, was RMB7.6 million (US$1.1 million), compared with adjusted RMB439.3 million in the same period of 2021. Basic and diluted net loss per ADS for the full year of 2022 were both RMB0.24 (US$0.03). Adjusted basic and diluted net income per ADS in the full year of 2022 were both RMB0.02 (US$0.003). Cash and cash equivalents, restricted cash and bank deposits As of December 31, 2022, the Company had cash and cash equivalents, restricted cash, and short-term and long-term bank deposits of RMB6,808.8 million (US$987.2 million), compared with RMB6,643.5 million as of December 31, 2021. Conference Call Information The Company will hold a conference call on March 20, 2023, at 7:00 am Eastern Time (or 7:00pm 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: 7034524 The replay will be accessible through March 27, 2023, by dialing the following numbers: International: 1-412-317-0088 United States Toll Free: 1-877-344-7529 Conference ID: 4652111 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/. [1] "Adjusted net loss" is calculated as net loss before share-based compensation expenses, and share of (loss) income in equity method investments and impairment loss of investments. 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 the number of mobile devices that launched our mobile apps in a given period. Average mobile MAUs for a given period is calculated by dividing (i) the sum of active mobile users for each month of such period, by (ii) the number of months in such period. [3] "Quarterly average paying users" refers to the average paying users for each quarter during a given period of time calculated by dividing (i) the sum of paying users for each quarter of such period, by (ii) the number of quarters in such period. "Paying user" refers to a registered user that has purchased virtual gifts on our platform at least once during the relevant period. [4] Every ten ADSs represent one ordinary share. 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 to bring users access to immersive and interactive games and entertainment livestreaming, a wide array of video and graphic contents, as well as opportunities to participate in community events and discussions. By nurturing a sustainable technology-based talent development system and relentlessly producing high-quality content, DouYu consistently delivers premium content through integration of livestreaming, video, graphics, and virtual communities with a primary focus on games, especially on eSports. This enables DouYu to continuously expand its user base and enhance its 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 (loss) is calculated as net income (loss) adjusted for share-based compensation expenses, share of income (loss) in equity method investments and impairment loss of investments. Adjusted net income (loss) attributable to DouYu is calculated as net income (loss) attributable to DouYu adjusted for share-based compensation expenses, share of income (loss) in equity method investments 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) 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 RMB6.8972 to US$1.00, the noon buying rate in effect on December 30, 2022, 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 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, including but not limited to the following: the Company's results of operations and financial condition; the Company's business strategies; general market conditions, in particular the game live streaming market; the ability of the Company to retain and grow active and paying users; changes in general economic and business conditions in China; the impact of the COVID-19 to the Company's business operations and the economy in China and globally; any adverse changes in laws, regulations, rules, policies or guidelines applicable to the Company; and assumptions underlying or related to any of the foregoing. 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. The announced results of the fourth quarter and full year 2022 are preliminary and unaudited. 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 In China: Lingling Kong DouYu International Holdings Limited Email: ir@douyu.tv Tel: +86 (10) 6508-0677 Andrea Guo The Piacente Group, Inc. Email: douyu@tpg-ir.com Tel: +86 (10) 6508-0677 In the United States: Brandi Piacente The Piacente Group, Inc. Email: douyu@tpg-ir.com Tel: +1-212-481-2050 Media Relations Contact Lingling Kong DouYu International Holdings Limited Email: pr_douyu@douyu.tv Tel: +86 (10) 6508-0677 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except share, ADS, per share and per ADS data) As of December 31 As of December 31 2021 2022 2022 ASSETS RMB RMB US$ (1) Current assets: Cash and cash equivalents 4,456,406 4,041,603 585,977 Restricted cash 10,703 6,057 878 Short-term bank deposits 2,076,355 2,511,150 364,083 Accounts receivable, net 191,389 109,180 15,830 Prepayments 80,717 26,064 3,779 Amounts due from related parties 37,159 46,126 6,688 Other current assets 376,367 337,004 48,861 Total current assets 7,229,096 7,077,184 1,026,096 Property and equipment, net 25,111 16,988 2,463 Intangible assets, net 161,540 106,723 15,473 Long-term bank deposits 100,000 250,000 36,247 Investments 491,425 531,911 77,120 Goodwill 12,637 13,804 2,001 Right-of-use assets, net 72,309 49,911 7,236 Other non-current assets 64,785 98,845 14,331 Total non-current assets 927,807 1,068,182 154,871 TOTAL ASSETS 8,156,903 8,145,366 1,180,967 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Current liabilities: Accounts payable 824,128 666,985 96,704 Advances from customers 7,476 6,459 936 Deferred revenue 235,134 288,152 41,778 Accrued expenses and other current liabilities 458,328 302,801 43,902 Amounts due to related parties 293,508 266,788 38,681 Lease liabilities due within one year 30,417 27,479 3,984 Total current liabilities 1,848,991 1,558,664 225,985 Lease liabilities 31,278 19,572 2,838 Deferred revenue 18,045 6,570 953 Total non-current liabilities 49,323 26,142 3,791 TOTAL LIABILITIES 1,898,314 1,584,806 229,776 (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 RMB6.8972 to US$1.00, the noon buying rate in effect on December 30, 2022, in the H.10 statistical release of the Federal Reserve Board. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except share, ADS, per share and per ADS data) As of December 31 As of December 31 2021 2022 2022 RMB RMB US$ (1) SHAREHOLDERS' EQUITY Ordinary shares 23 23 3 Treasury shares (802,250) (911,217) (132,114) Additional paid-in capital 10,618,538 10,670,287 1,547,046 Accumulated deficit (3,445,102) (3,520,525) (510,428) Accumulated other comprehensive (loss) income (112,621) 321,991 46,684 Total DouYu Shareholders' Equity 6,258,588 6,560,559 951,191 Noncontrolling interests 1 1 - Total Shareholders' Equity 6,258,589 6,560,560 951,191 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8,156,903 8,145,366 1,180,967 (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 RMB6.8972 to US$1.00, the noon buying rate in effect on December 30, 2022, in the H.10 statistical release of the Federal Reserve Board.

Industry	Economy	TECH	GAME
Society	Comfort	AUTO	MEDIA

Roll1ng Thund3rz launches WEB3WAR - a blockchain-secured first-person shooter

Infinix Launches HOT 30 Series in Collaboration with Free Fire to Showcase an Enhanced Gaming Experience

Mad World - Age of Darkness: Hell Made Madness to Take Over Gamers' PC in April

Sohu.com Limited Announces its 2022 Annual Report on Form 20-F is Available on the Company's Website

SEGi's Game On Expo returns bigger and better

MOGO Recruiting Brands with Physical Sites in India for AI-Driven Collaborative Research into Gaming, Youth, and University Student Markets

MARBLEX NFT STAKING SERVICE AVAILABLE NOW

Smilegate to Release A New Mobile RPG 'OUTERPLANE' Globally in May

Govee Elevates the Gaming Experience: Announces the Availability of the First AI Gaming Sync Box Kit and a Brand New Neon Rope Light for Desks

Wolffun Game Brings Thetan Arena to the Samsung U.S. Galaxy Store

Tencent Cloud Shines Spotlight on Affordable AAA Game Tech for Everyone at 2023 Game Developers Conference

ASIAN POP SUPERSTAR JJ LIN AND HIS PROFESSIONAL ESPORTS TEAM 'TEAM SMG' TAP INTO THEIR FAVORITE FLAVORS OF MATE MATE™ ALL NATURAL ENERGY DRI

Ragnarok Origin reached 5,000,000 pre-registrations

LIGHTSPEED STUDIOS Showcases R&D and Innovative Solutions in Game Development at GDC 2023

HUYA Inc. Reports Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results

Bayes Esports announces launch of communication services

GosuGamers Appointed As The Official Media Partner Of Esports At The 32nd SEA Games

DouYu International Holdings Limited Reports Fourth Quarter and Full Year 2022 Unaudited Financial Results

Kepler Interactive Announces Outstanding Revenue, New Investments & Publishing Partnerships To Kick Off 2023

Explore Brand New Maps: Play YoYa: Busy Life World Now

"Captain Tsubasa: Dream Team" Debuts New Players Wearing the FC BARCELONA Official Uniform and Monthly Livestream on YouTube

Fans rush to experience NSW Open Golf Championship in 3D, inside world-first web3 golf metaverse

Glass Egg - a Virtuos Studio announces expansion into Dalat, Vietnam

Gambling Scams: Beware the Ides of March Madness

Gamer Pakistan announces 100th and 101st MoU’s for university sports commercialization

Tencent Games to Showcase Latest Innovations in Game Development at GDC 2023

Romance of the Three Kingdoms Hadou released on HUAWEI AppGallery on 7 March