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DouYu International Holdings Limited Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results

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DouYu International Holdings announces unaudited financial results for Q4 and full year 2023, showcasing a decrease in net revenues but improved adjusted net income. The company remains focused on fostering a game-centric content ecosystem and enhancing commercialization capabilities.
Positive
  • DouYu reported a decrease in total net revenues for Q4 2023 compared to the same period in 2022.
  • Gross profit in Q4 2023 also decreased, primarily due to lower livestreaming revenues.
  • The company experienced a net loss in Q4 2023, contrasting with net income in Q4 2022.
  • Adjusted net loss for Q4 2023 improved slightly from the same period in 2022.
  • Full year 2023 saw a decrease in total net revenues compared to 2022.
  • Gross profit for the full year 2023 decreased as well.
  • The company reported a net income for the full year 2023, a positive shift from a net loss in 2022.
  • Adjusted net income for the full year 2023 showed significant improvement compared to 2022.
  • DouYu's strategic initiatives aim to strengthen its competitive edge in the live streaming industry.
  • The company's focus on product innovation and content upgrades reflects its commitment to long-term growth.
Negative
  • Decrease in total net revenues for Q4 and full year 2023 compared to previous periods.
  • Decline in gross profit for Q4 and full year 2023.
  • Net loss reported for Q4 2023.
  • Increase in general and administrative expenses in Q4 2023.
  • Loss from operations in Q4 2023.
  • Adjusted operating loss in Q4 2023.
  • Decrease in livestreaming revenues in Q4 2023.
  • Reduction in quarterly average paying users in Q4 2023.
  • Lower gross margin in Q4 2023 compared to the same period in 2022.

Insights

The performance of DouYu International Holdings Limited in the fourth quarter and full year of 2023 reveals a contraction in several key financial metrics, including a significant decrease in total net revenues and gross profit, as well as a shift from net income to net loss when compared year-over-year. This downturn reflects broader challenges within the live streaming and eSports sectors, particularly in the context of a soft macroeconomic environment that has affected consumer spending and advertising budgets.

From a market research perspective, the decline in mobile MAUs and paying users indicates a potential saturation in the market or a loss of competitive edge against other platforms. The increase in advertising and other revenues, however, suggests a successful pivot towards diversifying revenue streams, which could be a strategic move to mitigate the impact of declining livestreaming revenues. The company's focus on cost optimization and strategic initiatives aimed at long-term sustainability are positive signs for potential recovery and growth.

Analyzing the financial health of DouYu, the reported net loss in Q4 2023 alongside the adjusted net income for the full year suggests a complex financial picture. The company's ability to turn a full-year net profit despite a quarterly loss may indicate effective cost management and the ability to navigate short-term headwinds. The substantial increase in advertising and other revenues is a positive indicator of the company's adaptability and potential new income sources. However, the decrease in livestreaming revenues and the drop in quarterly paying users raise concerns about the company's core business model and its scalability in the current economic climate.

Investors should consider the company's long-term strategy and the viability of its growth initiatives in the face of these challenges. The share repurchase program could be seen as a signal of confidence from the management in the company's valuation, but it also raises questions about the best use of capital given the current financial results.

The financial results of DouYu provide insights into the broader eSports and live streaming industry in China. The acquisition of the LOL World Championship tournament rights is a strategic content investment that could enhance the platform's appeal, but it comes at a time when the company is facing a decrease in both revenue and user base. This move may reflect an attempt to strengthen DouYu's position in the competitive eSports market, where exclusive content can be a significant draw for users.

However, the overall decline in user engagement, as seen in the decrease of average mobile MAUs and paying users, suggests that the industry may be experiencing broader challenges, such as market saturation or shifts in consumer behavior. The company's response, focusing on product innovation and content upgrades, will be critical in maintaining relevance and competitiveness in this rapidly evolving sector.

WUHAN, China, March 26, 2024 /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, 2023.

Fourth Quarter 2023 Financial and Operational Highlights

  • Total net revenues in the fourth quarter of 2023 were RMB1,296.0 million (US$182.5 million), compared with RMB1,681.1 million in the same period of 2022.
  • Gross profit in the fourth quarter of 2023 was RMB126.2 million (US$17.8 million), compared with RMB186.1 million in the same period of 2022.
  • Net loss in the fourth quarter of 2023 was RMB62.2 million (US$8.8 million), compared with net income of RMB41.8 million in the same period of 2022.
  • Adjusted net loss[1] in the fourth quarter of 2023 was RMB5.0 million (US$0.7 million), compared with RMB4.3 million in the same period of 2022.
  • Average mobile MAUs[2] in the fourth quarter of 2023 were 51.7 million, compared with 57.4 million in the same period of 2022.
  • The number of quarterly average paying users[3] in the fourth quarter of 2023 was 3.7 million, compared with 5.6 million in the same period of 2022.

Full Year 2023 Financial Highlights

  • Total net revenues for the full year of 2023 were RMB5,530.4 million (US$778.9 million), compared with RMB7,108.2 million for the full year of 2022.
  • Gross profit for the full year of 2023 was RMB684.0 million (US$96.3 million), compared with RMB990.1 million for the full year of 2022.
  • Net income for the full year of 2023 was RMB35.5 million (US$5.0 million), compared with net loss of RMB90.4 million for the full year of 2022.
  • Adjusted net income for the full year of 2023 was RMB154.0 million (US$21.7 million), compared with adjusted net loss of RMB7.6 million for the full year of 2022.

The interim management committee of DouYu commented, "In 2023, we remained firmly committed to executing our core strategy of fostering a vibrant, diverse, game-centric content ecosystem. We continued to invest in premium content and efficient operations across our platform while adopting flexible operating strategies to navigate the challenging macro environment. Our synchronized initiatives included optimizing our revenue structure, fine-tuning user acquisition strategies, and continued compliance enhancement, all aimed at fortifying our platform's long-term, sustainable growth. In the fourth quarter of 2023, our mobile MAUs remained stable at 51.7 million compared with the previous quarter. Looking ahead, by harnessing our three core strengths – extensive streamer resources, a rich content ecosystem, and close cooperation with game developers – we aim to further cultivate the game-centric community ecosystem across our platform through product innovation and content upgrades. We are committed to advancing the Company's commercialization efforts while further reinforcing compliance and improving user experience. Leveraging our strategic initiatives, we are poised to solidify DouYu's competitive edge and maintain market leadership in the domestic live streaming industry amid macro headwinds, with a focus on gaming content."

Mr. Hao Cao, Vice President of DouYu, commented, "Throughout 2023, we refined our revenue-generating strategy and enhanced our commercialization capabilities. These adjustments improved our revenue structure with the proportion of full-year revenue from advertising and others climbing to 13.2% in 2023 from 4.4% in 2022. We also persistently optimized costs and expenses to improve our overall profitability, achieving a net profit of RMB35.5 million and an adjusted net profit of RMB154.0 million for the full year of 2023. Moving forward, we remain firmly committed to our long-term, sustainable growth strategy amid macro challenges and uncertainties. We will steadily advance our core businesses while ensuring a solid financial performance. By further expanding our monetization efforts, we aim to establish a robust foundation for the Company's healthy growth ahead, creating enduring value for our shareholders."

Fourth Quarter 2023 Financial Results

Total net revenues in the fourth quarter of 2023 decreased by 22.9% to RMB1,296.0 million (US$182.5 million), compared with RMB1,681.1 million in the same period of 2022.

Livestreaming revenues in the fourth quarter of 2023 decreased by 36.1% to RMB1,020.8 million (US$143.8 million) from RMB1,596.7 million in the same period of 2022. The decrease was primarily attributable to the soft macroeconomic environment and reduced revenue-generating promotions during the quarter, leading to a decrease in the number of quarterly average paying users.

Advertising and other revenues in the fourth quarter of 2023 increased by 226.5% to RMB275.2 million (US$38.8 million) from RMB84.3 million in the same period of 2022. The increase was primarily driven by other revenues generated through new innovative business.

Cost of revenues in the fourth quarter of 2023 was RMB1,169.7 million (US$164.8 million), a decrease of 21.8% compared with RMB1,495.0 million in the same period of 2022.

Revenue sharing fees and content costs in the fourth quarter of 2023 decreased by 30.3% to RMB885.3 million (US$124.7 million) from RMB1,271.1 million in the same period of 2022. The decrease was primarily due to a decrease in sharing fees aligned with decreased livestreaming revenues, as well as a decline in content costs resulting from improved cost management in self-produced content and streamer payments. The decrease was partially offset by an increase in copyright costs due to the acquisition of the LOL World Championship tournament.

Bandwidth costs in the fourth quarter of 2023 decreased by 27.4% to RMB100.5 million (US$14.2 million) from RMB138.4 million in the same period of 2022. The decline was primarily due to a year-over-year decrease in peak bandwidth usage. 

Gross profit in the fourth quarter of 2023 was RMB126.2 million (US$17.8 million), compared with RMB186.1 million in the same period of 2022. The decrease in gross profit was mainly due to a decrease in livestreaming revenues. Gross margin in the fourth quarter of 2023 was 9.7%, compared with 11.1% in the same period of 2022.

Sales and marketing expenses in the fourth quarter of 2023 decreased by 32.2% to RMB84.0 million (US$11.8 million) from RMB123.9 million in the same period of 2022. This was mainly attributable to decreases in user acquisition marketing expenses and staff-related expenses. 

Research and development expenses in the fourth quarter of 2023 decreased by 26.7% to RMB59.1 million (US$8.3 million) from RMB80.6 million in the same period of 2022. This decrease was primarily due to a decrease in staff-related expenses.

General and administrative expenses in the fourth quarter of 2023 increased by 45.0% to RMB80.0 million (US$11.3 million) from RMB55.2 million in the same period of 2022. The increase was due to higher salary expenses associated with management position adjustments, increased expense related to our organizational streamlining initiatives, as well as an increase in the provisions for assets.

Other operating loss, net in the fourth quarter of 2023 was RMB9.6 million (US$1.4 million), compared with other operating income of RMB17.6 million in the same period of 2022.

Loss from operations in the fourth quarter of 2023 was RMB120.4 million (US$17.0 million), compared with RMB56.0 million in the same period of 2022.

Adjusted operating loss, which added back impairment loss of goodwill and intangible assets, was RMB86.4 million in the fourth quarter of 2023, compared with RMB56.0 million in the same period of 2022.

Net loss in the fourth quarter of 2023 was RMB62.2 million (US$8.8 million), compared with net income of RMB41.8 million in the same period of 2022.

Adjusted net loss, which excludes share-based compensation expenses, the share of income (loss) in equity method investments, gain on disposal of investment, impairment loss of investments and impairment loss of goodwill and intangible assets, was RMB5.0 million (US$0.7 million) in the fourth quarter of 2023, compared with RMB4.3 million in the same period of 2022.

Basic and diluted net loss per ADS[4] in the fourth quarter of 2023 were both RMB0.19 (US$0.03). Adjusted basic and diluted net loss per ADS in the fourth quarter of 2023 were both RMB0.02(US$0.00).

Full Year 2023 Financial Results

Total net revenues for the full year of 2023 were RMB5,530.4 million (US$778.9 million), compared with RMB7,108.2 million in the same period of 2022. The decrease was primarily driven by the year-over-year decrease in livestreaming revenues, which was partially offset by the increase in advertising and other revenues.

Gross profit for the full year of 2023 was RMB684.0 million (US$96.3 million), compared with RMB990.1 million in the same period of 2022.

Loss from operations for the full year of 2023 was RMB164.0 million (US$23.1 million), compared with RMB198.9 million in the same period of 2022.

Adjusted net income for the full year of 2023, which excludes share-based compensation expenses, the share of loss (income) in equity method investments, gain on disposal of investment, impairment loss of investments, and impairment of goodwill and intangible assets, was RMB154.0 million (US$21.7 million), compared with adjusted net loss of RMB7.6 million in the same period of 2022.

Basic and diluted net income per ADS for the full year of 2023 were both RMB0.11 (US$0.02). Adjusted basic and diluted net income per ADS in the full year of 2023 were both RMB0.48 (US$0.07).

Cash and cash equivalents, restricted cash and bank deposits

As of December 31, 2023, the Company had cash and cash equivalents, restricted cash, restricted cash in other non-current assets, and short-term and long-term bank deposits of RMB6,855.5 million (US$965.6 million), compared with RMB6,808.8 million as of December 31, 2022.

Share Repurchase Program

On December 28, 2023, the Company announced that its board of directors had authorized a share repurchase program under which the Company may repurchase up to US$20 million of its ordinary shares in the form of ADSs during a period of up to 12 months commencing on January 1, 2024. The Company expects to utilize existing funds to make repurchases under this program.

Conference Call Information

The Company will hold a conference call on March 26, 2024, at 7:00 a.m. Eastern Time (or 7:00 p.m. 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:

4708948

The replay will be accessible through April 2, 2024, by dialing the following numbers:

International:

+1-412-317-0088

United States Toll Free:

+1-877-344-7529

Conference ID:

1682032

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 income" is defined as net income excluding share-based compensation expenses, and share of income (loss) in equity method investments, gain on disposal of investment, impairment loss of investments and impairment loss of goodwill and intangible assets. 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 for the relevant period and calendar year.

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 enhance its user experience and pursue long-term healthy development. 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, gain on disposal of investment, impairment loss of investments, and impairment loss of goodwill and intangible assets. 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, gain on disposal of investment, impairment loss of investments, and impairment loss of goodwill and intangible assets. 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, (iv) impairment loss of investments, (v) impairment loss of goodwill and intangible assets 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 RMB7.0999 to US$1.00, the noon buying rate in effect on December 29, 2023, 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 December 29, 2023, 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, 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 2023 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

Piacente Financial Communications

Email: douyu@tpg-ir.com

Tel: +86 (10) 6508-0677

 

In the United States:

Brandi Piacente

Piacente Financial Communications

Email: douyu@tpg-ir.com

Tel: +1-212-481-2050

 


Media Relations Contact

In China:

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


2022


2023


2023

ASSETS

RMB


RMB


US$ (1)

Current assets:






Cash and cash equivalents

4,041,603


4,440,131


625,379

Restricted cash

6,057


-


-

Short-term bank deposits

2,511,150


1,716,540


241,770

Accounts receivable, net

109,180


73,453


10,346

Prepayments

26,064


38,181


5,378

Amounts due from related parties

46,126


68,994


9,718

Other current assets

337,004


348,129


49,031

Total current assets

7,077,184


6,685,428


941,622







Property and equipment, net

16,988


13,808


1,945

Intangible assets, net

106,723


120,694


16,999

Long-term bank deposits

250,000


630,000


88,734

Investments

531,911


436,197


61,437

Goodwill

13,804


-


-

Right-of-use assets, net

49,911


22,792


3,210

Other non-current assets

98,845


163,184


22,984

Total non-current assets

1,068,182


1,386,675


195,309

TOTAL ASSETS

8,145,366


8,072,103


1,136,931

 

LIABILITIES AND SHAREHOLDERS' EQUITY






LIABILITIES






Current liabilities:






Accounts payable

666,985


534,428


75,273

Advances from customers

6,459


12,911


1,818

Deferred revenue

288,152


315,969


44,503

Accrued expenses and other current liabilities

302,801


246,601


34,733

Amounts due to related parties

266,788


251,392


35,408

Lease liabilities due within one year

27,479


14,768


2,080

Total current liabilities

1,558,664


1,376,069


193,815







Lease liabilities

19,572


6,701


944

Deferred revenue

6,570


-


-

Total non-current liabilities

26,142


6,701


944

TOTAL LIABILITIES

1,584,806


1,382,770


194,759

 

(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 RMB7,0999 to US$1.00, the noon buying rate in effect on December 29, 2023, 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


2022


2023


2023


RMB


RMB


US$ (1)

SHAREHOLDERS' EQUITY






Ordinary shares

23


23


3

Treasury shares

(911,217)


(911,217)


(128,342)

Additional paid-in capital

10,670,287


10,670,287


1,502,878

Accumulated deficit

(3,520,525)


(3,485,007)


(490,853)

Accumulated other comprehensive income

321,991


415,247


58,486

Total DouYu Shareholders' Equity

6,560,559


6,689,333


942,172

Noncontrolling interests

1


-


-

Total Shareholders' Equity

6,560,560


6,689,333


942,172

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

8,145,366


8,072,103


1,136,931


(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 RMB7.0999 to US$1.00, the noon buying rate in effect on December 29, 2023,
in the H.10 statistical release of the Federal 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


Year Ended


Dec 31,

2022


Sep 30,

2023


Dec 31,

2023


Dec 31,

2023


Dec 31,

2022


Dec 31,

2023


Dec 31,

2023


RMB


RMB


RMB


US$ (1)


RMB


RMB


US$ (1)

Net revenues

1,681,054


1,359,189


1,295,962


182,532


7,108,238


5,530,405


778,941

Cost of revenues

(1,494,998)


(1,166,771)


(1,169,712)


(164,750)


(6,118,128)


(4,846,371)


(682,597)

Gross profit

186,056


192,418


126,250


17,782


990,110


684,034


96,344

Operating (expenses) income(2)














Sales and marketing expenses

(123,912)


(89,996)


(83,998)


(11,831)


(639,871)


(351,727)


(49,540)

General and administrative expenses

(55,175)


(50,994)


(80,031)


(11,272)


(288,242)


(237,756)


(33,487)

Research and development expenses

(80,566)


(74,510)


(59,072)


(8,320)


(383,091)


(276,936)


(39,006)

Other operating income, net

17,580


14,272


(9,618)


(1,355)


122,214


32,315


4,551

Impairment of goodwill

-


-


(13,967)


(1,967)


-


(13,967)


(1,967)

Total operating expenses

(242,073)


(201,228)


(246,686)


(34,745)


(1,188,990)


(848,071)


(119,449)

Loss from operations

(56,017)


(8,810)


(120,436)


(16,963)


(198,880)


(164,037)


(23,105)

Other expenses, net

(17,692)


1,401


(21,844)


(3,077)


(80,301)


(52,874)


(7,447)

Interest income, net

55,256


80,747


82,556


11,628


129,858


284,982


40,139

Foreign exchange (loss) income

-


4


(122)


(17)


-


126


18

(Loss) income before income taxes and share of

    (loss) income in equity method investments

 

(18,453)


73,342


(59,846)


(8,429)


(149,323)


68,197


9,605

Income tax expense

(3,487)


-


(1,069)


(151)


(3,487)


(1,069)


(151)

Share of (loss) income in equity method investments

63,781


3,035


(1,310)


(185)


62,395


(31,610)


(4,452)

Net (loss) income

41,841


76,377


(62,225)


(8,765)


(90,415)


35,518


5,002

Less: Net income(loss) attributable to noncontrolling interest

(3,479)


-


-


-


(14,992)


-


-

Net (loss)income attributable to ordinary 

    shareholders of the Company

 

45,320


76,377


(62,225)


(8,765)


(75,423)


35,518


5,002

Net (loss) income per ordinary share














Basic

1.42


2.39


(1.95)


(0.27)


(2.36)


1.11


0.16

Diluted

1.42


2.39


(1.95)


(0.27)


(2.36)


1.11


0.16

Net (loss) income per ADS(3)














Basic

0.14


0.24


(0.19)


(0.03)


(0.24)


0.11


0.02

Diluted

0.14


0.24


(0.19)


(0.03)


(0.24)


0.11


0.02

Weighted average number of ordinary shares used in calculating net (loss) income per ordinary share

Basic

32,023,641


31,977,665


31,977,665


31,977,665


31,971,245


31,977,665


31,977,665

Diluted

32,023,641


31,977,665


31,977,665


31,977,665


31,971,245


31,977,665


31,977,665

Weighted average number of ADS used in calculating net (loss) income per ADS(3)

Basic

320,236,412


319,776,650


319,776,650


319,776,650


319,712,449


319,776,650


319,776,650

Diluted

320,236,412


319,776,650


319,776,650


319,776,650


319,712,449


319,776,650


319,776,650
















 

(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 RMB7.0999 to US$1.00, the noon buying rate in effect on December 29, 2023, in the H.10 statistical release of the Federal Reserve Board.

(2) Share-based compensation expenses were allocated in cost of revenues and operating expenses as follows:

 


Three Months Ended


Year Ended


Dec 31,

2022


Sep 30,

2023


Dec 31,

2023


Dec 31,

2023


Dec 31,

2022


Dec 31,

2023


Dec 31,

2023


RMB


RMB


RMB


US$ (1)


RMB


RMB


US$ (1)

Research and development expenses

-


-


-


-


11,476


-


-

Sales and marketing expenses

-


-


-


-


2,560


-


-

General and administrative expenses

-


-


-


-


52,705


-


-
















(3) Every ten ADSs represent one ordinary share for the relevant period and calendar year.

 

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except share, ADS, per share and per ADS data)



Three Months Ended


Year Ended


Dec 31,

2022


Sep 30,

2023


Dec 31,

2023


Dec 31,

2023


Dec 31,

2022


Dec 31,

2023


Dec 31,

2023


RMB


RMB


RMB


US$ (1)


RMB


RMB


US$ (1)

Loss from operations

(56,017)


(8,810)


(120,436)


(16,963)


(198,880)


(164,037)


(23,105)

Add:














Share-based compensation expenses

-


-


-


-


66,741


-


-

Impairment of goodwill and intangible assets

-


-


34,035


4,794


-


34,035


4,794

Adjusted Operating loss

(56,017)


(8,810)


(86,401)


(12,169)


(132,139)


(130,002)


(18,311)















Net (loss) income

41,841


76,377


(62,225)


(8,765)


(90,415)


35,518


5,002

Add:














Share-based compensation expenses

-


-


-


-


66,741


-


-

Share of loss (income) in equity method investments

(63,781)


(3,035)


1,310


185


(62,395)


31,610


4,452

Impairment losses of investments

17,592


3,731


21,844


3,077


78,461


58,006


8,170

Gain on disposal of investment

-


(5,132)


-


-


-


(5,132)


(723)

Impairment losses of goodwill and intangible assets

-


-


34,035


4,794


-


34,035


4,794

Adjusted net (loss) income

(4,348)


71,941


(5,036)


(709)


(7,608)


154,037


21,695















Net (loss) income attributable to DouYu

45,320


76,377


(62,225)


(8,765)


(75,423)


35,518


5,002

Add:














Share-based compensation expenses

-


-


-


-


66,741


-


-

Share of loss (income) in equity method investments

(63,781)


(3,035)


1,310


185


(62,395)


31,610


4,452

Impairment losses of investments

17,592


3,731


21,844


3,077


78,461


58,006


8,170

Gain on disposal of investment

-


(5,132)


-


-


-


(5,132)


(723)

Impairment losses of goodwill and intangible assets

-


-


34,035


4,794


-


34,035


4,794

Adjusted net (loss) income attributable to DouYu

(869)


71,941


(5,036)


(709)


7,384


154,037


21,695















Adjusted net (loss) income per ordinary share














Basic

(0.03)


2.25


(0.16)


(0.02)


0.23


4.82


0.68

Diluted

(0.03)


2.25


(0.16)


(0.02)


0.23


4.82


0.68















Adjusted net (loss) income per ADS(2)

 














Basic

(0.00)


0.22


(0.02)


(0.00)


0.02


0.48


0.07

Diluted

(0.00)


0.22


(0.02)


(0.00)


0.02


0.48


0.07















Weighted average number of ordinary shares used in calculating Adjusted net (loss) income per ordinary share

Basic

32,023,641


31,977,665


31,977,665


31,977,665


31,971,245


31,977,665


31,977,665

Diluted

32,023,641


31,977,665


31,977,665


31,977,665


31,971,245


31,977,665


31,977,665















Weighted average number of ADS used in calculating net (loss) income per ADS(2)

Basic

320,236,412


319,776,650


319,776,650


319,776,650


319,712,449


319,776,650


319,776,650

Diluted

320,236,412


319,776,650


319,776,650


319,776,650


319,712,449


319,776,650


319,776,650

 

(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 RMB7.0999 to US$1.00, the noon buying rate in effect on December 29, 2023, in the H.10 statistical release of the Federal Reserve Board.

(2) Every ten ADSs represent one ordinary share for the relevant period and calendar year.

 

Cision View original content:https://www.prnewswire.com/news-releases/douyu-international-holdings-limited-reports-fourth-quarter-and-full-year-2023-unaudited-financial-results-302099163.html

SOURCE DouYu International Holdings Limited

FAQ

What were DouYu's total net revenues for the full year of 2023?

DouYu's total net revenues for the full year of 2023 were RMB5,530.4 million (US$778.9 million), compared with RMB7,108.2 million in 2022.

How did DouYu's gross profit change in Q4 2023 compared to Q4 2022?

Gross profit in Q4 2023 was RMB126.2 million (US$17.8 million), a decrease from RMB186.1 million in Q4 2022.

What was DouYu's net income for the full year of 2023?

DouYu reported a net income of RMB35.5 million (US$5.0 million) for the full year of 2023, a positive shift from a net loss in 2022.

How did DouYu's adjusted net income change in Q4 2023 compared to Q4 2022?

Adjusted net loss for Q4 2023 was RMB5.0 million (US$0.7 million), a slight improvement from RMB4.3 million in Q4 2022.

What was the average mobile MAUs in Q4 2023?

Average mobile MAUs in Q4 2023 were 51.7 million, a decrease from 57.4 million in Q4 2022.

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