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1、JOYY Reports Second Quarter 2024 Unaudited Financial ResultsAugust 27,2024SINGAPORE,Aug.28,2024(GLOBE NEWSWIRE)-JOYY Inc.(NASDAQ:YY)(“JOYY”or the“Company”),a global technology company,todayannounced its unaudited financial results for the second quarter of 2024.Second Quarter 2024 Financial Highligh

2、ts1Net revenues were US$565.1 million,compared to US$547.3 million in the corresponding period of 2023.Net income attributable to controlling interest of JOYY2 was US$52.1 million,compared to US$155.1 million in thecorresponding period of 2023.Non-GAAP net income attributable to controlling interest

3、 and common shareholders of JOYY3 was US$74.0 million,compared to US$97.3 million in the corresponding period of 2023.Second Quarter 2024 Operational HighlightsAverage mobile MAUs of Bigo Live was 37.7 million,compared to 38.5 million in the corresponding period of 2023.Average mobile MAUs of Likee

4、was 35.6 million,compared to 43.2 million in the corresponding period of 2023,primarilydue to disciplined spending on user acquisition via advertisement.Average mobile MAUs of Hago was 4.4 million,compared to 5.5 million in the corresponding period of 2023,primarilydue to disciplined spending on use

5、r acquisition via advertisement.Global average mobile MAUs4 was 275.2 million,compared to 275.6 million in the corresponding period of 2023.Total number of paying users of BIGO(including Bigo Live,Likee and imo)5 was 1.66 million,compared to 1.53million in the corresponding period of 2023.Average re

6、venue per paying user of BIGO(including Bigo Live,Likee and imo)6 was US$233.5,compared toUS$248.0 in the corresponding period of 2023.Ms.Ting Li,Chairperson and Chief Executive Officer of JOYY,commented,“In the second quarter,we continued to build on our growth momentum,delivering solid results.BIG

7、O revenue reached US$507.2 million,a 7.7%year-over-year increase,marking the fourth consecutive quarter of recovery.By persistently expanding and diversifying our revenue streams,BIGOs advertising business maintained rapid growth,emerging as a key driverbehind our topline recovery.Our focus on opera

8、tional refinement across all areas and cost optimization has led to improved efficiency,driving aquarter-over-quarter increase in both GAAP and non-GAAP net profits.Furthermore,we continued to implement our share repurchase program,buying back an additional US$71.4 million worth of our shares during

9、 the quarter,demonstrating our commitment to delivering value to ourshareholders.”“Globalization through localization remains a strategic priority,and we believe there is still ample room for expansion.Looking ahead,we will continueto innovate product features,enhance user experience,and drive opera

10、ting efficiency to generate sustainable and profitable growth for our globalbusiness.”Second Quarter 2024 Financial ResultsNET REVENUESNet revenues were US$565.1 million in the second quarter of 2024,compared to US$547.3 million in the corresponding period of 2023.Live streaming revenues were US$459

11、.7 million in the second quarter of 2024,compared to US$477.0 million in the corresponding period of 2023.Other revenues increased by 49.8%to US$105.4 million in the second quarter of 2024 from US$70.4 million in the corresponding period of 2023,primarily due to the substantial growth of our adverti

12、sement revenues as we strategically expanded and diversified the revenue streams of BIGO.COST OF REVENUES AND GROSS PROFITCost of revenues increased by 4.8%to US$366.2 million in the second quarter of 2024 from US$349.6 million in the corresponding period of 2023.Revenue-sharing fees and content cos

13、ts increased to US$263.9 million in the second quarter of 2024 from US$222.6 million in the correspondingperiod of 2023,mainly driven by increased traffic acquisition costs paid to third-party partners in relation to our advertising business.Gross profit was US$198.9 million in the second quarter of

14、 2024,compared to US$197.8 million in the corresponding period of 2023.Gross marginwas 35.2%in the second quarter of 2024,compared to 36.1%in the corresponding period of 2023.OPERATING EXPENSES AND INCOMEOperating expenses were US$198.7 million in the second quarter of 2024,compared to US$191.7 mill

15、ion in the corresponding period of 2023.Amongthe operating expenses,research and development expenses decreased to US$69.9 million in the second quarter of 2024 from US$75.5 million in thecorresponding period of 2023,primarily due to decreases in salaries and welfare of US$2.6 million and share-base

16、d compensation expenses ofUS$2.2 million.General and administrative expenses increased to US$40.7 million for the second quarter of 2024 from US$29.0 million in thecorresponding period of 2023,primarily due to an impairment loss arising from equity investments.Operating income was US$2.3 million in

17、the second quarter of 2024,compared to US$9.4 million in the corresponding period of 2023.Operatingincome margin was 0.4%in the second quarter of 2024,compared to 1.7%in the corresponding period of 2023.Non-GAAP operating income7 was US$30.0 million in the second quarter of 2024,compared to US$34.4

18、million in the corresponding period of 2023.Non-GAAP operating income margin8 was 5.3%in the second quarter of 2024,compared to 6.3%in the corresponding period of 2023.NET INCOMENet income attributable to controlling interest of JOYY was US$52.1 million in the second quarter of 2024,compared to US$1

19、55.1 million in thecorresponding period of 2023.Net income margin was 9.2%in the second quarter of 2024,compared to 28.3%in the corresponding period of 2023.Our net income margin was higher in the previous year primarily due to realized gains from the disposal of certain equity investments of US$77.

20、7million and foreign currency exchange gains of US$20.3 million.Non-GAAP net income attributable to controlling interest and common shareholders of JOYY was US$74.0 million in the second quarter of 2024,compared to US$97.3 million in the corresponding period of 2023.Non-GAAP net income margin9 was 1

21、3.1%in the second quarter of 2024,compared to non-GAAP net income margin of 17.8%in the corresponding period of 2023.NET INCOME PER ADSDiluted net income per ADS10 was US$0.83 in the second quarter of 2024,compared to US$2.02 in the corresponding period of 2023.Non-GAAP diluted net income per ADS11

22、was US$1.17 in the second quarter of 2024,compared to US$1.29 in the corresponding period of 2023.BALANCE SHEET AND CASH FLOWSAs of June 30,2024,the Company had cash and cash equivalents,restricted cash and cash equivalents,short-term deposits,restricted short-termdeposits and short-term investments

23、 of US$3,256.8 million.For the second quarter of 2024,net cash from operating activities was US$71.1 million.SHARES OUTSTANDINGAs of June 30,2024,the Company had a total of 1,142.2 million common shares outstanding,representing the equivalent of 57.1 million ADSsassuming the conversion of all common

24、 shares into ADSs.Business OutlookFor the third quarter of 2024,the Company expects net revenues to be between US$555 million and US$569 million.This forecast reflects theCompanys current and preliminary views on the market,operational conditions and business strategies,which are subject to changes,

25、particularly asto the potential impact from increasing macroeconomic uncertainties.Share Repurchase ProgramDuring the quarter ended June 30,2024,the Company repurchased US$71.4 million of its ADSs on the open market under its current US$530 millionshare repurchase program,which is originally schedul

26、ed to expire by the end of November 2024.The board of directors of the Company hasauthorized to extend the existing share repurchase program of the Company for another 12-month period upon its original expiry date under which theCompany may repurchase up to US$400 million of its shares until the end

27、 of November 2025.Conference Call InformationThe Company will hold a conference call at 9:00 PM U.S.Eastern Time on Tuesday,August 27,2024(9:00 AM Singapore/Hong Kong Time onWednesday,August 28,2024).Details for the conference call are as follows:Event Title:JOYY Inc.Second Quarter 2024 Earnings Con

28、ference CallConference ID:#10041392All participants may use the link provided below to complete the online registration process in advance of the conference call.Upon registration,eachparticipant will receive a set of participant dial-in numbers,the Direct Event passcode,and a unique PIN by email.PR

29、E-REGISTER LINK:https:/s1.c- live and archived webcast of the conference call will also be available at the Companys investor relations website at https:/.The replay will be accessible through September 4,2024,by dialing the following numbers:United States:1-855-883-1031Singapore:800-101-3223Hong Ko

30、ng:800-930-639Conference ID:#10041392 About JOYY Inc.JOYY is a leading global technology company with a mission to enrich lives through technology.JOYY currently operates several social products,including Bigo Live for live streaming,Likee for short-form videos,Hago for multiplayer social networking

31、,an instant messaging product,and others.The Company has created a highly engaging and vibrant user community for users across the globe.JOYYs ADSs have been listed on the NASDAQsince November 2012.Safe Harbor StatementThis press release contains forward-looking statements.These statements are made

32、under the“safe harbor”provisions of the U.S.Private SecuritiesLitigation 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

33、outlook and quotations from management in thispress release,as well as JOYYs strategic and operational plans,contain forward-looking statements.JOYY 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 rep

34、ort to shareholders,in pressreleases and other written materials and in oral statements made by its officers,directors or employees to third parties.Statements that are nothistorical facts,including statements about JOYYs beliefs and expectations,are forward-looking statements.Forward-looking statem

35、ents involveinherent risks and uncertainties.A number of factors could cause actual results to differ materially from those contained in any forward-lookingstatement,including but not limited to the following:JOYYs goals and strategies;JOYYs future business development,results of operations andfinan

36、cial condition;the expected growth of the global online communication social platform market;the expectation regarding the rate at which to gainactive users,especially paying users;JOYYs ability to monetize the user base;the developments in the sale of YY Live;fluctuations in globaleconomic and busi

37、ness conditions;and assumptions underlying or related to any of the foregoing.A more detailed and full discussion of those risksand other potential risks is included in JOYYs filings with the SEC.All information provided in this press release and in the attachments is as of thedate of this press rel

38、ease,and JOYY does not undertake any obligation to update any forward-looking statement,except as required under applicablelaw.Use of Non-GAAP Financial MeasuresThe unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the U

39、nitedStates of America(“U.S.GAAP”).JOYY uses non-GAAP operating income,non-GAAP operating(loss)margin,non-GAAP net income(loss)attributable to controlling interest of JOYY,non-GAAP net income(loss)margin attributable to controlling interest of JOYY,non-GAAP net income(loss)attributable to common sha

40、reholders of JOYY,and basic and diluted non-GAAP net income(loss)per ADS,all of which are non-GAAP financialmeasures adjusted from the most comparable U.S.GAAP results.Non-GAAP operating income(loss)is operating income(loss)excludingshare-based compensation expenses,impairment of goodwill and invest

41、ments,amortization of intangible assets from business acquisitions,and gain(loss)on disposal of subsidiaries and business.Non-GAAP operating(loss)margin is non-GAAP operating income as a percentage of net revenues.Non-GAAP net income(loss)is net income(loss)excluding share-based compensation expense

42、s,impairment of goodwill and investments,amortization of intangible assets from business acquisitions,gain(loss)on disposal of subsidiaries and business,gain(loss)on disposal and deemeddisposal of investments,gain(loss)on fair value change of investments,reconciling items on the share of equity meth

43、od investments(referring toshare of income(loss)from equity method investments resulting from non-recurring or non-cash items of the equity method investments),gain(loss)on extinguishment of debt and derivative,interest expenses related to the convertible bonds amortization to face value,and income

44、tax effects of theabove non-GAAP reconciling items.Non-GAAP net income(loss)attributable to controlling interest of JOYY is net income(loss)attributable tocontrolling interest of JOYY excluding share-based compensation expenses,impairment of goodwill and investments,amortization of intangible assets

45、from business acquisitions,gain(loss)on disposal of subsidiaries and business,gain(loss)on disposal and deemed disposal of investments,gain(loss)on fair value change of investments,reconciling items on the share of equity method investments,gain(loss)on extinguishment of debt andderivative,interest

46、expenses related to the convertible bonds amortization to face value,income tax effects of the above non-GAAP reconciling itemsand adjustments for non-GAAP reconciling items for the net(loss)income attributable to non-controlling interest shareholders.Non-GAAP net income(loss)margin is non-GAAP net

47、income(loss)attributable to controlling interest of JOYY as a percentage of net revenues.Non-GAAP net income(loss)attributable to common shareholders of JOYY is net income(loss)attributable to common shareholders of JOYY excluding share-based compensationexpenses,impairment of goodwill and investmen

48、ts,amortization of intangible assets from business acquisitions,gain(loss)on disposal of subsidiariesand business,gain(loss)on disposal and deemed disposal of investments,gain(loss)on fair value change of investments,reconciling items on theshare of equity method investments,gain(loss)on extinguishm

49、ent of debt and derivative,interest expenses related to the convertible bondsamortization to face value,accretion,cumulative dividend and deemed dividend to subsidiaries preferred shareholders,gain on repurchase ofredeemable convertible preferred shares of a subsidiary and income tax effects of abov

50、e non-GAAP reconciling items and adjustments for non-GAAPreconciling items for the net income(loss)attributable to non-controlling interest shareholders.After the non-GAAP adjustment,non-GAAP net income(loss)attributable to controlling interests of JOYY is equal to the non-GAAP net income(loss)attri

51、butable to common shareholders of JOYY.Basic anddiluted non-GAAP net income(loss)per ADS is non-GAAP net income(loss)attributable to common shareholders of JOYY divided by weightedaverage number of ADS used in the calculation of basic and diluted net income per ADS.The Company believes that separate

52、 analysis and exclusionof the non-cash impact of above reconciling items adds clarity to the constituent parts of its performance.The Company reviews these non-GAAPfinancial measures together with GAAP financial measures to obtain a better understanding of its operating performance.It uses the non-G

53、AAPfinancial measure for planning,forecasting and measuring results against the forecast.The Company believes that non-GAAP financial measure isuseful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of(i)share-basedcompensation expe

54、nses and amortization of intangible assets from business acquisitions,gain(loss)on extinguishment of debt and derivative,interest expenses related to the convertible bonds amortization to face value,which have been and will continue to be significant recurring expensesin its business,(ii)impairment

55、of goodwill and investments,gain(loss)on disposal of subsidiaries and business,gain(loss)on disposal and deemeddisposal of investments,gain(loss)on fair value change of investments,reconciling items on the share of equity method investments,accretion,cumulative dividend and deemed dividend to subsid

56、iaries preferred shareholders and gain on repurchase of redeemable convertible preferred sharesof a subsidiary which may not be recurring in its business,and(iii)income tax expenses and non-GAAP adjustments for net income(loss)attributableto non-controlling interest shareholders,which are affected b

57、y the above non-GAAP reconciling items.However,the use of non-GAAP financialmeasures has material limitations as an analytical tool.One of the limitations of using non-GAAP financial measures is that they do not include allitems that impact the Companys net income(loss)for the period.In addition,bec

58、ause non-GAAP financial measures are not measured in the samemanner 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

59、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 financialinformation prepared and presented in accordance with U.S.GAAP.For more information on these non-GAA

60、P financial measures,please see thetable captioned“JOYY Inc.Unaudited Reconciliation of GAAP and Non-GAAP Results”near the end of this press release.Investor Relations ContactJOYY Inc.Jane Xie/Maggie YanEmail:joyy-ICR,Inc.Robin YangEmail:1On November 16,2020,the Company entered into definitive agree

61、ments with affiliates of Baidu,Inc.(“Baidu”),subsequently amended on February7,2021.Pursuant to the agreements,Baidu would acquire JOYYs video-based entertainment live streaming business in mainland China,which theCompany refers to as YY Live,including the YY mobile app,the YY.com website and the YY

62、 PC app,among others,for an aggregate purchase priceof approximately US$3.6 billion in cash,subject to certain adjustments.Subsequently,the sale was substantially completed as of February 8,2021,with certain matters remaining to be completed,including necessary regulatory approvals from government a

63、uthorities.As a result,YY Lives historicalresults were presented in the Companys consolidated financial statements as discontinued operations and the Company ceased consolidation of YYLives business since February 8,2021.On January 1,2024,the Company received a written notice from an affiliate of Ba

64、idu,purporting to terminatethe share purchase agreement.Baidu asserted in the written notice that it has and exercised the right to terminate the referenced share purchaseagreement and effectively cancel the transaction.The Company is in discussion with Baidu on the next steps following the terminat

65、ion of the sharepurchase agreement.The Company is also seeking legal advice and will consider all options at its disposal in response to Baidus written notice andexpressly reserve all rights.From January 1,2024 to the date of this press release,the Company has not obtained control of YY Live and has

66、 notconsolidated YY Live.To the date of this press release,the latest development of the transaction has not affected the Companys operating activitiesor financial results.The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operat

67、ions basis,unlessotherwise specifically stated.For the avoidance of confusion,the continuing operations for the three months ended June 30,2023,March 31,2024and June 30,2024 and for the six months ended June 30,2023 and June 30,2024,as presented in this press release,primarily consisted of BIGOsegme

68、nt(primarily including Bigo Live,Likee and imo)and the All other segment,excluding YY Live.2Net income(loss)attributable to controlling interest of JOYY is net income(loss)less net(loss)income attributable to the non-controlling interestshareholders and the mezzanine equity classified as non-control

69、ling interest shareholders.3Non-GAAP net income(loss)attributable to controlling interest of JOYY is a non-GAAP financial measure,which is defined as net income(loss)attributable to controlling interest of JOYY excluding share-based compensation expenses,impairment of goodwill and investments,amorti

70、zation ofintangible assets from business acquisitions,gain(loss)on disposal of subsidiaries and business,gain(loss)on disposal and deemed disposal ofinvestments,gain(loss)on fair value change of investments,reconciling items on the share of equity method investments which refer to those similarnon-G

71、AAP reconciling items of the Company,gain(loss)on extinguishment of debt and derivative,interest expenses related to the convertible bondsamortization to face value,income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for net(loss)income attributa

72、ble to non-controlling interest shareholders.These adjustments amounted to US$22.0 million and US$57.8 million in the secondquarter of 2024 and 2023,respectively.Please refer to the section titled“Use of Non-GAAP Financial Measures”and the table captioned“JOYY Inc.Unaudited Reconciliation of GAAP an

73、d Non-GAAP Results”near the end of this press release for details.4Refers to average mobile monthly active users of the social entertainment platforms operated by the Company,including Bigo Live,Likee,imo andHago.Average mobile MAU for any period is calculated by dividing(i)the sum of the Companys m

74、obile active users for each month of such period,by(ii)the number of months in such period.5The number of paying users during a given period is calculated as the cumulative number of registered user accounts that have purchased virtualitems or other products and services on Bigo Live,Likee or imo at

75、 least once during the relevant period.6Average revenue per user is calculated by dividing our total revenues from live streaming on Bigo Live,Likee and imo during a given period by thenumber of paying users for the Companys live streaming services on these platforms for that period.7Non-GAAP operat

76、ing income(loss)is a non-GAAP financial measure,which is defined as operating income(loss)excluding share-basedcompensation expenses,amortization of intangible assets from business acquisitions,impairment of goodwill and investments and gain(loss)ondisposal of subsidiaries and business.Please refer

77、to the section titled“Use of Non-GAAP Financial Measures”and the table captioned“JOYY Inc.Unaudited Reconciliation of GAAP and Non-GAAP Results”near the end of this press release for details.8Non-GAAP operating income(loss)margin is a non-GAAP financial measure,which is defined as non-GAAP operating

78、 income(loss)as apercentage of net revenues.Please refer to the section titled“Use of Non-GAAP Financial Measures”and the table captioned“JOYY Inc.UnauditedReconciliation of GAAP and Non-GAAP Results”near the end of this press release for details.9 Non-GAAP net income(loss)margin is non-GAAP net inc

79、ome(loss)attributable to controlling interest of JOYY as a percentage of net revenues.10ADS refers to American Depositary Share.Each ADS represents twenty Class A common shares of the Company.Diluted net income(loss)perADS is net income(loss)attributable to common shareholders of JOYY divided by wei

80、ghted average number of diluted ADS.11Non-GAAP diluted net income(loss)per ADS is a non-GAAP financial measure,which is defined as non-GAAP net income(loss)attributable tocommon shareholders of JOYY divided by weighted average number of ADS used in the calculation of diluted net income(loss)per ADS.

81、Please referto the section titled“Use of Non-GAAP Financial Measures”and the table captioned“JOYY Inc.Unaudited Reconciliation of GAAP and Non-GAAPResults”near the end of this press release for details.JOYY INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands,except share,ADS

82、 and per ADS data)December 31,June 30,2023 2024 US$US$Assets Current assets Cash and cash equivalents 1,063,956 607,091 Restricted cash and cash equivalents 319,250 385,813 Short-term deposits 1,970,346 2,021,784 Restricted short-term deposits 57,243 54,173 Short-term investments 274,846 187,906 Acc

83、ounts receivable,net 130,700 115,962 Amounts due from related parties 810 373 Prepayments and other current assets(1)255,489 251,546 Total current assets 4,072,640 3,624,648 Non-current assets Long-term deposits 130,000 185,000 Investments 544,542 552,360 Property and equipment,net 390,681 427,097 L

84、and use rights,net 316,070 309,924 Intangible assets,net 333,715 304,430 Right-of-use assets,net 30,173 25,328 Goodwill 2,649,281 2,649,271 Other non-current assets 16,763 21,784 Total non-current assets 4,411,225 4,475,194 Total assets 8,483,865 8,099,842 Liabilities,mezzanine equity and shareholde

85、rs equity Short-term loan 52,119 77,609 Accounts payable 66,755 72,959 Deferred revenue 73,673 77,945 Advances from customers 6,047 4,970 Income taxes payable 86,100 81,669 Accrued liabilities and other current liabilities(1)2,381,189 2,364,420 Amounts due to related parties 2,533 2,724 Lease liabil

86、ities due within one year 12,388 11,520 Convertible bonds 405,603-Total current liabilities 3,086,407 2,693,816 Non-current liabilities Convertible bonds-593 Lease liabilities 18,422 14,510 Deferred revenue 12,932 13,397 Deferred tax liabilities 53,955 49,095 Total non-current liabilities 85,309 77,

87、595 Total liabilities 3,171,716 2,771,411 JOYY INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(CONTINUED)(All amounts in thousands,except share,ADS and per ADS data)December 31,June 30,2023 2024 US$US$Mezzanine equity 22,133 22,933 Shareholders equity Class A common shares(US$0.00001 par value;1

88、0,000,000,000 and 10,000,000,000 sharesauthorized,1,317,840,464 shares issued and 890,843,639 shares outstanding as of December 31,2023;1,317,840,464 shares issued and 815,693,731 shares outstanding as of June 30,2024,respectively)9 8 Class B common shares(US$0.00001 par value;1,000,000,000 and 1,00

89、0,000,000 sharesauthorized,326,509,555 and 326,509,555 shares issued and outstanding as of December 31,2023 and June 30,2024,respectively)3 3 Treasury shares(US$0.00001 par value;426,996,825 and 502,146,733 shares held as ofDecember 31,2023 and June 30,2024,respectively)(913,939)(1,039,866)Additiona

90、l paid-in capital 3,282,754 3,336,280 Statutory reserves 37,709 37,686 Retained earnings 2,947,160 3,043,841 Accumulated other comprehensive loss(197,010)(205,757)Total JOYY Inc.s shareholders equity 5,156,686 5,172,195 Non-controlling interests 133,330 133,303 Total shareholders equity 5,290,016 5,

91、305,498 Total liabilities,mezzanine equity and shareholders equity 8,483,865 8,099,842 (1)JOYY has ceased consolidation of YY Live business since February 8,2021 and classified and presented all the related assets and liabilitiesrelated to YY Live business on a net basis within prepayments and other

92、 current assets.The consideration received by the Company to date remainswithin cash and cash equivalents,restricted cash and cash equivalents,and short-term deposits.Correspondingly,the advanced payments receivedhas been recorded as accrued liabilities and other current liabilities.JOYY INC.UNAUDIT

93、ED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(All amounts in thousands,except share,ADS and per ADS data)Three Months Ended Six Months Ended June 30,March 31,June 30,June 30,June 30,2023 2024 2024 2023 2024 US$US$US$US$US$Net revenues Live streaming(1)476,981 466,391 459,730 997,374 926,121 Oth

94、ers 70,353 98,169 105,398 133,588 203,567 Total net revenues 547,334 564,560 565,128 1,130,962 1,129,688 Cost of revenues(2)(349,566)(369,197)(366,189)(728,568)(735,386)Gross profit 197,768 195,363 198,939 402,394 394,302 Operating expenses(2)Research and development expenses(75,540)(69,039)(69,856)

95、(151,315)(138,895)Sales and marketing expenses(87,205)(94,638)(88,132)(184,804)(182,770)General and administrative expenses(28,966)(31,743)(40,686)(60,935)(72,429)Total operating expenses(191,711)(195,420)(198,674)(397,054)(394,094)Gain on disposal of subsidiary-1,643 -1,643 Other income 3,382 3,600

96、 361 6,630 3,961 Operating income 9,439 3,543 2,269 11,970 5,812 Interest expenses(3,057)(2,136)(1,864)(6,166)(4,000)Interest income and investment income 46,602 48,927 46,702 90,737 95,629 Foreign currency exchange gains,net 20,316 768 1,125 10,395 1,893 Gain on disposal and deemed disposal of inve

97、stments 77,737 -77,524 -(Loss)gain on fair value change of investments(2,235)985 (619)(950)366 Income before income tax expenses 148,802 52,087 47,613 183,510 99,700 Income tax expenses(5,382)(4,537)(2,628)(13,540)(7,165)Income before share of income(loss)in equity method investments,net of income t

98、axes 143,420 47,550 44,985 169,970 92,535 Share of income(loss)in equity method investments,net of income taxes 3,885 (7,395)2,805 (2,721)(4,590)Net income 147,305 40,155 47,790 167,249 87,945 Net loss attributable to the non-controlling interest shareholders and themezzanine equity classified as no

99、n-controlling interest shareholders 7,798 5,131 4,276 15,840 9,407 Net income attributable to controlling interest of JOYY Inc.155,103 45,286 52,066 183,089 97,352 Accretion of subsidiaries redeemable convertible preferred shares toredemption value(1,566)(347)(347)(3,132)(694)Cumulative dividend on

100、subsidiarys Series A Preferred Shares(1,000)-(2,000)-Net income attributable to common shareholders of JOYY Inc.152,537 44,939 51,719 177,957 96,658 JOYY INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(CONTINUED)(All amounts in thousands,except share,ADS and per ADS data)Three Months E

101、nded Six Months Ended June 30,March 31,June 30,June 30,June 30,2023 2024 2024 2023 2024 US$US$US$US$US$Net income per ADS Basic 2.27 0.73 0.87 2.58 1.59Diluted 2.02 0.69 0.83 2.33 1.52 Weighted average number of ADS used in calculating net income perADS Basic 67,273,951 61,783,347 59,537,049 68,854,

102、013 60,660,104Diluted 76,872,137 67,152,622 64,101,951 78,845,472 65,625,455 (1)Revenues by geographical areas were as follows:Three Months Ended Six Months Ended June 30,March 31,June 30,June 30,June 30,2023 2024 2024 2023 2024 US$US$US$US$US$Developed countries and regions 231,932 291,036 306,099

103、449,783 597,135Middle East 111,172 87,458 75,530 229,958 162,988Mainland China 81,595 59,801 62,604 204,414 122,405Southeast Asia and others 122,635 126,265 120,895 246,807 247,160 Note:Developed countries and region mainly included the United States of America,Great Britain,Japan,South Korea and Au

104、stralia.Middle Eastmainly included Saudi Arabia and other countries located in the region.Southeast Asia and others mainly included Indonesia,Vietnam and rest of theworld.(2)Share-based compensation was allocated in cost of revenues and operating expenses as follows:Three Months Ended Six Months End

105、ed June 30,March 31,June 30,June 30,June 30,2023 2024 2024 2023 2024 US$US$US$US$US$Cost of revenues 1,025 663 778 2,261 1,441Research and development expenses 5,526 3,392 3,282 11,287 6,674Sales and marketing expenses 320 131 108 554 239General and administrative expenses 2,227 1,942 2,183 4,335 4,

106、125 JOYY INC.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS(All amounts in thousands,except share,ADS and per ADS data)Three Months Ended Six Months Ended June 30,March 31,June 30,June 30,June 30,2023 2024 2024 2023 2024 US$US$US$US$US$Operating income 9,439 3,543 2,269 11,970 5,812 Share-bas

107、ed compensation expenses 9,098 6,128 6,351 18,437 12,479 Amortization of intangible assets from business acquisitions 15,890 15,132 13,590 31,780 28,722 Impairment of investments-9,386 -9,386 Gain on disposal of subsidiary-(1,643)-(1,643)Non-GAAP operating income 34,427 24,803 29,953 62,187 54,756 N

108、et income 147,305 40,155 47,790 167,249 87,945 Share-based compensation expenses 9,098 6,128 6,351 18,437 12,479 Amortization of intangible assets from business acquisitions 15,890 15,132 13,590 31,780 28,722 Impairment of investments-9,386 -9,386 Gain on disposal of subsidiary-(1,643)-(1,643)Gain o

109、n disposal and deemed disposal of investments(77,737)-(77,524)-Loss(gain)on fair value change of investments 2,235 (985)619 950 (366)Interest expenses related to the convertible bonds amortization to facevalue 528 237 198 1,106 435 Income tax effects on non-GAAP adjustments(3,128)(2,222)(1,883)(5,43

110、9)(4,105)Reconciling items on the share of equity method investments(3,572)4,434 (3,700)(2,848)734 Non-GAAP net income 90,619 62,879 70,708 133,711 133,587 Net income attributable to common shareholders of JOYY Inc.152,537 44,939 51,719 177,957 96,658 Share-based compensation expenses 9,098 6,128 6,

111、351 18,437 12,479 Amortization of intangible assets from business acquisitions 15,890 15,132 13,590 31,780 28,722 Impairment of investments-9,386 -9,386 Gain on disposal of subsidiary-(1,643)-(1,643)Gain on disposal and deemed disposal of investments(77,737)-(77,524)-Loss(gain)on fair value change o

112、f investments 2,235 (985)619 950 (366)Interest expenses related to the convertible bonds amortization to facevalue 528 237 198 1,106 435 Accretion,cumulative dividend and deemed dividend to subsidiariespreferred shareholders 2,566 347 347 5,132 694 Income tax effects on non-GAAP adjustments(3,128)(2

113、,222)(1,883)(5,439)(4,105)Reconciling items on the share of equity method investments(3,572)4,434 (3,700)(2,848)734 Non-GAAP adjustments for net loss attributable to the non-controllinginterest shareholders(1,115)(806)(949)(2,382)(1,755)Non-GAAP net income attributable to controlling interest andcom

114、mon shareholders of JOYY Inc.97,302 67,204 74,035 147,169 141,239 Non-GAAP net income per ADS Basic 1.45 1.09 1.24 2.14 2.33 Diluted 1.29 1.02 1.17 1.92 2.19 Weighted average number of ADS used in calculating Non-GAAP netincome per ADS Basic 67,273,951 61,783,347 59,537,049 68,854,013 60,660,104 Dil

115、uted 76,872,137 67,152,622 64,101,951 78,845,472 65,625,455 JOYY INC.UNAUDITED SEGMENT REPORT(All amounts in thousands,except share,ADS and per ADS data)Three Months Ended June 30,2024 BIGO All other Elimination(1)Total US$US$US$US$Net revenues Live streaming439,394 20,336 -459,730 Others67,760 38,0

116、24 (386)105,398 Total net revenues507,154 58,360 (386)565,128 Cost of revenues(2)(327,735)(38,530)76 (366,189)Gross profit179,419 19,830 (310)198,939 Operating expenses(2)Research and development expenses(42,715)(27,370)229 (69,856)Sales and marketing expenses(66,720)(21,435)23 (88,132)General and a

117、dministrative expenses(12,180)(28,564)58 (40,686)Total operating expenses(121,615)(77,369)310 (198,674)Gain on disposal of subsidiary-1,643 -1,643 Other income177 184 -361 Operating income(loss)57,981 (55,712)-2,269 Interest expenses(1,475)(1,400)1,011 (1,864)Interest income and investment income15,

118、256 32,457 (1,011)46,702 Foreign currency exchange gains,net1,005 120 -1,125(Loss)gain on fair value change of investments(2,610)1,991 -(619)Income(loss)before income tax(expenses)benefits70,157 (22,544)-47,613 Income tax(expenses)benefits(5,575)2,947 -(2,628)Income(loss)before share of income in eq

119、uity method investments,netof income taxes64,582 (19,597)-44,985 Share of income in equity method investments,net of income taxes-2,805 -2,805 Net income(loss)64,582 (16,792)-47,790 (1)The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments,

120、and interest income andinterest expenses generated from the loan between BIGO and All other segments.(2)Share-based compensation was allocated in cost of revenues and operating expenses as follows:Three Months Ended June 30,2024 BIGO All other Total US$US$US$Cost of revenues 446 332 778Research and

121、development expenses 1,543 1,739 3,282Sales and marketing expenses 45 63 108General and administrative expenses 408 1,775 2,183 JOYY INC.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All amounts in thousands,except share,ADS and per ADS data)Three Months Ended Jun

122、e 30,2024 BIGO All other Total US$US$US$Operating income(loss)57,981 (55,712)2,269 Share-based compensation expenses 2,442 3,909 6,351 Amortization of intangible assets from business acquisitions 8,950 4,640 13,590 Impairment of investments-9,386 9,386 Gain on disposal of subsidiary-(1,643)(1,643)No

123、n-GAAP operating income(loss)69,373 (39,420)29,953 Net income(loss)64,582 (16,792)47,790 Share-based compensation expenses 2,442 3,909 6,351 Amortization of intangible assets from business acquisitions 8,950 4,640 13,590 Impairment of investments-9,386 9,386 Gain on disposal of subsidiary-(1,643)(1,

124、643)Loss(gain)on fair value change of investments 2,610 (1,991)619 Interest expenses related to the convertible bonds amortization to face value-198 198 Income tax effects on non-GAAP adjustments(778)(1,105)(1,883)Reconciling items on the share of equity method investments-(3,700)(3,700)Non-GAAP net

125、 income(loss)77,806 (7,098)70,708 JOYY INC.UNAUDITED SEGMENT REPORT(All amounts in thousands,except share,ADS and per ADS data)Three Months Ended March 31,2024 BIGO All other Elimination(1)Total US$US$US$US$Net revenues Live streaming442,154 24,237 -466,391 Others63,049 35,518 (398)98,169 Total net

126、revenues505,203 59,755 (398)564,560 Cost of revenues(2)(328,583)(40,692)78 (369,197)Gross profit176,620 19,063 (320)195,363 Operating expenses(2)Research and development expenses(41,022)(28,258)241 (69,039)Sales and marketing expenses(74,430)(20,232)24 (94,638)General and administrative expenses(14,

127、075)(17,723)55 (31,743)Total operating expenses(129,527)(66,213)320 (195,420)Other income3,296 304 -3,600 Operating income(loss)50,389 (46,846)-3,543 Interest expenses(1,765)(1,681)1,310 (2,136)Interest income and investment income15,441 34,796 (1,310)48,927 Foreign currency exchange gains,net379 38

128、9 -768 Gain(loss)on fair value change of investments1,267 (282)-985 Income(loss)before income tax(expenses)benefits65,711 (13,624)-52,087 Income tax(expenses)benefits(4,662)125 -(4,537)Income(loss)before share of loss in equity method investments,net ofincome taxes61,049 (13,499)-47,550 Share of los

129、s in equity method investments,net of income taxes-(7,395)-(7,395)Net income(loss)61,049 (20,894)-40,155 (1)The elimination mainly consists of revenues and expenses generated from services among BIGO and All other segments,and interest income andinterest expenses generated from the loan between BIGO

130、 and All other segments.(2)Share-based compensation was allocated in cost of revenues and operating expenses as follows:Three Months Ended March 31,2024 BIGO All other Total US$US$US$Cost of revenues 391 272 663Research and development expenses 1,641 1,751 3,392Sales and marketing expenses 47 84 131

131、General and administrative expenses 96 1,846 1,942 JOYY INC.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All amounts in thousands,except share,ADS and per ADS data)Three Months Ended March 31,2024 BIGO All other Total US$US$US$Operating income(loss)50,389 (46,846

132、)3,543 Share-based compensation expenses 2,175 3,953 6,128 Amortization of intangible assets from business acquisitions 10,467 4,665 15,132 Non-GAAP operating income(loss)63,031 (38,228)24,803 Net income(loss)61,049 (20,894)40,155 Share-based compensation expenses 2,175 3,953 6,128 Amortization of i

133、ntangible assets from business acquisitions 10,467 4,665 15,132(Gain)loss on fair value change of investments(1,267)282 (985)Interest expenses related to the convertible bonds amortization to face value-237 237 Income tax effects on non-GAAP adjustments(1,203)(1,019)(2,222)Reconciling items on the s

134、hare of equity method investments-4,434 4,434 Non-GAAP net income(loss)71,221 (8,342)62,879 JOYY INC.UNAUDITED SEGMENT REPORT(All amounts in thousands,except share,ADS and per ADS data)Three Months Ended June 30,2023 BIGO All other Elimination(1)Total US$US$US$US$Net revenues Live streaming445,169 3

135、1,812 -476,981 Others25,885 44,860 (392)70,353 Total net revenues471,054 76,672 (392)547,334 Cost of revenues(2)(287,587)(62,069)90 (349,566)Gross profit183,467 14,603 (302)197,768 Operating expenses(2)Research and development expenses(41,727)(34,042)229 (75,540)Sales and marketing expenses(70,652)(

136、16,574)21 (87,205)General and administrative expenses(12,587)(16,431)52 (28,966)Total operating expenses(124,966)(67,047)302 (191,711)Other income1,914 1,468 -3,382 Operating income(loss)60,415 (50,976)-9,439 Interest expenses(1,727)(2,643)1,313 (3,057)Interest income and investment income9,882 38,0

137、33 (1,313)46,602 Foreign currency exchange gains(losses),net22,031 (1,715)-20,316 Gain on disposal and deemed disposal of investments-77,737 -77,737(Loss)gain on fair value change of investments(2,460)225 -(2,235)Income before income tax expenses88,141 60,661 -148,802 Income tax expenses(4,478)(904)

138、-(5,382)Income before share of income in equity method investments,net ofincome taxes83,663 59,757 -143,420 Share of income in equity method investments,net of income taxes-3,885 -3,885 Net income83,663 63,642 -147,305 (1)The elimination mainly consists of revenues and expenses generated from servic

139、es among BIGO and All other segments,and interest income andinterest expenses generated from the loan between BIGO and All other segments.(2)Share-based compensation was allocated in cost of revenues and operating expenses as follows:Three Months Ended June 30,2023 BIGO All other Total US$US$US$Cost

140、 of revenues 410 615 1,025Research and development expenses 2,532 2,994 5,526Sales and marketing expenses 170 150 320General and administrative expenses 700 1,527 2,227 JOYY INC.UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT(All amounts in thousands,except share,AD

141、S and per ADS data)Three Months Ended June 30,2023 BIGO All other Total US$US$US$Operating income(loss)60,415 (50,976)9,439 Share-based compensation expenses 3,812 5,286 9,098 Amortization of intangible assets from business acquisitions 11,225 4,665 15,890 Non-GAAP operating income(loss)75,452 (41,0

142、25)34,427 Net income 83,663 63,642 147,305 Share-based compensation expenses 3,812 5,286 9,098 Amortization of intangible assets from business acquisitions 11,225 4,665 15,890 Gain on disposal and deemed disposal of investments-(77,737)(77,737)Loss(gain)on fair value change of investments 2,460 (225)2,235 Interest expenses related to the convertible bonds amortization to face value-528 528 Income tax effects on non-GAAP adjustments(1,415)(1,713)(3,128)Reconciling items on the share of equity method investments-(3,572)(3,572)Non-GAAP net income(loss)99,745 (9,126)90,619