JOYY Reports Fourth Quarter and Full Year 2020 Unaudited Financial Results

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GUANGZHOU, China, March 26, 2021 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company”, formerly known as YY Inc.), a global video-based social media platform, today announced its unaudited financial results for the fourth quarter and full year of 2020.

Fourth Quarter 2020 Financial Highlights1

  • Net revenues increased by 77.5% to RMB3,783.5 million (US$579.9 million) from RMB2,131.9 million in the corresponding period of 2019.

  • Net loss from continuing operations attributable to controlling interest of JOYY2 was RMB791.9 million (US$121.4 million), compared to RMB816.6 million in the corresponding period of 2019, primarily due to the decrease in the operation loss of Bigo Inc (“BIGO”).

  • Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY3 decreased by 67.2% to RMB149.4 million (US$22.9 million) from RMB455.7 million in the corresponding period of 2019, primarily due to the decrease in the operation loss of BIGO.

Full Year 2020 Highlights

  • Net revenues increased by 112.1% to RMB13,230.9 million (US$2,027.7 million) from RMB6,239.3 million in 2019.

  • Net loss from continuing operations attributable to controlling interest of JOYY was RMB105.1 million (US$16.1 million), compared to RMB516.7 million in 2019.

  • Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY was RMB1,142.3 million (US$175.1 million), compared to RMB1,963.2 million in 2019.

Fourth Quarter 2020 Operational Highlights

  • Global average mobile MAUs4 decreased by 7.1% to 393.7 million from 423.6 million in the corresponding period of 2019, primarily due to the impact of the Indian government’s measures to block Chinese-owned apps in its local market, which included Bigo Live, Likee and Hago, partially offset by increases in MAUs outside India.

  • Average mobile MAUs of Likee increased by 4.2% to 120.1 million from 115.3 million in the corresponding period of 2019.

  • Average mobile MAUs of Bigo Live increased by 24.5% to 28.7 million from 23.1 million in the corresponding period of 2019.

  • Average mobile MAUs of Hago decreased by 49.9% to 16.5 million from 33.0 million in the corresponding period of 2019 primarily due to the impact of the Indian government’s measures to block Chinese-owned apps in its local market.

  • Total number of paying users of YY Live decreased by 1.1% to 4.25 million from 4.30 million in the corresponding period of 2019, mainly due to the impacts of COVID-19 adversely affecting the sentiment of some users on the live streaming platforms of YY Live.

Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “In the fourth quarter, we remained focused on executing our dual-engine growth strategy. Through a combination of globalized market reach and localized operations management, we continued to expand our international footprint and enhance our monetization capabilities. As a result, several of our platforms achieved solid revenue growth in the quarter, with revenues from Bigo Live increased by 100.4%, Likee by 407.5%, and Hago by 69.4% year over year. In terms of geographic coverage, we achieved promising results in both developed markets and the Middle East. For the whole year of 2020, our overseas business segment, BIGO, generated larger revenue than YY Live. Such progress illustrates not only our ability to capture the overseas market potential, but also our solid execution of growth strategies over the past several years. Through optimization of our products’ social features and improvement of content production tools, we continued to improve user experience and user engagement levels in the quarter. In 2021, we will continue to focus on the development of our platform’s content and social community via localized operations, further reducing content production barriers, and empowering content creators in all aspects of their activities. Such efforts will contribute to the abundant flow of high-quality content, which ultimately ensures the long-term sustainable growth of our social entertainment ecosystem.”

Mr. Bing Jin, Chief Financial Officer of JOYY, further commented, “During the fourth quarter of 2020, we grew our total revenues by 77.5% year over year to RMB3,783.5 million (US$579.9 million), with revenues from Bigo grew by 87.9% year over year to RMB3,389.8 million (US$519.5 million), mostly driven by an uptick in its live streaming revenues. Due to its improved product monetization capabilities, BIGO has achieved a positive non-GAAP operating margin for the second consecutive quarter. Going forward, we will continue to invest in our business development initiatives to further expand our global market reach, cultivate our highly engaged user community, and grow our high-quality content offerings. We will also actively explore flexible ways to return value to our shareholders and maximize shareholder value.”

Fourth Quarter 2020 Financial Results

NET REVENUES
Net revenues increased by 77.5% to RMB3,783.5 million (US$579.9 million) in the fourth quarter of 2020 from RMB2,131.9 million in the corresponding period of 2019, primarily driven by the growth of live streaming revenues from BIGO.

Live streaming revenues increased by 93.3% to RMB3,593.9 million (US$550.8 million) in the fourth quarter of 2020 from RMB1,859.1 million in the corresponding period of 2019, primarily attributable to continued user base growth and enhanced monetization capabilities of BIGO.

Other revenues decreased by 30.5% to RMB189.6 million (US$29.1 million) in the fourth quarter of 2020 from RMB272.8 million in the corresponding period of 2019, primarily due to the decrease in other revenues in all other segment.

COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 76.6% to RMB2,674.7 million (US$409.9 million) in the fourth quarter of 2020 from RMB1,514.5 million in the corresponding period of 2019. Revenue-sharing fees and content costs increased to RMB1,693.1 million (US$259.5 million) in the fourth quarter of 2020 from RMB708.6 million in the corresponding period of 2019 as a result of the increase in live streaming revenues of the Company. Bandwidth costs decreased to RMB179.5 million (US$27.5 million) in the fourth quarter of 2020 from RMB221.8 million in the corresponding period of 2019, primarily related to the Company’s improved efficiency and the termination of bandwidth usage for users in India after its measures to block certain Chinese mobile apps in late June 2020, partially offset by the continued user base expansion outside India.

Gross profit increased by 79.6% to RMB1,108.9 million (US$169.9 million) in the fourth quarter of 2020 from RMB617.4 million in the corresponding period of 2019. Gross margin improved to 29.3% in the fourth quarter of 2020 from 29.0% in the corresponding period of 2019.

OPERATING INCOME
Operating expenses were RMB1,675.2 million (US$256.7 million) in the fourth quarter of 2020, compared to RMB1,576.2 million in the corresponding period of 2019. Among the operating expenses, sales and marketing expenses increased to RMB973.8 million (US$149.2 million) in the fourth quarter of 2020 from RMB782.0 million in the corresponding period of 2019, primarily due to the Company’s increased efforts in sales and marketing activities in overseas markets. General and administrative expenses were RMB236.3 million (US$36.2 million) in the fourth quarter of 2020, compared to RMB319.8 million in the corresponding period of 2019. The decrease in general and administrative expenses was mainly attributable to a decrease in provision for loss allowances of receivables.

Operating loss was RMB557.6 million (US$85.5 million) in the fourth quarter of 2020, compared to RMB863.3 million in the corresponding period of 2019. Operating loss margin was 14.7% in the fourth quarter of 2020, compared to 40.5% in the corresponding period of 2019, primarily due to the decrease in operation loss of BIGO.

Non-GAAP operating loss5 decreased by 60.7% to RMB220.7 million (US$33.8 million) in the fourth quarter of 2020 from RMB561.5 million in the corresponding period of 2019. Non-GAAP operating loss margin6 was 5.8% in the fourth quarter of 2020, compared to 26.3% in the corresponding period of 2019.

NET INCOME
Net loss from continuing operations attributable to controlling interest of JOYY was RMB791.9 million (US$121.4 million) in the fourth quarter of 2020, compared to RMB816.6 million in the corresponding period of 2019. Net loss margin was 20.9% in the fourth quarter of 2020, compared to 38.3% in the corresponding period of 2019, primarily due to the decrease in operation loss of BIGO.

Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY was RMB149.4 million (US$22.9 million) in the fourth quarter of 2020, compared to RMB455.7 million in the corresponding period of 2019. Non-GAAP net loss margin7 was 3.9% in the fourth quarter of 2020, compared to 21.4% in the corresponding period of 2019.

NET INCOME PER ADS
Diluted net loss from continuing operations per ADS8 was RMB10.07 (US$1.54) in the fourth quarter of 2020, compared to RMB10.43 in the corresponding period of 2019.

Non-GAAP diluted net loss from continuing operations per ADS9 was RMB1.86 (US$0.29) in the fourth quarter of 2020, compared to RMB5.70 in the corresponding period of 2019.

BALANCE SHEET AND CASH
As of December 31, 2020, the Company had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of RMB23,503.6 million (US$3,602.1 million).

SHARES OUTSTANDING
As of December 31, 2020, the Company had a total of 1,598.9 million common shares, or the equivalent of 79.9 million ADSs, outstanding.

Full Year 2020 Financial Results

Net revenues for the full year of 2020 increased by 112.1% to RMB13,230.9 million (US$2,027.7 million) from RMB6,239.3 million in 2019, primarily driven by a 135.0% year-over-year increase in live streaming revenues.

Net loss from continuing operations attributable to controlling interest of JOYY for the full year of 2020 decreased by 79.7% to RMB105.1 million (US$16.1 million) from RMB516.7 million in 2019. Net loss margin for the full year of 2020 was 0.8%, compared with 8.3% in 2019.

Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY for the full year of 2020 was RMB1,142.3 (US$175.1 million), compared to RMB1,963.2 million in 2019. Non-GAAP net loss margin for the full year of 2020 was 8.6%, compared to 31.5% in 2019.

Diluted net loss from continuing operations per ADS for the full year of 2020 decreased by 71.6% to RMB2.14 (US$0.33) from RMB7.54 in 2019. Non-GAAP diluted net loss from continuing operations per ADS was RMB14.28 (US$2.19) in 2020, compared to RMB25.42 in the corresponding period of 2019.

Business Outlook
For the first quarter of 2021, the Company expects net revenues to be between USD$590 million and USD$605 million, representing a year-over-year growth of 72.5% to 76.9%. This guidance excludes the revenue contribution from Huya and YY Live in the same period of last year. This forecast considers the potential impact of the COVID-19 pandemic and reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to changes, particularly as to the potential impact of the COVID-19 on the global economy and users’ paying capabilities.

Quarterly Dividend
On August 11, 2020, the Company’s board of directors approved a quarterly dividend policy for the next three years commencing in the third quarter of 2020. Aggregating such quarterly cash dividend under another adopted quarterly dividend policy with the quarterly cash dividend announced on November 16, 2020, the board of directors has accordingly declared a dividend of US$0.51 per ADS, or US$0.0255 per common share, for the fourth quarter of 2020, which is expected to be paid on April 30, 2021 to shareholders of record as of the close of business on April 19, 2021. The ex-dividend date will be April 20, 2021. Under the policy, the board of directors of the Company reserves the discretion relating to the determination to make dividend distributions and the amount of such distributions in any particular quarter, depending on the Company’s operations and earnings, cash flow, financial condition and other relevant factors.

Recent Developments

  • Changes in Management Composition

Mr. Bing Jin is pursuing a new job opportunity and will leave his position as the Company’s Chief Financial Officer at the end of April 2021. Mr. Jin has served as the Company’s Chief Financial Officer since 2017 and in that role made significant contributions to the Company’s business, finance, and corporate governance. The Company greatly appreciates Mr. Jin’s many contributions and wishes him well. Although leaving the Chief Financial Officer position, Mr. Jin has agreed to continue on as an advisor to JOYY to assist with transition through April 2022. The Company has commenced a search process for a new Chief Financial Officer in which Mr. Jin will actively participate.

  • Independent Review Conclusion

As noted in the Company’s February 8, 2021 Form 6-K, the Company’s audit committee previously commenced an independent review of allegations raised in a November 18, 2020 short seller report targeting JOYY. With the assistance of independent counsel, working with a team of experienced forensic auditors and data analytics experts, the audit committee previously concluded that the allegations raised and conclusions reached in the report about the YY Live business were not substantiated. The audit committee has now also concluded its work as to the handful of claims in the report unrelated to the YY Live business (concerning BIGO) and likewise found the short seller allegations unsubstantiated. The audit committee’s review has thus concluded, with no adverse findings.

  • Share Repurchase Program

On May 2020, the Company announced that its board of directors has authorized to extend its existing share repurchase program, as previously approved by the board of directors in August 2019, for another 12-month period upon its original expiry date under which the Company may repurchase up to US$300 million of its shares between August 2019 and August 2021. As of December 31, 2020, the Company had repurchased approximately US$139.5 million of its shares.

Conference Call Information
The Company will hold a conference call on 9:00 PM U.S. Eastern Time on Thursday, March 25, 2021 (09:00 AM Beijing/Hong Kong Time on Friday, March 26, 2021). Details for the conference call are as follows:

Event Title:

JOYY Inc. Fourth Quarter and Full Year 2020 Earnings Conference Call

Conference ID:

#4784747

All participants must use the link provided below to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique registrant ID by email.

PRE-REGISTER LINK: 
http://apac.directeventreg.com/registration/event/4784747

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.joyy.sg/.

The replay will be accessible through April 2, 2021 by dialing the following numbers:

United States:

+1-646-254-3697

International:

+61-2-8199-0299

Conference ID:

#4784747

Exchange Rate
This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.525 to US$1.00, the noon buying rate in effect on December 31, 2020 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York.

About JOYY Inc.
JOYY is a leading global social media platform that enables users to interact with each other in real time through online live media. On a mission to connect people and enrich their lives through video, JOYY currently operates several social platforms, including Bigo live for live streaming, Likee for short-form videos, Hago for casual games, and instant messaging platform and others. The Company has created highly engaging and vibrant user communities for users across the globe. JOYY was listed on the NASDAQ in November 2012.

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 JOYY’s 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 report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including statements about JOYY’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: JOYY’s goals and strategies; JOYY’s future business development, results of operations and financial condition; the expected growth of the online communication social platform market in China; the expectation regarding the rate at which to gain active users, especially paying users; JOYY’s ability to monetize the user base; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to JOYY’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in JOYY’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 JOYY does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

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”). JOYY uses non-GAAP operating income, non-GAAP operating margin, non-GAAP net income from continuing operations attributable to controlling interest of JOYY, non-GAAP net margin attributable to controlling interest of JOYY, non-GAAP net income from continuing operations attributable to common shareholders of JOYY, and basic and diluted non-GAAP net income per ADS, which are non-GAAP financial measures. Non-GAAP operating income is operating income excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, and gain on disposal of subsidiaries and business. Non-GAAP operating margin is non-GAAP operating income as a percentage of net revenues. Non-GAAP net income from continuing operations is net income from continuing operations excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain on disposal of subsidiaries and business, (loss) gain on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, fair value change on derivatives, interest expenses related to the convertible bonds’ amortization to face value, and income tax effects of above non-GAAP reconciling items. Non-GAAP net income from continuing operations attributable to controlling interest of JOYY is net income from continuing operations attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, (loss) gain on disposal and deemed disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, fair value change on derivatives, interest expenses related to the convertible bonds’ amortization to face value, income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income from continuing operations attributable to non-controlling interest shareholders. Non-GAAP net margin is non-GAAP net income from continuing operations attributable to controlling interest of JOYY as a percentage of net revenues. Non-GAAP net income from continuing operations attributable to common shareholders of JOYY is net income from continuing operations attributable to common shareholders of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, (loss) gain on disposal and deemed disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, fair value change on derivatives, interest expenses related to the convertible bonds’ amortization to face value, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders and income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income from continuing operations attributable to non-controlling interest shareholders. After the non-GAAP reconciliation, non-GAAP net income from continuing operations attributable to controlling interests of JOYY is equal to the non-GAAP net income from continuing operations attributable to common shareholders of JOYY. Basic and diluted non-GAAP net income from continuing operations per ADS is non-GAAP net income from continuing operations attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of basic and diluted net income per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of above reconciling items adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of (i) share-based compensation expenses and amortization of intangible assets from business acquisitions, fair value change on derivatives, interest expenses related to the convertible bonds’ amortization to face value, which have been and will continue to be significant recurring expenses in its business, (ii) impairment of goodwill and investments, gain on disposal of subsidiaries and business, (loss) gain on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, and accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders, which may not be recurring in its business, and (iii) income tax expenses and non-GAAP adjustments for net (loss) income from continuing operations attributable to non-controlling interest shareholders, which are affected by above non-GAAP reconciling items. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “JOYY Inc. Reconciliation of GAAP and Non-GAAP Results” near the end of this release.

Investor Relations Contact
JOYY Inc.
Jane Xie/Maggie Yan
Tel: +86 (20) 8212-0000
Email: IR@joyy.sg

ICR, Inc.
Jack Wang
Tel: +1 (646) 915-1611
Email: IR@joyy.sg


1 Starting from the second quarter of 2020, the Company deconsolidated HUYA Inc. (NYSE: HUYA) (“Huya”) and Huya’s historical financial results were reflected in the Company’s consolidated financial statements as discontinued operations accordingly. The financial information and non-GAAP financial information of the Company disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated. After the deconsolidation of Huya, the Company accounted for its investment in Huya as an equity method investment and applied the equity method accounting one quarter in arrears. Share of income or loss from the investment in Huya was included in net income or loss from continuing operations.

On November 16, 2020, the Company entered into definitive agreements with Baidu, Inc. (Nasdaq: BIDU) (“Baidu”). Pursuant to the agreements, Baidu would acquire JOYY’s domestic video-based entertainment live streaming business (“YY Live”), which includes YY mobile app, YY.com website and PC YY, among others, for an aggregate purchase price of approximately US$3.6 billion in cash, subject to certain adjustments. Subsequently, the sale was substantially completed on February 8, 2021, with certain customary matters remaining to be completed in the near future. As a result, the historical financial results of YY Live are reflected in the Company’s consolidated financial statements as discontinued operations accordingly. The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.

2 Net income from continuing operations attributable to controlling interest of JOYY, is net income from continuing operations less net (loss) income from continuing operations attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders.

3 Non-GAAP net income from continuing operations attributable to controlling interest of JOYY is a non-GAAP financial measure, which is defined as net income from continuing operations attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investment, amortization of intangible assets from business acquisitions, gain on disposal of subsidiaries and business, gain on disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments which refer to those similar non-GAAP reconciling items of the Company, fair value change on derivatives, interest expenses related to the convertible bonds amortization to face value, income tax effects on non-GAAP adjustments and non-GAAP adjustments for net (loss) income attributable to non-controlling interest shareholders. These adjustments amounted to RMB642.5 million (US$98.5 million) and RMB360.9 million in the fourth quarter of 2020 and 2019, respectively. Please refer to the section titled “Reconciliation of GAAP and Non-GAAP Results” for more details.

4 Refers to mobile average monthly active users. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile active users for each month of such period, by (ii) the number of months in such period.

5 Non-GAAP operating income is a non-GAAP financial measure, which is defined as operating income excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain on disposal of subsidiaries and business. Please refer to the section titled “Reconciliation of GAAP and Non-GAAP Results” for details.

6 Non-GAAP operating margin is a non-GAAP financial measure, which is defined as non-GAAP operating income as a percentage of net revenues. Please refer to the section titled “Reconciliation of GAAP and Non-GAAP Results” for details.

7 Non-GAAP net margin is non-GAAP net income from continuing operations attributable to controlling interest of JOYY as a percentage of net revenues.

8 ADS is American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income per ADS is net income attributable to common shareholders of JOYY divided by weighted average number of diluted ADS.

9 Non-GAAP diluted net income from continuing operations per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income from continuing operations attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of diluted net income per ADS. Please refer to the section titled “Reconciliation of GAAP and Non-GAAP Results” for details.



JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS and per ADS data)

 

 

December
31,
2019

 

December
31,
2020

 

December
31,
2020

 

 

RMB

 

RMB

 

US$

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

2,710,623

 

11,371,264

 

1,742,722

Restricted cash and cash equivalents

 

3,500

 

89,604

 

13,732

Short-term deposits

 

10,027,440

 

8,645,939

 

1,325,048

Restricted short-term deposits

 

653,034

 

205,461

 

31,488

Short-term investments

 

3,332,331

 

3,191,338

 

489,094

Accounts receivable, net

 

668,342

 

933,057

 

142,997

Amounts due from related parties

 

1,709

 

3,986

 

611

Financing receivables, net

 

105,344

 

1,122

 

172

Prepayments and other current assets

 

538,089

 

671,230

 

102,871

Assets held for sale(1)

 

10,759,557

 

342,743

 

52,528

 

 

 

 

 

 

 

Total current assets

 

28,799,969

 

25,455,744

 

3,901,263

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Deferred tax assets

 

67,111

 

-

 

-

Investments(2)

 

1,983,483

 

8,086,663

 

1,239,335

Property and equipment, net

 

2,079,084

 

2,620,797

 

401,655

Land use rights, net

 

1,736,544

 

1,688,448

 

258,766

Intangible assets, net

 

3,082,259

 

2,245,962

 

344,209

Right-of-use assets, net

 

172,783

 

140,802

 

21,579

Goodwill

 

12,947,192

 

12,215,156

 

1,872,055

Financing receivables, net

 

129,380

 

128,644

 

19,716

Other non-current assets

 

275,957

 

70,196

 

10,758

Assets held for sale(1)

 

935,721

 

166,382

 

25,499

 

 

 

 

 

 

 

Total non-current assets

 

23,409,514

 

27,363,050

 

4,193,572

 

 

 

 

 

 

 

Total assets

 

52,209,483

 

52,818,794

 

8,094,835

 

 

 

 

 

 

 

Liabilities, mezzanine equity and shareholders’ equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

120,826

 

136,733

 

20,955

Deferred revenue

 

192,754

 

438,669

 

67,229

Advances from customers

 

7,908

 

5,058

 

775

Income taxes payable

 

422,113

 

397,334

 

60,894

Accrued liabilities and other current liabilities

 

2,420,588

 

3,160,985

 

484,442

Amounts due to related parties

 

205,921

 

24,941

 

3,822

Lease liabilities due within one year

 

83,686

 

93,513

 

14,331

Short-term loans

 

557,203

 

734,371

 

112,547

Liabilities held for sale(1)

 

3,626,622

 

1,168,667

 

179,106

 

 

 

 

 

 

 

Total current liabilities

 

7,637,621

 

6,160,271

 

944,101

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Convertible bonds

 

5,008,571

 

5,084,362

 

779,213

Lease liabilities

 

92,669

 

52,989

 

8,121

Deferred revenue

 

17,418

 

20,437

 

3,132

Deferred tax liabilities

 

264,639

 

276,802

 

42,422

Other non-current liabilities

 

11,495

 

-

 

-

Liabilities held for sale(1)

 

293,233

 

28,807

 

4,415

 

 

 

 

 

 

 

Total non-current liabilities

 

5,688,025

 

5,463,397

 

837,303

 

 

 

 

 

 

 

Total liabilities

 

13,325,646

 

11,623,668

 

1,781,404



JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)

 

 

December
31,
2019

 

 

December
31,
2020

 

 

December
30,
2020

 

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

Mezzanine equity

 

466,071

 

 

473,816

 

 

72,615

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

Class A common shares (US$0.00001 par value; 10,000,000,000 and 10,000,000,000 shares authorized, 1,301,845,404 shares issued and 1,293,162,504 shares outstanding as of December 31, 2019; 1,314,208,824 shares issued and 1,272,346,218 shares outstanding as of December 31, 2020, respectively)

 

80

 

 

78

 

 

12

 

Class B common shares (US$0.00001 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 326,509,555 and 326,509,555 shares issued and outstanding as of December 31, 2019 and December 31, 2020, respectively)

 

24

 

 

24

 

 

4

 

Treasury Shares (US$0.00001 par value; 8,682,900 and 41,862,606 shares held as of December 31, 2019 and December 31, 2020, respectively)

 

(168,072

)

 

(938,038

)

 

(143,761

)

Additional paid-in capital

 

21,921,562

 

 

22,853,665

 

 

3,502,477

 

Statutory reserves

 

149,961

 

 

114,871

 

 

17,605

 

Retained earnings

 

10,272,122

 

 

19,510,874

 

 

2,990,172

 

Accumulated other comprehensive income

 

890,209

 

 

(856,032

)

 

(131,190

)

 

 

 

 

 

 

 

 

 

 

Total JOYY Inc.’s shareholders’ equity

 

33,065,886

 

 

40,685,442

 

 

6,235,319

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

5,351,880

 

 

35,868

 

 

5,497

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity(3)

 

38,417,766

 

 

40,721,310

 

 

6,240,816

 

 

 

 

 

 

 

 

 

 

 

Total liabilities, mezzanine equity and

 

 

 

 

 

 

 

 

 

shareholders’ equity

 

52,209,483

 

 

52,818,794

 

 

8,094,835

 

(1) As a result of the definitive agreements entered into with Baidu on the sale of YY Live, assets and liabilities to be disposed of in connection with this transaction were classified as held for sale as of December 31, 2020.

(2) Increase in the amounts of investments was mainly attributable to the Group’s investment in Huya. On April 3rd, 2020, Huya ceased to be a subsidiary of the Company and the Company recognized its investment in Huya as an equity method investment.

(3) On January 1, 2020, the Company adopted ASC326, “Financial Instruments-Credit Losses” using modified-retrospective transition approach. Following the adoption of this guidance, a cumulative-effect adjustment to shareholders’ equity, amounting to RMB12.1 million, was recognized as of January 1, 2020.



JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December
31,
2019

 

September
30,
2020

 

December
31,
2020

 

December
31,
2020

 

December
31,
2019

 

December
31,
2020

 

December
31,
2020

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Live streaming(1)

 

1,859,105

 

3,543,546

 

3,593,945

 

550,796

 

5,330,790

 

12,524,825

 

1,919,513

 

Others

 

272,753

 

159,482

 

189,588

 

29,056

 

908,519

 

706,120

 

108,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

2,131,858

 

3,703,028

 

3,783,533

 

579,852

 

6,239,309

 

13,230,945

 

2,027,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues(2)

 

(1,514,466

)

(2,625,634

)

(2,674,674

)

(409,912

)

(4,552,658

)

(9,509,589

)

(1,457,408

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

617,392

 

1,077,394

 

1,108,859

 

169,940

 

1,686,651

 

3,721,356

 

570,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(474,404

)

(542,469

)

(465,133

)

(71,285

)

(1,633,668

)

(2,096,796

)

(321,348

)

Sales and marketing expenses

 

(782,034

)

(933,110

)

(973,776

)

(149,238

)

(2,794,724

)

(3,484,814

)

(534,071

)

General and administrative expenses

 

(319,760

)

(253,445

)

(236,270

)

(36,210

)

(938,219

)

(1,016,544

)

(155,792

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

(1,576,198

)

(1,729,024

)

(1,675,179

)

(256,733

)

(5,366,611

)

(6,598,154

)

(1,011,211

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on disposal of subsidiaries and business

 

82,699

 

-

 

-

 

-

 

82,699

 

-

 

-

 

Other income

 

12,801

 

31,756

 

8,724

 

1,337

 

39,306

 

56,111

 

8,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(863,306

)

(619,874

)

(557,596

)

(85,456

)

(3,557,955

)

(2,820,687

)

(432,289

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses

 

(124,574

)

(135,193

)

(130,651

)

(20,023

)

(266,517

)

(522,015

)

(80,002

)

Interest income and investment income

 

136,451

 

151,903

 

186,836

 

28,634

 

426,631

 

614,014

 

94,102

 

Foreign currency exchange (losses) gains, net

 

(21,830

)

(55,002

)

(55,124

)

(8,448

)

8,639

 

(118,859

)

(18,216

)

Gain (loss) on disposal and deemed disposal of investments(3)

 

-

 

2,040,359

 

(238,690

)

(36,581

)

-

 

1,897,128

 

290,748

 

Gain (loss) on fair value change of investments

 

26,670

 

(39,792

)

125,079

 

19,169

 

2,679,312

 

1,127,714

 

172,830

 

Fair value change on derivatives

 

(14,258

)

(29,664

)

(25,176

)

(3,858

)

(16,011

)

(42,320

)

(6,486

)

Other non-operating expenses

 

-

 

(1,000

)

-

 

-

 

-

 

(17,257

)

(2,645

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income tax expenses

 

(860,847

)

1,311,737

 

(695,322

)

(106,563

)

(725,901

)

117,718

 

18,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expenses)

 

32,845

 

(20,477

)

(57,574

)

(8,824

)

141,108

 

(192,337

)

(29,477

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before share of income in equity method investments, net of income taxes

 

(828,002

)

1,291,260

 

(752,896

)

(115,387

)

(584,793

)

(74,619

)

(11,435

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of income (loss) in equity method investments, net of income taxes

 

5,978

 

26,550

 

(42,674

)

(6,540

)

41,315

 

(51,759

)

(7,932

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

(822,024

)

1,317,810

 

(795,570

)

(121,927

)

(543,478

)

(126,378

)

(19,367

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income from discontinued operations(4)

 

1,086,845

 

980,235

 

779,076

 

119,398

 

4,243,507

 

9,849,538

 

1,509,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

264,821

 

2,298,045

 

(16,494

)

(2,529

)

3,700,029

 

9,723,160

 

1,490,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net income (loss) attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders

 

92,024

 

(5,148

)

(3,682

)

(565

)

254,794

 

48,129

 

7,376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to controlling interest of JOYY Inc.

 

172,797

 

2,303,193

 

(12,812

)

(1,964

)

3,445,235

 

9,675,031

 

1,482,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Including:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations attributable to controlling interest of JOYY Inc.

 

(816,566

)

1,322,958

 

(791,888

)

(121,362

)

(516,703

)

(105,112

)

(16,109

)

Net income from discontinued operations attributable to controlling interest of JOYY Inc.

 

989,363

 

980,235

 

779,076

 

119,398

 

3,961,938

 

9,780,143

 

1,498,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value

 

9,790

 

9,642

 

9,262

 

1,420

 

38,346

 

38,474

 

5,896

 

Cumulative dividend on subsidiary’s Series A Preferred Shares

 

7,036

 

6,930

 

6,656

 

1,020

 

27,559

 

27,651

 

4,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common shareholders of JOYY Inc.

 

155,971

 

2,286,621

 

(28,730

)

(4,404

)

3,379,330

 

9,608,906

 

1,472,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Including:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations attributable to common shareholders of JOYY Inc.

 

(833,392

)

1,306,386

 

(807,806

)

(123,802

)

(582,608

)

(171,237

)

(26,243

)

Net income from discontinued operations attributable to common shareholders of JOYY Inc.

 

989,363

 

980,235

 

779,076

 

119,398

 

3,961,938

 

9,780,143

 

1,498,873

 



JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December
31,
2019

 

September
30,
2020

 

December
31,
2020

 

December
31,
2020

 

December
31,
2019

 

December
31,
2020

 

December
31,
2020

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per ADS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

1.95

 

28.49

 

(0.35

)

(0.05

)

43.77

 

120.10

 

18.40

 

Continuing operations

 

(10.43

)

16.28

 

(10.07

)

(1.54

)

(7.54

)

(2.14

)

(0.33

)

Discontinued operations

 

12.38

 

12.21

 

9.72

 

1.49

 

51.31

 

122.24

 

18.73

 

—Diluted

 

1.89

 

25.92

 

(0.35

)

(0.05

)

43.59

 

120.04

 

18.39

 

Continuing operations

 

(10.43

)

15.39

 

(10.07

)

(1.54

)

(7.54

)

(2.14

)

(0.33

)

Discontinued operations

 

12.32

 

10.53

 

9.72

 

1.49

 

51.13

 

122.18

 

18.72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

79,917,791

 

80,262,892

 

80,191,367

 

80,191,367

 

77,219,846

 

80,009,988

 

80,009,988

 

—Diluted

 

79,917,791

 

93,076,688

 

80,191,367

 

80,191,367

 

77,219,846

 

80,009,988

 

80,009,988

 

(1)  Live streaming revenues by geographical areas were as follows:

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December
31,
2019

 

September
30,
2020

 

December
31,
2020

 

December
31,
2020

 

December
31,
2019

 

December
31,
2020

 

December
31,
2020

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRC

 

448,898

 

604,907

 

672,976

 

103,138

 

1,555,879

 

2,361,042

 

361,846

 

Non-PRC

 

1,410,207

 

2,938,639

 

2,920,969

 

447,658

 

3,774,911

 

10,163,783

 

1,557,667

 

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

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December
31,
2019

 

September
30,
2020

 

December
31,
2020

 

December
31,
2020

 

December
31,
2019

 

December
31,
2020

 

December
31,
2020

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

13,501

 

9,372

 

11,270

 

1,727

 

41,006

 

39,910

 

6,116

 

Research and development expenses

 

94,396

 

74,382

 

60,616

 

9,290

 

362,441

 

295,289

 

45,256

 

Sales and marketing expenses

 

1,474

 

1,657

 

2,816

 

432

 

5,000

 

9,018

 

1,382

 

General and administrative expenses

 

27,857

 

88,236

 

97,648

 

14,965

 

117,629

 

291,759

 

44,714

 

(3)  (Loss) gain on disposal and deemed disposal of investments in the third quarter of 2020 mainly represented the gain from our further disposal of our equity interest in Huya.

(4)  Gain from the disposal and deconsolidation amounted to around RMB6.4 billion was reported as part of the net income from discontinued operations in the second quarter of 2020.



JOYY INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December

 

September

 

December

 

December

 

December

 

December

 

December

 

 

 

31,

 

30,

 

31,

 

31,

 

31,

 

31,

 

31,

 

 

 

2019

 

2020

 

2020

 

2020

 

2019

 

2020

 

2020

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(863,306

)

(619,874

)

(557,596

)

(85,456

)

(3,557,955

)

(2,820,687

)

(432,289

)

Share-based compensation expenses

 

137,228

 

173,647

 

172,350

 

26,414

 

526,076

 

635,976

 

97,468

 

Impairment of goodwill and investments

 

52,334

 

-

 

-

 

-

 

62,334

 

43,861

 

6,722

 

Amortization of intangible assets from business acquisitions

 

194,982

 

171,085

 

164,550

 

25,218

 

639,209

 

696,867

 

106,800

 

Gain on deconsolidation and disposal of a subsidiary

 

(82,699

)

-

 

-

 

-

 

(82,699

)

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating loss

 

(561,461

)

(275,142

)

(220,696

)

(33,824

)

(2,413,035

)

(1,443,983

)

(221,299

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

(822,024

)

1,317,810

 

(795,570

)

(121,927

)

(543,478

)

(126,378

)

(19,367

)

Share-based compensation expenses

 

137,228

 

173,647

 

172,350

 

26,414

 

526,076

 

635,976

 

97,468

 

Impairment of goodwill and investments

 

52,334

 

-

 

-

 

-

 

62,334

 

43,861

 

6,722

 

Amortization of intangible assets from business acquisitions

 

194,982

 

171,085

 

164,550

 

25,218

 

639,209

 

696,867

 

106,800

 

Gain on deconsolidation and disposal of a subsidiary

 

(82,699

)

-

 

-

 

-

 

(82,699

)

-

 

-

 

(Gain) loss on disposal and deemed disposal of investments

 

-

 

(2,040,359

)

238,690

 

36,581

 

-

 

(1,897,128

)

(290,748

)

(Gain) loss on fair value change of investments(1)

 

(26,670

)

39,792

 

(125,079

)

(19,169

)

(2,679,312

)

(1,127,714

)

(172,830

)

Reconciling items on the share of equity method investments(1)

 

2,060

 

25,879

 

81,137

 

12,435

 

(11,937

)

118,254

 

18,123

 

Fair value change on derivatives

 

14,258

 

29,664

 

25,176

 

3,858

 

16,011

 

42,320

6,486

 

Interest expenses related to the convertible bonds’ amortization to face value

 

102,510

 

107,728

 

106,446

 

16,314

 

207,682

 

423,324

 

64,877

 

Income tax effects on non-GAAP adjustments

 

(30,889

)

(15,241

)

(20,835

)

(3,193

)

(119,942

)

26,931

 

4,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss from continuing operations

 

(458,910

)

(189,995

)

(153,135

)

(23,469

)

(1,986,056

)

(1,163,687

)

(178,342

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations attributable to common shareholders of JOYY Inc.

 

(833,392

)

1,306,386

 

(807,806

)

(123,802

)

(582,608

)

(171,237

)

(26,243

)

Share-based compensation expenses

 

137,228

 

173,647

 

172,350

 

26,414

 

526,076

 

635,976

 

97,468

 

Impairment of goodwill and investments

 

52,334

 

-

 

-

 

-

 

62,334

 

43,861

 

6,722

 

Amortization of intangible assets from business acquisitions

 

194,982

 

171,085

 

164,550

 

25,218

 

639,209

 

696,867

 

106,800

 

Gain on deconsolidation and disposal of a subsidiary

 

(82,699

)

-

 

-

 

-

 

(82,699

)

-

 

-

 

(Gain) loss on disposal and deemed disposal of investments

 

-

 

(2,040,359

)

238,690

 

36,581

 

-

 

(1,897,128

)

(290,748

)

(Gain) loss on fair value change of investments

 

(26,670

)

39,792

 

(125,079

)

(19,169

)

(2,679,312

)

(1,127,714

)

(172,830

)

Reconciling items on the share of equity method investments

 

2,060

 

25,879

 

81,137

 

12,435

 

(11,937

)

118,254

 

18,123

 

Fair value change on derivatives

 

14,258

 

29,664

 

25,176

 

3,858

 

16,011

 

42,320

 

6,486

 

Interest expenses related to the convertible bonds’ amortization to face value

 

102,510

 

107,728

 

106,446

 

16,314

 

207,682

 

423,324

 

64,877

 

Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders

 

16,826

 

16,572

 

15,918

 

2,440

 

65,905

 

66,125

 

10,134

 

Income tax effects on non-GAAP adjustments

 

(30,889

)

(15,241

)

(20,835

)

(3,193

)

(119,942

)

26,931

 

4,127

 

Non-GAAP adjustments for net (loss) income attributable to the non-controlling interest shareholders

 

(2,205

)

(569

)

87

 

13

 

(3,871

)

106

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss from continuing operations attributable to controlling interest and common shareholders of JOYY Inc.

 

(455,657

)

(185,416

)

(149,366

)

(22,891

)

(1,963,152

)

(1,142,315

)

(175,068

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss from continuing operations per ADS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

(5.70

)

(2.31

)

(1.86

)

(0.29

)

(25.42

)

(14.28

)

(2.19

)

—Diluted

 

(5.70

)

(2.31

)

(1.86

)

(0.29

)

(25.42

)

(14.28

)

(2.19

)

Weighted average number of ADS used in calculating Non-GAAP net loss from continuing operations per ADS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—Basic

 

79,917,791

 

80,262,892

 

80,191,367

 

80,191,367

 

77,219,846

 

80,009,988

 

80,009,988

 

—Diluted

 

79,917,791

 

80,262,892

 

80,191,367

 

80,191,367

 

77,219,846

 

80,009,988

 

80,009,988

 

(1)  (Gain) loss on fair value change of equity investees’ investments was reclassified to the reconciling items on the equity method investments from gain on fair value change of investments



JOYY INC.

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

 

 

Three Months Ended

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other(1)

 

Elimination(2)

 

Total

 

Total

 

 

 

RMB

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

Live streaming

 

3,250,717

 

343,228

 

-

 

3,593,945

 

550,796

 

Others

 

139,117

 

50,471

 

-

 

189,588

 

29,056

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

3,389,834

 

393,699

 

-

 

3,783,533

 

579,852

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues(3)

 

(2,338,161

)

(336,513

)

-

 

(2,674,674

)

(409,912

)

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

1,051,673

 

57,186

 

-

 

1,108,859

 

169,940

 

Operating expenses(3)

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(313,673

)

(151,460

)

-

 

(465,133

)

(71,285

)

Sales and marketing expenses

 

(867,278

)

(106,498

)

-

 

(973,776

)

(149,238

)

General and administrative expenses

 

(139,675

)

(96,595

)

-

 

(236,270

)

(36,210

)

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

(1,320,626

)

(354,553

)

-

 

(1,675,179

)

(256,733

)

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

3,669

 

5,055

 

-

 

8,724

 

1,337

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(265,284

)

(292,312

)

-

 

(557,596

)

(85,456

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses

 

(11,835

)

(125,066

)

6,250

 

(130,651

)

(20,023

)

Interest income and investment income

 

268

 

192,818

 

(6,250

)

186,836

 

28,634

 

Foreign currency exchange gains (loss), net

 

(53,763

)

(1,361

)

-

 

(55,124

)

(8,448

)

Loss on disposal and deemed disposal of investments

 

-

 

(238,690

)

-

 

(238,690

)

(36,581

)

Gain on fair value change of investments

 

-

 

125,079

 

-

 

125,079

 

19,169

 

Fair value change on derivatives

 

(1,841

)

(23,335

)

-

 

(25,176

)

(3,858

)

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income tax expenses

 

(332,455

)

(362,867

)

-

 

(695,322

)

(106,563

)

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expenses) benefit

 

31,859

 

(89,433

)

-

 

(57,574

)

(8,824

)

 

 

 

 

 

 

 

 

 

 

 

 

Loss before share of loss in equity method investments, net of income taxes

 

(300,596

)

(452,300

)

-

 

(752,896

)

(115,387

)

 

 

 

 

 

 

 

 

 

 

 

 

Share of gain in equity method investments, net of income taxes

 

-

 

(42,674

)

-

 

(42,674

)

(6,540

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations

 

(300,596

)

(494,974

)

-

 

(795,570

)

(121,927

)

(1)  As a result of the definitive agreements entered into with Baidu on the sale of YY Live, YY Live is represented as discontinued operations. YY segment is renamed as “all other” segment and has been recast to exclude the financial numbers of YY Live.

(2)  The elimination mainly consists of interest income and interest expenses generated from the loan between Bigo and all other segments.

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

 

 

Three Months Ended

 

 

December 31, 2020

 

 

 

 

 

Bigo

All other

Total

Total

 

 

RMB

RMB

RMB

US$

 

 

 

 

 

 

Cost of revenues

 

6,891

4,379

11,270

1,727

Research and development expenses

 

50,528

10,088

60,616

9,290

Sales and marketing expenses

 

1,553

1,263

2,816

432

General and administrative expenses

 

91,148

6,500

97,648

14,965



JOYY INC.
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

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Total

 

Total

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(265,284

)

(292,312

)

(557,596

)

(85,456

)

Share-based compensation expenses

 

150,120

 

22,230

 

172,350

 

26,414

 

Amortization of intangible assets from business acquisitions

 

164,327

 

223

 

164,550

 

25,218

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating income(loss)

 

49,163

 

(269,859

)

(220,696

)

(33,824

)

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations

 

(300,596

)

(494,974

)

(795,570

)

(121,927

)

Share-based compensation expenses

 

150,120

 

22,230

 

172,350

 

26,414

 

Amortization of intangible assets from business acquisitions

 

164,327

 

223

 

164,550

 

25,218

 

Loss on disposal and deemed disposal of investments

 

-

 

238,690

 

238,690

 

36,581

 

Gain on fair value change of investments

 

-

 

(125,079

)

(125,079

)

(19,169

)

Reconciling items on the share of equity method investments

 

-

 

81,137

 

81,137

 

12,435

 

Fair value change on derivatives

 

1,841

 

23,335

 

25,176

 

3,858

 

Interest expenses related to the convertible bonds’ amortization to face value

 

-

 

106,446

 

106,446

 

16,314

 

Income tax effects on non-GAAP adjustments

 

(28,364

)

7,529

 

(20,835

)

(3,193

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss from continuing operations

 

(12,672

)

(140,463

)

(153,135

)

(23,469

)

 



JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

 

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Elimination(1)

 

Total

 

Total

 

 

 

RMB

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

Live streaming

 

3,278,214

 

265,332

 

-

 

3,543,546

 

521,908

 

Others

 

116,624

 

42,858

 

-

 

159,482

 

23,489

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

3,394,838

 

308,190

 

-

 

3,703,028

 

545,397

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues(2)

 

(2,337,547

)

(288,087

)

-

 

(2,625,634

)

(386,714

)

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

1,057,291

 

20,103

 

-

 

1,077,394

 

158,683

 

Operating expenses(2)

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(332,868

)

(209,601

)

-

 

(542,469

)

(79,897

)

Sales and marketing expenses

 

(852,808

)

(80,302

)

-

 

(933,110

)

(137,432

)

General and administrative expenses

 

(190,079

)

(63,366

)

-

 

(253,445

)

(37,328

)

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

(1,375,755

)

(353,269

)

-

 

(1,729,024

)

(254,657

)

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

6,515

 

25,241

 

-

 

31,756

 

4,677

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(311,949

)

(307,925

)

-

 

(619,874

)

(91,297

)

 

 

 

 

 

 

 

 

 

 

 

 

Other non-operating expenses

 

-

 

(1,000

)

-

 

(1,000

)

(147

)

Interest expenses

 

(12,516

)

(127,167

)

4,490

 

(135,193

)

(19,912

)

Interest income and investment income

 

139

 

156,254

 

(4,490

)

151,903

 

22,373

 

Foreign currency exchange gains, net

 

(56,016

)

1,014

 

-

 

(55,002

)

(8,101

)

Fair value change on derivatives

 

-

 

(29,664

)

-

 

(29,664

)

(4,369

)

Gain on disposal and deemed disposal of investments

 

-

 

2,040,359

 

-

 

2,040,359

 

300,512

 

Gain on fair value change of investments

 

-

 

(39,792

)

-

 

(39,792

)

(5,861

)

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income tax expenses

 

(380,342

)

1,692,079

 

-

 

1,311,737

 

193,198

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expenses

 

(2,636

)

(17,841

)

-

 

(20,477

)

(3,016

)

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before share of loss in equity method investments, net of income taxes

 

(382,978

)

1,674,238

 

-

 

1,291,260

 

190,182

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of income in equity method investments, net of income taxes

 

-

 

26,550

 

-

 

26,550

 

3,910

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

(382,978

)

1,700,788

 

-

 

1,317,810

 

194,092

 

(1)  The elimination mainly consists of interest income and interest 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

 

 

September 30, 2020

 

 

 

 

 

Bigo

All other

Total

Total

 

 

RMB

RMB

RMB

US$

 

 

 

 

 

 

Cost of revenues

 

3,938

5,434

9,372

1,380

Research and development expenses

 

49,861

24,521

74,382

10,955

Sales and marketing expenses

 

972

685

1,657

244

General and administrative expenses

 

93,114

(4,878)

88,236

12,996



JOYY INC.
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

 

 

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Total

 

Total

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(311,949

)

(307,925

)

(619,874

)

(91,297

)

Share-based compensation expenses

 

147,885

 

25,762

 

173,647

 

25,575

 

Amortization of intangible assets from business acquisitions

 

171,085

 

-

 

171,085

 

25,198

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating income (loss)

 

7,021

 

(282,163

)

(275,142

)

(40,524

)

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

(382,978

)

1,700,788

 

1,317,810

 

194,092

 

Share-based compensation expenses

 

147,885

 

25,762

 

173,647

 

25,575

 

Amortization of intangible assets from business acquisitions

 

171,085

 

-

 

171,085

 

25,198

 

Loss on fair value change of investments

 

-

 

39,792

 

39,792

 

5,861

 

Gain on deemed disposal and disposal of investments

 

-

 

(2,040,359

)

(2,040,359

)

(300,512

)

Reconciling items on the share of equity method investments

 

-

 

25,879

 

25,879

 

3,812

 

Fair value change on derivatives

 

-

 

29,664

 

29,664

 

4,369

 

Interest expenses related to the convertible bonds’ amortization to face value

 

-

 

107,728

 

107,728

 

15,867

 

Income tax effects on non-GAAP adjustments

 

(7,993

)

(7,248

)

(15,241

)

(2,245

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss from continuing operations

 

(72,001

)

(117,994

)

(189,995

)

(27,983

)

 



JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)

 

 

Three Months Ended

 

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Elimination(1)

 

Total

 

Total

 

 

 

RMB

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 

 

 

 

 

 

 

 

 

 

Live streaming

 

1,638,731

 

220,374

 

-

 

1,859,105

 

267,044

 

Others

 

165,550

 

107,203

 

-

 

272,753

 

39,179

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

1,804,281

 

327,577

 

-

 

2,131,858

 

306,223

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues(2)

 

(1,257,845

)

(256,621

)

-

 

(1,514,466

)

(217,539

)

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

546,436

 

70,956

 

-

 

617,392

 

88,684

 

Operating expenses(2)

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

(302,737

)

(171,667

)

-

 

(474,404

)

(68,144

)

Sales and marketing expenses

 

(608,108

)

(173,926

)

-

 

(782,034

)

(112,332

)

General and administrative expenses

 

(126,364

)

(193,396

)

-

 

(319,760

)

(45,931

)

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

(1,037,209

)

(538,989

)

-

 

(1,576,198

)

(226,407

)

 

 

 

 

 

 

 

 

 

 

 

 

Gain on disposal of subsidiaries and business

 

-

 

82,699

 

-

 

82,699

 

11,879

 

Other income

 

1,315

 

11,486

 

-

 

12,801

 

1,839

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(489,458

)

(373,848

)

-

 

(863,306

)

(124,005

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses

 

(15,282

)

(123,570

)

14,278

 

(124,574

)

(17,894

)

Interest income and investment income

 

714

 

150,015

 

(14,278

)

136,451

 

19,600

 

Foreign currency exchange (losses) gains, net

 

(19,609

)

(2,221

)

-

 

(21,830

)

(3,136

)

Fair value change on derivatives

 

-

 

(14,258

)

-

 

(14,258

)

(2,048

)

Gain on fair value change of investments

 

-

 

26,670

 

-

 

26,670

 

3,831

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income tax expenses

 

(523,635

)

(337,212

)

-

 

(860,847

)

(123,652

)

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefits

 

5,529

 

27,316

 

-

 

32,845

 

4,717

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before share of income in equity method investments, net of income taxes

 

(518,106

)

(309,896

)

-

 

(828,002

)

(118,935

)

 

 

 

 

 

 

 

 

 

 

 

 

Share of income in equity method investments, net of income taxes

 

-

 

5,978

 

-

 

5,978

 

859

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations

 

(518,106

)

(303,918

)

-

 

(822,024

)

(118,076

)

(1)  The elimination mainly consists of interest income and interest 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

 

 

December 31, 2019

 

 

 

 

 

Bigo

 

All other

 

Total

 

Total

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

8,738

 

4,763

 

13,501

 

1,939

 

Research and development expenses

 

71,307

 

23,089

 

94,396

 

13,559

 

Sales and marketing expenses

 

1,090

 

384

 

1,474

 

212

 

General and administrative expenses

 

9,392

 

18,465

 

27,857

 

4,001

 



JOYY INC.
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

 

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Bigo

 

All other

 

Total

 

Total

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(489,458

)

(373,848

)

(863,306

)

(124,005

)

Share-based compensation expenses

 

90,527

 

46,701

 

137,228

 

19,711

 

Impairment of goodwill and investments

 

-

 

52,334

 

52,334

 

7,517

 

Amortization of intangible assets from business acquisitions

 

194,982

 

-

 

194,982

 

28,007

 

Gain on deconsolidation and disposal of a subsidiary

 

-

 

(82,699

)

(82,699

)

(11,879

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating loss

 

(203,949

)

(357,512

)

(561,461

)

(80,649

)

 

 

 

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