Financial Performance - Total net revenues for Q3 2023 were RMB1,359.2 million (US$186.3 million), a decrease of 24.4% from RMB1,798.3 million in Q3 2022[1][4] - Gross profit for Q3 2023 was RMB192.4 million (US$26.4 million), compared to RMB251.2 million in the same period of 2022, with a gross margin of 14.2%[1][6] - Net income for Q3 2023 was RMB76.4 million (US$10.5 million), a significant improvement from a net loss of RMB6.6 million in Q3 2022[1][8] - Adjusted net income for Q3 2023 was RMB71.9 million (US$9.9 million), up 179.9% year-over-year from RMB25.7 million in Q3 2022[1][8] - Net revenues for the three months ended September 30, 2023, were RMB 1,359,189, a decrease of 24.5% compared to RMB 1,798,333 for the same period in 2022[25] - Gross profit for the three months ended September 30, 2023, was RMB 192,418, reflecting a gross margin of 14.2%[25] - The company reported a net income of RMB 76,377 for the three months ended September 30, 2023, compared to a net loss of RMB 6,643 for the same period in 2022[25] - The company reported a net income of RMB 76,377 million for the three months ended September 30, 2023, compared to a net loss of RMB 6,643 million in the same period last year, representing a significant turnaround[28] User Metrics - Average mobile MAUs in Q3 2023 were 51.7 million, down from 57.1 million in the same period of 2022[1][2] - Quarterly average paying users decreased to 3.9 million in Q3 2023 from 5.6 million in Q3 2022[1][2] Revenue Breakdown - Livestreaming revenues fell by 32.5% to RMB1,151.0 million (US$157.8 million) in Q3 2023, primarily due to a soft macroeconomic environment[1][4] - Advertising and other revenues increased by 123.2% to RMB208.2 million (US$28.5 million) in Q3 2023, driven by innovative business growth[1][4] Cost Management - Cost of revenues decreased by 24.6% to RMB1,166.8 million (US$159.9 million) in Q3 2023, reflecting effective cost management[1][5] - Research and development expenses for the three months ended September 30, 2023, were RMB 74,510, a decrease from RMB 84,371 in the same period of 2022[25] Cash and Assets - Cash and cash equivalents as of September 30, 2023, were RMB7,139.4 million (US$978.5 million), up from RMB6,808.8 million at the end of 2022[1][8] - Total assets increased from RMB 8,145,366 as of December 31, 2022, to RMB 8,396,443 as of September 30, 2023, representing a growth of 3.1%[21] - Cash and cash equivalents increased from RMB 4,041,603 as of December 31, 2022, to RMB 4,209,335 as of September 30, 2023[21] - The company’s total shareholders' equity increased to RMB 6,832,042 as of September 30, 2023, from RMB 6,560,559 as of December 31, 2022[23] Liabilities and Deficits - Total current liabilities remained stable at RMB 1,558,664 as of September 30, 2023, compared to RMB 1,584,806 as of December 31, 2022[21] - The company’s accumulated deficit decreased from RMB (3,520,525) as of December 31, 2022, to RMB (3,422,782) as of September 30, 2023[23] Impairments and Gains - The company experienced an impairment loss of investments amounting to RMB 53,554 million for the three months ended September 30, 2023, compared to RMB 32,298 million in the same period last year[28] - The company recorded a gain on disposal of investment of RMB 5,132 million for the three months ended September 30, 2023, compared to no such gain in the previous quarter[28] - The share of income (loss) in equity method investments for the three months ended September 30, 2023, was a loss of RMB 3,035 million, compared to a gain of RMB 977 million in the previous quarter[28] Adjusted Metrics - Adjusted operating loss for the three months ended September 30, 2023, was RMB 8,810 million, slightly worse than the RMB 7,514 million loss reported for the previous quarter[28] - Basic adjusted net loss income per ordinary share for the three months ended September 30, 2023, was RMB 2.25, an increase from RMB 1.92 in the previous quarter[28] - The weighted average number of ordinary shares used in calculating adjusted net loss income per ordinary share was 31,977,664 for the three months ended September 30, 2023, consistent with the previous quarter[28] - The weighted average number of ordinary shares used in calculating net income per ordinary share was 31,977,664 for the three months ended September 30, 2023[25] Overall Revenue - The company’s total revenue for the nine months ended September 30, 2023, was RMB 151,073 million, a significant increase from RMB 76,123 million in the same period last year[28]

DouYu International Holdings Limited (NASDAQ:DOYU) Q2 2023 Results Conference Call August 14, 2023 7:00 AM ET Company Participants Lingling Kong - IR Director Shaojie Chen - Chairman and Chief Executive Officer Mingming Su - Chief Strategy Officer Hao Cao - Vice President of Finance Conference Call Participants Lei Zhang - Bank of America Securities Thomas Chong - Jefferies Henry Sun - JPMorgan Raphael Chen - BOCI Research Cathy Tang - Morgan Stanley Operator Good morning and good evening, ladies and gentle ...

Financial Performance - Total net revenues for Q2 2023 were RMB1,392.2 million (US$192.0 million), a decrease of 24.1% from RMB1,833.2 million in Q2 2022[2] - Gross profit in Q2 2023 was RMB188.9 million (US$26.1 million), down from RMB309.0 million in Q2 2022, resulting in a gross margin of 13.6% compared to 16.9% in the same period last year[7] - Net income for Q2 2023 was RMB6.8 million (US$0.9 million), a significant improvement from a net loss of RMB38.8 million in Q2 2022[9] - Adjusted net income increased by 160.8% year-over-year to RMB61.4 million (US$8.5 million) in Q2 2023, compared to RMB23.5 million in Q2 2022[4] - Net revenues for the three months ended June 30, 2023, were RMB 1,392,193, a decrease of 22.4% compared to RMB 1,833,205 for the same period in 2022[31] - Gross profit for the three months ended June 30, 2023, was RMB 188,899, reflecting a gross margin of approximately 13.5%[31] - The company reported a net loss attributable to ordinary shareholders of RMB 6,848 for the three months ended June 30, 2023, compared to a net loss of RMB 30,916 for the same period in 2022[31] - The net loss income for the three months ended June 30, 2023, was RMB 6,848, compared to a net loss of RMB 38,757 for the same period in 2022, representing a significant improvement[32] - The net loss income for the six months ended June 30, 2023, was RMB 21,365, compared to a net loss of RMB 125,612 for the same period in 2022, showing a significant reduction in losses[32] User Metrics - Average mobile MAUs in Q2 2023 were 50.3 million, down from 55.7 million in the same period of 2022[2] - The number of quarterly average paying users decreased to 4.0 million in Q2 2023 from 6.6 million in Q2 2022[2] Revenue Breakdown - Livestreaming revenues fell by 28.8% to RMB1,258.3 million (US$173.5 million) in Q2 2023, primarily due to operational adjustments and a challenging macro environment[5] - Advertising and other revenues increased by 106.5% to RMB133.9 million (US$18.5 million) in Q2 2023, driven by game-specific membership services[5] Expenses and Liabilities - Sales and marketing expenses decreased by 48.0% to RMB87.0 million (US$12.0 million) in Q2 2023, reflecting reduced user acquisition costs[8] - Total current liabilities decreased slightly from RMB 1,558,664 as of December 31, 2022, to RMB 1,551,288 as of June 30, 2023[27] - Research and development expenses for the three months ended June 30, 2023, were RMB 71,043, down from RMB 101,847 for the same period in 2022[31] Cash and Assets - Cash and cash equivalents as of June 30, 2023, were RMB7,055.5 million (US$973.0 million), up from RMB6,808.8 million at the end of 2022[10] - Cash and cash equivalents increased from RMB 4,041,603 as of December 31, 2022, to RMB 4,514,968 as of June 30, 2023, indicating a rise of 11.7%[26] - Total assets increased from RMB 8,145,366 as of December 31, 2022, to RMB 8,354,630 as of June 30, 2023, representing a growth of 2.56%[26] - The company’s total shareholders' equity increased from RMB 6,560,559 as of December 31, 2022, to RMB 6,791,524 as of June 30, 2023, an increase of 3.5%[29] - Long-term bank deposits rose significantly from RMB 250,000 as of December 31, 2022, to RMB 560,000 as of June 30, 2023, marking a 124% increase[26] Shareholder Information - The weighted average number of ordinary shares used in calculating net loss per ordinary share was 31,977,664 for the three months ended June 30, 2023[31] - The adjusted net loss income per ordinary share for the three months ended June 30, 2023, was RMB 1.92, up from RMB 0.99 in the same period of the previous year[32] - The weighted average number of ordinary shares used in calculating adjusted net loss income per ordinary share for the three months ended June 30, 2023, was 31,977,664, compared to 31,827,240 for the same period in 2022[32] Investment Performance - The share of loss in equity method investments for the three months ended June 30, 2023, was RMB 977, down from RMB 2,887 in the same period of 2022, indicating improved performance in equity investments[32] - The impairment loss of investments for the three months ended June 30, 2023, was RMB 8,000, a decrease from RMB 28,571 in the same period of the previous year[32] Adjusted Losses - Adjusted net loss income attributable to DouYu for the six months ended June 30, 2023, was RMB 61,379, compared to a loss of RMB 21,123 for the same period in 2022, indicating a worsening trend[32] - The adjusted operating loss for the three months ended June 30, 2023, was RMB (7,514), an improvement from RMB (30,556) in the same period of 2022[32] - The share-based compensation expenses for the three months ended June 30, 2023, were RMB 30,834, which is a decrease from RMB 64,044 for the same period in 2022[32]

DouYu International Holdings Limited (NASDAQ:DOYU) Q1 2023 Earnings Conference Call May 18, 2023 7:00 AM ET Company Participants Lingling Kong - Investor Relations Director Shaojie Chen - Chairman and Chief Executive Officer Hao Cao - Vice President, Finance Mingming Su - Chief Strategy Officer Conference Call Participants Lei Zhang - Bank of America Thomas Chong - Jefferies Ritchie Sun - HSBC Raphael Chen - Bank of China International Operator Good morning and good evening, ladies and gentlemen. Thank you, ...

Financial Performance - Total net revenues for Q1 2023 were RMB1,483.1 million (US$216.0 million), a decrease of 17.4% from RMB1,795.6 million in Q1 2022[2] - Gross profit in Q1 2023 was RMB176.5 million (US$25.7 million), with a gross margin of 11.9%, down from 13.6% in the same period of 2022[8] - Net income for Q1 2023 was RMB14.5 million (US$2.1 million), compared to a net loss of RMB86.9 million in Q1 2022[10] - Total net revenues for the three months ended March 31, 2023, were RMB 1,483,060, a decrease of 12.5% compared to RMB 1,681,054 for the previous quarter[30] - Gross profit for the same period was RMB 176,466, representing a gross margin of approximately 11.9%[30] - The company reported a net loss attributable to ordinary shareholders of RMB 14,517, compared to a net income of RMB 45,320 in the previous quarter[30] - The net income attributable to DouYu for the same period was RMB 14,517 million, compared to a net loss of RMB (86,854) million in the same quarter of the previous year[33] User Metrics - Average mobile MAUs in Q1 2023 were 50.2 million, down from 55.1 million in Q1 2022[2] - Quarterly average paying user count in Q1 2023 was 4.5 million, compared to 6.4 million in the same period of 2022[3] Revenue Breakdown - Livestreaming revenues decreased by 20.7% to RMB1,369.0 million (US$199.3 million) in Q1 2023 from RMB1,727.2 million in Q1 2022[6] - Advertising and other revenues increased by 66.6% to RMB114.1 million (US$16.6 million) in Q1 2023, up from RMB68.4 million in Q1 2022[6] Expenses and Costs - Research and development expenses decreased by 37.8% to RMB72.3 million (US$10.5 million) in Q1 2023 from RMB116.3 million in Q1 2022[9] - Research and development expenses for the three months ended March 31, 2023, were RMB 72,311, down from RMB 80,566 in the previous quarter[30] - The company reported share-based compensation expenses of RMB 33,210 million for the three months ended March 31, 2022, which were not present in the subsequent quarters[33] Cash and Assets - Cash and cash equivalents as of March 31, 2023, were RMB6,597.1 million (US$960.6 million), down from RMB6,808.8 million as of December 31, 2022[11] - Cash and cash equivalents decreased to RMB 3,846,182 as of March 31, 2023, down from RMB 4,041,603 as of December 31, 2022[27] - Total current assets were RMB 6,987,424, a slight decrease from RMB 7,077,184 as of December 31, 2022[27] - The company’s total shareholders' equity decreased to RMB 6,500,589 as of March 31, 2023, from RMB 6,560,559 as of December 31, 2022[29] Liabilities and Deficits - Total liabilities decreased to RMB 1,563,418 as of March 31, 2023, compared to RMB 1,584,806 as of December 31, 2022[29] - The company’s accumulated deficit was RMB 3,506,008 as of March 31, 2023, slightly improved from RMB 3,520,525 as of December 31, 2022[29] Adjusted Metrics - Adjusted net income for Q1 2023 was RMB25.8 million (US$3.7 million), compared to an adjusted net loss of RMB52.5 million in Q1 2022[10] - For the three months ended March 31, 2023, the adjusted operating loss was RMB (27,277) million, a significant improvement from RMB (56,017) million in the previous quarter[33] - Adjusted net income attributable to DouYu reached RMB 25,753 million for the three months ended March 31, 2023, a substantial increase from RMB (52,498) million in the same quarter of the previous year[33] - The adjusted net loss income per ordinary share improved to 0.80 for the three months ended March 31, 2023, compared to (1.64) in the same quarter of the previous year[33] - The adjusted net loss income per ADS was 0.08 for the three months ended March 31, 2023, compared to (0.16) in the same quarter of the previous year[33] Investment and Impairment - The share of loss in equity method investments was RMB 3,236 million for the three months ended March 31, 2023, compared to a loss of RMB (63,781) million in the previous quarter[33] - The company experienced impairment losses of investments amounting to RMB 8,000 million for the three months ended March 31, 2023[33]

[Form 6-K Filing](index=1&type=section&id=Form%206-K%20Filing) This section details the Form 6-K filing by DouYu International Holdings Limited, covering filing specifics and included exhibits [Filing Information](index=1&type=section&id=Filing%20Information) DouYu International Holdings Limited, a foreign issuer, submitted this Form 6-K report to the SEC for the month of April 2023, signed by CEO Shaojie Chen, indicating annual reports are filed under Form 20-F - The report is a Form 6-K filed by DouYu International Holdings Limited for the month of April 2023[1](index=1&type=chunk) - The company confirms its annual reports are filed under Form 20-F[1](index=1&type=chunk) - The report was signed on April 25, 2023, by Shaojie Chen, the company's Chief Executive Officer and Director[4](index=4&type=chunk) [Exhibits](index=2&type=section&id=Exhibits) This filing contains a single exhibit, a press release, which is attached to the report Exhibit Index | Exhibit No. | Description | | :---------- | :------------ | | 99.1 | Press Release |

PART I [ITEM 3. KEY INFORMATION](index=8&type=section&id=ITEM%203.%20KEY%20INFORMATION) The company's operations rely on a VIE structure, facing significant PRC and US regulatory risks - DouYu operates in China through a **VIE structure** due to foreign investment restrictions, controlling its operating entities via contractual arrangements[15](index=15&type=chunk)[16](index=16&type=chunk)[20](index=20&type=chunk) - In 2022, revenues from the VIEs accounted for **99% of the company's total net revenues**, highlighting the structure's critical importance[15](index=15&type=chunk) - The company faces significant regulatory risks from the PRC government, including the **Cybersecurity Review Measures** and the **Overseas Listing Trial Measures**[34](index=34&type=chunk)[38](index=38&type=chunk) - Under the HFCAA, the company's immediate delisting risk was reduced after the **PCAOB was able to conduct inspections in China** in December 2022[61](index=61&type=chunk)[156](index=156&type=chunk) Condensed Consolidating Statement of Operations (RMB in thousands) | Indicator | Year | Our Company & Subsidiaries | VIEs & VIEs' Subsidiaries | Eliminations | Consolidated | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | 2022 | 534,948 | 7,022,079 | (448,789) | 7,108,238 | | | 2021 | 1,824,996 | 8,965,084 | (1,624,749) | 9,165,331 | | | 2020 | 2,305,426 | 8,697,485 | (1,401,037) | 9,601,874 | | **Net (Loss) Income** | 2022 | (246,380) | (9,847) | 165,812 | (90,415) | | | 2021 | (1,087,055) | 388,119 | 78,687 | (620,249) | | | 2020 | 908,837 | 432,731 | (936,833) | 404,735 | Condensed Consolidating Balance Sheet (RMB in thousands) | Indicator | As of Dec 31, 2022 | Our Company & Subsidiaries | VIEs & VIEs' Subsidiaries | Eliminations | Consolidated | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 2022 | 8,476,271 | 1,974,379 | (5,353,319) | 8,145,365 | | | 2021 | 11,359,074 | 2,196,884 | (5,399,055) | 8,156,903 | | **Total Liabilities** | 2022 | 3,741,437 | 1,250,336 | (3,406,966) | 1,584,807 | | | 2021 | 3,942,444 | 1,672,807 | (3,716,937) | 1,898,314 | [Risk Factors](index=26&type=section&id=3.D.%20Risk%20Factors) The company faces significant risks related to its VIE structure, Chinese regulations, business operations, and ADSs - The PRC government may exert more control over overseas offerings, with new regulations like the **Overseas Listing Trial Measures** potentially impacting operations[83](index=83&type=chunk)[86](index=86&type=chunk) - The business is subject to complex Chinese laws on data privacy, such as the **Cybersecurity Review Measures** for companies with over one million users[105](index=105&type=chunk)[108](index=108&type=chunk) - The company's success is highly dependent on its ability to **retain its user base and top streamers** to drive revenue from virtual gifts and advertising[163](index=163&type=chunk)[166](index=166&type=chunk) - There are substantial uncertainties regarding the **legality of the VIE structure** under PRC law, which could lead to severe penalties if deemed non-compliant[308](index=308&type=chunk)[333](index=333&type=chunk) - The company was likely a **Passive Foreign Investment Company (PFIC) for 2022** and faces a significant risk of being a PFIC for 2023, which could harm U.S. investors[370](index=370&type=chunk)[372](index=372&type=chunk) [INFORMATION ON THE COMPANY](index=108&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) The company is a leading game-centric livestreaming platform in China with a monetization model based on virtual gifts - DouYu operates a leading game-centric livestreaming platform in China, focusing on eSports, with **471.8 million registered users** as of December 31, 2022[378](index=378&type=chunk)[379](index=379&type=chunk) - The company's monetization is driven by livestreaming and advertising, with **livestreaming accounting for 95.6% of total net revenues** in 2022[411](index=411&type=chunk) - DouYu employs a comprehensive content monitoring system using **AI-backed detection and manual review** to filter inappropriate content and protect minors[437](index=437&type=chunk)[440](index=440&type=chunk) - **Tencent is a key strategic partner and major shareholder**, holding approximately 37.7% of the company's total voting power as of March 31, 2023[441](index=441&type=chunk) Key Operating Metrics (Q4) | Metric | Q4 2021 | Q4 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Average Mobile MAUs | 62.4 million | 57.4 million | -7.9% | | Average Mobile eSports MAUs | 37.1 million | 28.3 million | -23.7% | | Quarterly Average Paying Users | 7.3 million | 5.6 million | -23.3% | [OPERATING AND FINANCIAL REVIEW AND PROSPECTS](index=173&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) The company saw decreased revenue but a narrowed net loss in 2022 due to cost controls and operational adjustments - The **20.9% decrease in livestreaming revenue** in 2022 was mainly due to a drop in paying users from 17.5 million to 15.5 million[650](index=650&type=chunk) - **Cost of revenues decreased by 24.2%** in 2022, driven by lower revenue sharing fees and reduced copyright procurement costs[651](index=651&type=chunk)[652](index=652&type=chunk) - **Total operating expenses fell by 31.6%** in 2022, reflecting improved cost control across sales, R&D, and G&A functions[653](index=653&type=chunk) Consolidated Financial Performance (RMB in millions) | Metric | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | **Net Revenues** | 9,601.9 | 9,165.3 | 7,108.2 | | *YoY Change* | - | -4.5% | -22.5% | | **Gross Profit** | 1,560.3 | 1,089.9 | 990.1 | | *Gross Margin* | 16.3% | 11.9% | 13.9% | | **(Loss) Income from Operations** | 262.1 | (648.7) | (198.9) | | **Net Income (Loss)** | 404.7 | (620.2) | (90.4) | | **Adjusted Net Income (Loss)** | 541.5 | (439.3) | (7.6) | Consolidated Cash Flow Summary (RMB in millions) | Metric | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 667.6 | (586.3) | (67.8) | | Net cash used in investing activities | (2,612.6) | (19.1) | (608.6) | | Net cash used in financing activities | (479.2) | (107.2) | (109.0) | [DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](index=196&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) The section details board composition, executive compensation, share incentive plans, and employee demographics - The board consists of ten members and **relies on home country practice exemptions**, thus not having a majority of independent directors[708](index=708&type=chunk)[737](index=737&type=chunk) - For fiscal year 2022, total cash compensation paid to all directors and executive officers was approximately **RMB 15.9 million** (US$2.3 million)[718](index=718&type=chunk) - The company maintains two share incentive plans, with **2,075,858 RSUs granted and vested** under the 2018 scheme as of March 31, 2023[722](index=722&type=chunk)[728](index=728&type=chunk) - As of December 31, 2022, the company had **1,973 employees**, with the largest functions being general & administration and R&D[748](index=748&type=chunk) [MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](index=210&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) Tencent is the largest shareholder, and the company engages in significant related party transactions with it - The company engages in significant business with talent agencies in which it holds equity method investments, paying them **revenue sharing fees of RMB 181.6 million** in 2022[760](index=760&type=chunk) Principal Shareholders (as of March 31, 2023) | Shareholder | Ordinary Shares Beneficially Owned | Percentage of Total Ordinary Shares | | :--- | :--- | :--- | | Entities affiliated with Tencent | 12,070,080 | 37.7% | | Shaojie Chen (via Warrior Ace Holding Limited) | 5,441,949 | 17.0% | Transactions with Tencent Group (RMB in millions) | Transaction Type | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | Services provided to Tencent | 9.0 | 42.8 | 20.4 | | Services received from Tencent | 330.6 | 868.7 | 398.1 | [FINANCIAL INFORMATION](index=215&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) The company settled class action lawsuits in 2022 and does not plan to pay dividends in the near future - The company was involved in securities class action lawsuits filed in 2020, which were **settled with final approval on December 1, 2022**[764](index=764&type=chunk)[767](index=767&type=chunk) - The company has **no plan to declare or pay any dividends** in the near future, intending to retain earnings to expand the business[769](index=769&type=chunk) [ADDITIONAL INFORMATION](index=216&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) The company details its Cayman Islands legal framework, PRC tax exposure, and significant PFIC risk for U.S. investors - The company is an exempted company incorporated in the Cayman Islands with an authorized share capital of **500 million ordinary shares**[773](index=773&type=chunk)[777](index=777&type=chunk) - Each ordinary share is entitled to one vote, and a quorum for shareholder meetings requires holders of at least **one-third of the votes**[779](index=779&type=chunk)[780](index=780&type=chunk) - The company is subject to a **25% PRC enterprise income tax rate** and risks its holding company being classified as a PRC "resident enterprise"[800](index=800&type=chunk)[802](index=802&type=chunk) - For U.S. tax purposes, the company was likely a **Passive Foreign Investment Company (PFIC) for 2022** and faces a significant risk of being a PFIC for 2023[809](index=809&type=chunk) [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=230&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The primary market risk is foreign exchange exposure from holding U.S. dollars while earning revenue in RMB - The company's primary market risk is **foreign exchange risk**, as most revenues are in RMB while significant cash is held in U.S. dollars[830](index=830&type=chunk)[831](index=831&type=chunk) - As of December 31, 2022, a hypothetical **10% depreciation of the U.S. dollar** against the RMB would decrease the cash balance by RMB 361.8 million[832](index=832&type=chunk) - **Inflation in China has not materially impacted** the company's results of operations to date[833](index=833&type=chunk) PART II [CONTROLS AND PROCEDURES](index=235&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management and the independent auditor concluded that internal controls were effective as of year-end 2022 - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2022[845](index=845&type=chunk)[846](index=846&type=chunk) - Based on the COSO framework, management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2022[847](index=847&type=chunk) - The independent auditor issued an **unqualified opinion on the effectiveness** of the company's internal control over financial reporting[850](index=850&type=chunk)[852](index=852&type=chunk) [AUDIT COMMITTEE FINANCIAL EXPERT](index=237&type=section&id=ITEM%2016.A.%20AUDIT%20COMMITTEE%20FINANCIAL%20EXPERT) The board has identified Mr. Zhaoming Chen as the audit committee financial expert - The Board of Directors has determined that **Mr. Zhaoming Chen qualifies as an "audit committee financial expert"** and meets SEC and Nasdaq independence standards[853](index=853&type=chunk) [PRINCIPAL ACCOUNTANT FEES AND SERVICES](index=238&type=section&id=ITEM%2016.C.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Total auditor fees were RMB 8.62 million in 2022, entirely for audit services - The audit committee's policy is to **pre-approve all audit and non-audit services** provided by the principal accountant[857](index=857&type=chunk) Auditor Fees (RMB in thousands) | Service Type | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | Audit Fees | 8,483 | 8,284 | 8,622 | | Audit-Related Fees | 1,958 | 997 | — | | Tax Fees | 2,175 | 45 | — | | **Total** | **12,616** | **9,326** | **8,622** | [PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS](index=238&type=section&id=ITEM%2016.E.%20PURCHASES%20OF%20EQUITY%20SECURITIES%20BY%20THE%20ISSUER%20AND%20AFFILIATED%20PURCHASERS) No shares were repurchased under the US$100 million program between March 2022 and March 2023 - The company authorized a **US$100 million share repurchase program** on August 30, 2021, for a 12-month period[860](index=860&type=chunk) - **No ADSs were repurchased** under the 2021 Share Repurchase Program in the period from March 31, 2022, to March 31, 2023[860](index=860&type=chunk) [CORPORATE GOVERNANCE](index=239&type=section&id=ITEM%2016.G.%20CORPORATE%20GOVERNANCE) The company follows home country practices, exempting it from certain Nasdaq governance requirements - As a foreign private issuer, the company **follows home country (Cayman Islands) corporate governance practices**, exempting it from certain Nasdaq rules[863](index=863&type=chunk) - Key exemptions taken include **not having a majority of independent directors** on the board or fully independent board committees[863](index=863&type=chunk) - The company also relied on a home country exemption to **not hold an annual shareholder meeting in 2022**[864](index=864&type=chunk) [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](index=239&type=section&id=ITEM%2016.I.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) The company no longer expects to be identified under the HFCAA following the PCAOB's successful 2022 inspections - The company was previously identified under the HFCAA due to the **PCAOB's inability to inspect** its China-based auditor[866](index=866&type=chunk) - On December 15, 2022, the **PCAOB vacated its 2021 determination** after conducting complete inspections, so DouYu does not expect to be identified for fiscal 2022[867](index=867&type=chunk) - The company states that **no governmental entities in China own its shares** or have a controlling financial interest[866](index=866&type=chunk) PART III [FINANCIAL STATEMENTS](index=241&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section presents the audited consolidated financial statements prepared in accordance with U.S. GAAP - The independent auditor's report identified the **impairment assessment of investments as a critical audit matter** due to significant management judgments[885](index=885&type=chunk)[886](index=886&type=chunk) - The company has provided a **full valuation allowance for its deferred tax assets** as their future realization is not more likely than not[703](index=703&type=chunk)[1016](index=1016&type=chunk) Consolidated Balance Sheet Data (RMB) | Metric | As of Dec 31, 2021 | As of Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | 4,456,405,874 | 4,041,602,800 | | Total Assets | 8,156,902,381 | 8,145,366,409 | | Total Liabilities | 1,898,314,269 | 1,584,806,262 | | Total Shareholders' Equity | 6,258,588,112 | 6,560,560,147 | Consolidated Statement of Comprehensive Income (Loss) Data (RMB) | Metric | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | Net Revenues | 9,601,873,937 | 9,165,330,760 | 7,108,238,352 | | Gross Profit | 1,560,345,352 | 1,089,910,236 | 990,110,052 | | Net Income (Loss) | 404,735,526 | (620,248,897) | (90,414,597) | | Net Income (Loss) per ADS (Basic) | 1.52 | (1.79) | (0.24) |

DouYu International Holdings Limited (NASDAQ:DOYU) Q4 2022 Earnings Conference Call March 20, 2023 7:00 AM ET Company Participants Lingling Kong - Investor Relations Director Hao Cao - Vice President, Finance Shaojie Chen - Chairman and Chief Executive Officer Mingming Su - Chief Strategy Officer Conference Call Participants Lei Zhang - Bank of America Thomas Chong - Jefferies Yiwen Zhang - China Renaissance Raphael Chen - BOCI Research Limited Operator Good morning and good evening, ladies and gentlemen. ...

DouYu International Holdings Limited (NASDAQ:DOYU) Q1 2021 Earnings Conference Call May 18, 2021 8:00 AM ET Company Participants Mao Mao - Vice President of Capital Markets Shaojie Chen - Chairman & Chief Executive Officer Mingming Su - Chief Strategy Officer Hao Cao - Vice President, Finance Conference Call Participants Daniel Chen - JPMorgan Lei Zhang - Bank of America Feiya Zhao - Haitong International Operator Good morning, and good evening, ladies and gentlemen. Thank you, and welcome to DouYu Internat ...