DouYu(US:DOYU)2023-08-14 14:00Financial 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]