DouYu International Holdings Limited Reports First Quarter 2021 Unaudited Financial Results

WUHAN,China,May 18,2021 -- DouYu International Holdings Limited ("DouYu" or the "Company") (Nasdaq: DOYU),a leading game-centric live streaming platform in China and a pioneer in the eSports value chain,today announced its unaudited financial results for the first quarter ended March 31,2021.

First Quarter 2021 Financial and Operational Highlights

Total net revenues in the first quarter of 2021 were RMB2,152.7 million (US$328.6 million),compared with RMB2,278.0 million in the same period of 2020.

Gross profit in the first quarter of 2021 was RMB260.2 million (US$39.7 million),compared with RMB485.9 million in the same period of 2020,implyinga gross margin of 12.1% in the first quarter of 2021.

Net loss in the first quarter of 2021 was RMB101.8 million (US$15.5 million),compared with a net income of RMB254.5 million in the same period of 2020.

Adjusted net loss in the first quarter of 2021 was RMB70.7 million (US$10.8 million),compared with an adjusted net income of RMB296.9 million in the same period of 2020.

Average MAUs in the first quarter of 2021 increased by 21.3% to 191.9 million from 158.1 million in the same period of 2020.

Average mobile MAUs in the first quarter of 2021 increased by 4.5% to 59.1 million from 56.6 million in the same period of 2020.

Quarterly average paying user count in the first quarter of 2021 was 7.0 million,compared with 7.6 million in the same period of 2020.

Mr. Shaojie Chen,Chief Executive Officer of DouYu,commented,"We are pleased to announce that we maintained steady operational growth in the first quarter of 2021 as we continued to upgrade our operational system. On a year-over-year basis,our total average MAUs increased by 21.3% to 191.9 million while our average mobile MAUs increased by 4.5% to 59.1 million. By continuously enriching our content library and diversifying our live streaming,video,and community content offerings,we remain committed to developing a diversified and industry leading game-centric integrated platform."

Mr. Hao Cao,Vice President of DouYu,"In the first quarter of 2021,our total revenues were RMB2.15 billion and gross profit was RMB260.2 million,representing a gross margin of 12.1%. During the quarter,we increased our investments in content,as we remained focused on improving our content production in both our video and community businesses. Looking ahead,we will continue to optimize the monetization capabilities and improve monetization efficiency of our platform while striving to generate more long-term value for our shareholders. "

First Quarter 2021 Financial Results

Total net revenuesin the first quarter of 2021 were RMB2,278.0 million in the same period of 2020.

Live streaming revenuesin the first quarter of 2021 were RMB1,998.6 million (US$305.1 million),113.0 million in the same period of 2020. This decrease was primarily due to the reversion of paying users' consumption of the virtual items to that of the pre-pandemic level,as the pandemic was gradually brought under control in China. This decline was partially offset by our implementation of more effective operational strategies,which helped improve the participation levels and paying behaviors of key paying users on our platform in the period.

Advertising and other revenuesin the first quarter of 2021 were RMB154.1 million (US$23.5 million),compared with RMB165.0 million in the same period of 2020. The year-over-year decrease was primarily attributable to the trend of game advertisers normalizing their marketing expenditures,which were relatively higher in the same period last year due to the COVID-19 pandemic.

Cost of revenuesin the first quarter of 2021 was RMB1,892.5 million (US$288.9 million),compared with RMB1,792.2 million in the same period of 2020,primarily due to increased revenue sharing fees and content costs.

Revenue sharing fees and content costsin the first quarter of 2021 increased by 5.4% to RMB1,659.6 million (US$253.3 million) from RMB1,574.8 million in the same period of 2020. This was because of the Company's increased investments in the broadcasting rights for eSports tournaments,in-house production of proprietary events,and quality streamers in the overseas market.

Bandwidth costsin the first quarter of 2021 were RMB172.1 million (US$26.3 million),compared with RMB152.9 million in the same period of 2020. This was mainly due to the promotion of high-quality viewing options offered on the Company's platform and was partially offset by improved bandwidth efficiency as a result of in-house technology upgrades.

Gross profitin the first quarter of 2021 was RMB260.2 million (US$39.7 million),compared with RMB485.9 million in the same period of 2020. Gross margin in the first quarter of 2021 was 12.1%,compared with 21.3% in the same period of 2020. This decrease was primary due to the increase in content costs for eSports tournaments and bandwidth costs,together with the decrease in revenues.

Sales and marketing expensesin the first quarter of 2021were RMB209.9 million (US$32.0 million),compared with RMB107.4 million in the same period of 2020. This was mainlyattributable to the increased sponsorships and promotions of eSports tournaments compared to the same period of 2020 during the COVID-19 pandemic as well as increased promotional activities for user acquisition.

Research and development expensesin the first quarter of 2021 were RMB111.3 million (US$17.0 million),compared with RMB92.9 million in the same period of 2020.This increase was primarily due to our additional investments in technical personnel.

General and administrative expensesin the first quarter of 2021 were RMB88.1 million (US$13.4 million),compared with RMB84.6 million in the same period of 2020.

Other operating income,net in the first quarter of 2021was RMB23.9 million (US$3.7 million),compared with RMB16.6 million in the same period of 2020.

Lossfrom operationsin the first quarter of 2021 was RMB125.1 million (US$19.1 million),compared with a profit from operations of RMB217.6 million in the same period of 2020.

Adjusted operating loss in the first quarter of 2021,which adds back share-based compensation expenses,was RMB91.8 million (US$14.0 million),compared with an adjusted operating income of RMB259.5 million in the same period of 2020.

Income tax expenses in the first quarter of 2021 and 2020 were nil due to the Company's cumulative net losses and the resulting tax loss carryforward.

Net lossin the first quarter of 2021 was RMB101.8 million (US$15.5 million),compared with a net income of RMB254.5 million in the same period of 2020.

Adjusted net lossin the first quarter of 2021,which excludes share-based compensation expenses,share of income in equity method investments,and impairment loss of investments,was RMB70.7 million (US$10.8 million),compared with an adjusted net income of RMB296.9 million in the same period of 2020.

Basic and diluted net loss per ADS[1]in the first quarter of 2021 were RMB0.19 (US$0.03) and RMB0.19 (US$0.03) respectively. Adjusted basic and diluted net loss per ADS in the first quarter of 2021 were RMB0.10 (US$0.01) and RMB0.10 (US$0.01) respectively.

Conference Call Information

The Company will hold a conference call on Tuesday,2021,at 8:00am Eastern Time (or 8:00pm Beijing Time on the same day) to discuss the financial results. Listenersmay access the call by dialing the following numbers:

International:

1-412-317-6061

United States Toll Free:

1-888-317-6003

Mainland China Toll Free:

4001-206115

Hong Kong Toll Free:

800-963976

Singapore Toll Free:

800-120-5863

Conference ID:

6148890

The replay will be accessible through May 25,by dialing the following numbers:

International:

1-412-317-0088

United States Toll Free:

1-877-344-7529

Conference ID:

10156140

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.douyu.com/.

[1] Every ten ADSs represent one ordinary share.

About DouYu International Holdings Limited

Headquartered in Wuhan,DouYu International Holdings Limited (Nasdaq: DOYU) is a leading game-centric live streaming platform in China and a pioneer in the eSports value chain. DouYu operates its platform on both PC and mobile apps,through which users can enjoy immersive and interactive games and entertainment live streaming. DouYu's platform brings together a deep pool of top live streamers. By providing a sustainable streamer development system built on advanced technology infrastructure and capabilities,DouYu helps ensure a consistent supply of quality content. Through collaborations with a variety of participants across the eSports value chain,the Company has gained coveted access to a wide variety of premium eSports content,which further attracts viewers and enhances user experience. For more information,please see http://ir.douyu.com/.

Use of Non-GAAP Financial Measures

Adjusted operating income (loss) is calculated as operating income (loss) adjusted for share-based compensation expenses. Adjusted net income is calculated as net loss adjusted for share-based compensation expenses,share of income (loss) in equity method investments,gain on disposal of investment or subsidiaries and impairment loss on investments. Adjusted net income attributable to DouYu is calculated as net income attributable to DouYu adjusted for share-based compensation expenses,gain on disposal of investment or subsidiaries and impairment loss of investments. Adjusted basic and diluted net income per ordinary share is non-GAAP net income attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The Company adjusted the impact of (i) share-based compensation expenses,(ii) share of income (loss) in equity method investments,(iii) gain on disposal of investment or subsidiaries and (iv)impairment loss of investments to understand and evaluate the Company's core operating performance. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for,or superior to,the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies,they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations,you should not consider non-GAAP financial measures as a substitute for,such metrics in accordance with U.S. GAAP.

For more information on these non-GAAP financial measures,please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted,all translations from RMB to U.S. dollars are made at a rate of RMB6.5518 to US$1.00,the noon buying rate in effect on March 31,in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB amounts could have been,or could be,converted,realized or settled in U.S. dollars at that rate on March 31,or at any other rate.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties,and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases,forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks,uncertainties or factors is included in the Company's filings with the Securities Exchange Commission. All information provided in this press release is as of the date of this press release,and the Company does not undertake any duty to update such information,except as required under applicable law.

In addition to factors previously disclosed in Huya and DouYu's documents filed with the SEC,the following factors,among others,could cause actual results to differ materially from forward-looking statements and information or historical performance: the occurrence of any event,change or other circumstances that could give rise to the right of one or both of Huya and DouYu to terminate the definitive merger agreement between Huya and DouYu; the outcome of any legal proceedings that may be instituted against Huya,DouYu or their respective shareholders or directors; the ability to obtain regulatory approvals and meet other closing conditions to the merger,including the risk that regulatory approvals required for the merger are not obtained or are obtained subject to conditions that are not anticipated or that are material and adverse to Huya's or DouYu's business; a delay in closing the merger; the ability to obtain approval by DouYu's shareholders on the expected terms and schedule; business disruptions from the proposed merger that will harm Huya's or DouYu's business,including current plans and operations; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger; certain restrictions during the pendency of the merger that may impact Huya's or DouYu's ability to pursue certain business opportunities or strategic transactions; the ability of Huya or DouYu to retain and hire key personnel; uncertainty as to the long-term value of the Class A ordinary shares of Huya following the merger; the continued availability of capital and financing following the merger; the business,economic and political conditions in the markets in which Huya and DouYu operate; changes in Huya's or DouYu's anticipated revenue and income; changes in DouYu's operating or other expenses; the degree to which Huya or DouYu encounters competition; and general political,economic and market conditions.

Investor Relations Contact

Mao Mao

DouYu International Holdings Limited

Email: ir@douyu.tv

Phone: +1 (646) 224-6934Xinran Rao

ICR,Inc.

Email: DouYu.IR@icrinc.com

Phone: +1 (646) 224-6934Media Relations ContactIris Ding

DouYu International Holdings Limited

Email: pr_douyu@douyu.tv

Phone: +1 (646) 308-1475Edmond Lococo

ICR,Inc.

Email: DouYu.PR@icrinc.com

Phone: +1 (646) 308-1475UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands,except share,ADS,per share and per ADS data)

As of December 31As of March 31

202020212021

RMBRMBUS$(1)ASSETSCurrent assets

Cash and cash equivalents5,279,9025,027,654767,370Restricted cash11,87511,8411,807Short-term bank deposits2,230,2292,439,973372,413Accounts receivable,net199,744176,37826,921Prepayments66,25760,6189,252Amounts due from related parties9,04510,0241,530Other current assets236,704382,44658,373Total current assets8,033,7568,108,9341,237,666

Property and equipment,net37,79234,4105,252Intangible assets,net141,672120,86718,448Long-term bank deposits100,000100,00015,263Investments500,659533,72981,463Goodwill12,93313,0251,988Right-of-use assets62,14151,2427,821Other non-current assets19,00414,5522,221Total non-current assets874,201867,825132,456TOTAL ASSETS8,907,9578,976,7591,370,122

LIABILITIES AND SHAREHOLDERS' EQUITYLIABILITIESCurrent liabilitiesAccounts payable986,0731,019,272155,571Advances from customers10,91112,5411,914Deferred revenue242,013199,44130,441Accrued expenses and other current liabilities384,041372,55156,862Amounts due to related parties223,52536,281353,92331,69854,0194,838Lease liabilities due within one yearTotal current liabilities1,882,8441,989,426303,645

Lease liabilities16,95213,4332,050Deferred revenue30,77927,8984,258Total non-current liabilities47,73141,3316,308TOTAL LIABILITIES1,930,5752,030,757309,953(1)Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted,all

translations from RMB to U.S. dollars are made at a rate of RMB6.5518 to US$1.00,in the H.10

statistical release of the Federal Reserve Board.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)(All amounts in thousands,per share and per ADS data)

As of December 31As of March 31

202020212021

RMBRMBUS$(1)SHAREHOLDERS' EQUITY

Ordinary shares23234Treasury shares(695,098)(695,098)(106,093)Additional paid-in capital10,486,39810,519,7151,605,622Accumulated deficit(2,863,219)(2,925,238)(446,479)Accumulated other comprehensive income10,91149,3797,539Total DouYu Shareholders' Equity 6,939,0156,948,7811,060,593Noncontrolling interests38,367(2,779)(424)Total Shareholders' Equity 6,977,3826,946,0021,169TOTAL LIABILITIES

AND SHAREHOLDERS' EQUITY 8,122(1) Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted,

all translations from RMB to U.S. dollars are made at a rate of RMB6.5518 to US$1.00,in the

H.10 statistical release of the Federal Reserve Board.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)(All amounts in thousands,per share and per ADS data)

Three Months Ended

March 31,December 31,March 31,

2020202020212021

RMBRMBRMBUS$(1)Net revenues2,278,0352,269,1972,152,687328,564Cost of revenues(1,792,181)(2,087,022)(1,892,499)(288,852)Gross profit485,854182,175260,18839,712Operating income (expense) (2)

Sales and marketing expenses(107,357)(170,708)(209,877)(32,033)General and administrative expenses(84,580)(117,699)(88,074)(13,443)Research and development expenses(92,888)(118,879)(111,264)(16,982)Other operating income (expense),net16,578(7,272)23,9243,652Total operating expenses(268,246)(414,558)(385,291)(58,806)Income (loss) from operations217,608(232,383)(125,103)(19,094)Other expenses,net(10,018)(3,403)12719Interest income,net45,04423,10420,9303,195Income (loss) before income taxes and share of

income (loss) in equity method investments252,634(212,682)(104,046)(15,880)Income tax expense----Share of income (loss) in equity method investments1,892(15,982)2,213338Net income (loss)254,526(228,664)(101,833)(15,542)Less: Net loss attributable to noncontrolling interest(5,924)(31,807)(39,814)(6,077)Net income (loss) attributable to ordinary

shareholders of the Company260,450(196,857)(62,019)(9,465)Net income (loss) per ordinary share

Basic8.18(6.12)(1.92)(0.29)Diluted7.90(6.12)(1.92)(0.29)Net income (loss) per ADS(3)

Basic0.82(0.61)(0.19)(0.03)Diluted0.79(0.61)(0.19)(0.03)

Weighted average number of ordinary shares used in calculating net income (loss) per ordinary shareBasic31,848,83132,175,36132,349,76432,764Diluted32,03432,764

Weighted average number of ADS used in calculating net income (loss) per ADS(3)Basic318,488,308321,753,609323,497,638323,638Diluted329,760,341321,638

(1)Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted,in the H.10

statistical release of the Federal Reserve Board.(2) Share-based compensation expenses were allocated in cost of revenues and operating expenses as follows:

Three Months Ended

March 31,

2020202020212021

RMBRMBRMBUS$(1)Research and development expenses5,5635,5045,468835Sales and marketing expenses1,1741,2321,217186General and administrative expenses35,11426,50626,6324,065

(3) Every ten ADSs representone ordinary share.RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS(All amounts in thousands,per share and per ADS data)

Three Months Ended

March 31,

2020202020212021

RMBRMBRMBUS$(1)Income (loss) from operations217,094)Add:

Share-based compensation expenses41,85033,24233,3175,086Adjusted operating income (loss) 259,458(199,141)(91,786)(14,008)

Net income (loss) 254,542)Add:

Share-based compensation expenses41,086Share of (income) loss in equity methodinvestments(1,892)15,982(2,213)(338)Impairment losses and fair value adjustments on

investments2,4462,500--Adjusted net income (loss)296,931(176,940)(70,729)(10,794)

Net income (loss) attributable to DouYu260,450(196,857)(62,019)(9,465)Add:

Share-based compensation expenses41,086Share of income (loss) in equity method investments(1,500--Adjusted net income (loss) attributable to DouYu302,855(145,133)(30,915)(4,717)

Adjusted net income (loss) per ordinary share

Basic9.51(4.51)(0.96)(0.15)Diluted9.51(4.51)(0.96)(0.15)

Adjusted net income (loss) per ADS(2)

Basic0.95(0.45)(0.10)(0.01)Diluted0.95(0.45)(0.10)(0.01)

Weighted average number of ordinary shares used in calculating adjusted net income (loss) per ordinary shareBasic31,764Diluted31,764

Weighted average number of ordinary shares used in calculating adjusted net income per ADS(2)Basic318,638Diluted318,638(1)Translations of certain RMB amounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted,in the H.10

statistical release of the Federal Reserve Board.(2)Every ten ADSs representone ordinary share.

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