DouYu International Holdings Limited Reports Fourth Quarter and Full Year 2022 Unaudited Financial Results

WUHAN,China,March 20,2023 -- 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 fourth quarter and the full year ended December 31,2022.

FourthQuarter2022FinancialandOperationalHighlights

Total net revenues in the fourth quarter of 2022 were RMB1,681.1 million (US$243.7 million) compared with RMB2,327.9 million in the same period of 2021.

Gross profit in the fourth quarter of 2022 was RMB186.1 million (US$27.0 million),compared with RMB244.7 million in the same period of 2021.

Net income in the fourth quarter of 2022 was RMB41.8 million (US$6.1 million),compared with net loss of RMB193.2 million in the same period of 2021.

Adjusted net loss[1] in the fourth quarter of 2022 was RMB4.3 million (US$0.6 million),compared with RMB150.7 million in the same period of 2021.

Average mobile MAUs[2]inthefourthquarterof2022decreased by8.0%to57.4millionfrom62.4millionin thesameperiod of2021.

Quarterly average paying user[3]countin thefourthquarter of2022was5.6million,comparedwith7.3 millionin thesameperiod of2021.

Full Year2022Financial Highlights

Total net revenues for the full year of 2022 were RMB7,108.2 million (US$1,030.6 million),compared with RMB9,165.3 million in the same period of 2021.

Gross profit for the full year of 2022 was RMB990.1 million (US$143.6 million),compared with RMB1,089.9 million in the same period of 2021.

Net loss for the full year of 2022 was RMB90.4 million (US$13.1 million),compared with RMB620.2 million in the same period of 2021.

Adjusted net loss[1]for the full year of 2021 was RMB7.6 million (US$1.1 million),compared with RMB439.3 million in the same period of 2021.

Mr. Shaojie Chen,Chief Executive Officer of DouYu,commented,"Against the backdrop of a complex and volatile macro environment throughout 2022,we remained committed to our core growth strategy of fostering a vibrant game-centric content ecosystem. We concluded the year with steady business performance through a mix of operational adaptations,including revenue optimization,a selective copyright procurement strategy,and investments in self-produced content. In the fourth quarter,our mobile MAUs were 57.4 million,a slight increase over the prior quarter. Looking ahead,we will dedicate ourselves to driving growth based on our content ecosystem as we prioritize content enrichment and community-wide interactions to boost user stickiness and retention,other than emphasizing the short-term growth of our business. Building on our continuous efforts to cultivate high-quality game-centric content and engage core users,we will strive to maintain our leading position in China's live-streaming gaming industry while exploring new growth avenues,propelling DouYu's healthy and sustainable development."

Mr. Hao Cao,Vice President of DouYu,"In the fourth quarter of 2022,our total revenues were RMB1.68 billion. Our gross profit was RMB186.1 million,with a gross margin of 11.1%. Meanwhile,our adjusted net loss was RMB4.3 million. Throughout the year,while continuously investing in high-quality self-produced content and optimizing our revenue structure,we made good progress in reducing costs and improving efficiency by adjusting our livestreaming operations and optimizing our business spending. In 2022,our full-year gross profit improved to 13.9%,and our adjusted net loss narrowed significantly to RMB7.6 million. Moving forward,as part of our strategic focus on healthy long-term growth,our revenue may experience some immediate impact,which we believe is critical to our balanced growth. We will also fine-tune our operating model while exploring new monetization channels,striving to create long-term value for our shareholders."

FourthQuarter2022FinancialResults

Total net revenues in the fourth quarter of 2022 decreased by 27.8% to RMB1,681.1 million (US$243.7 million),compared with RMB2,327.9 million in the same period of 2021.

Livestreaming revenues in the fourth quarter of 2022 decreased by 27.7% to RMB1,596.7 million (US$231.5 million) from RMB2,209.4 million in the same period of 2021. The decrease was primarily due to the continued adjustments to certain interactive features and related operations,as well as the negative impact of streamers' decreased activities following the end of Covid-19 restrictions.

Advertisingandotherrevenues in the fourth quarter of 2022 were RMB84.3 million (US$12.2 million),compared with RMB118.5 million in the same period of 2021. The decrease was primarily due to the soft demand for advertisements in the weak macro economy. The decrease was partially offset by the increase in other revenues contributed by game-specific membership services.

Costofrevenuesin the fourth quarter of 2022 was RMB1,495.0 million (US$216.8 million),a decrease of 28.2% compared with RMB2,083.2 million in the same period of 2021.

Revenue sharing fees and content costs in the fourth quarter of 2022 decreased to RMB1,271.1 million (US$184.3 million) from RMB1,846.9 million in the same period of 2021. The decrease was primarily due to decreased revenue sharing fees in accordance with the decrease in livestreaming revenues,as well as a significant decrease in copyright costs which was attributed to a selective procurement strategy.

Bandwidth costs in the fourth quarter of 2022 decreased by 17.6% to RMB138.4 million (US$20.1 million) from RMB167.9 million in the same period of 2021. The decrease was mainly due to the year-over-year reduction in peak bandwidth usage in the absence of purchased eSport tournament copyright.

Gross profit in the fourth quarter of 2022 was RMB186.1 million (US$27.0 million),compared with RMB244.7 million in the same period of 2021. Gross margin in the fourth quarter of 2022 improved to 11.1% from 10.5% in the same period of 2021. The increase in gross margin was primarily due to the decreases in both revenue sharing fees and copyright costs as a percentage of total net revenues,which were partially offset by the increase in self-produced content costs as a percentage of total net revenues.

Sales and marketing expenses in the fourth quarter of 2022 decreased 45.9% to RMB123.9 million (US$18.0 million) from RMB229.2 million in the same period of 2021. The decrease was mainly attributable to the significant decrease in marketing expenses for user acquisition and branding expenses.

Research and development expenses in thefourth quarter of 2022 decreased 39.2% to RMB80.6 million (US$11.7 million) from RMB132.6 million in the same period of 2021. The decrease was primarily attributable to the decrease in personnel-related expenses.

General and administrative expenses in the fourth quarter of 2022 decreased 44.1% to RMB55.2 million (US$8.0 million) from RMB98.8 million in the same period of 2021,mainly due to decreases in share-based compensation expenses and professional service fees.

Other operating income,net in the fourth quarter of 2022 was RMB17.6 million (US$2.5 million),compared with RMB13.9 million in the same period of 2021.

Loss from operations in the fourth quarter of 2022 was RMB56.0 million (US$8.1 million),compared with RMB201.9 million in the same period of 2021.

Adjusted operating loss,which adds back share-based compensation expenses,was RMB56.0 million (US$8.1 million),compared with adjusted loss from operations of RMB168.7 million in the same period of2021.

Net income in the fourth quarter of 2022 was RMB41.8 million (US$6.1 million),compared with net loss of RMB193.2 million in the same period of 2021.

Adjusted net loss,which excludes share-based compensation expenses,the share of (loss) income in equity method investments,and impairment loss of investments,was RMB4.3 million (US$0.6 million) in the fourth quarter of 2022,compared with adjusted net loss of RMB150.7 million in the same period of 2021.

Basic and diluted net income per ADS[4]inthefourthquarterof2022wereboth RMB0.14(US$0.02). Adjusted basic and diluted net loss per ADS in the fourth quarter of 2022 wereboth RMB0.003 (US$0.0004).

Full Year2022FinancialResults

Total net revenues for the full year of 2022 were RMB7,165.3 million in the same period of 2021. The decrease was primarily driven by the year-over-year decrease in livestreaming revenues and advertising and other revenues.

Gross profit for the full year of 2022 was RMB990.1 million (US$143.6 million),089.9 million in the same period of 2021.

Loss from operations for the full year of 2022 was RMB198.9 million (US$28.8 million),compared with RMB648.7 million in the same period of 2021.

Adjusted net loss for the full year of 2022,which excludes share-based compensation expenses,the share of loss (income) in equity method investments,was RMB7.6 million (US$1.1 million),compared with adjusted RMB439.3 million in the same period of 2021.

Basic and diluted net loss per ADS for the full year of 2022 were both RMB0.24 (US$0.03). Adjusted basic and diluted net income per ADS in the full year of 2022 were both RMB0.02 (US$0.003).

Cashandcashequivalents,restrictedcashandbankdeposits

As of December 31,2022,the Company had cash and cash equivalents,restricted cash,and short-term and long-termbank deposits of RMB6,808.8 million (US$987.2 million),compared with RMB6,643.5 million as of December 31,2021.

ConferenceCallInformation

The Company will hold a conference call on March 20,2023,at 7:00 am Eastern Time (or 7:00pm Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers:

International:

1-412-317-6061

UnitedStates TollFree:

1-888-317-6003

MainlandChina TollFree:

4001-206115

HongKong TollFree:

800-963976

SingaporeToll Free:

800-120-5863

ConferenceID:

7034524

Thereplaywillbeaccessiblethrough March27,bydialingthefollowingnumbers:

International:

1-412-317-0088

UnitedStates TollFree:

1-877-344-7529

ConferenceID:

4652111

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] "Adjusted net loss" is calculated as net loss before share-based compensation expenses,and share of (loss) income in equity method investments and impairment loss of investments. For more information,please refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.

[2] Refers to the number of mobile devices that launched our mobile apps in a given period. Average mobile MAUsforagivenperiodis calculatedbydividing (i) the sum of active mobile users for each month of such period,by (ii) the number of months in such period.

[3]"Quarterlyaveragepaying users"referstotheaveragepaying users foreachquarter duringagivenperiod oftimecalculatedbydividing (i)thesum of paying users for each quarter of such period,by (ii) the number of quarters in such period. "Paying user" refers to a registered userthathaspurchasedvirtualgifts onourplatform atleastonceduringtherelevantperiod.

[4]Every ten ADSs represent one ordinary share.

AboutDouYuInternationalHoldingsLimited

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 to bring users access to immersive and interactive games and entertainment livestreaming,a wide array of video and graphic contents,as well as opportunities to participate in community events and discussions. By nurturing a sustainable technology-based talent development system and relentlessly producing high-quality content,DouYu consistently delivers premium content through integration of livestreaming,video,graphics,and virtual communities with a primary focus on games,especially on eSports. This enables DouYu to continuously expand its user base and enhance its user experience. For more information,please see http://ir.douyu.com/.

UseofNon-GAAPFinancialMeasures

Adjusted operating income (loss) is calculated as operating income (loss) adjusted for share-based compensation expenses. Adjusted net income (loss) is calculated as net income (loss) adjusted for share-based compensation expenses,share of income (loss) in equity method investments and impairment loss of investments. Adjusted net income (loss) attributable to DouYu is calculated as net income (loss) attributable to DouYu adjusted for share-based compensation expenses,share of income (loss) in equity method investments 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) 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 ofNon-GAAPResults" near theendofthisrelease.

ExchangeRateInformation

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for theconvenience of the reader. Unless otherwise noted,all translations from RMB to U.S. dollars are made at a rate ofRMB6.8972 to US$1.00,the noon buying rate in effect on December 30,in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMBamountscould havebeen,orcouldbe,converted,realized orsettledin U.S.dollars,atany otherrate.

SafeHarborStatement

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,including but not limited to the following: the Company's results of operations and financial condition; the Company's business strategies; general market conditions,in particular the game live streaming market; the ability of the Company to retain and grow active and paying users; changes in general economic and business conditions in China; the impact of the COVID-19 to the Company's business operations and the economy in China and globally; any adverse changes in laws,regulations,rules,policies or guidelines applicable to the Company; and assumptions underlying or related to any of the foregoing. 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. The announced results of the fourth quarter and full year 2022 are preliminary and unaudited. 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.

Investor Relations Contact

In China:

Lingling Kong

DouYu International Holdings Limited

Email: ir@douyu.tv

Tel: +86 (10) 6508-0677

Andrea Guo

The Piacente Group,Inc.

Email: douyu@tpg-ir.com

Tel: +86 (10) 6508-0677

In the United States:

Brandi Piacente

The Piacente Group,Inc.

Email: douyu@tpg-ir.com

Tel: +1-212-481-2050

Media Relations Contact

Lingling Kong

DouYu International Holdings Limited

Email: pr_douyu@douyu.tv

Tel: +86 (10) 6508-0677

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

As of December 31

As of December31

2021

2022

2022

ASSETS

RMB

RMB

US$ (1)

Current assets:

Cash and cash equivalents

4,456,406

4,041,603

585,977

Restricted cash

10,703

6,057

878

Short-term bank deposits

2,076,355

2,511,150

364,083

Accounts receivable,net

191,389

109,180

15,830

Prepayments

80,717

26,064

3,779

Amounts due from related parties

37,159

46,126

6,688

Other current assets

376,367

337,004

48,861

Total current assets

7,229,096

7,077,184

1,026,096

Property and equipment,net

25,111

16,988

2,463

Intangible assets,net

161,540

106,723

15,473

Long-term bank deposits

100,000

250,000

36,247

Investments

491,425

531,911

77,120

Goodwill

12,637

13,804

2,001

Right-of-use assets,net

72,309

49,911

7,236

Other non-current assets

64,785

98,845

14,331

Total non-current assets

927,807

1,068,182

154,871

TOTAL ASSETS

8,156,903

8,145,366

1,180,967

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES

Current liabilities:

Accounts payable

824,128

666,985

96,704

Advances from customers

7,476

6,459

936

Deferred revenue

235,134

288,152

41,778

Accrued expenses and other current liabilities

458,328

302,801

43,902

Amounts due to related parties

293,508

266,788

38,681

Lease liabilities due within one year

30,417

27,479

3,984

Total current liabilities

1,848,991

1,558,664

225,985

Lease liabilities

31,278

19,572

2,838

Deferred revenue

18,045

6,570

953

Total non-current liabilities

49,323

26,142

3,791

TOTAL LIABILITIES

1,898,314

1,584,806

229,776

(1)Translations of certainRMBamounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted,all translations

fromRMBto U.S. dollars are made at a rate of RMB6.8972 to US$1.00,the noon buying rate in effect on December30,in theH.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 31

As of December 31

2021

2022

2022

RMB

RMB

US$ (1)

SHAREHOLDERS' EQUITY

Ordinary shares

23

23

3

Treasury shares

(802,250)

(911,217)

(132,114)

Additional paid-in capital

10,618,538

10,670,287

1,547,046

Accumulated deficit

(3,445,102)

(3,520,525)

(510,428)

Accumulated other comprehensive (loss) income

(112,621)

321,991

46,684

Total DouYu Shareholders' Equity

6,258,588

6,560,559

951,191

Noncontrolling interests

1

1

-

Total Shareholders' Equity

6,589

6,560

951,191

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

8,967

(1)Translations of certainRMBamounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted,in theH.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

Year Ended

Dec 31,

2021

Sep 30,

2022

Dec 31,

2021

Dec 31,

2022

RMB

RMB

RMB

US$ (1)

RMB

RMB

US$ (1)

Net revenues

2,327,917

1,798,333

1,681,054

243,730

9,165,331

7,108,238

1,030,598

Cost of revenues

(2,083,223)

(1,091)

(1,494,998)

(216,754)

(8,075,421)

(6,118,128)

(887,045)

Gross profit

244,694

251,242

186,056

26,976

1,089,910

990,110

143,553

Operating (expenses) income(2)

Sales and marketing expenses

(229,214)

(162,137)

(123,912)

(17,966)

(952,902)

(639,871)

(92,773)

General and administrative expenses

(98,756)

(52,308)

(55,175)

(8,000)

(375,976)

(288,242)

(41,791)

Research and development expenses

(132,574)

(84,371)

(80,566)

(11,681)

(490,019)

(383,091)

(55,543)

Other operating income,net

13,909

36,459

17,580

2,549

80,325

122,214

17,719

Total operating expenses

(446,635)

(262,357)

(242,073)

(35,098)

(1,738,572)

(1,188,990)

(172,388)

Loss from operations

(201,941)

(11,115)

(56,017)

(8,122)

(648,662)

(198,880)

(28,835)

Other expenses,net

(1,237)

(32,577)

(17,692)

(2,565)

(33,852)

(80,301)

(11,643)

Interest income,net

17,889

34,402

55,256

8,011

77,393

129,858

18,828

Loss before income taxes and share of

loss in equity method investments

(185,289)

(9,290)

(18,453)

(2,676)

(605,121)

(149,323)

(21,650)

Income tax expense

-

-

(3,487)

(506)

-

(3,487)

(506)

Share of (loss) income in equity method investments

(7,937)

2,647

63,781

9,247

(15,128)

62,395

9,046

Net (loss) income

(193,226)

(6,643)

41,841

6,065

(620,249)

(90,415)

(13,110)

Less: Net income (loss) attributable to

noncontrolling interest

56,499

(3,672)

(3,479)

(504)

(38,366)

(14,992)

(2,174)

Net (loss) income attributable to ordinary

shareholders of the Company

(249,725)

(2,971)

45,320

6,569

(581,883)

(75,423)

(10,936)

Net (loss) income per ordinary share

Basic

(7.65)

(0.09)

1.42

0.21

(17.88)

(2.36)

(0.34)

Diluted

(7.65)

(0.09)

1.42

0.21

(17.88)

(2.36)

(0.34)

Net (loss) income per ADS(3)

Basic

(0.77)

(0.01)

0.14

0.02

(1.79)

(0.24)

(0.03)

Diluted

(0.77)

(0.01)

0.14

0.02

(1.79)

(0.24)

(0.03)

Weighted average number of ordinary shares used in calculating net (loss) income per ordinary share

Basic

32,636,774

31,966,417

32,023,641

32,544,878

31,971,245

31,245

Diluted

32,245

Weighted average number of ADS used in calculating net (loss) income per ADS(3)

Basic

326,367,743

319,664,172

320,236,412

320,412

325,448,779

319,712,449

319,449

Diluted

326,449

(1)Translations of certainRMBamounts into U.S. dollars at a specified rate are solely for the convenience of the reader. Unless otherwise noted,all translations from

RMBto U.S. dollars are made at a rate of RMB6.8972 to US$1.00,in theH.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

Year Ended

Dec 31,

2022

RMB

RMB

RMB

US$ (1)

RMB

RMB

US$ (1)

Research and development expenses

5,444

605

-

-

21,661

11,476

1,664

Sales and marketing expenses

1,214

135

-

-

4,823

2,560

371

General and administrative expenses

26,604

1,958

-

-

105,655

52,705

7,642

(3)Every tenADSsrepresent one ordinary share.

RECONCILIATIONSOF GAAP AND NON-GAAP RESULTS

(All amounts in thousands,

2022

RMB

RMB

RMB

US$ (1)

RMB

RMB

US$ (1)

Loss from operations

(201,835)

Add:

Share-based compensation expenses

33,262

2,698

-

-

132,139

66,741

9,677

Adjusted Operating loss

(168,679)

(8,417)

(56,122)

(516,523)

(132,139)

(19,158)

Net (loss) income

(193,110)

Add:

Share-based compensation expenses

33,677

Share of loss (income) in equity method investments

7,937

(2,647)

(63,781)

(9,247)

15,128

(62,395)

(9,046)

Impairment losses of investments

1,297

32,298

17,592

2,551

33,654

78,461

11,376

Adjusted net (loss) income (2)

(150,730)

25,706

(4,348)

(631)

(439,328)

(7,608)

(1,103)

Net (loss) income attributable to DouYu

(249,936)

Add:

Share-based compensation expenses

33,376

Adjusted net (loss) income attributable to DouYu

(207,229)

29,378

(869)

(127)

(400,962)

7,384

1,071

Adjusted net (loss) income per ordinary share

Basic

(6.35)

0.92

(0.03)

(0.00)

(12.32)

0.23

0.03

Diluted

(6.35)

0.92

(0.03)

(0.00)

(12.32)

0.23

0.03

Adjusted net (loss) income per ADS(3)

Basic

(0.63)

0.09

(0.00)

(0.00)

(1.23)

0.02

0.00

Diluted

(0.63)

0.09

(0.00)

(0.00)

(1.23)

0.02

0.00

Weighted average number of ordinary shares used in calculating Adjusted net (loss) income per ordinary share

Basic

32,245

Weighted average number of ADS used in calculating net (loss) income per ADS(2)

Basic

326,in theH.10 statistical release of the Federal

Reserve Board.

(2)The net tax impact to the non-GAAP adjustments is zero.

(3)Every tenADSsrepresent one ordinary share.