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PR Newswire

Tencent Music Entertainment Group and Kobalt Music Group Enter Strategic Licensing and Distribution Deal

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The Music of Childish Gambino, Lauv, Marshmello, Elvis Presley, The Weeknd and More Now Available Across Tencent Music Entertainment Group’s QQ Music, Kugou Music, Kuwo Music and Wesing

SHENZHEN, China, Aug. 14, 2020 — Tencent Music Entertainment Group (TME) (NYSE: TME) and Kobalt Music Group announced they have officially reached a strategic cooperation to license and distribute the Kobalt publishing and AWAL recording catalogs on TME’s streaming platforms.

With its strategic position across the entire music entertainment industry value chain, TME will help Kobalt to simultaneously expand to concerts, music festivals, online live streaming and more fields, in order to effectively meet the music needs of fans all over the world.

Kobalt Music Group’s content will now be available through TME’s QQ Music, Kugou Music, Kuwo Music and Wesing. In the future, the two parties will join hands in content, to deepen the development of music IP and explore potential new artists.

As one of the biggest independent publishers and recording companies, Kobalt represents over 25,000 songwriters, 600 publishers, and 20,000 independent artists.

The most iconic and exciting musicians in the world call Kobalt home, including Childish Gambino, Dave Grohl, Enrique Iglesias, Lauv, Lorde, Zayn Malik, Marshmello, Max Martin, Paul McCartney, Elvis Presley, The Weeknd, and more. The company’s recording division, AWAL, includes Allie X, Bruno Major, FINNEAS, Lauv, and more, many of which are well-known to Chinese fans.

Globally, Kobalt Music, as an emerging music service company, is actively embracing the trend of digital transformation. TME said that it is willing to join hands with Kobalt Music to cultivate in the digital music content ecosystem, help musicians to obtain greater value, provide users with more rich and diverse music content, and also bring innovative inspiration to the industry.

"Innovation is in the DNA of both Tencent Music Entertainment and Kobalt," said Founder and Chairman of Kobalt Music Group, Willard Ahdritz. "We look forward to our partnership and driving the next phase of the digital marketplace transformation and working with TME on a bigger scale."

"I’m excited to continue our commitment to the Chinese music market," said Laurent Hubert, CEO of Kobalt Music. "With TME’s expansive user base and our all-star roster, we look forward to many creative and commercial opportunities for our artists, songwriters and partners."

Bob Bruderman, EVP, Digital Partnerships at Kobalt Music Group also said, "This is a great step for our musicians, as well as their fans. We are honored to be partnering with TME, and look forward to exploring new innovative forms of business and collaboration. "

With the cooperation between Tencent Music Entertainment Group and Kobalt Music, the two parties will combine their strengths through the entire music industry chain, with high-quality music content at the core driving the creation of music value, jointly providing better music for fans around the world, while helping the development of the global music industry.

About Tencent Music Entertainment

Tencent Music Entertainment Group (NYSE: TME) is the leading online music entertainment platform in China, operating the country’s highly popular and innovative music apps: QQ Music, Kugou Music, Kuwo Music and WeSing. TME’s mission is to use technology to elevate the role of music in people’s lives by enabling them to create, enjoy, share and interact with music. TME’s platform comprises online music, online karaoke and music-centric live streaming services, enabling music fans to discover, listen, sing, watch, perform and socialize around music.

For more information, please visit https://www.tencentmusic.com/

Media Contact:
Edmond Lococo, ICR Inc.
e-mail: TME.PR@icrinc.com
Phone: +86 138-1079-1408

 

PR Newswire

Pearl Abyss Introduces New Hero Igrid in Shadow Arena

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SEOUL, South Korea, Aug. 14, 2020 — Pearl Abyss announced today that its action-packed PvP game Shadow Arena has introduced a brand-new Hero Igrid. This deadly character will enter the battlefield and fight against enemies using her merciless combat skills. 

Pearl Abyss Introduces New Hero Igrid in Shadow Arena
Pearl Abyss Introduces New Hero Igrid in Shadow Arena

Shadow Arena‘s 14th Hero Igrid is an ancient female warrior with powerful offensive and defensive skills. She is known as the cursed warrior who has been wandering after losing a flame given by her god. 

Igrid uses a mighty Battle Axe and Shield where her Shield blocks an enemy’s attacks then counters them with her own attack. She can also neutralize an opponent by grabbing or knocking them down. Players must attack carefully as some of her offensive skills consume a lot of stamina. 

The "Free-Play Event" will be held in Shadow Arena until August 27. During the event period, all 14 Heroes including Igrid will be unlocked and players can experience each Hero’s combat moves and skill set. 

Last but not least, the Spectator mode has been enhanced. Players can now find the nearest player and spectate. When that player dies, the camera will automatically switch focus to another player. 

Visit the official website, Discord, Facebook, YouTube, and Twitter for more information. 

About Pearl Abyss 

Best known for the MMORPG franchise Black Desert, Pearl Abyss is a leading developer in the game industry. Established in 2010, Pearl Abyss has since developed Black Desert for PC, mobile, and console, and is developing Shadow Arena for PC and console. All of Pearl Abyss’ games are built on the company’s own proprietary engine and are renowned for their cutting-edge graphics. The company is also developing Crimson Desert, DokeV, and PLAN 8 and is poised to continue its growth through 2020 and maintain its position as one of Asia’s leaders in game development. More information about Pearl Abyss is available at: www.pearlabyss.com

Photo – https://photos.prnasia.com/prnh/20200813/2884848-1?lang=0

 

Related Links :

http://www.pearlabyss.com/

PR Newswire

iQIYI Announces Second Quarter 2020 Financial Results

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BEIJING, Aug. 14, 2020 — iQIYI, Inc. (Nasdaq: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced its unaudited financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Highlights

  • Total revenues were RMB7.4 billion (US$1.0 billion[1]), representing a 4% increase from the same period in 2019.
  • Operating loss was RMB1.3 billion (US$181.4 million) and operating loss margin was 17%, compared to operating loss of RMB1.9 billion and operating loss margin of 26% in the same period in 2019.
  • Net loss attributable to iQIYI was RMB1.4 billion (US$204.1 million), compared to net loss attributable to iQIYI of RMB2.3 billion in the same period in 2019. Diluted net loss attributable to iQIYI per ADS was RMB1.96 (US$0.28), compared to diluted net loss attributable to iQIYI per ADS of RMB3.22 in the same period of 2019.
  • The number of total subscribing members was 104.9 million as of June 30, 2020, 99.4% of whom were paying subscribing members. This compares to 100.5 million of total subscribing members as of June 30, 2019, up 4% year over year.

"We delivered another quarter of growth amid the volatile environment with total revenues increasing 4% year over year," commented Dr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. "The Covid-19 pandemic greatly impacted our business during the first half of the year, resulting in unusual user behavior, fluctuating numbers, and unprecedented challenges. Nevertheless, we further secured our dominant market position bolstered by our substantial IP assets, outstanding content, and robust technology platform. We continued to be encouraged by the strong affinity users have for our original content, as well as the industry-wide support and appreciation from our content partners and advertising customers. We are confident in our ability to navigate through uncertainties and emerge from it in a strong position."   

"Our membership services revenue grew by 19% year-over-year and continued to be our largest business pillar for the second quarter. We further optimized our membership system to cater to diverse user needs by launching the S-diamond membership package." commented Mr. Xiaodong Wang, Chief Financial Officer of iQIYI. "Our loss margin narrowed as we kept spending strategically on original content to boost in-house production capability and made wise and disciplined investment across the board. With the pandemic being contained in China and its adverse impact gradually fading away, we believe we are still well on track to achieve healthy and sustainable long-term growth."

Footnotes:

[1] Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0651 to US$1.00, the exchange rate in effect as of June 30, 2020 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.

 

Second Quarter 2020 Financial Results

Total revenues reached RMB7.4 billion (US$1.0 billion), representing a 4% increase from the same period in 2019.

Membership services revenue was RMB4.0 billion (US$572.7 million), representing a 19% increase from the same period in 2019. The increase was primarily attributable to the growth in the number of subscribing members and our various operational initiatives to improve monetization.    

Online advertising services revenue was RMB1.6 billion (US$224.5 million), representing a 28% decrease from the same period in 2019. The decrease was primarily due to the challenging macroeconomic environment in China.

Content distribution revenue was RMB860.6 million (US$121.8 million), representing a 66% increase from the same period in 2019. The growth was primarily attributable to the increase of high-quality content which fulfilled distribution to other platforms during the quarter.

Other revenues were RMB918.9 million (US$130.1 million), representing a 6% decrease from the same period in 2019, primarily due to the soft performance of certain business lines.

Cost of revenues was RMB6.8 billion (US$967.2 million), representing a 2% decrease from the same period in 2019. The decrease in cost of revenues was primarily due to lower bandwidth cost and the exemption of cultural business construction fee this year, partially offset by the increase of content costs. Content costs as a component of cost of revenues were RMB5.1 billion (US$726.7 million), representing a 2% increase from the same period in 2019.

Selling, general and administrative expenses were RMB1.2 billion (US$169.2 million), representing a 11% decrease from the same period in 2019. This was primarily due to less expenses for content and game promotion, as well as lower spending on offline branding activities.

Research and development expenses were RMB664.0 million (US$94.0 million), flat compared with the same period in 2019.

Operating loss was RMB1.3 billion (US$181.4 million), compared to operating loss of RMB1.9 billion in the same period in 2019. Operating loss margin was 17%, compared to operating loss margin of 26% in the same period in 2019.

Total other expense was RMB140.8 million (US$19.9 million), compared to total other expense of RMB426.7 million during the same period of 2019. The year-over-year variance was mainly due to the fluctuation of exchange rate between Renminbi and the U.S. dollar.

Loss before income taxes was RMB1.4 billion (US$201.3 million), compared to loss before income taxes of RMB2.3 billion in the same period in 2019.

Income tax expense was RMB15.9 million (US$2.3 million), compared to income tax expense of RMB5.8 million in the same period in 2019.

Net loss attributable to iQIYI was RMB1.4 billion (US$204.1 million), compared to net loss attributable to iQIYI of RMB2.3 billion in the same period in 2019. Diluted net loss attributable to iQIYI per ADS was RMB1.96 (US$0.28) for the second quarter of 2020, compared to diluted net loss attributable to iQIYI per ADS of RMB3.22 in the same period of 2019.

As of June 30, 2020, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB9.5 billion (US$1.3 billion).

Financial Guidance

For the third quarter of 2020, iQIYI expects total net revenues to be between RMB6.95 billion (US$984.1 million) and RMB7.40 billion (US$1.0 billion), representing a 6% decrease to flat year over year. This forecast reflects iQIYI’s current and preliminary view, which may be subject to change.

SEC Investigation

The SEC’s Division of Enforcement is seeking the production of certain financial and operating records dating from January 1, 2018, as well as documents related to certain acquisitions and investments that were identified in a report issued by short-seller firm Wolfpack Research in April 2020 ("Wolfpack Report"). The Company is cooperating with the SEC.  We cannot predict the timing, outcome, or consequences of the SEC investigation.

In addition, shortly after the publication of the Wolfpack Report, the Company engaged professional advisers to conduct an internal review into certain of the key allegations in the Wolfpack Report and to report their findings to the Company’s Audit Committee ("Internal Review").  These professional advisers have been examining the Company’s books and records and undertaking testing procedures that, in their judgment, are necessary and appropriate to evaluating the key allegations in the Wolfpack Report, including accounting policy analysis, data analytics on whether the Company manufactured orders and inflated revenues and/or expenses. The Internal Review is ongoing and we cannot predict the timing for completion, outcome, or consequences of the Internal Review at this time.

Conference Call Information

iQIYI’s management will hold an earnings conference call at 8:00 PM on August 13, 2020, U.S. Eastern Time (8:00 AM on August 14, 2020, Beijing Time).

Please register in advance of the conference using the link provided below. Upon registering, participant will receive dial-in numbers, Direct Event passcode and unique registrant ID by email.

Participant Online Registration: http://apac.directeventreg.com/registration/event/5968936

It will automatically direct you to the registration page of "iQIYI Second Quarter 2020 Earnings Conference Call", where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter "5968936".

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), Direct Event passcode and unique registrant ID) provided in the confirmation email that you have received following your pre-registration.

A telephone replay of the call will be available after the conclusion of the conference call through August 21, 2020.

Dial-in numbers for the replay are as follows:

International Dial-in                            +61 2 8199 0299
Passcode:                                           5968936

A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.

About iQIYI, Inc.

iQIYI, Inc. is an innovative market-leading online entertainment service in China. Its corporate DNA combines creative talent with technology, fostering an environment for continuous innovation and the production of blockbuster content. iQIYI’s platform features highly popular original content, as well as a comprehensive library of other professionally-produced content, professional user generated content and user-generated content. The Company distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. iQIYI attracts a massive user base with tremendous user engagement, and has developed a diversified monetization model including membership services, online advertising services, content distribution, online games, live broadcasting, IP licensing, talent agency, online literature and e-commerce etc.

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," "confident" and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as iQIYI’s strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, 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 third parties. Statements that are not historical facts, including but not limited to statements about iQIYI’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: iQIYI’s  strategies; iQIYI’s future business development, financial condition and results of operations; iQIYI’s ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI’s revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement iQIYI’s consolidated financial results presented in accordance with GAAP, iQIYI uses the free cash flow as non-GAAP financial measure. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

iQIYI believes that the non-GAAP financial measure provides meaningful supplemental information regarding its liquidity by excluding certain items that may not be indicative of its recurring liquidity position, such as operating cash flows adjusted by capital expenditures. The Company believes that both management and investors benefit from referring to the non-GAAP financial measure in assessing its liquidation and when planning and forecasting future periods. The non-GAAP financial measure also facilitates management’s internal comparisons to iQIYI’s historical liquidity. The Company believes the non-GAAP financial measure is useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using the non-GAAP financial measure is that the non-GAAP measure exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. The non-GAAP financial measure presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Free cash flow represents net cash provided by operating activities less capital expenditures. Starting from January 1, 2020, iQIYI adopted ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, which reclassifies cash outflows for costs incurred to acquire licensed contents from investing activities to operating activities. To increase comparability, 2019 free cash flow has been adjusted to include cash outflows of acquisition of licensed copyrights, which is presented on the same basis as 2020 and going forward.

For more information, please contact:

Investor Relations
iQIYI, Inc.
+ 86 10 8264 6585
ir@qiyi.com

 

iQIYI, INC.

Condensed Consolidated Statements of Loss

 (In RMB thousands, except for number of shares and per share data) 

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2019

2020

2020

2019

2020

RMB

RMB

RMB

RMB

RMB

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

 Revenues:

Membership services

3,412,349

4,634,347

4,045,968

6,857,692

8,680,315

Online advertising services

2,200,682

1,536,770

1,586,083

4,320,115

3,122,853

Content distribution

517,939

602,772

860,629

985,800

1,463,401

Others

979,211

875,877

918,897

1,936,493

1,794,774

 Total revenues

7,110,181

7,649,766

7,411,577

14,100,100

15,061,343

 Operating costs and expenses:

Cost of revenues

(6,980,957)

(7,902,864)

(6,833,586)

(14,258,153)

(14,736,450)

Selling, general and administrative

(1,346,324)

(1,310,603)

(1,195,632)

(2,486,935)

(2,506,235)

Research and development

(654,601)

(678,135)

(664,045)

(1,252,673)

(1,342,180)

 Total operating costs and expenses

(8,981,882)

(9,891,602)

(8,693,263)

(17,997,761)

(18,584,865)

 Operating loss

(1,871,701)

(2,241,836)

(1,281,686)

(3,897,661)

(3,523,522)

 Other expense

Interest income 

130,721

56,594

44,425

195,818

101,019

Interest expenses

(247,762)

(262,030)

(265,656)

(383,009)

(527,686)

Foreign exchange (loss)/gain, net

(306,117)

(312,422)

61,199

21,918

(251,223)

Loss from equity method investments

(38,112)

(96,838)

(62,205)

(72,647)

(159,043)

Other income/(loss), net

34,593

(13,811)

81,389

22,369

67,578

 Total other expense, net

(426,677)

(628,507)

(140,848)

(215,551)

(769,355)

 Loss before income taxes

(2,298,378)

(2,870,343)

(1,422,534)

(4,113,212)

(4,292,877)

Income tax expense

(5,776)

(4,841)

(15,926)

(13,219)

(20,767)

 Net loss

(2,304,154)

(2,875,184)

(1,438,460)

(4,126,431)

(4,313,644)

Less: Net income/(loss) attributable to
noncontrolling interests 

23,291

 

(542)

3,357

14,990

2,815

 Net loss attributable to iQIYI, Inc.

(2,327,445)

(2,874,642)

(1,441,817)

(4,141,421)

(4,316,459)

Accretion of redeemable noncontrolling
interests

–

(1,717)

(1,747)

–

(3,464)

 Net loss attributable to ordinary
shareholders

(2,327,445)

(2,876,359)

(1,443,564)

(4,141,421)

(4,319,923)

 Net loss per share for Class A and Class
B ordinary shares:

 Basic

(0.46)

(0.56)

(0.28)

(0.81)

(0.84)

 Diluted

(0.46)

(0.56)

(0.28)

(0.81)

(0.84)

 Net loss per ADS (1 ADS equals 7 Class A
ordinary shares):

 Basic

(3.22)

(3.92)

(1.96)

(5.67)

(5.88)

 Diluted

(3.22)

(3.92)

(1.96)

(5.67)

(5.88)

Weighted average number of Class A and
Class B ordinary shares used in net loss
per share computation:

Basic

5,102,652,726

5,137,428,818

5,151,499,718

5,092,895,972

5,144,464,250

Diluted

5,102,652,726

5,137,428,818

5,151,499,718

5,092,895,972

5,144,464,250

 

 

iQIYI, INC.

Condensed Consolidated Balance Sheets

(In RMB thousands, except for number of shares and per share data)

December 31,

June 30,

2019

2020

RMB

RMB

(Unaudited)

ASSETS

    Current assets:

Cash and cash equivalents

5,934,742

4,280,694

Restricted cash

974,932

999,282

Short-term investments

4,579,313

4,196,237

Accounts receivable

3,627,749

3,311,635

Prepayments and other assets

3,719,228

3,613,564

Amounts due from related parties

211,993

106,665

Licensed copyrights, net

1,224,881

1,183,915

    Total current assets

20,272,838

17,691,992

    Non-current assets:

 Fixed assets, net

1,754,367

1,660,408

 Long-term investments

2,982,154

3,745,872

 Deferred tax assets, net

34,916

62,748

 Licensed copyrights, net

6,287,330

5,742,647

 Intangible assets, net

813,960

711,855

 Produced content, net

4,355,221

4,414,354

 Prepayments and other assets

3,508,476

3,059,272

Operating lease assets

722,742

1,110,754

Goodwill

3,888,346

3,888,346

Amounts due from related parties

172,200

189,200

    Total non-current assets

24,519,712

24,585,456

Total assets

44,792,550

42,277,448

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS’
EQUITY

Current liabilities:

Accounts and notes payable

8,212,449

7,691,757

Amounts due to related parties

1,604,258

1,628,514

Customer advances and deferred revenue

3,081,407

3,131,602

Short-term loans

2,618,170

3,614,023

Long-term loans, current portion

736,814

466,521

Operating lease liabilities, current portion

125,412

183,508

Accrued expenses and other liabilities

3,794,656

3,750,768

    Total current liabilities

20,173,166

20,466,693

Non-current liabilities:

Long-term loans

880,278

886,926

Convertible senior notes

12,296,868

12,693,748

Deferred tax liabilities

30,136

527

Amounts due to related parties

1,061,883

1,020,261

Operating lease liabilities

402,732

725,501

Other non-current liabilities

232,555

223,813

    Total non-current liabilities

14,904,452

15,550,776

Total liabilities

35,077,618

36,017,469

Redeemable noncontrolling interests:

101,542

105,006

Shareholders’ equity:

Class A ordinary shares

142

145

Class B ordinary shares

183

183

Additional paid-in capital

41,298,328

42,057,844

Accumulated deficit

(33,834,357)

(38,248,328)

Accumulated other comprehensive income

2,106,718

2,300,941

Non-controlling interests

42,376

44,188

Total shareholders’ equity

9,613,390

6,154,973

Total liabilities, redeemable noncontrolling interests and shareholders’ equity

44,792,550

42,277,448

 

 

 

iQIYI, INC.

Condensed Consolidated Statements of Cash Flows 

 (In RMB thousands, except for number of shares and per share data) 

Three Months Ended

June 30,

March 31,

June 30,

2019

2020

2020

RMB

RMB

RMB

(Unaudited)

(Unaudited)

(Unaudited)

Net cash provided by (used in) operating activities(1)

890,678

(604,269)

(1,358,278)

Net cash (used in) provided by investing activities (1、2)

(7,836,357)

(1,609,423)

1,144,401

Net cash provided by (used in) financing activities

373,109

(79,473)

822,793

Effect of exchange rate changes on cash, cash equivalents
   and restricted cash

171,050

64,567

(10,016)

Net (decrease) increase in cash, cash equivalents and
   restricted cash

(6,401,520)

(2,228,598)

598,900

Cash, cash equivalents and restricted cash

At beginning of period

14,025,538

6,909,674

4,681,076

At end of period

7,624,018

4,681,076

5,279,976

Net cash provided by (used in) operating activities

890,678

(604,269)

(1,358,278)

Less: Capital expenditures (3)

(154,923)

(66,824)

(57,465)

Less: Acquisition of licensed copyrights (1)

(2,906,429)

–

–

Free cash flow

(2,170,674)

(671,093)

(1,415,743)

 

(1)  Starting from January 1, 2020, iQIYI adopted ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, which reclassifies cash outflows for costs incurred to acquire licensed contents from investing activities to operating activities. To increase comparability, 2019 non-GAAP measure of free cash flow has been adjusted to include cash outflows of acquisition of licensed copyrights, which is presented on the same basis as 2020 and going forward.

(2)  Starting from January 1, 2020, net cash used in or provided by investing activities primarily consists of net cash flows from investing in debt securities, purchase of long term investments and capital expenditures.

(3)  Capital expenditures are incurred primarily in connection with leasehold improvements, computers and servers.

 

 

 

Related Links :

http://www.iqiyi.com

PR Newswire

Netmarble Issues Earnings and Fiscal Results for Second Quarter of 2020

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Significant Q2 Increases Driven by Record-Breaking Overseas Sales and the Success of The Seven Deadly Sins: Grand Cross and A3: Still Alive

SEOUL, South Korea, Aug. 14, 2020 — Netmarble Corp., a global mobile game company focused on creating entertaining gaming experiences for players of all ages, has reported their financial results for the second quarter of 2020.

"Netmarble had a very strong second quarter with solid performances from games launched in the first half of the year including the worldwide release of The Seven Deadly Sins: Grand Cross and Korea’s release of A3: Still Alive. Our amazing community of players helped fuel a record-breaking quarter for overseas sales, and we look forward to continuing this momentum and expanding domestic and overseas growth in the second half of 2020 with highly-anticipated games featuring our own and globally popular IP," said Seungwon Lee, Co-CEO of Netmarble.

"Following the recent release of MaguMagu 2020 in Korea, the third quarter will include the global launch of BTS Universe Story, our second BTS game co-produced with Big Hit Entertainment. Our popular Seven Knights IP will be the basis for two releases in the second half of the year, the mobile MMORPG Seven Knights 2 and our first console launch with Seven Knights – Time Wanderer -. Additional titles coming in 2020 include Kabam’s MARVEL Realm of Champions and A3: Still Alive, which will launch globally following its successful Korean release in March."

Selected highlights from Netmarble’s second quarter include:

  • $568.2 million in total sales, $67.7 million in operating profit, and a net profit of $70.7 million from April through June.
  • Total sales increased by 30.3% year-over-year and 28.7% quarter-on-quarter. Operating profit increased 146.1% year-over-year and 300.5% quarter-on-quarter.
  • Net profit increased by 124.2% year-over-year and 48.2% quarter-on-quarter.
  • Genre portfolio showed diversification across RPG (41%), MMORPG (25%), Casual (25%), and others (9%)
  • Top-performing games include The Seven Deadly Sins: Grand Cross (21%), MARVEL Contest of Champions (13%), Blade&Soul Revolution (9%), Lineage 2: Revolution (8%), and A3: Still Alive (6%)
  • Overseas sales accounted for 75% ($426.3 million) of overall sales in the second quarter. This is the highest figure in Netmarble’s history on a quarterly basis, and on a continued increasing trend. The success of The Seven Deadly Sins: Grand Cross, MARVEL Contest of Champions (Kabam), Lineage 2: Revolution, Blade&Soul Revolution and Cookie Jam (Jam City) in overseas markets like the U.S. and Japan was a major driver for the quarter.

A breakdown of the total financial earnings is below:

4/1/20-6/31/20 actuals

YoY Changes

QoQ Changes

Total Sales

$568.2 million

+30.3%

+28.7%

Operating Profit

$67.7 million

+146.1%

+300.5%

Net Profit

$70.7 million

+124.2%

+48.2%

For additional details on Netmarble’s quarterly performance, and to listen to the earnings call, please visit the company’s Investor Relations page to learn more.

About Netmarble Corporation

Established in Korea in 2000, Netmarble Corporation is a top developer and publisher pushing the boundaries of the mobile gaming experience with highly innovative games including Lineage 2: Revolution, The Seven Deadly Sins: Grand Cross, Blade&Soul Revolution and MARVEL Future Fight. As a parent company of Kabam, and a major shareholder of Jam City and Big Hit Entertainment, Netmarble strives to entertain audiences around the world with a variety of mobile games based on its powerful franchises and collaborations with IP holders worldwide. More information can be found at http://company.netmarble.com

Photo – https://photos.prnasia.com/prnh/20200813/2884835-1LOGO?lang=0

PR Newswire

ViewSonic Holds “ColorPro Award Global Photography Contest” to Highlight the Spirit of Kindness

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BREA, Calif., Aug. 14, 2020 — ViewSonic International Corp.*, a leading global provider of visual solutions, invited four leaders in the creative industry with many years of experience in providing professional tools and services to creators—Blurb, Shoot the Frame (STF), Tinyspace,  and TourBox—to hold the ColorPro Award Global Photography Contest. The theme of the contest is "kindness," and everyone is welcome to submit photos from August 18 to 30 to demonstrate what kindness means to them. The top prize includes a ColorPro VP2785-2K professional display and a package of photography tools.

The theme of ColorPro Award Global Photography Contest is “kindness,” and everyone is welcome to submit photos from August 18 to 30 to demonstrate what kindness means to them.
The theme of ColorPro Award Global Photography Contest is “kindness,” and everyone is welcome to submit photos from August 18 to 30 to demonstrate what kindness means to them.

"We are glad to host this global contest with our partners and help generate positive energy during this difficult time," said Oscar Lin, Head of the Monitor Business Unit at ViewSonic. "With this contest, we seek to encourage people to explore stories and moments about kindness and share what kindness means to them through photographs. Our aim is to inspire creativity and identify the kindness that has always been within us, no matter the changes to the way we live."

The ColorPro Award fully respects artistic creativity, setting no limits on size, aspect ratio, style, or device. Two well-known professional photographers, Luke Stackpoole and Kai W, are serving as ColorPro Award ambassadors, sharing their photographs of kindness. In Luke Stackpoole’s photo, a mother sled dog is sheltering her young puppies from a blizzard in temperatures of -35°C, reflecting the paternal instinct to care for the young. Meanwhile, Kai W’s fascinating photo shows a butcher using a meat knife to help a little girl open a straw hole on her tea carton.

Partner companies have made available generous prizes for inspiring submissions. In addition to US$1,000 in cash, the top prize includes a ColorPro VP2785-2K professional display and a TourBox Controller that will help creators develop their work. STF, Tinyspace, and Blurb will also provide memberships and vouchers, so that creators can showcase their work, build online portfolios, and take advantage of online printing and self-publishing services.

All submitted photographs will be evaluated based on three main aspects: (1) overall impression conveyed and emotion delivered; (2) originality, creativity, and storytelling; (3) technical aspects, such as lighting, exposure, color, tone, and execution.

Contest Details

  • When: 18th to the 30th of August
  • How: submit your photo with the theme of "Kindness" to event site
  • First prize:
    1.  $1,000 Cash
    2.  ColorPro VP2785-2K
    3.  TourBox Controller
    4.  12 Month Tinyspace Membership
    5.  $500 Blurb Voucher
    6.  12 Month Shoot The Frame Premium Membership
     
    Second prize:
    1.   Blurb $200 voucher
    2.  12 Month Tinyspace Membership
    3.  12 Month Shoot The Frame Premium Membership
     
    Third prize:
    1.  Blurb $100 voucher
    2.  12 Month Tinyspace Membership
    3.  12 Month Shoot The Frame Premium Membership

*The Contest is hosted and sponsored by ViewSonic International Corp., located in New Taipei City, Taiwan. ViewSonic International Corp. is a subsidiary company of ViewSonic Corp. located in California, USA.

About ViewSonic

Founded in California, ViewSonic is a leading global provider of visual solutions and conducts business in over 100 countries worldwide. As an innovator and visionary, ViewSonic is committed to providing comprehensive hardware and software solutions that include monitors, projectors, digital signage, ViewBoard interactive displays, and myViewBoard software ecosystem. With over 30 years of expertise in visual displays, ViewSonic has established a strong position for delivering innovative and reliable solutions for education, enterprise, consumer, and professional markets and helping customers "See the Difference." To find out more about ViewSonic, please visit www.viewsonic.com.

Blurb

Blurb is a creative platform that enables individuals to create high-quality Photo Books, Trade Books, Magazines, and Wall Art with free, innovative creation and layout tools. To find out more about Blurb please visit: https://www.blurb.com/

Shoot The Frame

Shoot The Frame, launched in 2012, are a suite of monthly photography awards. Join professional and amateur photographers from around the globe and enter your best portrait, landscape and wildlife photos. https://shoottheframe.com/

Tinyspace

Tinyspace is about to launch a neat little product that allows designers and creative people to build a simple portfolio & resume. We are dedicated to helping you get your next job as a creative. We’re giving away discount codes to a limited number of early users. To get your voucher, visit: http://tinyspace.io/

TourBox

TourBox team was thus founded in November 2016 and began to create new tools that would reshape the industry.TourBox innovates step by step and is dedicated to developing a tool that can increase efficiencies and truly optimize operational experiences and increase efficiencies. TourBox has now become the first choice of creators to accelerate their workflows. The support of every creator will continue to encourage us to innovate with passion and continue delivering the best tools to the digital world. To find out more about TourBox please visit: https://www.tourboxtech.com/en/index.html

Photo – https://photos.prnasia.com/prnh/20200812/2883288-1?lang=0

Related Links :

http://www.viewsonic.com

PR Newswire

Scienjoy Holding Corporation Signs Agreement to Acquire BeeLive and Expand Its Global Footprint

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BEIJING, Aug. 13, 2020 — Scienjoy Holding Corporation ("Scienjoy", the "Company", or "We") (NASDAQ: SJ), a leading live entertainment mobile streaming platform in China today announced that it has entered into an Equity Acquisition Framework Agreement (the "Agreement") on August 10, 2020, to acquire 100% of the equity interest in Beelive from its two controlling companies at a total consideration of RMB300 million, including a cash consideration of RMB50 million and share consideration of RMB250 million in ordinary shares to be issued by Scienjoy. The share consideration payments are subject to certain performance conditions and requirements over the following three years.  

BeeLive is a global live streaming platform that initially launched in China in November 2016. After establishing a strong foothold in China’s live streaming industry, BeeLive began expanding into international markets during the second half of 2019. To date, BeeLive has launched its Arabic language live streaming product in the Middle East and its Thai language live streaming product in Southeast Asia.

Although BeeLive’s global expansion is still at an early stage, the platform’s activity in overseas markets has demonstrated potential for future growth. As of June 2020, the number of total registered users on BeeLive exceeded 20 million and the number of active live streaming hosts on BeeLive reached 62 thousand. Additionally, during the first half of 2020, BeeLive’s ARPU reached RMB2,200, which was higher than the industry average.

"We are pleased to announce our acquisition of BeeLive and remain confident that this arrangement will serve to provide increasing shareholder value over the long term," commented Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy. "As BeeLive has come to establish itself as a leader in the provision of engaging talent show live streaming content and continued to make exceptional progress in its overseas expansion initiatives, we have gained a tremendous amount of respect for both the business and its platform capabilities. Based on the similarities between our business models, we believe that this deal has the potential to generate powerful synergies and thus significantly bolster our competitive advantages in the industry going forward. After thorough analysis, we maintain our belief that this acquisition is a true win-win arrangement for both parties and will help to provide our users with an increasingly vibrant and interactive social environment going forward."

About Scienjoy Holding Corporation

Founded in 2011, Scienjoy is a leading show live streaming video entertainment social platform in China. With more than 200 million registered users, Scienjoy currently operates three primary online live streaming brands with their respective websites and mobile apps: Showself, Lehai, and Haixiu, each using Scienjoy’s own mobile applications. Through this collection of online live streaming brands, Scienjoy has created a vibrant, interactive, and close community. Scienjoy operates a mobile live streaming business through which it provides live streaming entertainment from professional "broadcasters" to end-users, allowing for the operation of live social video communities. Using Scienjoy’s mobile applications, users can select broadcasters and enter real time video rooms to interact with them. In addition to real-time interactions, users can also view photos posted by broadcasters on their personal pages, leave comments, and engage in private chats with broadcasters when they are not streaming. In addition, users can also play fun and simple games by using virtual currencies within the video rooms while watching the live streaming of a broadcaster.

Safe Harbor Statement

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements include, without limitation, Company’s expectations with respect to future performance and anticipated financial impacts of the acquisition, the satisfaction of the closing conditions to the acquisition and the timing of the completion of the acquisition. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside the control of the Company and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the Agreement relating to the acquisition; (2) the inability to complete the acquisition, including due to failure to satisfy conditions to closing in the Agreement; (3) delays in obtaining or the inability to obtain necessary regulatory approvals required to complete the transactions contemplated by the Agreement; (4) the risk that the acquisition disrupts current plans and operations as a result of the announcement and consummation of the acquisition; (5) the ability to recognize the anticipated benefits of the acquisition; (6) costs related to the acquisition; (7) changes in applicable laws or regulations; and (8) the possibility that Beelive or the Company may be adversely affected by other economic, business, and/or competitive factors.  These forward -looking statements are subject to the filings with the Securities and Exchange Commission ("SEC") made by the Company.  Company cautions that the foregoing list of factors is not exclusive and cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made.  Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law. The information contained in any website referenced herein is not, and shall not be deemed to be, part of or incorporated into this press release.

Contacts

Ray Chen
VP, Investor relations
Scienjoy Inc.
+86-010-64428188
ray.chen@scienjoy.com

Jack Wang
ICR Inc.
+1 (212) 537-9254
scienjoy.ir@icrinc.com

PR Newswire

Phoenix New Media to Announce Second Quarter 2020 Financial Results on Monday, August 17, 2020

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BEIJING, Aug. 11, 2020 — Phoenix New Media Limited ("Phoenix New Media", "ifeng" or the "Company") (NYSE: FENG), a leading new media company in China, today announced that it will report its second quarter 2020 financial results on Monday, August 17, 2020 after the market closes. The earnings release will be available on ifeng’s investor relations website at http://ir.ifeng.com.

Following the earnings release, ifeng’s management team will hold a conference call on Monday, August 17, 2020 at 9:00 p.m. Eastern Time (or Tuesday, August 18, 2020 at 9:00 a.m. Beijing/Hong Kong time) to discuss the financial results and operating performance.

Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. All participants must preregister online prior to the call to receive the dial-in numbers. Preregistration may require a few minutes to complete.

Conference Call Preregistration

Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/1199777. Once preregistration has been complete, participants will receive dial-in numbers, Direct Event Passcode, and registrant ID by email.

Please dial in 10 minutes prior to the call, using the participant dial-in numbers, Direct Event Passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process.

A replay of the call will be available through August 25, 2020 by dialing the following numbers:

International:

+61 2 8199 0299

Mainland China:

4006322162

Hong Kong:

+852 30512780

United States:

+1 646 254 3697

Conference ID:  

1199777

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

About Phoenix New Media Limited

Phoenix New Media Limited (NYSE: FENG) is a leading new media company providing premium content on an integrated Internet platform, including PC and mobile, in China. Having originated from a leading global Chinese language TV network based in Hong Kong, Phoenix TV, the Company enables consumers to access professional news and other quality information and share user-generated content on the Internet through their PCs and mobile devices. Phoenix New Media’s platform includes its PC channel, consisting of ifeng.com website, which comprises interest-based verticals and interactive services; its mobile channel, consisting of mobile news applications, mobile video application and mobile Internet website; and its operations with the telecom operators that provides mobile value-added services.

For investor and media inquiries please contact

Phoenix New Media Limited
Qing Liu
Email: investorrelations@ifeng.com

ICR, Inc.
Jack Wang
Tel: +1 (646) 405-4883
Email: investorrelations@ifeng.com

 

Related Links :

http://ifeng.com

PR Newswire

Pinterest Announces Videos Updates to Inspire Audiences in India to take Action on Ideas

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SINGAPORE, Aug. 11, 2020 — Pinterest, Inc. (NYSE: PINS) today, announces new video updates for creators and brands to inspire audiences to take action on the ideas they discover. The updates include a video uploader tool available to all business accounts in India and a new video tab to make their videos even easier to discover by Pinterest users.

Pinterest Announces Update to Videos to Inspire Audiences in India to take Action on Ideas
Pinterest Announces Update to Videos to Inspire Audiences in India to take Action on Ideas

Pinterest’s latest video updates highlight the value in storytelling with sight, sound, and motion as they enable creators and brands to upload more relevant and personalized videos on the platform and make discovering video content more seamless for Pinterest users. The video uploader tool enables businesses and creators to easily upload new videos directly to Pinterest to engage with new and existing audiences. Launching to users in India on Android and mobile web, Pinterest’s video tab will help users to easily discover video-only content with a new tab located in the navigation bar.

Videos are one of the top creative tools on Pinterest for brands and creators as actionable and inspiring content thrives on the platform. In fact, the number of video views on Pinterest has grown more than 240% compared to 2019 and Pinterest users are 2x more likely to view videos on the platform to find an idea, product, or service that they can trust compared to videos on other media platforms. As video engagement continues to grow, Pinterest is continuing to add features and updates to make it easier for users to discover inspiring and engaging videos to take action on.

With these latest updates to video that make creating and discovering video content easier on Pinterest, users can engage with an increasing number of how-to videos related to their interests, particularly in food, style, beauty, and learning a new skill.

Pinterest is the inspiration company with an app that more than 400 million people use each month around the world to find ideas for their lives. People come to Pinterest to try new things from recipes to home projects to new beauty looks, and much more.

Videos on Pinterest can be discovered over time and don’t disappear after they appear in the home feed, meaning the lifespan of a video is timeless. In India, brands such as Gobble, Anita Dongre, Pinkvilla and Livspace have already seen success on Pinterest in building their audience and sparking inspiration with their videos. In addition, Tastemade India will also be launching exclusively on Pinterest first. 

"Tastemade’s mission is to delight, engage, and inspire you through real-life storytelling, and now more than 87 million people view and engage with our videos on Pinterest each month. We’ve chosen Pinterest as the first platform to launch Tastemade India based on the overall growth of video engagement on Pinterest and our shared desire to inspire Indian consumers with engaging videos in the food, travel, and home & design categories. We’re excited to expand our global partnership with Pinterest and together provide Indian consumers with inspiration for their lives through highly engaging, premium videos." – Steven Kydd, Tastemade Co-Founder.

Pinterest will be holding a 2020 Video Awards where creators  from all across India will be able to submit their best video content across food, fashion, beauty, health & fitness.  The winners in each category will be awarded with a Pinterest takeover, amongst other prizes, and Pinterest users will be able to vote for a "Pinner’s Favorite 2020".

About Pinterest

Pinterest is a visual discovery app people use to find inspiration for their lives, including recipes, home and style ideas, travel destinations and more. People have saved more than 200 billion Pins across a range of interests, which others with similar tastes can discover through search and recommendations. Headquartered in San Francisco, Pinterest launched in 2010 and has more than 400 million monthly active users around the world. Available on iOS and Android, and at pinterest.com.

Photo – https://photos.prnasia.com/prnh/20200810/2880598-1?lang=0

Related Links :

http://pinterest.com

PR Newswire

DouYu International Holdings Limited Reports Second Quarter 2020 Unaudited Financial Results

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WUHAN, China, Aug. 10, 2020 — 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 second quarter and six months ended June 30, 2020

Second Quarter 2020 Financial and Operational Highlights

  • Total net revenues in the second quarter of 2020 increased by 33.9% to RMB2,508.2 million (US$354.4 million) from RMB1,872.7 million in the same period of 2019.
  • Gross profit in the second quarter of 2020 increased by 73.7% to RMB522.9 million (US$73.9 million) from RMB301.1 million in the same period of 2019, implying a gross margin of 20.8% in the second quarter of 2020, compared with 16.1% in the same period of 2019.
  • Net income in the second quarter of 2020 was RMB319.3 million (US$45.1 million), compared with RMB23.2 million in the same period of 2019, implying a net margin of 12.7%, compared with 1.2% in the same period of 2019.
  • Adjusted net income in the second quarter of 2020 was RMB322.9 million (US$45.6 million), compared with RMB52.6 million in the same period of 2019, implying an adjusted net margin of 12.9% in the second quarter of 2020, compared with 2.8% in the same period of 2019.
  • Average MAUs in the second quarter of 2020 were 165.3 million, compared with 162.8 million in the same period of 2019.
  • Average mobile MAUs in the second quarter of 2020 increased by 15.4% to 58.4 million from 50.6 million in the same period of 2019.
  • Quarterly average paying user count in the second quarter of 2020 increased by 13.4% to 7.6 million from 6.7 million in the same period of 2019.

Mr. Shaojie Chen, Chief Executive Officer of DouYu, commented, "We are pleased to announce that DouYu continued to deliver solid financial and operational results in the second quarter of 2020. In this quarter, we continued to demonstrate our ability to maintain our steady growth as our revenues once again outperformed the high-end range of our guidance, increasing by 33.9% year over year to RMB2.51 billion in the quarter. In addition, our adjusted net income in the quarter grew at a rapid pace, increasing by 513.7% year over year to RMB322.9 million. Going forward, by upgrading our high-quality content offerings on a continual basis, we remain confident in our ability to sustain our growth trajectory as well as further enhance our position as an industry-leading eSports-centric community with diversified live-streaming content."

Mr. Hao Cao, Vice President of DouYu, commented, "We continued to deliver solid financial results in the second quarter of 2020 as we increased investment in those initiatives with growth potential and higher operating efficiency. This investment strategy enabled us to sustain the growth trajectory of our revenues, bolster our ROI, and steadily improve the profitability of our platform. Looking ahead, we plan to continue exploring our platform’s monetization capabilities while also enhancing our operating efficiency to generate sustainable shareholder value over the long term."

Second Quarter 2020 Financial Results

Total net revenues in the second quarter of 2020 increased by 33.9% to RMB2,508.2 million (US$354.4 million) from RMB1,872.7 million in the same period of 2019, primarily driven by the increase in live streaming and advertising revenues.

Live streaming revenues in the second quarter of 2020 increased by 35.8% to RMB2,319.9 million (US$327.8 million) from RMB1,708.3 million in the same period of 2019. This increase was primarily due to the Company’s optimization of its platform’s interactive features and continuous refinement of its event models, both of which helped to further cultivate users’ paying habits.

Advertising and other revenues in the second quarter of 2020 increased by 14.5% to RMB188.3 million (US$26.6 million) from RMB164.4 million in the same period of 2019, primarily attributable to the Company’s improving brand awareness and the corresponding increase in demand for advertising products related to streamer promotion.

Cost of revenues in the second quarter of 2020 increased by 26.3% to RMB1,985.3 million (US$280.5 million) from RMB1,571.7 million in the same period of 2019, primarily due to the increase in revenue sharing fees and content costs. 

Revenue sharing fees and content costs in the second quarter of 2020 increased by 32.3% to RMB1,754.9 million (US$248.0 million) from RMB1,326.6 million in the same period of 2019. This increase was primarily explained by: 1) increases in revenue sharing fees, which were largely in line with the increases in total net revenues, 2) increases in content costs attributable to the Company’s investments in eSports-related content and market expansion initiatives in Japan, and 3) increased investment in tournament-related videos and in-house content production.

Bandwidth costs in the second quarter of 2020 increased by 9.8% to RMB168.4 million (US$23.8 million) from RMB153.3 million in the same period of 2019. This increase was primarily due to increases in the growth of mobile users and total user engagement as well as the Company’s ongoing efforts to improve the viewing experience of users.

Gross profit in the second quarter of 2020 increased by 73.7% to RMB522.9 million (US$73.9 million) from RMB301.1 million in the same period of 2019. Gross margin in the second quarter of 2020 expanded to 20.8% from 16.1% in the same period of 2019.

Sales and marketing expenses in the second quarter of 2020 decreased by 15.3% to RMB142.1 million (US$20.1 million) from RMB167.8 million in the same period of 2019, primarily attributable to the postponement of large-scale offline events as a result of the COVID-19 pandemic and related safety concerns.

Research and development expenses in the second quarter of 2020 increased by 12.5% to RMB94.9 million (US$13.4 million) from RMB84.4 million in the same period of 2019, mainly due to the increased investment in technological innovations as well as higher share-based compensation to related employees.

General and administrative expenses in the second quarter of 2020 increased by 8.4% to RMB79.5 million (US$11.2 million) from RMB73.3 million in the same period of 2019, mainly due to higher professional service fees related to the compliance requirements of being a publicly-listed company on the NASDAQ.

Other operating income, net in the second quarter of 2020 was RMB32.5 million (US$4.6 million), compared with RMB14.5 million in the same period of 2019.

Income from operations in the second quarter of 2020 was RMB238.9 million (US$33.8 million), compared with an operating loss of RMB10.0 million in the same period of 2019.

Adjusted operating income[1] in the second quarter of 2020, which adds back share-based compensation expenses, was RMB272.7 million (US$38.5 million), compared with RMB17.4 million in the same period of 2019.

Income tax expenses in the second quarter of 2020 and 2019 were nil due to the Company’s cumulative net losses and the resulting tax loss carryforward.

Net income in the second quarter of 2020 was RMB319.3 million (US$45.1 million), compared with RMB23.2 million in the same period of 2019.

Adjusted net income in the second quarter of 2020, which excludes share-based compensation expenses, share of income in equity method investments, gain on disposal of investment or subsidiaries, and impairment loss of investments, was RMB322.9 million (US$45.6 million), compared with RMB52.6 million in the same period of 2019, implying an adjusted net margin of 12.9% for the second quarter of 2020. 

Basic and diluted net income per ADS[2] in the second quarter of 2020 were RMB1.06 (US$0.15) and RMB1.02 (US$0.14) respectively. Adjusted basic and diluted net income per ADS in the second quarter of 2020 were RMB1.07 (US$0.15) and RMB1.07 (US$0.15) respectively.

Business Outlook

The Company expects its total net revenues to be in the range of RMB2,640 million to RMB2,680 million in the third quarter of 2020, representing year-over-year growth between 42.1% and 44.2%. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Conference Call Information

The Company will hold a conference call on Monday, August 10, 2020, at 8:00 am Eastern Time (or 8:00 pm 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

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: 

5488573

The replay will be accessible through August 17, 2020, by dialing the following numbers:

International:

1-412-317-0088

United States Toll Free: 

1-877-344-7529

Conference ID:

10146942

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 operating income" is defined as operating income adding back share-based compensation expenses. For more information, refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Results" at the end of this press release.

[2] Every ten ADSs represent one ordinary share.

About DouYu International Holdings Limited

Headquartered in Wuhan, China, 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 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, 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 non-cash impact of (i) share-based compensation expenses, (ii) share of income (loss) in equity method investments and (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, or superior to, 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 RMB7.0768 to US$1.00, the noon buying rate in effect on June 26, 2020, 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 June 26, 2020, 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. The announced results of the fourth quarter and full year 2019 are preliminary and subject to audit adjustments. 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

Mao Mao
DouYu International Holdings Limited
Email: ir@douyu.tv
Phone: +1 (646) 224-6934

Xinran Rao
ICR, Inc.
Email: DouYu.IR@icrinc.com
Phone: +1 (646) 224-6934

Media Relations Contact

Iris Ding
DouYu International Holdings Limited
Email: pr_douyu@douyu.tv
Phone: +1 (646) 308-1475

Edmond Lococo
ICR, Inc.
Email: DouYu.PR@icrinc.com
Phone: +1 (646) 308-1475

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

As of December 31

As of June 30

2019

2020

2020

RMB

RMB

US$(1)

ASSETS

Current assets

Cash and cash equivalents

8,091,990

8,178,190

1,155,634

Restricted cash

42,903

10,703

1,512

Accounts receivable, net(2)

188,100

160,610

22,695

Prepayments(2)

50,304

98,524

13,922

Amounts due from related parties

24,044

40,533

5,728

Other current assets

204,310

178,744

25,258

Total current assets

8,601,651

8,667,304

1,224,749

Property and equipment, net

38,909

35,236

4,979

Intangible assets, net

198,057

188,538

26,642

Investments(2)

225,534

481,671

68,063

Goodwill

30,973

14,032

1,983

Right-of-use assets, net(3)

–

85,516

12,084

Other non-current assets

8,547

17,171

2,426

Total non-current assets

502,020

822,164

116,177

TOTAL ASSETS

9,103,671

9,489,468

1,340,926

LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED SHARES AND SHAREHOLDERS’ EQUITY
(DEFICIT)

LIABILITIES

Current liabilities

Accounts Payable

890,039

1,078,540

152,405

Advances from customers

17,135

13,275

1,876

Deferred revenue

195,983

182,658

25,811

Accrued expenses and other current liabilities

392,347

297,498

42,038

Amounts due to related parties

298,733

263,966

37,300

Lease liabilities due within one year(3)

–

44,485

6,286

Total current liabilities

1,794,237

1,880,422

265,716

Lease liabilities(3)

–

38,276

5,409

Deferred revenue

46,070

40,074

5,663

Total non-current liabilities

46,070

78,350

11,072

TOTAL LIABILITIES

1,840,307

1,958,772

276,788

(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 RMB7.0942 to US$1.00, the noon buying rate in effect on Mar 27, 2020, in the H.10
statistical release of the Federal Reserve Board.

(2) The Group adopted Accounting Standards Update ("ASU") 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit
Losses on Financial Instruments" on January 1, 2020 with modified retrospective method, which do not have a significant impact on the consolidated
financial statements.

(3) The Group adopted Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" and its amendments on January 1, 2020 with modified
retrospective method. The  major impact of the standard is that assets and liabilities amounting to RMB97.7 million and RMB87.5 million,
respectively, are recognized beginning January 1, 2020 for leased offices with terms of more than 12 months.

 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

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

As of December 31

As of June 30

2019

2020

2020

RMB

RMB

US$(1)

Shareholders’ equity

Ordinary shares

22

22

3

Treasury shares

(168,567)

(695,098)

(98,222)

Additional paid-in capital

10,324,278

10,433,755

1,474,361

Accumulated deficit

(3,348,718)

(2,752,222)

(388,908)

Accumulated other comprehensive income

434,894

491,674

69,476

Total DouYu Shareholders’ equity

7,241,909

7,478,131

1,056,710

Non-controlling interests

21,455

52,565

7,428

Total Shareholders’ Equity

7,263,364

7,530,696

1,064,138

TOTAL LIABILITIES, CONVERTIBLE

    REDEEMABLE PREFERRED SHARES

   AND SHAREHOLDERS’ EQUITY

9,103,671

9,489,468

1,340,926

(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 RMB7.0942 to US$1.00, the noon buying rate in effect on Mar 27, 2020, in the H.10
statistical release of the Federal Reserve Board. 

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

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

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

June 30,

June 30,

2019

2020

2020

2020

2019

2020

2020

RMB

RMB

RMB

US$(1)

RMB

RMB

US$(1)

Net Revenues

1,872,729

2,278,035

2,508,152

354,419

3,361,853

4,786,187

676,321

Cost of revenues

(1,571,679)

(1,792,181)

(1,985,270)

(280,532)

(2,857,674)

(3,777,451)

(533,780)

Gross profit

301,050

485,854

522,882

73,887

504,179

1,008,736

142,541

Operating expenses(2)

Sales and marketing expenses

(167,759)

(107,357)

(142,058)

(20,074)

(291,328)

(249,414)

(35,244)

General and administrative expenses

(73,344)

(84,580)

(79,470)

(11,230)

(136,802)

(164,050)

(23,181)

Research and development expenses

(84,404)

(92,888)

(94,920)

(13,413)

(163,825)

(187,808)

(26,539)

Other operating income, net

14,497

16,578

32,454

4,586

29,382

49,032

6,929

Total operating expenses

(311,010)

(268,246)

(283,994)

(40,131)

(562,573)

(552,240)

(78,035)

Income (Loss) from operations

(9,960)

217,608

238,888

33,756

(58,394)

456,496

64,506

Other expenses, net

(3,766)

(10,018)

(8,382)

(1,184)

(3,879)

(18,400)

(2,600)

Foreign exchange gains

–

–

–

–

32,045

–

–

Interest Income, net

35,166

45,044

50,106

7,080

69,118

95,150

13,445

Income before income taxes

21,440

252,634

280,612

39,652

38,890

533,246

75,351

Income tax expenses

–

–

–

–

–

–

–

Share of income (loss) in equity method
   investments

1,716

1,892

15,132

2,138

2,418

17,024

2,406

Gain (loss) on disposal of investment or
   subsidiaries 

–

–

23,526

3,324

–

23,526

3,324

Net income

23,156

254,526

319,270

45,114

41,308

573,796

81,081

Less: Net loss attributable to non-
   controlling interest

(880)

(5,924)

(16,775)

(2,370)

(1,484)

(22,699)

(3,208)

Net income attributable to DouYu

24,036

260,450

336,045

47,484

42,792

596,495

84,289

Net income per ordinary share

Basic

0.86

8.18

10.56

1.49

1.53

18.73

2.65

Diluted

0.82

7.90

10.23

1.44

1.46

18.12

2.56

Net income per ADS(3)

Basic

–

0.82

1.06

0.15

–

1.87

0.26

Diluted

–

0.79

1.02

0.14

–

1.81

0.26

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

Basic

8,063,790

31,848,831

31,828,405

31,828,405

8,063,790

31,838,618

31,838,618

Diluted

29,351,365

32,976,034

32,864,145

32,864,145

29,343,741

32,920,090

32,920,090

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

Basic

–

318,488,308

318,284,051

318,284,051

–

318,386,179

318,386,179

Diluted

–

329,760,341

328,641,453

328,641,453

–

329,200,897

329,200,897

(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 RMB7.0942 to US$1.00, the noon buying rate in effect on Mar 27, 2020, in the H.10 statistical release of the Federal Reserve Board.

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

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

June 30,

June 30,

2019

2020

2020

2020

2019

2020

2020

RMB

RMB

RMB

US$(1)

RMB

RMB

US$(1)

Research and development expenses

–

5,563

5,575

788

–

11,137

1,574

Sales and marketing expenses

–

1,174

1,148

162

–

2,322

328

General and administrative expenses

27,383

35,114

27,130

3,834

45,213

62,244

8,796

(3) Every ten ADSs represent one ordinary share.

 

 

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

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

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

June 30,

June 30,

2019

2020

2020

2020

2019

2020

2020

RMB

RMB

RMB

US$(1)

RMB

RMB

US$(1)

Income (Loss) from operations

(9,960)

217,608

238,888

33,756

(58,394)

456,496

64,506

Add:

Share-based compensation expenses

27,383

41,850

33,853

4,784

45,213

75,703

10,698

Adjusted Operating income (loss)

17,423

259,458

272,741

38,540

(13,181)

532,199

75,204

Net income

23,156

254,526

319,270

45,114

41,308

573,796

81,081

Add:

Share-based compensation expenses

27,383

41,850

33,853

4,784

45,213

75,703

10,698

Share of income (loss) in equity method investments

(1,716)

(1,892)

(15,132)

(2,138)

(2,418)

(17,024)

(2,406)

Gain (loss) on disposal of investment or subsidiaries 

–

–

(23,526)

(3,324)

–

(23,526)

(3,324)

Impairment loss of investment

3,790

2,446

8,400

1,187

3,790

10,846

1,533

Adjusted net income

52,613

296,931

322,865

45,623

87,893

619,795

87,582

Net income attributable to DouYu

24,036

260,450

336,045

47,484

42,792

596,495

84,289

Add:

Share-based compensation expenses

27,383

41,850

33,853

4,784

45,213

75,703

10,698

Share of income (loss) in equity method investments

(1,716)

(1,892)

(15,132)

(2,138)

(2,418)

(17,024)

(2,406)

Gain (loss) on disposal of investment or subsidiaries 

–

–

(23,526)

(3,324)

–

(23,526)

(3,324)

Impairment loss of investment

3,790

2,446

8,400

1,187

3,790

10,846

1,533

Adjusted net income attributable to DouYu

53,493

302,855

339,640

47,993

89,377

642,494

90,790

Adjusted net income per ordinary
   share

Basic

4.51

9.51

10.67

1.51

7.31

20.18

2.85

Diluted

1.91

9.51

10.67

1.51

3.20

20.18

2.85

Adjusted net income per ADS(2)

Basic

–

0.95

1.07

0.15

–

2.02

0.29

Diluted

–

0.95

1.07

0.15

–

2.02

0.29

Weighted average number of ordinary shares used in calculating adjusted net income per ordinary share

Basic

8,063,790

31,848,831

31,828,405

31,828,405

8,063,790

31,838,618

31,838,618

Diluted

27,969,895

31,848,831

31,828,405

31,828,405

27,947,586

31,838,618

31,838,618

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

Basic

–

318,488,308

318,284,051

318,284,051

–

318,386,179

318,386,179

Diluted

–

318,488,308

318,284,051

318,284,051

–

318,386,179

318,386,179

(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 RMB7.0942 to US$1.00, the noon buying rate in effect on Mar 27, 2020, in the H.10 statistical release of the Federal Reserve Board.

(2) Every ten ADSs represent one ordinary share.

 

Related Links :

https://www.douyu.com/

PR Newswire

AppGallery Continues to Thrive in the Philippines Market

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The Philippines’ AppGallery is continuing growing, bringing a greater variety of relevant and quality apps to Philippines users.

In recognition of its committed partners in the Philippines, AppGallery has demonstrated the power of regional marketing to seven of its most popular apps.

SHENZHEN, China, Aug. 7, 2020 — Providing its customers with the most innovative new apps, the Philippines’ AppGallery has continued to grow over the past year. In celebration of this local-market success, seven partners have been selected to experience the value of regional marketing as part of a global campaign. Inspiring developers to realize their app’s business potential with AppGallery, the campaign is taking place across 20 countries, including the Philippines.

AppGallery: An App Marketplace That Aggregates Quality Global and Local Applications

One of the top three app marketplaces globally, AppGallery prioritizes the diverse needs of its worldwide audience by providing the best, new apps on both a global and local scale. AppGallery’s 460 million active users across 170 regions demonstrate the platform’s growth, with consumer needs a key focal point.

Huawei looks to local developers, inviting them to list their apps on AppGallery to meet the demand of consumers while supporting the local market. With innovative technology offerings and advanced marketing support, AppGallery offers a competitive route for developers.

Being one of AppGallery’s key markets, the Philippines has seen an acceleration of local app onboarding. Philippines’s AppGallery has been able to provide customers with access to some of the most popular local apps and services they need. Specifically, the top four e-commerce platforms as well as the top four lifestyle apps including Lazada, Shopee, Qoo10, Zomato, Booky and Eatigo have arrived on AppGallery. Consumers can also enjoy apps such as GCash, SHAREit, and PayMaya, all available on AppGallery.

Assisting Partners to Grow through Regional Promotion

Demonstrating AppGallery’s commitment to growth in the Philippines market, as part of the global scale campaign, seven of the country’s most popular apps have been selected for additional regional promotion to further enhance brand influence. 

Encouraging partners to realize their business potential through targeted marketing, the campaign demonstrates the value of AppGallery’s supporting promotion. The seven partners were promoted across television commercials and AppGallery’s regional platforms, featuring specially created video footage and supporting imagery.

Popular Philippines apps on AppGallery
Popular Philippines apps on AppGallery

As part of the wider campaign, AppGallery partners in the Philippines benefited from enhanced brand awareness in the local market, leading to an increase in app downloads and engagement.

Capitalizing on extensive marketing capabilities, the following apps received additional support as part of the campaign:

  • Shopee – a popular shopping app where consumers can buy and sell, Shopee has millions of customers looking to list products and shop for deals and discounts online.
  • Huawei Video – an increasingly popular entertainment platform, Huawei Video provides users with access to the latest films, TV shows and series.
  • Lazada – continuing to grow beyond the Philippines, Lazada offers consumers an effortless shopping experience and claims to be one of the leading apps in ecommerce.
  • WattPad – a popular writing tool, WattPad connects 80million users across the globe to discover and read each other’s stories, encouraging writers to read original work first-hand and share their own.
  • Lords Mobile – one of Huawei’s most popular gaming options, Lords Mobile boasts of high scoring reviews due to its original, adventure-driven style.
  • WeChat – with over a billion users worldwide, the social platform WeChat encourages connection between users, inviting consumers to play games and use local features such as WeChat Pay.
  • Foodpanda – host to some of the most popular restaurants and cafes, this delivery-based app allows its users to conveniently browse and order from local outlets based on location.

Each partner experienced a surge in user downloads, with AppGallery’s regional marketing resources driving this progression.

AppGallery’s Commitment

Through its commitment to the Philippines’ market, AppGallery has driven download figures and consumer engagement on local apps. By supporting developers in key market regions, AppGallery can ensure its customers are provided with the best possible app selection. 

AppGallery is dedicated to listening to its customers. Through its ‘Wish List’ service, users can submit the apps they would like to see on AppGallery, receiving a notification once it’s available. Since January 2019, AppGallery has onboarded over 580 apps in response to Wish List.

For more information, visit: https://developer.huawei.com/consumer/en/huaweihealth

For more partnership stories and discussions, visit the HUAWEI Developer Forum: https://forums.developer.huawei.com/forumPortal/en/home?fid=0101246461018590361

Photo – https://photos.prnasia.com/prnh/20200807/2879602-1?lang=0

 

Related Links :

http://huawei.com